Welcome. Im Michelle Carew sew cabrera. Transports and the small caps, the russell 2,000 trading above record close right now check out the individual movers. Coach, Constellation Brands among the names hitting new highs today even though constellation has pulled back. Tyler. Welcome, im Tyler Mathisen heres whats happening at this hour blue apron plunging 10 right now. Reports that amazon may look to get into the prepared Meal Kit Market more on this ahead and manufacturing in new york state growing for a second straight month in july, but it is at a much slower pace new orders and shipments both slipping just a bit. And celebrity chef bobby flay is planning to take his fast casual burger chain public. Melissa . The Trump Administration is calling this week made in america week and today the white house is hosting a made in America Showcase featuring products from all 50 states. Ammon jafrs with the latest efforts. Reporter thats right, melissa. The president is going to tour displays here of products that are made in america. Theres going to be an indoor component, an outdoor component on the south lawn including marine one which is of course made in the United States. Theyre going to highlight a bunch of brands here look at the list including chickfila, caterpillar, campbells soup, stein way, gibson guitars, stetson hats no word on exactly how the white house is going to address the questions that are going to inevitably come about why ivanka trumps products and the products that are sold at trump hotels are not themselves all made in america. Well wait for the 2 00 p. M. Offcamera briefing for the answers to that question which is likely to come the white houses way. Despite this theme week that the white house is focused on, the president still tweeting about russia today he had a tweet this morning saying, most politicians would have gone to a meeting like the one don jr. Attended in order to get info on an opponent. Thats politics. So the president there defending his son taking a meeting with a russian lawyer who was advertised to be carrying information on Hillary Clinton i can tell you, a lot of folks here in washington would not agree with that statement and say that is simply a normal thing to do in politics, but the Trump Administration very much focused on explaining away that meeting as a typical daily research, the kind of thing that you always do in a campaign. Ammon, thank you. The senate putting off a vote on health care while senator john mccain recovers from surgery when mccain comes back, is the bill going to come back as well . John harwood is live in washington. Reporter on that theme week that ammon mentioned, one thing that is not going to be made in america this week is the new Senate Health care bill. John mccain, over the weekend, had surgery to resolve a blood clot behind one of his eyes. That involved surgery into his skull. He is out and as long as hes out, Mitch Mcconnell definitely does not have the votes even to take up this Senate Health care bill the longer that bill hangs out there, the more its going to be hit by criticism like this over the weekend from republican senator Susan Collins of maine this bill would impose fundamental sweeping changes in the medicaid program, and those include very deep cuts that would affect some of the most Vulnerable People in our society, including disabled children, poor seniors it would affect our rural hospitals and our nursing homes, and they would have a very difficult time even staying in existence and serving vulnerable populations. Reporter now, that kind of criticism is very threatening to the bill because any number of seven senators may vote against it among those considering no votes are people from dean heller of nevada who came out against the first iteration of this bill to ron johnson of wisconsin whos got various objections to it the problem is if this bill continues to be in limbo, you have a whole series of things waiting in line behind it that are going to be stacked up first of all, Congress Needs to pass a new budget resolution that is critical to getting to tax reform because they want to pass it under the favorable rules that you can only get under a budget resolution. So once they do that, unless they have already done health care, that would kill health care, and then theyve also, in addition to tax reform, theyve also got to raise the debt limit some time in the next couple of months, so theres increasing squeeze play on congress about Getting Health Care wrapped up and getting onto the other issues tyler. Thank you very much earnings parade kicking into high gear. Netflix after the bell today, nine components report this week despite the d. C. Drama, are earnings deciding the key driver of this market john, we have a fed that seems to be tightening thats the suggestion that everybodys following here, the belief we have a congress that seems locked up. They dont seem to be making a ton of progress on any front right now. So is all you have then to move the market up earnings i dont know if i would be quite as critical. I think the fed is not so much tightening as readjusting. They dont have an oath registered in heaven to destroy the economy. I think janet yellen will raise as much as she can without adversely affecting the economy. But you do not have a tailwind no. The fed policy isnt going to be restrictive i should be clear about that but its not the tailwind it was over the last 8 years. The only reason theyre not pushing is its worked earnings are going up as the fed backs away and tries to bring rates back to normal money can get pulled back into the stock market from earnings and thats what im hoping happenings. Is there one or two that you will pay particular attention to im going to be looking at goldman sachs. At the end of the last quarter, around march, estimates were around 4. Theyre down to 3. 40. Thats a pretty big lack of confidence from analysts im looking at that. Im going to be looking at microsoft and g. E. Because a lot of focus is going to be on multinationals. S p revenue, about 40 is overseas, so i want to see if that actually translates to the bottom line. Did your stomach turn when you saw the black rock numbers yeah. 80 to passive low margin funds, meaning people dont want people like you to tell them what to buy or sell. The inflows were pretty staggering very often the reaction you get of black rock is down today, its really more of a reaction of analysts pegging the numbers. I have to push of my industry. Active management is really key in key areas, international, small cap where there are less Analysts Covering the stocks thats a chance for analysts to really shine. Isnt the linchpin going to be Technology Earnings tech stocks the biggest gainer so far we need to see them deliver at this point, yes . Otherwise this record high may be poof. Poof and then well see what happens. No matter how highly valued Technology Gets within reason, its not going to be the valuation that pulls it down but that could be two or three years from now i lived through the late 90s. It was over, too high, over. As along as the numbers keep coming through, you keep buying. When they dont come through, even take your loss. Its very interesting that the most important sector isnt tech this quarter. The most important sector was the worst performing this year and thats energy. Energy is going to drive growth. Without energy this quarter, you got only 4 Growth Energy is going to be up about 400, 600 . Thats even with oil only at 45 right now. David, john, thanks activist investor nelson pelths pushing for a seat on the board of Procter Gamble but look at the stock, barely moving and have you ever gone on vacation and thought this would be a great place to buy a house and rent it out. Well tell you which spots make the best rental investments, comi uonpor ncngp weluh. Welcome back nelson pelts and his hedge fund pushing for a seat on the board of Procter Gamble but is that really all they want. They want a board seat, better returns and they think that by making peltz a director he can boost p gs market share and bring down the companys bureaucracy. Thats according to materials filed today. He told squawk on the street earlier thismorning that the company has room for improvem t improvement. P g is 4 higher, yet their margins are right up with the top guys in the business theyre bigger than anybody else theyve got this 40 price advantage. Somethings wrong. Something is wrong theyve taken 10 billion of costs out since 2012 we havent seen we cant find a penny of it. Now, in response to the proxy fight, Procter Gamble said it maintained, quote, an active and constructive dialogue since it made its investment in the company but as you look at Procter Gambles muted stock price today, its important to note what trian is not asking for. Peltz doesnt want to break up the company, fire the ceo, replace directors, or cut pension benefits todays news is