Transcripts For CNBC Power Lunch 20170707

Wage as power lunch starts right now. It is friday and we are in love with the stock market apparently because that big league jobs report has stocks higher and we should finish higher for the week once again the douby the way is now up more than 8 for the year some of your individual standouts today, you have the Home Builders as well as semiconductor and equipment makers lam research and plied materials. It is not all sunshine today sears shares down again. Announcing even more store closings more on that later on. Tyler . Thank you very much welcome, everybody we begin this hour with this first face to face meeting of President Trump and russian president Vladimir Putin in hamburg, germany beyond that meeting, so much to talk about steel, tariffs, trade, protectionism, climate, north korea. Ayman jaefrs live with the latest eamon . We are inside the hotel here in hamburg it was hairy on the streets here with the protesters out there marching against the g20 some rioters smashing the hotels of the ho pel where we are and we are inside and we can tell you that Vladimir Putin and donald trump did meet just over two hours as you say we got a little bit of an idea of what they talked about going in we saw pictures and then heard from the president , his take on what they were going discuss heres what he said. President putin and i have been discussing various things and i think its going or the it is very well we will have a talk now and obviously that will continue but we look forward to a lot of very positive things happening for russia, for the United States and for everybody concerned. And its an honor to be with you. Reporter so the president there saying its an honor to be with you to Vladimir Putin but not giving us a lot of indication on what specifically was talked about in that session between the two leaders. Angela merkel addressing reporters here gave a little bit of a sense of whens been discussed so far today at the g20 including saying that the g20 offers a chance for a multilateral steel agreement and also saying that the President Trump attended the first part of a climate meeting and took the floor at the meeting, that being a flashpoint here, a lot of european nations angry that the United States is pulling out of the paris climate accords and then Angela Merkel saying that they agreed to Work Together to dry up sources for funding for terrorism and the members to talk closely with internet platform operators on security so thats something that the tech sector might want to keep an eye on and we are told that Senior Administration officials are going to brief reporters here a couple minutes time and expecting more details of what exactly was hammered out between the u. S. And russian sides when they brief and bring you that as soon as we have it thank you very much. One of the wig big takeaways of the meeting of President Trump and president Vladimir Putin has the president performing at the first g20 meeting . With us is angela stent director at georgetown and dan dresner. Thank you for joining us two and a half hour meeting. Scheduled for 45 minutes we also did get an announcement about a potential agreement of a cease fire in syria. What do you think, angela . Is this far more significant than what people had originally anticipated to come out of this . I think it is i think everybody deliberately down played expectations before the meeting and a pull aside and then be a bilateral meeting. If they talked for that long, they must have talked about substance. We hear they made an agreement of cease fire in syria i would caution, of course, we have had agreements in syria with the russians before and broken down but i think it is significant and i think if even when you looked at the body language of the two leaders before they went into the closed meeting they went out of their way to be respectful towards each other, praise each other, putin stressing that bilateral relations are important. So are multilateral relations an means im a great world leader im not a Regional Power as president obama once described russia with President Trump saying he was honored to meet him. Both of these president s wanted to come out of this looking like a winner, showing to sure. I want to get dan in here, as well tantalizing headline crosses from intrafax, Russian News Agency putin telling them they discussed Cyber Security with trump. Do you think they talked about the u. S. Election . Let me put it this way, it would be damaging to trump talking for more than two hours and the election didnt come up. You can understand in a meet and greet of a half hour without an agenda trump not necessarily brought it up an no expectation he was going to bring it up but talking for two hours and among other things Cyber Security was on the agenda, if the Election Hacking did not come up or the degree of disinformation spread by russia in the campaign did not come up, thats very damaging to trump domestically. You know, dan, one thing to tend to forget about with trump and russia, put season a strong leader in his own way, but the country is not strong. Youve got an economy that is shrinking. You have unemployment thats up from a couple of years ago effectively a one or two commodity economy. Do you believe that in these negotiations personal stuff aside that putin has any position of strength coming into this discussion . Well, he has a few, you know, tools up his arsenal one of which is that donald trump clearly wants better relations with russia and has we have been hearing stories for stic six months now the degree to which the Trump Administration wants concessions, return of compounds to the Russian Federation or accommodation on syria to generate better goodwill do you believe that russia is a strong or weak nation economically economically in weak nation. How about militarily . Militarily, theyre stronger than they were ten years ago they did a decent job of building up the military and if nothing else Vladimir Putin demonstrated the will if he wants to to use force in the near or broad as he defoons and no question theyre more powerful militarily. Angela, whens next first of all, the russian economy turned around. It is growing this year. Yes, it has problems and clearly Falling Oil Prices and sanctions and the lack of reform have affected it badly but its doing better they have weathered the worst of the crisis so far. It was contracting 5 . Yeah. And so it was in a deep, deep, deep recession so anything above a contraction is i mean, i wouldnt consider that better. Just slightly less worse. Their agricultural sector, in fact, done quite well from the counter sanctions imposed on the europeans so the pictures maybe its not a black and white picture an of course they do have the ability to project military power not only in the neighborhood but in the middle east i mean, they have come back into the middle east in a way that they havent been there since before the theres another headline to get to which surprised me a little bit. Diplomatic speak, for the audience not familiar, when things go very badly in a meeting, diplomats say it was a frank discussion Angela Merkel today said the discussions about trade are very difficult. I dont want to talk around that that is above and beyond what you would normally hear from a leader during one of the meetings it suggests that behind the scenes, put aside putin, but the issue of trade is really dominating these discussions arent they, dan yeah. I mean, and this is obviously been a thorn in the g20s side because while most of the members of the g20 by an large, you know, been consistent in calling for restraint on protectionism or promotion of free trade, donald trump sounded extremely different note and this summit is happening just as the Trump Administration contemplating section 232 which is a National Security exemption in terms of raising barriers to trade in terms of steel imports and problematic for a number of reasons and not the least of which is the Trump Administrations complaint primarily of low cost chinese steel and the chinese doesnt import that much and no small part because the Obama Administration implied regulations and any type of action against steel is going to be directed against our allies which are primarily canada, south korea and germany. And so that would be understandably upset if these kinds of across the board tariffs imposed and still unclear to degree to which the administration will go forward on this. We are waiting to see that. The administration also argues that, in fact, they think what happens is chinese steel ends up in the other countries because of dumped elsewhere and ultimately ends up here and a discussion for another day great to have you both really appreciate it and will and dan. Monthly payroll number blowing past estimates jobs grew in nearly every sector Steve Liesman who lied in russia for a while is here. Anyone characterize this besides a good report . English or russian . As you prefer. English i think its characterized as a very good