whether or not peltz can get enough shareholders to vote him onto the board or whether this forces the companys hand into a settlement guys were going to talk more about that now thanks, leslie. Joining us is Jeffrey Sonnenfeld and jeff graham, author of dear chairman. Professor sonnenfeld, ill kick it off with you. What do you think nelson peltz is after with this one board seat what can he do with that what i think hes really after, if there werent lawyers watching i would say were looking at a 75, soon 76yearold looking for one more final fling. This is not something which is needed this is a man who is already on five boards if you count his own tran hes on four major boards. That should be a pretty big distraction. Every Stock Exchange would condemn somebody to be on more than four boards even if he was sitting around with nothing to do with his time, this is a stronger board than any in america. It is a fantastic board with former ceos or current ceos from great firms, from American Express to boeing to others, and this is a ceo whos a year and a half into the job doing everything right this is a brand thats sort of one of the top brands in the world. This is something that shareholders should be celebrating. And by the way, activists no longer are the darling of investors. So were seeing a lot of shareholder disfavor to run behind these kind of campaigns finally. Jeff number two, let me ask you, leslie just said he doesnt want to replace the ceo, he doesnt want to replace the board, so what does he want . One last shot at the brass ring, as professor sewnenfeld said. Jeff number one is exactly right. You have a situation where you dont have like the widespread discontent with the ceo and the board that you see in a lot of other activist situations. And so it seems like his main complaint is he likes the ceo but he wants things to move a bit faster the question that you have to ask is, is that the kind of an argument that will resonate with the voting shareholders of p g and im not sure that it will. The stock underperforms the market we had an analyst on this morning who thinks there should be a fullon breakup because of all the statistics that peltz talked about, the ability to charge more because they have the best brands and yet their margins arent competitive happily, michelle, thats not while thats his traditional motor tudus operandn peltz is not looking for some big assetdy inve dd dd dd ddy de weve seen breakup of pieces sold off after their lowest pieces at the worst times. Happily, peltz is not pushing for that even. Only you and that analyst this morning. Jeff, you say all these good things about the management. The stock though still underperforms. Amazing thing about the magic of markets unless youre elon musk and jeff bez bezos, it doesnt happen in seconds. Im not sure a honeymoon period ought to be but it ought to be longer hes doing everything right, as even peltz says he is. If peltz said that the ceo is doing everything right, lets take him at his word they have reduced from 16 product categories down to ten bringing in more focus that the higher shareholder performers in this space have had more focus and theyre getting back to that focus and theyve got the right guy to do it. How do you think nelson peltz ultimately makes money is he along for the ride hes got a new ceo theyre on the right track any move a little faster maybe the stock price might move higher faster . A guy like nelson peltz doesnt tie up a few billion bucks in a 224 billion Market Cap Company for no reason, right look, its a good, depend a e dependable its a bow heem hee moth even if his activism is not successful, he has had a lot of these situations, including pepsi, where he gets involved and gets engaged and, you know, like, hes correct on the stock. Its an undervalued stock and he succeed in the investment when his activism ultimately falls short and this could be a situation like that. Quick final question to you we spent a part of last week talking about the entry of the german grosser leadle in the United States. They make a lot of their money selling nonbranded products, housebranded products, generics that are of high quality the broad question here is, is the day of the dominant brand on which p g has made its living for more than 150 years, is it waning no. Weve had generics come in, unbranded goods come in to clothing apparel, pharmaceuticals and still theres a great premium on the accountability, the quality, the dependability. But theres always room for generics, too. Theres a big marketplace out there. What there isnt room for is activists. Thats why 100 of Institutional Investors say theyre not happy with the performance of their activist thats the issue here. Weve got a great board, great leadership, no reason to disrupt thats being fixed beautifully now. Thank you very much, guys thanks. Appreciate it. It is summertime and youre taking a great family vacation, you may be thinking would it be a smart idea to buy a rental home near where youre staying everybody thinks about that. Well tell about you an interesting new way to find that ideal location plus, when life throws you a rainy day, play in the puddles winnie the pooh acblklisted in china. Well tell you why. Is he pro democracy [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 you have a place to go on vacation and think it would be a great idea to buy a house there and rent it out for some of the season diana olick joins us with a look at a new product to help you determine whether that investment will pay off. Diana . Well, becoming a landlord today looks like a nobrainer. There are lots of companies to help you buy, manage and even renovate rebtal homes. With home prices sky high, demand for rental homes is stronger than ever but as you said, not every property will offer great returns, and some, well, they could offer very great risk. So roofstock which is an Online Market for Single Family rental homes is launching a new rental index that rates every neighborhood in the nation for risk 72,000 separate census tracks with about 1500 homes per track. Beyond home values and rent prices, it looks at several other metrics like income and education levels of the local population level of owneroccupants, employment, School Ratings from elementary to high school among other things, and then it ranks their risk on a fivepoint scale. What our index does is it breaks down a city into very little discreet pieces and neighborhoods and it may be that a neighborhood is a very interesting opportunity for the right type of investor, even if it may be off the radar at a metropolitan level competitors in the rental marketplace like home union and investability, they all offer data on investor returns for big local markets, but they dont get as granular with this type of risk. Roofstocks idea is to open up the nations neighborhoods to all investors everywhere and then give them a little peek inside especially as more and more novices enter the market learn more about this and find the links, realtycheck. Cnbc. Com. So they actually sell homes on their site so they collect the brokers fee on that or some sort of fee exacted by the seller well, roofstock is one of these market places where you can go on, you can find out where homes are. Theyll help you manage them and help you find them, buy them its not so much that what were talking about. Its this index of risk which theyre trying to help you decide in the first place where to go to but there are lots of companies that will help you buy the homes. They dont necessarily sell them directly theyre more like listing sites or brokerages. Diana olick, thank you in d. C. To the bond market Rick Santelli is tracking the action at the cme. If you look at a tenyear note, its down about two points twos are unchanged, 30s down three. Nobody should be surprised open a chart to about the second week of march and youll see that march, may, july, all have tops that are slightly smaller as you go along. 2. 42, 2. 41, a whisker under 2. 40 open a chart up to the end of 2015 2. 27 is big. Thats where we settled 2015 and it always seems to come back and haunt us the market is acting as though its going to be that tight of a range. We talk a lot about the strength on the euro versus a variety of big currencies whether its the pound, the yen, but on the dollar index, it continues to hover at some of the lowest levels since november and many traders dont see any bounce to the ounce even though our central bank is in the snuggie mode more than any other central bank michelle, back to you. Markets showing doubts then thanks, rick white house pushing made in america week will we see a move on nafta or trade with china and speaking of china, why did the country ban winnie the pooh how the loveable bear got himself in the middle of an International Incident unknowingly. Dont be sad like eor, though, because power lunch will be right back our collaboration with pg e is centered around public safety. Without pg es assistance, without their training we could not do our mission to keep our Community Safe. Anytime we are responding to a structure fire, one of the first calls you make is for pg e for gas and electric safety. Its my job to make sure that they have the training that they need to make the scene safe for themselves and for the public. Its handson training actually turning valves, turning systems off, looking at different wire systems all that training is crucial to keeping our Community Safe and our firefighters safe. Together, were building a better california. Hi, everybody. Im sue herera heres your cnbc news update for this hour. The mayor of minneapolis is upset and demanding answers as to why police shot and killed an australian woman who had called 911 to report a disturbance outside her house. The body cameras worn by the responding Police Officers were not on, and friends of Justine Damon say her family is trying to come to terms with her death. She undoubtedly will be very missed by the family. She was treasured and loved. And we will really miss her dreadfully the excitement of buying a new home has worn off quickly for many new homebuyers. According to a recent survey by trulia, 1 44 have regrets about buying their current home. Not choosing the correct home size is the biggest disappointment and reebok is taking a jab at trump he told the wife of macron that she was in such good shape reebok tweeted this chart of its 700,000 followers, but some on twitter called out the company saying it exploits a womans shape for their shoes. Thats the cnbc news update this hour back to you. A lot of people have a lot of time on their hands. Thank you, sue breaking news now on the Federal Reserve. Steve liesman has it the Federal Reserve announcing it will fine bnp paribas 246 million the Federal Reserve citing unsafe and unsound forex practices at bnp part of a larger scandal involving manipulation of Foreign Exchange that now encompasses four banks ubs, barclays and deutsche bank. And it looks like they are approaching nearly a billion dollars in total i dont know if this will be a total surprise to the market in january 2017, the Federal Reserve board permanently prohibited pnp paribas trader jason katz from being involved some analysts thought this might be coming. Now the Federal Reserve announcing this 246 million fine which looks to be in addition to the fine put in place by the new york bachking regulator. Thank you very much lets take a look on where we stand all three indices are on pace to close at record highs, even though it looks like on the percentage basis, not much is happening. Lets look at some of the names hitting alltime highs mastercard, cigna, boeing and facebook some retailers on the move leading macys, sears and kohls winnie the pooh banned in china according to the financial times. Pooh is blacked out on chinese social media why . No official explanation given but some are saying its due to images like this one in which winnie the pooh is sort of compared with the chinese president xi jinping there again, another image there. I dont know the first one is uncanny, the positioning of their legs. This was just an internet meme this meeting occurred, and then for some reason now its resurfaced they are worried its going to come back exactly. Reflects unflatteringly on xi i think xi should get over it. There you go in more serious news out of china, the shanghai composite closed down by 1. 5 , well off its worst levels but still very bad. The shenzhen was off by more than 3 . Even though china beat gdp expectations, there are concerns the Chinese Government is about to take more control over the economy, particularly over the Financial System based on some meetings over the weekend where the word regulation came up over and over again u. S. Listed Chinese Companies are mostly lower today netease lower by more than 2. 5 . Trade talks are hitting a 100day deadline happened over the weekend. Kayla tausche joins us with more on the state of those talks which were very important to wilbur ross. They were the 100 days between the maralago summit between president s trump and xi from which there were no images of winnie the pooh that went viral, but they have seen some progress on the tenpoint plan the two nations agreed on at that meeting. U. S. Beef exporters sent their first shipments this month since 2003, and a rule in the making on imports of cooked chicken from china was published in june the u. S. Has promised to send a delegate to the one belt, one road event in may but other items have less clear outcomes chinas biosafety counsel was supposed to meet to consider eight u. S. Product applications. No news over whether they actually did and while china is the largest buyer of liquefied natural gas, u. S. Exporters exporting lng to china faced steep competition from australia, japan and pretty soon russia. But the rest of the list pertains to Financial Services concerning the closed off and highly regulated nature of chinas industry there are moves to open up the industry for firms to underwrite bonds, settle trades and rate chinas debt and toformalize the licensing business for foreign Payments Companies executives in a lot of these firms say its a step and it is a symbolic one, but they are still years away from having real access. Later this week, the two countries will continue their comprehensive economic dialogue. Well see what specific progress is pointed to then but we could get some more news today on trade with the u. S. Trade representative expected to put out the wish list for the white house on nafta thanks very much, kayla tausche. The white house is kicking off made in america week a series of events to focus on manufacturing events and made in the u. S. Investors watching closely for announcements on subjects like what kayla was just talking about. Renegotiating nafta, potential for tariffs on imports, particularly steel and currency manipulation lets bring in Barry Zekelman and larry. Barry, you think its perfectly fine and maybe even overdue gr the u. S. Administration to take a look at nafta. Explain. Well, sure. I mean, you know, trade agreements like this were made a long time ago and many things have chachblged. So i think its only prudent from time to time and maybe even at set intervals to look at these agreements and make adjustments to them. Its perfectly acceptable. How do you think china has manipulate its currency to advantage its industries, particularly its Steel Industry . The administration declined the opportunity to label china a currency na nipulator. I think china clearly has manipulated their currency when they pegged the yuan to the dlrks thats a manipulation. So chinas used this to make their exports, you know, very aggressive and very competitive. And theyve really grown from 50 million tons a year 20 years ago to over 1. 2 billion tons today, decimating steelmakers across the world. Their steel has infiltrated every country, decimated the Steel Industry and most of these other countries that look for any avenue to export their product and they come to america. You know, the chinese and many others are all seeking u. S. Dollars. And the chinese, you know, this is just their m. O. They do it in many other products as well lee, what are you hoping for from made in america week when it comes to the president s initiatives . Its an incredible celebration of the american workforce. Really talking about and thanking each and every American Worker in this country for the hard work, dedication, that each of us had day in and day out which we all appreciate but which policy changes would you like to see from the administration well, specifically what i am working on are deregulation, workforce policy and infrastructure and we have a number of initiatives on the workforce policy area. Such as apprenticeships, twoyear college programs, how almost 400 billion is spent. 