report and rumors of the death or the softness of the job market premature and exaggerated. A quote of oxford economics. Very much from brian said. A solid report that reflects still strong increases in payrolls and modest gains and heres the numbers they like looking for 174,000. March, april revised higher. Unemployment rate ticking up and you get it in the noninflationary way and average hourly wages disappointing, a modest gain right there. Heres where the jobs were leisure and hospitality, government and all local that government level federal down construction, temporary help and retail, first job gain in five months over at barclays, saying the fed believes activity and labor markets will lead to higher inflation and likely comfort that the recovery will continue despite the modest removal of accommodation. The market, not so much. They really didnt increase rates today. Whatever they think is going to happen this year, for the fed was confirmed by this number this morning. Actually, rates at first fell marketedly. Came back on wages and the Unemployment Rate rising, right exactly. Theres a great chart for the discussion or i can show you now. Save it. Okay well come back to it and show you how you pretty much nailed the number on payrolls. Over time, reversion to the mean ends up making it plus or my nous 50,000 time and im on a good streak. Play that number. 220. All right. Stick around the big dilemma of the fed now raising rates and inflation is still low for the fed. So hows this going to play out for investors . Bring in tom percelli. Tom, what is your spin first on the jobs reports and what it says about the economy and second, what it does or doesnt say about one of the feds key metrics, inflation so the unemployment report broadly speaking suggests a consistent pace. 2 the 2. 5 clip nothing changed in that regard we thought it was a good report and even sort of a guts of the report we thought fairly constructive some people made a big deal of the up tick in the Unemployment Rate and keep in mind, not too much in the weeds on this one point, but keep in mind it came with a labor force that actually rose by 361,000 which generally speaking is a big increase and expected a more sizable increase and the reason you didnt see that is because huge portion of that 361,000 increase absorbed via employment so it was a really nice outcome overall. The wage picture i get it. Right . Average Hourly Earnings is what Everyone Wants to focus on and wrong. We have been saying this for years. Average Hourly Earnings is an incomplete measure of wage picture in the United States you have to also look at hours and when you do that and see we had an increase in hours so the paycheck for folks actually increased over the course of the month. So netnet we thought it was a good report that keeps the fed engaged in this cycle. I dont understand this people worried about wage growth not as strong. If that many more people entered the labor market, thats a good sign they think they can get jobs increase that would tend to absorb any potential wage increases as if they hadnt come into the market. It is all about the question of where full employment is. Where is the point where how do you say this . Where the job market is tight and therefore employees have the ability to bargain for higher wages. Now, can i just get to the really cool chart here hold on i think its an important chart. Let the chart hang out there. A greatest tease were deep tease no to michelles point, if old people retire and young people are coming in thats a component of it. Less money. Wouldnt we not see wages go up because of demographic issue over a year you have historic baby boom retirement what you dont see, though, is overall wage growth for the level of unemployment where were at a fen you look at the last two times we were there, here you go. This is your chart . This is my chart which shows you the last times where the blue line dips down, where its near the Unemployment Rate of now. What happened to wages rising at about the same year over year rate as go on ahead to the next period that happened down to that low Unemployment Rate wages were rising. And then look at the gap now you can see that for the given unemployment where we are now wages are severely underperforming which im sorry to say to the great economist that undercuts the argument a little bit previous times with the low Unemployment Rate we have had stronger wage gret. Yeah. So its a totally fair point heres what i would say. The problem is wage rigidity its funny we have been half joking saying we need more quitters in the labor force. More people to leave and take a job if you look at a chart of quitters today verse where they were sort of in the previous cycle, theyre roughly similar the quit rate is roughly similar. Whens different wage rigidity. Wages are rigid today. Basically people that are staying at work that are seeing zero wage increase, its extremely elevated right. So what has to happen from there to push it along its sort of a circular idea the beginning of the conversation you actually need people to leave because guess whats happening. People leaving the work are rewarded for leaving the quitter run rate from a wage perfective is one full Percentage Rate higher than people that stayed so sort of a what does that mean, tom . So yeah what that basically means if the cycle moves classically in a tight labor market then people that stay, they dont necessarily have to leave because employers will pay them not to leave and thats usually how it happens. In fact, you are starting to see signs of that developing right now. I come at it from a different point. I think the dynamics of inflation are either more or even dead at this point. I think a big part of that is a little bit what tom is talking about which is the Global Nature of production. Okay. You compete with people all over the world in ways that you never did before and at kind of occupations you never did before the ability of this mechanism looking to, tight labor market leads to wage growth leads to inflation i think that process is broken and in way that is when i listen to the fed i think theyre beginning to believe this. Models are outdated i dont know. I dont think we have another idea to take its place for that why is the job market growing and gdp continues to lag another interesting point. Doesnt match up. Something is wrong in the way tom, im so sorry we have to go. Appreciate it. Next time next time. Next time thank you, tom. Jobs actually grew in the oil sector, as well, despite the continued slide. All the new rigs every week helping put people back to work. Lets find out if they grew again. Jackie good afternoon, brian thats right baker hughes reported to see an increase in rig count. Seven more oil rigs added for the week and up to 763 this is up from 412 last year. Remember, we had 23 straight weeks that the number was going down last week, we had a slight bump. This week, a slight bump, as well this is certainly supportive, constructive traders went to see a trend here and see it build up a little bit more you can see momentum to the downside today and they continued to slide session low was 43. 78 but two weeks in a row now that we are going up. Back over to you. Thank you very much now a market flash. Hi. We are watching shares of tesla. Added to earlier gains after updating the quarterly vehicle and production report. Tesla now says that in addition to Second Quarter deliveries about 3,500 vehicles in transit to discuss merles at the end of the quarter. These will be counted in Third Quarter deliveries shares as you can see rebounding slightly after falling as much as 15 in week through yesterday on lower than expected Second Quarter deliveries and new model s safety issues. All right thank you. On deck, wheres the beef . Prices on the rise and theyre taking a big bite out of the bottom line of restaurants but is the economy Strong Enough to handle this kind of an inflation . Well ask rest raur and is the oracle of omaha seeing a market downturn ahead why the latest multi billion dollar bet might be sething off alarm bells for your money uch. Thank you so were a go . Yes we got a yes what does that mean for purchasing . Purchase. Lets do this. Got it. Book the flights hai si si ya ya ya what does that mean for us . We can get stuff. Whats it mean for shipping . Ship the goods. Youre a go you got the green light. That means go oh, yeah. Start saying yes to your companys best ideas. Were gonna hit our launch date scream thank you goodbye let us help with money and knowhow, so you can get business done. American express open. What should i watch . So you can get business done. Show me sports. Its so fluffy look at that fluffy unicorn hes so fluffy im gonna die your voice is awesome. The x1 voice remote. Xfinity. The future of awesome. Striking a deal for one of americas Power Transition companies of encore which is owned by Energy Future but what does this deal possibly signal about the intentions and thoughts on the market lets bring in shareholder