164 billion from the private sector businesses investing in training and education and at the same time, another 150 billion spent on educational initiatives, Financial Aid such as pell grants we need to do a better job of matching skills with jobs. Right, lee, i have another followup here your company designs and manufactures products and services for the Utility Telecommunications and contractor markets do you manufacture overseas and im just curious what your perspective is when the administrations focus is made in america yet so many businesses do operate overseas we manufacture the majority of our products here in the United States. In fact, we ship products from the United States to over 100 countries around the world and have been doing that since our founding in 1929, over 88 years ago. So are there specific countries where you would like to see trade agreements renegotiated or adjusted oh, most definitely most definitely. Whats the number one country . Look at the trade deficits. Where do you start you start with china the biggest trade deficit we have clearly that needs to be addressed. Its an unfair Trading Field and we need to level the playing field, which this administration is doing so were focused on that in addition, you follow closely by india and then clearly japan and mexico we need to focus, which is exactly what this administration is doing do i assume that youd like to see tariffs and quotas when it comes to steel and, if yes, what do you say to all the buyers of steel who say, hey, the decision to make you a winner makes me a loser. We have to look at im talking to mr. Zekelman absolutely. Tariffs and quotas are needed and certainly it will raise some prices but in terms of what steel costs as a percentage of component going into things, it really is very small labor comes after that most of these Steel Products that are coming in are being dumped we have trade agreements with countries that are obsolete and arent enforced. We spend more time and more effort making sure the olympics are fair amongst every country than we do with our trade agreements were competing against countries now in trade that are feeding their companies steroids and were natural. And you just cant win like that interesting analogy you get the last word. For the main message is that its incredible whats happening at made in america week here at the white house and with this administration what they are doing in celebrating and focusing on the American Worker and Global Competitiveness to create more jobs here in america. All right, folks, thanks very much we appreciate your time. Appreciate it foxs latest release war for the planet of the apes leading the box office this week at 56. 5 million spiderman Still Holding its own raking in just over 72 million globally despite those umbers, the american Film Industry not doing as well as it seems. U. S. Box Office Spending is flat theatrical attendance has been declining for the past decade and our next guest is here to tell us how one Business Model could turn that around ben swinberg, good to have you here weve got you on because you did a very recent study about looking at premium home video. In other words, not having to wait three months to see the movie at home or on some kind of streaming service. Getting it in your home, maybe the same day as its in the theater, albeit for a higher price. Why did you take a look at that . Really two reasons. One, the movie business is a tough business and getting tougher. I think disney has had so much success, people have not realized the challenging returns that hollywood faces on a daily basis trying to make money in the movie basis. If you look at last year, excluding disney, the entire hollywood output, theatrical business made about a billion of ebitda the big three Movie Companies in aggregate made double that they need a new opportunity and we think premium vod can do that and the second piece is do consumers care is there interest in this product . So we have a survey which we talk about in the report i have no doubt theres interest i would like it. But tell me why would a movie studio be so eager to skip over how much more money would they make on a film if they skipped over the theater and went direct to consumer . Obviously it depends on how much consumers are willing to pay for the convenience of staying at home. The work we did on the survey front suggested a lot of demand anywhere from 30 to 50 depending on when the movie was available. But rough numbers, michelle, its about two to three times more valuable to a studio to get a premium vod rental than it is to have them see it in the Movie Theater. Part of that is the ticket price. The other part is their revenue share. They give half the economics and theater business bac exhibitors theyll take home 70 to 80 of premium vod rentals. And the other 30 goes to the Cable Company or the broadband provider that furnishes it, right . The distributor, whether its apple or comcast would be taking most of the the remaining economics. One of the Big Questions the market is grappling with is whether the movies, Movie Theater companies would participate. Thats a big Sticking Point in the negotiations going on. Why wouldnt they charge more the studios dont have many other options unless they then decide to go direct to consumer in a true fashion. Which may be a disney could, in fact, do yeah, i think that most of the content Creation Community has struggled with direct to consumer models. Netflix has broken the mold by being a content producer people who make and create good content stick to that Business Model. People who distribute is stick to that Business Model, and i think theres an opportunity for everyone to make more money if they can embrace some change in an industry that tends to resist very quick, just to be sure i understand, i pay 50, and i get to see that movie at home with as many people as i want the same day that in theory is comes out in the theater thats the very high price and as much popcorn as you have in the house. And how soon could that be . I would say this is while w we focusod it recently its been discussed for a long time. We expect something to happen by the end of the year but no guarantees hollywood is slow to change historically when you were doing this modeling, were you looking at a onetime fee for a onetime rental, or a onetime fee to own that movie so i could watch it again and again with as many households as i wanted no, this is just a rental this is a rental and there would be some window, probably two or three days you could watch it. The reason it makes so much sense is all of the marketing of a movie happens when it comes out in the theater thats when youre aware of the spiderman film that just came out, when youre most interested thats why we think these high price points youll get some decent demand. We think its a 4 billion market for the studios ben, thanks for coming on i cant wait, personally to watch baby driver at home movies i know but do you guys go to theaters no. I went to see planet of the apes this weekend because a 95 on rotten tomatoes, i would say its a 75. I would recommend it i havent been in a theater to watch a movie in a long time. It has to be a great cinematography for me to go. You are part of the trend movie going peaked with gone with the wind. Its never gone up since they dont make movies for my age group. Baby driver isnt up your alley . The worst performing s p sector this year with only four stocks in the group, should it even be a sector plus, its up almost 20 in the last month up almost 40 in the past three. Is twitter back . Should you buy ith run stay tuned last year, he said he was going to dig a hole to china. At t is working with farmers to improve irrigation techniques. Remote moisture sensors use a Reliable Network to tell them when and where to water. So that farmers like ray can compete in big ways. China. Oh. He got there. Thats the power of and. 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. At the lexus golden opportunity sales event before it ends. Choose from the is turbo, es 350 or nx turbo for 299 a month for 36 months if you lease now. Experience amazing at your lexus dealer. Welcome back the markets keep hitting new highs. Telecoms have had it tough worst performing sector so far this year but with only four stocks in the group, should it even be a sector Landon Downey dialling in. We continue our sector economic series. Looking at telecom here is the entire sector. Verizon, at t, centurylink and level 3 communications its too small for a tracking etf, and two of those companies, level 3 and centurylink are on track to merge later this year the indexes are trying to figure out how to fix it. Last week, s p, Dow Jones Indices issued potential changes for 2017 the sector is evolving and one plan under consideration, creating a new Communications Services sector that includes telecommunications, media and entertainment. Consumer internet and Digital Services and that would be more relevant as the Technology Landscape chachb changes with landlines disappearing and phone companies are adapting by consolidate with other Companies Like verizon with aol and yahoo . So its clear that something has to change. Telecom is the biggest loser for the week the month, the quarter, the six months, the 12 months and year to date. So any changes to the structure of the index are expected to be announced by november. Guys, back over to you thanks, landon. Twitter is flying high the stock has been on a tear over the past few months whats driving the gains can they continue . Plus, are wages finally back we debate thomwi se new data thats out today power lunch back in two minutes. 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. Twitter has seen a resurgence the past week 40 over the past three months whats behind this rally lets bring in aaron kessler. It is great to have you with us. You got an under performing rate for the stocks, have long have you been there i think twitter is responding appositively improvements with the user growth of engagement metrics. 