Jeff Matthews on the phone. Fifrs off, are you happy with the deal i think its great deal for berkshire. Its what he would like to call a slow pitch down the middle 18 billion of cash. Hes going to earn a lot more on that than holding the cash in the bank it doesnt dent his war chest. He can still hunt for elephants and meantime bags a deer. Pretty nice when 18 billion doesnt dent your war chest. I have to admit. You know, this also by the way makes Berkshire Hathaway one of the americas Biggest Energy producers. We have a chart of 1999. Seems a lifetime ago but october of 99 buffett bought mid American Energy and then we know what happened. The market tanked as the intranet stocks rolled over. Do you think this deal is in any way a buffett hedge against a possible downturn . I have to say i dont i really think its just something that came down the spike. Remember, this is berkshire mentioned in connection with this maybe six months ago i think their name first came up i dont think theres any kind of market timing issue here. I think its just an opportunity that came along. Buffet does not time the market. He looks for deals and when the price is right he will go at it. I guess he must sort of accidentally or ins didntally timed the market well in 99 but doesnt signal anything here other than a good deal. Yeah. No you know, think back to then it was just old economy in the tank and cheap and he was buying all the economy and then that happened to look really smart and doesnt sit around and say, what do i time today. It did and berkshire stocks up this year thank you. Have a great weekend. Headlines crossing that are coming out of hamburg. We have seen the foreign ministers, in our country the secretary of state and tillerson speaking and lavrov in russia. And the headline from secretary of state Rex Tillerson is that the two leaders acknowledged the challenge of Cyber Threats and interference in the democratic process in the u. S. And other countries so it appear that is the election was discussed during the meeting the you heard the discussion at thetop of the show about whether or not this was going to be addressed lavrov confirming there was an agreement on a cease fire in syria starting july 9th. Jordan also announcing that, as well and theres also been u. S. Representative whens going to visit ukraine appointed to ukraine. A point that continued occupation in the western part of russia and taking over of crimea and still is the reason why sanctions still exist against russia eamon is out of the meeting there and joins us from hamburg with more. Eamon . Reporter yeah, hi, michelle. Senior Administration Officials are briefing reporters as we speak and one of the pieces of news here is that theyre saying that President Trump opened his meeting with president Vladimir Putin of russia by raising the concerns of the American People about russian interference if the u. S. Election and answers a big question that a lot of people had going into this would President Trump raise that issue and there was some sense here in a meeting that went as long as this one did over two hours that it would be nearly impossible for the president of the United States to avoid that topic and now we are being told by u. S. Officials that, in fact, he opened with that topic and pressed president putin repeatedly, talking about Cyber Security and interference in democratic processes around the world we are told and that ultimately led to the agreement on a frame work here in terms of Cyber Security Going Forward the officials are framing this very much as a discussion about the future of the u. S. russia relationship and saying that the two lead earls discussed a number of important issues including on syria and you guys have been discussing theyre saying that the United States, russia and jordan agreed to a deescalation process in the southwest part, particularly near the jordan border of syria. That they say is laid out in very specific detail including who will get to control the region there exactly how that will be handled and the timing specifically of any cease fire thats going to take place there over the weekend, this weekend. That briefing is ongoing and bring you more headlines as we have them. In fact, as you were speaking, eamon, Rex Tillerson quoted as saying its not clear to come to a conclusion on election interference but that the u. S. Is seeking a commitment not to interfere in u. S. Affairs and theyre focused on how to move forward on what may be an intractable difference. Reporter yeah. Thats a diplospeak for agreeing to disagree if russian side has not acknowledged any interferon in the u. S. Election. U. S. Intelligence concluded that, in fact, they did and the president of the United States occupies sort of a third space here where he says he believes it may have been russia and may have been somebody else. So with all that going on, it is unlikely that the russians, a, acknowledge that they did it, and b, agree to take any steps not do it in the future if theyre not acknowledging that they did it in the past. Nonetheless, the president pressing president putin on this issue. Officials saying first right at the beginning of the meeting. So thats an important point from the white house often in legal matters, of course, when people agree to settle a case, they agree to not do what they said they werent doing in the first place and so, maybe thats the most you could ever expect out of this that well agree not to do reporter Cyber Security experts will tell you that the russians conclude from this that this kind of sort of below the response threshold activity really works it was effective and the ukraine and Central Europe and United States and will be tempted if theyre not already making plans for 2018 and then of course in the president ial election in 2020. You talked to some republicans in washington and they are concerned thinking that its not clear how those elections play out and what side the russians decide to come down. Looking at live pictures as you speak, eamon, looks like macron walking in with donald trump and his wife, as well, with the first lady walking into the main hall for what locks like some kind of a this is the Angela Merkel walking in, as well. The g20 concert here at a brand new, gorgeous facility here, symphony hall, the elfi is the nickname for it. A social piece of the event, an opportunity for the World Leaders to gather. It is a beautiful facility we have seen the outside of it i havent been inside and seeing the interior now and the World Leaders we saw all walking in. President trump coming almost directly from the meeting with Vladimir Putin to this meeting we saw he and the first lady walking in together just moments ago and now taking their seats there in the hall. Not clear whats on the program here tonight but some entertainment after the work day remember, it is about 7 30 p. M. Here in hamburg, germany. You will be shocked to hear crossing as we were speaking that tillerson told in his speech or in his talk that putin denies hacking the u. S. Election reporter he denies hacking, right. Consistent with his previous denials of hacking and shocked to hear hes confirmed the thing he said all along. Is hacking eamon, also Cyber Security expert. Is hacking the right term or meddling seems more appropriate people have come up yeah. People asked me did russia go in and change votes on computer servers . Right. Which the word hacking implies that yeah. Thats a good point. I mean, hacking would imply that in this case, the was the theft of emails which is a hack, right . It was a much more socially sophisticated hack, right . Not just involving the hacks of particular emails but also deploying those, strategic release of information in a very savvy way designed to impact Voter Sentiment here in the United States and something russians have done in other countries, first time we saw it rolled out as aggressively in the United States and much more than a hack. Thats a picture there with xi xinping of donald trump macron of france merkel, as well as other leaders. I believe the south Korean Leader sitting to the president s left that is really a wheres putin . Havent seen him maybe hes still apparently Vladimir Putin and, michelle, you might know more than us likes to make the entrance known as being the last man in the room which is, you know, sort of a universal sign of social power. Famous for making everyone wait all the time. No matter how if youre an equivalent, head of a state, he made Angela Merkel, wait very angry. Coming in the late comers seating break. A power move, right im more important ill make you wait. Christine lagarde this is a new theater as you mentioned, eamon, built at cost of 200 million and i bet the acoustics are great in there i wish i could hear what theyre saying right now drfr talking with macron. Said to be fabulous, michelle it is said to be a fabulous facility and also told that this facility is focus of the ire of the protesters that we have seen out in the streets they feel they spent too much money on the