10 millions above our estimate and reingi think it is a positie beep right now the hope trade that the second derivatives that revenues will start to improve as well have not seen that yet last quarter we are looking at down in the year so far, we have not seen the revenues improved. A lot believe that improved metrics of the dau numbers is it your belief that theyll not continue or the add revenues of the much more important part of the story that people should be paying attention to for our purpose i would say averaging is more important than numbers in longer terms. We have not seen the revenues yet. A current multiples through an 18 times of 2018 we expect some improvement of 2018 and pricing and much more growth that we are seeing on twitter thats over valued here. When you this of your ratings, what time frame do you think about . The sentiment were so negative everything was so down on twitter that at some point, often marks what is the least short term bottom. Do you genthnt nervous when youe everybody is on the same page as you and oftentimes as stocks turned most investors that we talk about are negative on the fundamentals of twitter. So far, we would like a stronger improvermentments to get more positives. That could mark a short term bottom how would they do it . You would like to see them gro fa grow faster, what do they node to do . Whether it is a trump feedbafactor and more discussions on twitter, improving the ui and giving users a reason to make it more aaron, last question. Does it make it acquisition target both companies are good, i am going to step away from twitter and move onto square fulltime or three, none of the above of a stands alone and goes along company. Nothing came of it. But, yeah, we dont think there is a buyer at this rate. What if they improve metrics . Well see a significant improvements and i dont think we are seeing that yet things improving on the margins but revenues could get back next year i think right now the stock pricing of a much stronger growth than we are likely to see. Aaron kessler, thank you. Well, the check is in the mail why that raise American Workers had been waiting for could be on the way. Blue apron is tanking and amazon is planning meal service is amazon killing the ipos market the debate is in the second hour of power lunch. Usaa gives me the peace of mind and the security just like the marines did. The process through usaa is so effortless, that you feel like youre a part of the family. I love that i can pass the membership to my children. Were the williams family, and were usaa members for life. All right, folks, the second hour of power lunch. Here is whats in the menu, the check is in the mail wage hike is back. Well discuss that one another victim on amazon, now the food business and is it also crushing the ipo market. Happy emoji day. They say an image is worth a thousand word is the same thing for a yellow smiley face the power and the etiquette of emojis you cannot afford to miss it power lunch starts right now a check on the market right now, the dow and s p 500 and david backes, t nasdaq tesla, take a look at this move here lower, elon musk says this weekend that shares is over val valued fedex is saying theyre expecting theyll be impacted by the recent cyber attack. At t customers are continuing to experience service delays. New yorks three major airports along with boston and San Francisco are the worst of on time arrivals. And honolulu and Salt Lake City ranked the best Mark Zuckerberg is now the sixth wealthiest person on earth according to forbes. His network jump an estimated of 66 billion. What are you laughing at 66 billion. 7 thats wage growth, right thats what well talk about. The pay raise that you had been waiting for, could it be on the way. It is for mr. Suckzuckerberg, s liesman is here to talk about it we are not talking about zuckerbergs level rages is on the rise. 47 of businesses are hiking wages. The second highest that we have seen is at the end of the recession. Wages are expected to rise and employees are saying it is not easy to find workers 35 in a special question saying difficulty hiring, more than a third says difficulty of hiring. 22 saying theyre raising pay 19 are trading internally and 10 are saying robots are a better choice. 4 interesting there, of lowering the requirements. They are found elsewhere two gauges of wages right here thats the wrong chart there world cup of tho one of those gauges is the average earnings the other is the atlanta fact checker and thats up more than 3. 5 thats the purple line right there. What that does is measure year over year individuals. It is not affected by compositio compositions businesses are also reporting outlets for sales and positive outlets for spending and that offsets on wages the profit outlook maybe just about even thank you very much our founder and ceo of ds economics and moody atlantnalyts chief. Thank you, welcome mark, you have talked about markets, you point among other things to the fact that Older Workers, i am taking this personally now, mark i am one of them me too. What am i doing wrong, i am Holding Activities back. Whats the connection between age and productivity yeah. You are right, tyler wage growth is picking up and it was much higher today than three or five years ago. It is not a pace that you would think of 4. 4 on Unemployment Rate one reason it is it is goigoo take time and businesses the last time we were full employment is over a decade ago. It is going to take them a bit of time. But, another reason is productivity growth, under line productivity growth is weaker today than historically. A lot of reasons for that and some we know and some we dont aging is one of them Older Workers are weighing on productively growth. It is slower theyre more experience i dont think thats right c i share a chart to prove it mark, i want to show you something. This shows the influx of what is happening with people of high school students. Out of high school and into a job and unemployment by education. You can see it is gone done quite a bit for those without high school degrees. My take, mark, is you have less education, i would assume younger workers coming into the work force and thats more responsible. I dont want to start on age here on power lunch. The reality is that we also know that workers have experience and thats one of the reasons we argued because of baby boomers from their prime, we are losing those seasonal workers. I am on that side of it. Right i disagree with you a little bit mark what about the rising wages that steve talked about. We know the feds are focused on inflation wages is the most important thing they look at it. Exactly my own research, one of the things we turn up is retail wages have slowed dramatically in recent months and thats tied to the retail, commissions are down what percentage of all workers we are seeing cheaper millennials replacing older baby boomers. It is sort of a cluster event. What strikes me and the reason i dont like to put it in any one bucket of whats happening is this is happening in germany it is also happening in japan. The point mark is making of enertia, they are literally closing down companies because they dont have enough workers going back to age and wage growth, a simple fact, and this is in the atlanta wage tracker you look at wage growth by age, it is much slower for Older Workers. Wage growth is about 2 . For younger workers is much stronger the average across all workers of all ages is about four. Here is another fact, the percent of the work force over the age of 65 have gone to 3 10 years ago 6 today just do the arithmetic in your mind with those data point and many other channels, that simple fact would weigh on it i would think the simple arithmetic the millennials get paid less but they are dominating the labor force now. That was where i was going to go it seems like the millennials presu presumably making less than a person in their prime earnings years. They get increases but those increases may cost the employers less in dollar terms than 2 increase of the 60yearold guy gets on a higher base, right at the end of the day we are all looking at these numbers and still scratching our heads it is still not adding quite right. The same factor that i talk about in retail and theyre much larng larger of the walmart phenomenal, a similar factor here is another here is another channel which aging affects wage growth and productivity growth of what we are binding looking at da from adp and actual payroll record of individuals. One thing we are absorbing in companies where you have a lot of workers, those companies are investing less than with younger workers. That can be due to a lot of reasons. Companies know theyre not going to be able to recruit those investments because those