facility and they feel its sort of a focal point for the globalist capitalist elite and in the streets here today. To your point, the number i just quoted was the original price tag. It went over budget to 243 million. Way overbudget these things tend to do this. I dont want to put you on the spot here, buddy do we have any idea how locations are selected and why hamburg was selected if youre going through a list of cities where you probably dont want to have this kind of meeting, i would imagine hamburgs at the top not because its not a nice place but to your point, eamon, a sort of capital in germany of sort of a resistance, anticapitalist movement the meeting is a city thats hard to manage with the water. Do we know why they selected hamburg . Reporter well, that is a point of contention here in hamburg today. People feel like this event should not have been hosted here give you a sense of the geography here we have our backs to the river here about a mile to my left is sort of a headquarters of the Anarchist Movement, the neighborhood where that movement is centered and seen a lot of riot activity and Police Activity and then about a mile or more to my right is elfie with the World Leaders gathered. They couldnt be closer to the epicenter of the Anarchist Movement in this city seeing the activity over the year to your point. Some people have said, you know, maybe it wasnt the right place to hold this and maybe they should have held it at a country retreat and not a major city near a university with this kind of history to it nonetheless, the World Leaders are here Angela Merkel wanted to show that germany could do this. We are looking at modi next to Justin Trudeau on the screen. Sure. To tylers point, you can imagine the security levels to have so many important people in the same room at the same time. I will get in significant trouble because the 0 producer is a germanamerican well watch some video and peruse the German Language Network paper this morning what are they saying putting her on the spot poor thing working here in the meantime waiting for trump not too critical according to the german papers. Hamburg very famous for shipping, eamon. Lots of shipping bankers are there. Reporter yeah. A lot of shipping. This is a major port facility. We have been staring across the river at the port facilities here in hamburg legendary and go back centuries and as we were talking and looking behind me and see a sort of a flotilla of protest boats floating in the river here that are going right past that area where the elfie is and the World Leaders and taken to the water here as well as in the streets of hamburg to get the message across that this banner on the boat that just sailed just behind us just now said time for a change so the protest movement is visible here and not to those leaders inside the concert hall right now. Got it. Thank you, eamon you bet. With the headlines of what happened between Vladimir Putin and u. S. President donald trump. Were going to take a break now, me, ght . Co back, talking the markets dont move. Why not whoooo. Youre searching for something. Like the perfect deal. On the perfect hotel. 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Im sue herera police say the hostages have been freed in the Wells Fargo Bank robbery northwest of atlanta. The suspect remains inside were monitoring that ongoing situation for you. The Uks High Court rules today if a british baby can come to the u. S. For treatment. Two u. S. Hospitals believe they may be able to save 11monthold charlie gard he suffers from a deadly genetic condition. Firefighters investigating what caused an apartment complex under construction to go up in flames today in oakland, california and damaged at least one house. Do reports so far of injuries. And a freak play in the pittsburgh phillies game a phillies bat flew into if stands last night. The play is in play. The first baseman didnt know that he missed the ball the result, the phillies got the first run and couldnt hang on on the the lead. The pirates won, 63 thats the news update this hour back the you guys. Ty all right thank you very much, sue appreciate that. The latest data showing a big jump in jobs, 222,000. Added in june. That is the most in four months. So is the economy back on track . Jobs are growing is the economy again joining us are mark morel of the urban league and also joe watkins, former white house aide to president george h. W. Bush. Welcome as always. Thank you. Obviously this looks like a good number, higher than the anticipation brian raised a very interesting point. Jobs are growing but the economy doesnt seem to be very much why . Well, it takes time i think i mean, rome wasnt built in a day. Youve got a new president who certainly is promising to do some things with taxes, reform taxes and to spur the economy. Spur job growth. This is a great sign i mean, 222,000 jobs this month is great news for the economy. I know that the u6 number up a little bit and Labor Force Participation rate also slightly ticked up just a tad and wage growth is still sluggish but i have high hopes for Economic Growth Going Forward. I think we are headed in the right direction. So mayor, what do you think do you think that the economy will get out of sort of first gear here being sort of one, 1. 5 growth rates and get to second gear for the second half of the year and maybe moving towards third . The obama jobs recovery continues. This is now almost eight years of continuous job growth and thats a positive sign for the economy with unemployment coming down. If you ask me what it takes to increase Economic Growth ill tell you we need wages to increase because Consumer Spending represents 70 of the American Economy and when americans earn more money their propensity to spend is greater and that has an Overall Economic impact and why as unemployment has fallen havent wages risen more . Well, i think the question is, now that unemployment is where it is, we have a tightening of the work force but a tightening of the labor market but i think, ty, we still have thisenge where we have jobs that require lots of skills, chasing people yet on the other side of the ledger, we still have people who are looking for jobs where not significant skills are required. So sorry to jump in, mark, but often, joe, its because theyre in different places r. They not . I mean, if you look theres people that need jobs and the midwest or the northeast and all the jobs are in the south or the southwest. And theres no way for them to get to each other because maybe youre stuck in a mortgage you cant get out of is there anything to do to help match up the geographic disparity that we are seeing in america . I dont know if theres anything to do you make a great point, brian. Youre right on point. I dont know theres any easy thing to do to match folks up from a geographic standpoint but from a sector standpoint look at the sectors that are hot as it is, the legislative side we dont have anything going with health care and the number of Health Care Jobs jump this month. Thats a good indication of, you know, where theres opportunity for people looking for work. All right, gentlemen, thank you very much. We have to leave it there. Im sorry. We have a lot of news today and were tight on time. Guys, thank you again. We want an update on the bond market which is today all about this mornings job report. It was a rock n roll session when the jobs report first came out, everyone focused on the weak wage growth and we saw yooelds drop markedly and then a lot of economists, traders saying, you know what . Every other part of the jobs report is very, very strong. We started to see Interest Rates go up. So you see that the 5year, 10year and 30year is higher. The 10year yield at 2. 38 and the 30year reapproaching 30 . The 2year is getting buying and actually seeing green on the left and red on the right is yield curve is steepening. You know what else is deepening . Beef prices. How theyre dealing with the high cost of meat and if you didnt bring food, the segment wont go well. Were back with that 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. Your favorite steak dinner may cost you more this summer because global beef prices risen every month so far this year some steakhouses reporting hikes as much as 30 from distributors just last month hows it impacting the restaurants . Bring in willie, founder and ceo of uncle jacks steakhouse in new york and former host of restaurant steakhouse, a Reality Tv Show on the food network and the voice from check please. Good to have you here. Beef prices are rising. Why always happens. Why grilling season big retail like costco load up on it. People home cooking more than ever green dome guys, guys charcoal, grilling, fire roasting. Jack the prices. This is a remarkable move from memorial day to the fourth of july, 30 doesnt happen every year. Fluctuates. Always a reason now today with big corporations who are running the running the pakards and controlling the market so between grilling season and big retail and china market. Minimum wage Restaurant Business today and i talk about it being under attack the labor increases and everydays a war basically i am a general and i am fighting this war everyday you wake up, do you want to be in the business or not build more concepts. The whole industry is being a little dummy down and social media has changed the way people eat today. Why callers, cheesy and comfort food and all the normal Great American stuff are made from scratch, deli at your favorite place and people lining up for cool shakes and whats the unicorn and rainbow color a because it photographs better visualization i have the make the place for camera ready then . Some of the food they are putting out on social media are edible it wows you and you are enticed to it and you are sharing these videos we did a bacon wrap with the bacon that i have set up for you. Thats crazy, we would eat that, we would have to charge 200 or 150 for ta steak. It is stuff you dont serve but you show the pictures. Well serve it. It is like Womens Clothing on the runway nobody would buy that but it serves as a Marketing Tool yeah, women is pulling its sets and breaking boundaries and wow factors and it trickles down can i go back to michelles point. Forgive me and i dont want to be fake news the cost of running a restaurant is almost twice the cost of the next it is not just rent, it is lab labor. Labor increases took right out of my profit a family of four going to apple jacks and a couple of glasses of wine for grown ups, a couple hundred dollar bill they cannot more casual, diner, american style, american grill, burgers and sandwiches and comfort food, great atmosphere and cool energy and funky and selfie worthy. I put a selfie mirror in the bathroom and all different local areas so you go to the bathroom and takes selfies and come out on social media and print your pictures on the wall i am adapting. Whats going on the scene or the food . Today with the younger people is more of the scene and the selfies. Real mirror for me it is the food, we have to go to break because i want to take a bite of that. Yeah, that looks good you are a great guest, thanks for coming on. So fun good luck with your biz thats it this 35 million home belongs to one of the worlds biggest weight loss entrepreneur the power house of t wk. Heee look at that hes not eating this next burger like i am thats a great idea, but why dont you just go to thinkorswims chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders . I know. Your brain told my brain before you told my face. Mmm, blueberry . Tap into the knowledge of other traders on thinkorswim. Only at Td Ameritrade. Each week we take you into the homes of celebrities of the ceos whos house are we seeing today robert this 35 million beach property, delmar california is the home of jenny craigs. Ent enters through the front gate. Jenny owns the property for 30 years and she is not spending much time hair especially her love for horses from the light up photos jenny has been involved with horse racing for years and for just steps away from the delmar horse races. The delmar home has five bedrooms and seven bathrooms head up the spiral testaircase o reach the suites that offers an incredible view of the pacific ocean. Down be low is patio pit and seatings for your friends. This home is the largest beach front property to come to the market in delmar for the last 50 years. 35 million, this pacific sunset can be yours. Jenny has been a very Smart Real Estate Investment she bought it back in 1986, 3. 2 million oh gosh you know when you be i that view, you will have it forever and it is worth it sth it is wonderful that one i really love. Coming up one markets watcher warning, could a downturn be around the corner for high schools too high profits, meet the two teens catching on the fidjet spinner crazy. The second hour of power lunch starts in 90 seconds or less oin. Thats how i created the ripple the doughnut in a doughnut in a doughnut. Suddenly its everywhere. I mean, it really took off. What will you create with your points . Learn more about the ink business preferred card. Good afternoon and welcome everybody, the second hour of power lunch, i am tyler madison. Here is whats on the menu states of pain is not just illinois feeling the squeeze when it comes to its budget. The next state that could be headed for trouble not fidgeting around two kids are building their business in a couple of months power lunch starts right now lets get you check in the market of todays gain, all three are higher for the week. And nasdaq is by 1 . Nasdaq is higher by 70 points. Kellogg and Campbell Soup and General Mills and jm smucker this is even as we see longer terms Interest Rates rising today. Those are higher across the board between 2 or 3 tesla is back in the green today higher by 1 or 3 bucks to 3 311. 86 live in germany with the latest, eamon reporter exactly, thats right, Russian Foreign minister lavrov puts out a statement saying President Trump accepted putins assertion that russia did not med el in the 2016 elections. Let me give you a couple of bullet points of what we know. They did discuss, Rex Tillerson, has been briefing reporters this afternoon. U. S. Relationship is Going Forward. The two men did not want to spend time dwelling on the past and wanted to move forward both russians and the americans have been upset of each other. They wanted to come up with some concrete accomplishments in the session. They talked about russia interference of the 2016 election President Trump opened the meeting on that subject. The south western part of syria and Syria Ceasefire and the north korea threat and cyber crime was discussed. That maybe a code for russians interference in the u. S. Election in 2016, the two sides saying they can the following he said with regards to interference of the election, the president took note of actions that have been discussed by congress and most recently additional sanctions thats been voted out of the senate to make it clear as to the seriousness of the issue what the two president rightly focus on is how we move forward. I can tell you that democrats on capitol hill and back in washington will not think that is an aggressive stance in the part of Rex Tillerson and the president of the United States well see where diplomatic wrangling goes between the two sides. Well wait on more information on the russian sides on their take on their highly anticipated meeting. Back to you. Well see in a bit. What can we take away so far. What we know about trumps meeting with putin joining us is editor of the weekly stand i want to get your take on what we heard over seas with the president. It is a meeting that nobody wanted to end and Melania Trump tried to break it up it would be good if the president took a strong stance in syria, maybe they got some useful and minor agreements there. We have fundamental inconvenience with russia and putin. The trip is how ordinary what it struck me. It is not like Obama Meeting with putin they tried to reset and after the election, it maybe different. Putin took all of that and ignore it and interfered in the election of 2016 i wish i have more confidence that trump is sending a different message than obama is sending. They dont look too happy there. Two happy guys there. They dont look ted too happy more dialogue more time is better than less time if you look at stock prices, bill theyre in the green, significantly and my guess is there is a lot of reasons why and there is a nice job reporting today. But, at least the meeting did not go baddelely the flip side of that was that you can deceive yourselves by having nice meetings and everyone is surprised. It is so low and you are dismising everything expectations were zero and zipo for this thats exactly right. I dont think expectations are low. Trump has said over and over he wants better relations with putin, i am not against that as long as not giving away on ukraine and syria and other issues these meetings are over rated. I guess it is better of a two hour meeting and i would not over read it markets can react short term and hey, it is better going to war and thats true. If you are kicking the can down the road and not resulting do they really tee up what they ultimately where the meeting where the real real mustard gets cut thats right. The question to ask of russia Going Forward and china, president xi jinping may end up meetingPresident Trumputin. We have a big crisis with north korea. Lets see what President Trump intends to do about that hes wise to ta i can a stuff stance to say that our past policies did not work. Having said that, it is a tough situation to deal with is there any way to push the north koreans pack that is can be a more important actual question than the optics. I want to say this i am critical on trump on the whole, the good news from someone like me that this is a normal foreign trip. Get a speech if poland and it was an appropriate speech for the president to give. He said a couple of things about fake news which he should have not said what strikes