workers are going to retire. That maybe affecting Investment Decisions of productivity. My point of a lot of different channels of wage diane sworn thank you very much and mark, good to see you. Shark tank, kevin oleary is going to weigh in hawaii is passing a bill that could create a universal basic income in that state netflixs earnings, should you buy ahead of results all that and much more coming up on power lunch. Ahh. Where are mom and dad . saved money on motorcycle insurance with geico goin up the country. Love mom and dad im takin a nap. Dude, you just woke up im goin up the country, baby dont you wanna go . Im goin up the country, baby dont you wanna go . Geico motorcycle, great rates for great rides. Hthis 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 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. Here is the important thing, people all know that amazon was getting in the Meal Delivery businesses, i thought we all discussed it look at that, blue apron is down 12 today. Maybe people did not get the memo the ipo business is talking about the disruptive of amazon we dont know whats going to happen to them this week, head iq, theyre going to go public this friday over at the nasdaq they did not mention amazon but they mentioned a whole bunch of Companies Like smuckers and s mores. They go on talking about their competitors that can identify and adapt changes in consumer pretrial conferences more quickly than us due to their resources and scale. Some baskets compete with them in meal relodeliveries yeti, cooler companies have been out there for a while and albertsons thats been around for a long time that could go public here is the important thing, right now theyre trying to figure out whether or not this business is going to be disruptive i talked to kathy smith at renaissance capitol, floor contadofloor deco going way above its price. It is a tough game to play right now but clearly impacting on the values right now good evaluations there bob kevin oleary, cnbcs contributor. Kevin, in the category of careful of what you say in front of your uber driver, last friday a uber driver recognized me. I just had an amazon executive in here, you know what theyre going to do . He told me theyre going to crush blue apron what do you think of amazon punishing ideas. Lets talk about io without amazon when you take a company like little apron and provide a full disclosure in place which is also a new york based competitor i know the management on the team neither of these companies are making any money the number one issue remains of Customer Acquisition cost. When you take any company public, it does not have to be blue apron you are creating a speculation trading. Thats what it is and this maybe the leader in this case. When you buy their shares, you are speculating they saw the Customer Acquisition problem i have to cheer this ipo on because in in space, getting one of the companys public tells me there is enough Public Interest of this category one way or another will survive you want to sell new meals chicago, you need a logistic facility there for a peace iece salmon that Everyone Wants fresh in 24 hours. I want optimistic that the mark is showing of the share price right now. Is that your hope and when it comes to investments that you have in a Meal Delivery company, it is a hope that your Company Plans ahead of amazon or amazon goes and buy it. Does it make it hard for Companies Like yours right now, the only Company Appears a play in this business has an infinite ep thats blue apron. If you need to be able to provide fresh food, you have to be able to do it in every major metropolitan area. La, new york and chicago, you. You need facilities near there to reduce your cost. I am not going to say they do this but as a speculation, in my portfolio in my holding of Something Like a play it is, because they have been around for a long time and they had thousands and thousands of customers and the attrition for all of these companies are very high thats a big challenge at some point, someone will consolidate the space in competing for amazon maybe i am optimistic but i believe thats the domesticity, otherwise, some are going out of business and there wont be enoughcapitals did blue apron go out in public too soon or too late . Why does it matter . It matters in this sense. In some ways, unfortunate timing and as you recall on the last few weeks. The whole foods still are in the middle of their row show pushing it down to 34 i was watching the pricing like a hawk and you have the remarkable situation where prime went into the advertising mode crushing all retailers and all of a sudden amazon advertise the fact that you can organize the discounts, i think thats a little punitive. I still believe the same thing, the stocks still trade at an infinite pe. What will they do with it . Yeah, i think the broader issue is when you deal with the scale amazon has, the barrier entries are very small thats why the ip business are little worried about it. Whether you are dealing with pet medications ordealing with womens apparel or trying to go public, all that businesses when you have the kind of scale being disrupti disruptive the mode is not terribly wide for a lot of these companies thats the broader concern that the industries and the ipos have right now. Thanks. Ker kevin, you are going to stick around the ceo of the runway talks about her experiences of Sexual Harassment in the tech industry. Jon fortt did that interview and hes with us right now she said initially she was not zboing to s going to say anything about it but then this happens. Initially i was going to keep it quiet but then this individual decided to call my Board Members up saying that i am being unresponsive and if was not challenging. At that time, i decided to be completely honest with my board, i showed my boss the text message, how do you want me to respond onto this . Pretty remarkable she wanted to shine light on this and part of it is katrina lake and another high profile start up who suffered some harassments but had to sign a non disclosure agreement about it in order to continue with her investment katrina is by all accounts the most successful female entrepreneur in the United States right now the most successful bc back female entrepreneur. Shes inspirational and a brilliant woman. You know the way i look at this is when vc invests in founders especially prior to a series feed, you are investing not just in a company, you are invest in in a person. Katrina is the key man and if you are investment is being harassed and distracted, it is not only in your moral responsibility to help her but also in your financial responsibility to help her this is an issue coast to coast, of course, this is not silicon valley, it is based here in new york. We heard storelies in business like this for a long time. The question is, now this is coming forward of this era when businesses are techs are so p s progressive. Will there be real changes made . Kevin i want to get your reaction to what you just heard. You once said a large chunk of your return have come to women and companies thats owned or run by women. I remember you said one time those are the only companies that you are investing in right now. I certainly skewed that way i dont want to start a gender warfare. If you look at my portfolio over nine years, this is a long time and Small Private Companies as a result of shark tank and all the company that is i get to see because of a shark tank platform i speculate this for two reasons. They are extremely strong. It turns out to be true and companies that are generally in my case of 5 and 5 millions in sales. Secondly and this is the most fascinating one to me. When i look at the goals that are met on a quarterly basis in revenue of Companies Run by women, they achieve those goals 90 of the time. We basically got about 44 companies in this portfolio. We are a company of only 15 or 20 people and you lose the head salesperson or the person responsible for logistics thats extremely disruptive thats why women led women is doing a dpragreat job. As a result now, generally a new deal, like telling the guys theyre running their own adventures, skewed towards the deal we are making money and high returns. Kevin, thank you very much. Investors behavior of women because they are less confident than they ought to be tend to have reasonable expectations and men by contrast are more confident than they ought to be that they got it right and they take risks that are abridge. I am shocked to learn this about men. Men generally are bigger risk takers theyre the ones thats willing to jump out of planes more often than women yeah. They tolerate risks more. The common though being made about protecting your female ceo because it is an investment and not just immoral obligation but it is a financial obligation as well on the flip side, you have invested in him and hes the person thats doing the perceived in wrong doing, at what point you say, it is tough decisions that you have to make. Yeah, you have to protect your ceo and hold them accountable. If just accused of permissive of a culture because i thought i want your money and invest in something. I think he will have zero trouble of getting billions of dollars. I think people would do it it would be an interesting test look at them. I am not on twitter. Universal basic income, money in the government for everybody for whatever purpose they like to spend on a controversial topic. Well talk to the person whos pushing this forward in hawaii and oil prices have been rebounds at 40 per week where do we go from here and todays closing trades when power lunch returns. [ male announcer ] eligible for medicare . Thats a good thing, but it doesnt cover everything. Only about 80 of your part b medical expenses. The rest is up to you. So consider an aarp Medicare Supplement insurance plan, insured by unitedhealthcare insurance company. 