me the most is watching the coverage today, this looks like a normal and boring soon to be forgotten g 20 meeting, chwhich is a good thin. Bill, today we are focusing on the men involved or the women involved and everything is about trump and putin as individuals psychiatr strategically, do we want to move closer . Conflicts ultimately becoming in the east or north korea or china in some form, would it be in our interest to have russia a little bit closer. As bill clinton said, we may not be adversaries but we may not b allies do we want to step away from it . Being nice generally is not a bad thing to try it depends on what they have to deliver and what we have to deliver. They are engaged in Cyber Attacks on us and other people they are helping and backing us up and setting up messages in north korea. So we have issues. If they are willing to be more helpful. If china is the biggest economy in the world and the giant of the globe or at least in the region, is it a negative to have, i dont want to call of an ally but a neutral i am sure russia has issues with china as well, do you understand what i am saying we box them en. I understand what you are saying putin is a big problem i would not say thats a reliable ally. You can cut the deal with iran and did he say hes going invade i am skeptical of putin and i am all for working hard for ra better relationships and i hope the president is not getting sucked into having been too credulous of putins intentions no reset buttons so far bill crystal with t thank you bob pisani at the market exchan exchange look at what it is having on the influence of the side. We are up across the board, not just tech leading but transports are having a great week overall. Small caps are up, bank stocks and retailer also contributing and weaker early on. They are moving up in the middle of the day as well we have a nice week for industrial stocks. This is what i call the Sleeper Group of the week and the last several weeks so we have new high and airlines have doing well and transport as are doing well essentially the nice moves up. The e is setting at a twoyear low. We are getting across the board and again of big names and Anadarko Petroleum and apache and devon energy and baker hughes, it is still a 52 week close essentially and stocks have been no energy at all for the last several months. We have nice moves up. Tech continues with the lead and healthcare is doing well and transports holding fairly well and some of the industrial Sleeper Groups are moving up guys, back to you. Thanks bob. Healthy job markets stock prices keep on climbing and a sense of calm and the feds raising rates. Right . Joining us, commentator for the chronicles labor market of full string, we saw the numbers this number tightening essential banks, yep. Persuasive sense of calm why do those things make you worry when most people seem to look at them and think it is good for the market. When everybody is bu it is also to the economy. When the Unemployment Rate is as low as it is today it has more room to go up than it has to go down. We are sitting with little capacity left in the economy any further growth pressing up against those capacity limits, making us anxious. I recognize that is not quite as inflation is still very low. So i guess what i am saying is not that i am predicting a recession, we have a precondition of recession. It is waiting for an infection the move and rates that we have seen. Tyler and i were talking about this during the break about a week ago, we are talking about wow, this curve is so flat and never steepens and suddenly, it is going up nearly every single day, how does that fit into what you are thinking frankly, michelle, i would feel a lot better if they are going up more. Rates are up to where they are today, 2. 5 so set aside of last weeks moving up and moving down. Bonds have been ranging down for the last couple of years as a result, the yield curve is only 100 basis point it is a positively the yield curve is classically a signal of recession. There is no such thing, the only point that i am trying to make is when things are good as they have been and long as they are, now people are letting their guards down and pricing assets, easier and assumptions for everything to get better you are not predicting a recession. If todays conditions dont dictate a market melt down, it exposed vulnerabilities and c catalizing erc catalizing event it could be some policy thing involving north korea. Back in 2001, we had ner9 11 onh nasdaq mark. The Federal Reserve raising the rates one time too many and causing a lot of people who are positioning and a lot of stress to emerge. Tyler, you have been doing this longer than i have dont rub it in gregg, i will see with ben frankl franklin, worries is interest paid on debts thats never come due. Can we just acknowledge on a friday that things are pretty good in america right now for most people. Not everywhere because some people are going to say well, there is unemployment here things are a lot better than they were. You have got 401 k, you are a lot bwealther than before pay raises, theyre not great. But i am not going to argue with you. One thing looks best people forget that there is a cycle and we always take things to excess. We have got a lot of things to push back. We know and we got further to run, i am going to the market. It seems to be sometimes with nice dogs bite, too. I read from your column the other day and i plucked it out off the web and i questioned one of our guests with it. The minute you are asking is usually when it is happening thats when you are on the verge of it. Economists all love the say christmas cycle dont die. I am not sure if i believe that because basically says that if everything goes right the economy will grow forever. It is not like that, human beings are not like that and psych ology is not like that if 200 years well be the longest of expansion of history. Could it happen . Sure why should your base be that a lot of things never happened before are going to happen this time i am asking people to be cautious you are right, gregg, i have been doing this for a long time. Thanks here is whats coming up on power lunch, a big name fund manager says the easy money party is nearly over, what does it mean . What does it mean for the market and one tech start up is going under. Could it mean more sales for apple and well talk to the kids thats rich but maybe not rich enough on the fiet snndgpier crazy, that and more on power lunch. Most etfs only track a benchmark. 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. A good job report should keep the feds and the hike once a quarter mind set the founder of the biggest hedge funds says the era of money is ending mixing the metaphors of dancing and tea leaves we do see an increasingly intensifying big squeeze lets bring in our adviser and our chief investment hes finally noticing that rates have been rising and the feds seem to be taken some of the punch away well, i would have to say that perhaps the feds is taking some of the punch away but the fact that hes been doing it for a while. The big drama is other Central Banks around the world are bl planning to do that or in the process of anticipating the least. What we got to figure out here is, it will cause some volatility near term rob robotics and algorithms are keeping term in checks, slower hiring and less inflation and increase due to technology i dont know if you heard our prior conversation with gregg ip or you read our column earlier this week where he says some of the preconditions for a poor recessions are out there now low unemployment and everything is in a sweet spot the only thing that lacks is a catalyzii catalyziing event. What do you think . Interest rates are still exceptionally low. And then also there has not been accesses of consumer Balance Sheets are good and you dont have excess spending in any area and capitol spending we think sure, the government is doing something that derails the company but the company is still good for some time that means that earnings should be pretty good we had a nice job support this morning and you heard what mr. Gunlov said. That would mean september to me and decembers. Do you see it that way . There is a good chance that we see rates to be hiked in september and if not in september, just about a certain thing in december. Economic data looks good for 2 to 2. 5 in growth. We may see an uptake next year david, same question to you we think the first step is the feds starting to unwhine the Balance Sheet in september and theyll see how that goes for the first month before they raise rates again. We think probably one hike that comes closer to the end of the year again, we are about normal lilo intere lilo abnormal lily low inter rates. David katz, thank you for that jawbone is going out of business josh lipton, the story thats a huge high flyer. Jawbone sold fitness bands and secure jawbone suffers from a number of inflicted wounds and failure to adapt to a fast moving market and he hopes the competitive markets like fit bits. There is a role that the apple watch role here to wearables that jawbone sold. Jaw bbone is not the only store there are also online retailers, one king lanes and fad. Com and we are seeing a shake up of a funding boom that started to receive a ton of money that could not sustain Business Models ryan, back to you coming up the single best global stock ideas for your Portfolio One banks best of the best league thats coming you. Maybe stock is not your thing well show you awesome ways to invest in baseball items including the babe ruths former bat for one of them. Well be back. Yeah, well it was 30 before my fees, like the pizzaordering fee and the dogsitting fee. And the rummage through your closet fee. Who is she, verizon . Are those my heels . Yeah yeah, were the same size. In shoes. With tmobile taxes and fees are already included, so you get four lines of unlimited for just 40 bucks each. The price we say is the price you pay. Youre searching for something. Like the perfect deal. On the perfect hotel. So wouldnt it be perfect if there was a single site where you could find the right hotel for you at the best price . There is. Because tripadvisor now compares prices from over 200 booking sites. To save you up to 30 . On the hotel you want. Trust this birds words. Tripadvisor. The latest reviews. The lowest prices. Hi everybody, i am sue herera the suspect was killed during a standoff with police it happened at wells far gogo no reports of injuries to hostages or police two american spaniards are recovering after getting gored by the annual of the bulls running festival clevelands manager will not manage the American League star team he had a procedure yesterday to treat his irregular heartbeat. The bench coach will fulfill his duties how would you like to rent Chris Christies new jersey beach house. It was inspired by christie to lounge on the beach with his family even though that beach is closed to the public due to a government shut down no word on how much it will cost to rent that house. Thats the new update at this hour, brian, back to you lets get a quick check on your money. Dow industrials is doing well. It is up 9 points. Nasdaq, the bigger winner of today, it is up more than 1 and nasdaq is up more than 14 just this year. The bottom line if you invested anything this year, stocks here or stocks over seas or real esta estat estates, thats if you invested in anything of oil stocks. Good afternoon to you, a lot of people are saying that is volatile week for crude oil. We are ending in the red and a little less lower. A wide range today starting over 45 and session low and 43. 78 the pressure is coming from supply demand dynamics again everybody is looking and saying we are still a wash with oil you got the production number going up in the u. S. And despite rate numbers are starting to come down. It is going to take more than that to balance things out o when you bring in the opec cut in, it does not do much to influence the market we are watching a lot of different factor that is took us higher and lower and expects some of the volatility until the end of summer. News alert on todays stories. Eliot management, warren buffet announced he will be pursuing a purchase of that company out of bankruptcy. This is an Interesting Development if eliot does indeed to pursue a sale he has said many times in the past that he would be competitive in auction type scenario we have a call into eliot and well let you know what we learn. Two men on the opposite side of political as well absolutely. Today the global is 30. It is more than 15 and it is beating its benchmark over the msci developed which jumps up over 9 . Lets bring in the man behind the report with rbcs capitol markets. Hi how are you guys . Mastercard is the number one pick of the second half of the year, why . Frankly looking out to the second half, we are seeing a need for a little bit of balance. At the end of 16th and small cap work and this first half it was a lot more secular growth. And mastercard fit that is bill, its got a lot of economic exposure, it is a significant removal on volume and inflations begin to take offoff, mastercars in the right place a lot is going on there. And a lot of things that are happening. I was thinking a bout that deal that jp morgan thought about doing but missed out on. There is a lot going on there as they tried to achieve scale when so many people are buying stuff online and everywhere else aramark great play, any ball field you are going to, there is a good chance that you have aramark behind this is a story that they continue to cut out costs for infrastr you c infrastructu infrastructure they cater the food, right . You got it. Theyre the food and services and theyre you know you want to buy your tshirt at the concert, theyre behind it. At the end of the day, that service ace huge busine service is a huge business this guy is at 2 of it. It is a business with a lot of opportunities. Right now these guys are about 8 of north american focused potentially maybe through market share maybe newell. The old newell rubber made. A lot of old brands that you know with that merger, a lot and a lot of costs to take out and thats the story a lot of young people starting out and a lot of momentum behind that theyre not going to get amazon [ laughter ] they are not going to get amazon at the end of the day, theyre selling through amazon and some of products are going through amazon theyre not the only one of the brick and morter stores. They are in the center of that their number haves bes have beec and costs are coming out still from jargon. All of these are done there is more to go . There were others last time i picked three completely different names these are three right now where you rook at the economy and the second half, they fits in the center of that good economic expansion and good singular individualized opportunities to take out costs and do other things and growing their own business you dont need to defend on the economy. It is a little bit of both which is kind of the way you want it thank you for the ideas, mark thank you, guys the major league allstar game will be played on tuesday one of the big event is fan fest baseball memorabilia auction robert frank is joining us right now. Some really cool stuff on sale it is becoming its own asset class as prices rise up. In the coming days, more tha 5 million items are coming up for auctions take a look at highlights from roberto from the pirates that could go between 250,000 or 500,000 and his series ring his golden glove, theyre coming up for sale, ten of them one of Joe Dimaggios game batch over 100,000. This game bat is signed by the babes and lou garret that was an amazing condition and ag of teight to 10, that coo to 300,000 to 500,000. Most of that money will go into the humanitarian effort that he continues into his life. Thank you very much robert frank. A sad financial stats of one of the richest states in america. You need to hear this everyone if you do not live there well speak to the two teenagers who helped start the t dget spinner crazy and almos got kicked out of school for it. Power lunch on friday. Hey gary, whatd you got here . This bad boy is a mobile trading desk so that i can take my Trading Platform wherever i go. You know that thinkorswim seamlessly syncs across all your devices, right . Oh, so my custom studies will go with me . Anywhere you want to go the markets hot sync your platform on any device with thinkorswim. Only at Td Ameritrade when this guy got a flat tire in the middle of the night. So he got home safe. Yeah, my dad says our insurance doesnt have that. What . . With Liberty Mutuals 24hour roadside assistance, get a jump, tow, and more any time of day. Switch and you could save 782 on home and auto insurance. Call for a free quote today. You can leave worry behind when liberty stands with you™. Liberty stands with you™. Liberty mutual insurance. There is been so much focus on illinois at economic whoes that connecticut is in crisis. The state got a 2. 3 billion projected deficits theyre tied for the seventh highest Unemployment Rate in the country. The top 1 in Fairfield County of 6 illion. Bridge port of a few miles off the road from Fairfield County has a poverty rate of 20 . Lets bring in derek thompson, he recently wrote about an article about state. What is wrong . It is amazing 30 mile fs from where we sit, yu are in the richest of america. Another five miles past that and it is deep poverty the state is effectively bankrupt what the heck has happened to connecticut . It is a great question. To me it is the worst shock state. Conservatives look at it as a danger as what happens when taxes are too high what is exactly going on with connecticut. One o f the interesting things that i found, connecticut in many ways just like the u. S. More so. It is an incredibly interesting symbol of the rise and fall american city. A lot of companies in new york or connecticut, the states boomed people are moving out of new york connecticut needs to build places that people want to live. It is incredibly important ge, when they moved out of connecticut, they said rather explicitly, we are struggling to get young graduates to want to live here. Connecticut ca connecticut cannot rely on its bold coats kerriderrick, one of the this you point out, that the state income taxes attract capital gains. When you do that, the income is very volatile and goes up and down dramatic. When a lot of states have learned and as painful as it is, it is better for broaden the base more of the middle class paying and more lower income folks adding to the coffers. That way, the stream is consistent and dependable rather than the boom box cycle when you rel rely on the rich you are exactly right if you loo k k at the capital gs in connecticut, it is a perfect baromet barometer. 