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These kinds of plans could save you in outofpocket medical costs. Youll be able to choose any doctor who accepts medicare patients. And there are virtually no referrals needed. So dont wait. With all the good years ahead, look for the experience and commitment to go the distance with you. Call now to request your free decision guide. This easytounderstand guide will answer some of your questions and help you find the aarp Medicare Supplement plan thats right for you. Hi everybody, i am sue herera here is your nbc update at this hour tsa ends laptop ban on middle Eastern Airlines it was the last of middle eastern carriers under those restrictions there may not be enough specialists to treat growing number of people of dementia in the coming years hundreds of volunteers pitched in today at Arlington National cemetery to help beautifying the grounds. They say it is a way to honor those and give their lives for the country. Garth brooke said he will pay for a honeymoon for the couple who recently got engaged. He said he will pay for their honeymoon if they go to hawaii trisha did say nobody else at the concert could get engaged. Theyre only doing it once. Ymicrosoft all times tie. In the green after announcing its 100 million shares by pack. And defense stock, lockeed martin, both at all times. Oil market closing for the day good afternoon tyler, you can see oil is starting oen the low note here, holding over the 45 a level. The session low was 45. 97 we got closer to that. Last week we added two oil rigs online it is a small antidotal piece of evidence that we could see on prices and it is actually surprise to see it is lower today of a dollar index of 95 thats supportive of these prices some good news on the front though for drivers, 2. 20 is the average for a gallon of regular. It is down five cents from a month ago. Thats remarkable for jewuly gases. Back over to you thank you very much jackie deangeles. Could Energy Stocks bounce back roberto, it is great to have you with us. We are back with cut levels. What can happen at this point . We got to look at the 4th of july meeting at opec theyll invite the nigerian members at the Party Production is up about 1. 8 million bounce it is notable for nigeria for two reasons, the cost of renting a tank is cheaper than the u. S. Gulf coast than the middle east. Secondly, nigeria has been a direct component and crude use for motor gas in the United States it has competed directly it is definitely coming back that sets a direct competition for the lightest here in the u. S. At this committee meeting, this is going to be a compliance so they cannot necessarily enforce a cap to nigeria but theyre going to suggest one this backdrop in miend, theyre going to tell nigeria to come in and cast production . I think theyll try to propose it if they propose it which i believe they will because nigeria libya and libya is the highest since june it cannot be implemented since late november when it is a full meeting there. You will have supply kick on as high as they can make it until you come to november 30th. The meantime, the count keeps on rising and crews staying at 45 to 50 range. It is going to keep counts and production elevated and 18 is it out of the question, rober roberto . A while ago, this had been thinking that opec had been pumping and pump, could they be pack and play. They greatly over estimated of the ability for the u. S. Players to bring up productivity and cost efficiencies and other opec nation dealing with comply. If i am an opec number of the cartel and you see the they kind of cheated last month, theyre the biggest producer and the other members got to be questioning why should they have a compliance as well more so of the u. S. Production it continues to rise as it is you can see supply out strips demands. Absolutely, the ceiling comes down so you have a 50 ceiling now in crude where you can see the support range 38 to 42 certainly testing sometime later in the year. Thank you, roberto friedlander. Ubi, universal basic income is theoretical and leads up to this point it involves each citizens dp getting a center amount of money however they want. Now, hawaii has passed a resolution to convene a working group to analyze the possibility of whether or not the state possibility could use it if basic income is possible jioining us now from honolul, chris lee of hawaii, it is good to have you here thanks for having me. Why are you interested in this we are seeing our economy shifts significantly we are changing the trajectory of jobs and what we are seeing and our statistic showing of 45 of the work being done in our Economy Today can be automated using existing technology. 47 of the jobs are out there right now that could potentially and likely would be automated in the 20 years for us would mean nationally of 2 trillion in wages that would disappear. Here in hawaii, we are Service Based economy more than anything, we think probably more so than other places we want to start a conversation of where the economy is going and what the future looks like how we can ensure that everybody can benefit and no one gets left behind we have something called the industrial revolution. We went farming to different kinds of jobs and we seem to be doing just fine. Eventually, they were absorbed and the women using out to change telephone calls f we occupy people for every single phone call that we had to make today, every Single Person would be switching telephones. Why are uconn vinyou convinced transition is worser than oth s others the experts are looking at data sure, manufacturing back in the day and other sectors in the economy have been automated and we have seen hemorrhaging of jobs out of factories and so forth. We are able to innovate sectors and Service Based sectors. What we see in the most recent data that for every robot or jobs thats automated coming in of the 1990. Thats as many as six jobs thats disappearing. If people are losing their jobs, how are you going to pay for the universal basic income, where does the money come from what we are seeing nationally and internationally, you saw exxon and other Big Oil Companies coming together, lets put a price on carbon, we are willing to stand behind them that could provide an access of 2,000 per year. You are looking at to tax corporations of the economy in order to raise income for this ubi . I think it is bigger than that all rig already we are seeing it is being overwhelmed and in the longterm if we do nothing, taxpayers would be significantly on the hook of significant income number one, why would you not have people who make above a center amount not get it it seems odd that people who dont need a universal basic income as i understand, many of these kinds would get it no matter what. Number two, some of the lines that we showed on the screen was a phrase that every financial deserve for Financial Security is Financial Security is a basic right . Yeah, thats part of the discussion of this wohole workig group is convening to work with everything in our job, economy and work is on the table as the economy involved what we want to take a look at is what makes sense. It may not be an absolute universal basic income that covers every single need that everybody have it could be pieces of that if you are going to give everybody ubi then you dont need food stamps thats part of the discussion, you need to figure out what makes sense here inhawaii, you have an above average of cost of living and people unable to afford housing. We need to figure out what the pieces looked like you know what what has made america so great, chris, is that time and time again the American People have been always been evolve and the cutting edge of everything of this world and our economy has evolved without a universal basic Income Technology robots are going to take over and we got to pay everybody no matter what they do i disadpregree this is