13 of their states revenues come from the millionaires it is about the iliterations of the middle class now you have low income healthcare workers, you dont have a strong middle class you dont have the sales tax that you would get i moved because of airports there are none any time you travel you have to drive an hour and a half to laguard laguardia. Thats too inconvenience the northeast and the midwest are struggling maybe not because of politics but because of atlanta is a better place to live phoenix now has airconditioning and people for 40 years have realize d that i can go to atlanta and making the same amount of money or charlotte, having a newer house thats bigger and cheaper and demographic sheriffs what dooms a lot of these states i think you are right i love the snow. I love cold weather. But you are insane. Exactly tens and thousand of americans voted every year and they disagreed with me the overall trend in the west is south, and cheap and suburbans it is not south or west or it is not cheap. People are moving to florida and parts of california or texas taxes are lower, i think the reason why i want to focus on problems beyond the tax codes is a lot of people and companies are moving from connecticut to new york city or to boston so true or their weather. The hot city is nashville, tennessee. Greenville, south caroline. Or austin thank you appreciate it coming up, well introduce you to the two teenagers who helped drive the Fidget Spinner crazy and made hundreds and thousands of dollars they think they should have made more, theyre here and they are more, theyre here and they are spinning, they are next. upbeat dance music spintrepreneurs dance music starting then stopping upbeat dance music bell ringing our 18 year old wase army in an accident. 98. When i call usaa it was that voice asking me, is your daughter ok . Thats where i felt relief. Were the rivera family, and we will be with usaa for life. When i said everything was up, i wasnt truthful. Gold is sinking to a fourmonth low. Lets get the next move on gold with the trading nation team stacy, what do you think is gold a good buy here or just leave it, dump it, sell it and move on . Yeah, i would say, you know, even before this mornings jobs report the tone in gold has had a really more bearish zint sentiment. Certainly not helped by the overnight selloff in silver. A couple of things that were happening this week. We were seeing signs of more risk on when you look at the yen dollar spot rate and if you look at the reflation rate you see signs thats coming back into the market. The last time this happened postelection gold fell off 13 hitting a throw of 1,128 theres a 20 probability woe could finish at or below that rate at year end signs of inflation trades coming back into the market, hold off its not a buy signal. Matt, would you hold of course, hold on or use staceys money and buy more gold . Kind of the key point right now. The gold chart looks very treacherous right here i mean, for six months they made a series of higher highs and lower lowers and got up to the 1,300 level and stopped made a double top there and the rollover has taken down below its 200day moving average and through its slope trending level and its lower low today a month ago it looks fabulous and now it looks horrible. A month ago it rolled over immediately, so it will have to bounce back immediately if its going to bounce at all if we see a further lower low next week, it will be really touch. Watch it next week for a lower low. The headline will be chart looks treacherous. Matt and stacey, thank you for more trading nation go to our website tradingnation. Cnbc. Com tyler, what is in your hand . A Fidget Spinner, seen these things spinning around Fidget Spinner craze seems to come out nowhere and now kids over the country are use the addictive toy but who thought this nad could become a big business well, lots of things surprise you in this world. Two 17yearolds alan manon and cooper weis started a company from scratch selling and crafting Fidget Spinners and have made 350,000 in the process. I hope i pronounced your name correctly are. Where did you get the idea for this and how did you start producing them and let us say youre not the originators of the Fidget Spinners . Were very open about the fact we didnt invent them but were the First Company to mass produce them so earlier in the school year and i looked online, have you seen the fidget cube online. Ive not. Its a cube with all sorts of fidgits. It takes eight months to ship. I wasnt happy with that i have adhd and i wanted this. One of the things that distracts you. Thats why i wanted the fidget cube. I was looking at the alternative and the Fidget Spinners printed and ive got 3d printed, i can probably apply this and mass produce them because there was no actual person making them no Actual Company making them so i knew you guys are friends. Yes. Where do you go to school in west chest every, new york, so you started making the things in the school and the school liked that, didnt look it why not they didnt like the concept of us making a profit off like the schools 3d printers. My god. Get a license that is the dumbest thing ever if your students are make you money, give them a cut of the profits. Tried to donate a 3d printer, at the end of the year well bring it tomorrow. Has to get approved by about the board of education. Agh so then what did you do after they kicked you out in the what did you do move to the basement after they kicked us out we bought our own 3d printers and produced them in my basement. Where did you get the money for that sold enough at school. Did your school ban them as the school in my town did . The middle school did. My son is in an Elementary School because they banned it because it was getting too distracting. Any tricks that you can show us using the fidgets. You can be a onehanded fidgeter. The best i can do is get a onehanded spin. How did you come up for the price . Looked at the price everybody was selling them as we lowered the price a little bit and beat out the competition and sadly since more people got them the company made them and got oversaturated. The price plummeted 25. 99 in the beginning and now they are down to 4. 99. The first ones my wife bought for my son were 22. 95, and then quickly, like the stock. You are candid about the idea that youve kind of screwed up. Yeah. You could have owned this, if you had known take me through that. We were thinking about going to Injection Molding in china like a while ago, like four months when no one even knew what they were and we ended up not doing and now they are like in every single store, walmart, target, every corner in new york city, and if we got the injection mold during that time. Were still making this. How would i know if i bought one that its yours . We have things like custom packaging that you can tell like the quality of our products are much higher may look the same. This is a good one. Its frictionless. Tell me about social media. How did that help you . Social media was like that is because of social media, thats where all our success comes from our Instagram Page is 160,000 followers and thats where we drive all our business from. Could people buy it directly from your instagram feed in our bio, click on the link and the link 350,000, 1. 75 each, almost would cover a university of Michigan Education congratulations, what are you doing with the money folks taking it . Well reinvest the money. Been reis thing into the money itself. Fidgits 3660 is the name . Yeah. Your product. Whats your next thing, got a next were working on a few things behind the scenes, some programs, some apps. New products. Physical products. I think you should call it apostrophe. Youre going to the university of michigan and youre going to got no clue. Got no clue guys. Hes going to do fine no matter what. Hell do just fine. Check, please is next dont move and now the latest from tradingnation. Cnbc. Com and a word from our sponsor. 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Welcome back. Thank you. Im Bill Griffeth trade retaliation. The g20 getting hostile as eu leaders warn that their mood on trade is getting what they called increasingly combative against the United States. Well talk about which areas