not a new idea as long as you got rid of wha welfare and Unemployment Insurance and everything else. I would say this, looking forward, we have a responsible as elected leaders especially here in our state where we are seeing these changes already occur so look to the future and start planning ahead we can no longer wait for these things to happen what do you do when you are not in session, are you a lawyer, i am curious i do a lot of Community Work with nonprofits and helping out and with essential services and Environmental Issues and other things which is where we hear from a lot of people and neighbors of mind who had been working at cpas and others and whose jobs have been lost because they work contracted out to Data Analytics companies which can do the job quickly without a fraction of a price which is why we know things to evolve let us know how this progresses and the study group keep in touch. Thank you very much [ laughter ] any time anybody says they want to have a national conversation, they already have an idea of what the answers should be and this is about trying to convince you that their answers are will ard rial right one. Small cap rally should you get in now . What did we do before emojis i dont know, i adodont do the now. How do we express when we dont like winking we have emojis for that and today the world and power lunch celebrates emojis day, or not, stay with us. It starts a chain reaction. Thats heard throughout the connected business world. At t Network Security helps protect business, from the largest Financial Markets to the smallest transactions, by sensing cyberattacks in near real time and automatically deploying countermeasures. Keeping the world of business connected and protected. Thats the power of and. Remember the days when you expressed your feelings with wor words . Those days are gone. Eric is joining me now on your iphone the calendar says july 17th, thats the birthday of emojis. The majority of people on instagram using emojis there is now more than 200 emojis corporate examples dominos using emojis ordering pizzas no way. Twitter getting their own customized emojis. Snap chat spending billions of dollars to change their face behind emojis. And just today, some of these emojis hitting theaters, it is expected to make over 80 million in u. S. Box office basically, we are back to using hieroglyphics. What old is now again we are going 5,000 years back i had no idea there is so much money in emojis. I was surprised as long as my avatar is gorgeous well make a dancing lady [ laughter ] it would be thin and always 25. Apple announced a dozen new emojis in the new iphone system. Cool. Cannot wait to use it good etcetelets talk with erin gia rising of small caps, how do you interpret this move . Well, when you look at what the moves these are relative to other marketplaces, this is actually pretty small and russell is up half of the s p 500, it is greatly out pacing. It looks like investors are still hesitant on leaning towards those small caps looking forward and looking at growth over the next six months or twelve months earning growth for small cap of this is twice the rate it is about 20 growth verses 10 of the s p 500 evaluation perspectives are equal. We actually expect investors Going Forward and perhaps taking on a little more growth of that small caps rick ross, tell me what i need to know i am not a big fan of small caps here. La lagging in the Global Market is not a great start. As you saw that rally coming out of the election and what we have seen is the dollars going straight down and finally season outing, july kicks off four straight months of losses. Of course, weaker dollars. As you get relative strength and as we alluded to youre breaking out to an allnew high and the eightmonth trading range looked like a continuation pattern at one point, but weve really stalled here and when you zoom out and look longer term at that week lit picture gets a little bert and worse at the same time. Nice big base of shoulder. Head and shoulders bottom. Youll see that continuation pattern, but if we went back in time and looked two years ago, you had a similar type of base break out and flag from which we failed miserably im a little concerned stalling going into the worst season of seasonality with the dollar going in the wrong direction. For all of those reasons im not a big buyer of small caps. A check back out of the range for small caps would be what level . 5 to 6 to take you down to the 200day moving average. Thanks, guys. For more market inside go to tradingnation. Cnbc. Com. After the bell, the streaming Service Netflix set to report earnings, the stock up almost 30 this year. Should you buy ahead of the numbers . Well explore that when we return on power lunch. And now the latest from tradingnation. Cnbc. Com and a word from our sponsor. A double top is a chart formation that suggests an uptrend may be ending and ready to reverse sometimes called an m formation because the pattern looks like an m the double top has two defined peaks at the sameri pce traders often view a low of the low in the formation as a bearish signal 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. Big earnings on deck today streaming giant netflix set to report after the bell. The stock is up nearly 30 for the year, so what should investors be looking for in the report and is now the time to buy or bail . Andy haar dwrafs is graves has y rating andy, in your report you said the price target is based on our discounted cash flow analysis, and, michael, you say while weve been wrong on this stock weve considered stock undercovered because of the basic cash flows youve use the same analysis why is your numbers 100 higher than michaels i dont know what he sees because im not in his head. Income closes as your sort of investment in originals moderates over time or reaches a steady state level and then cash starts getting printed that for us adds up to 170 bucks. Let turn to you, michael. Let him know what is in your head. Theres a market commentator who is an absolute National Treasure named jim cramer who talked about this on fast money last week and called me out for my analysis. The truth is these guys burned it billion a year in cash, so the precash flow is negative 2 billion. Its got to go to zero before it turns positive thats not happening this decade i mean, were not going to see that until 2020 at the least, so andy and i are both guessing as to how substantial the Free Cash Flow is going to be in the future, and the truth is im far less optimistic that they are going to get enough originals to fuel the insatiable appetite of their customers and they will be able to pay competitive rates for that stuff because theres other guys bidding up the same content so the recent writedowns tell me netflix is just like everybody else it will take decades for them to get it right hbo took decades to get it right and netflix doesnt have the magic bullet. Andy, 25 seconds to tie it off. The inflation that hes talking about i dont think exists in terms of production cost theres global supply. The originals have been enormously successful and nobody can deal with the costs like they can. Its 170. Is that strongly bullish or madly so if its near term its mildly so over the long term i remain very strongly bullish. Gentlemen, thanks very much. Ecchl,ha y. Nkou chk, please is next. So thats the idea. What do you think . Hate to play devils advocate but. I kind of feel like its a game changer. I wouldnt go that far. Are you there . Hes probably on mute. Yeah. Gary wont like it. Why . Because hes gary. phone ringing what . Keep going yeah. laughs voice on phone its not millennial enough. There are a lot of ways to say no. Thank you so much. Thank you so were doing it. Yes start saying yes to your companys best ideas. Let us help with money and knowhow, so you can get business done. American express open. Check, please. Premium video on demand, watching a movie in your house the same day that it premiers in the Movie Theater could happen this year. Im all for it. Me, too. Roger federer, the rates on wimbledon up 6 over a year ago. 51 higher if you include the streaming video streaming revenues i say that proves that older people can be very productive. Yes. 35yearold roger federer, an elegant player. And the difference is that implied streaming really made up for the biggest growth. Much higher growth. 6 higher on espn. Yeah. All right thanks for watching power lunch. Closing bell starts right now. Hello, everybody. Welcome to closing bell. Im kelly evans at the new york Stock Exchange. And im Bill Griffeth and happy birthday. Emoji keyboard. To anybody out there who may be celebrating a birthday. Kayla tausche but dont want it mentioned on television today. Happy birthday today. Thankin on behalf of everybody. On behalf of everybody, yes. A while away from netflix earnings well find out new shows like glow. Have you heard about that in the