Transcripts For CNBC Power Lunch 20170728

Lunch starts right now welcome to power lunch. Stocks are lower at this hour. The dow getting another record intro day before the pull back health care attacked the best performing sectors S P Health Care 40 almost flat. Consumer staples off more than 1 good year tire, starbucks and mattel, the biggest drags on the s and a. Exxon, ge and dupont buying on the dow at this hour michelle, thank you very much welcome everybody. Tyler mathisen here. The fda announcing a plan to cut nicotine levels in cigarettes. Commissioner talking about this new proposal at a News Conference a short time ago. The nicotine in cigarettes is not directly responsible for the cancer, the lung disease, the Heart Disease that kill hundreds of thousands of americans every year yes, it got them all dignitied and it kept them addicted for the long term. It got most of them addicted as teenagers. But the other chemical compounds in tobacco and smoke setting tobacco on fire that cause the illness and death, not the nicotine nicotine as the doctor said there is the addictive component and the fda is looking to cut the amount in cigarettes to nonaddictive levels. Not surprisingly stocks have publicly traded Tobacco Companies are getting hit hard on this news British American tobacco, altria group, Phillip Morris and impeer ral brands are all lower commissioner will join us live here on power lunch in roughly the 2 30 half hour. Tyler, as you know, its been 24 hours to remember or maybe forget in our nations capitol where to begin how about arizona senator john mccain casting the deciding vote on the senates skinny repeal of obamacare and giving it a big fat no Trump Administration couldnt flip the man that President Trump had hailed as an American Hero on tuesday over to yes. We remember all the other things, though, that President Trump said about mcdonalds contain, dont we . Then theres tmz heats the real housewives d. V. Addition no scaramucci take down in the white house. Language you hear on the trading floor, but nothing we can repeat here not the type of stuff you would say is president ial also keeping up that drum beat for raising taxes on the rich with the rate of 44 maybe here now to play the battle of the d. C. Stars, chick correspondent ben white. Ron christi, former special assistant to george w. Bush and tony, bushs former deputy press secretary. Ron, i want to start with you. Youve worked in the white house. Youve seen this interview that no Anthony Scaramucci gave to the new yorker how can anything get done when that makes clear there is internal warfare in the white house . How much does this distract them from achieving the agenda that trump laid out when he was running for office well, michelle, good afternoon you to as my good friend tony also knows, staff in the house are there to be seen and not heard anything thats a distraction from the president s message, anything from what the president is trying to articulate to the American People is a bad thing ive never seen anything like this after being in politics for 25 years where not only staff are onlily fighting with one another, but undercutting the president. The president had a very Difficult Health care vote that he lost this week. I wonder if the staff didnt have their act together and stayed out of the way, maybe President Trump would have gotten the Health Care Bill through working with the senate. Ben, have you ever been on the receiving end of a phone call like the one Anthony Scaramucci apparently placed to the new yorker writer and could there be any doubt that this was either on or off the record . I have been on the receiving end of those kind of calls sometimes from you, actually no but not with thatkind of language not with that kind of language there can be some gray area there where a reporter and a source have not firmly established which part of an interview with on the record, which is off, which is on background ryan at the ive got to say this. We all know anthony. I consider him a friend. Hes a great guy hes a true american success story. Anthony, if youre out there, start the phone call with off the record he hosted a tv show. Yes he should know this he knows better let me say this, though it at least lays bare the reality when he came out and said rinse priebus and i are good friends, they despite each other. Priebus tried to kill scaramucci repeatedly for jobs in the white house. This has been well known in political circles. Now out in the open. Maybe we could have done without some of the colorful language. And the fact that prebiebus s chief of star in name only the same is true for ben i dont care if he wants 44 taxes. Nobody in the white house cares either. Tony, youre in communications what do you think about this Communications Director . Look, i agree this is f youve had if youvy from the conversations with scaramucci, the problem with him two problems. One is personal for him and that is that he has no background in communications and these kinds of jobs, so when he was announced, there were views that is he really the right guy for this job, is he competent to do the job, and then he fumbled on something that we Teach Associates and june or press people that source suggest a two key event. You asked to go on background or off the record and the other party has to agree to if thats an elemental thing. The second part of it, bigger for the white house, is imagine youre in japan right now and yo youre leadership in japan and this crazy guy launched a Ballistic Missile towards you and you look at the white house and youre alongilook afor an a and see people threatening to fire each other. It does not inspire confidence in our allies. These are important jobs dealing with big issues. New topic, john mccain. Ron, john mccain, taking this vote there were a lot of republicans who did not want to vote for this bill. Is he taking one for the team . Because he knows its incredibly difficult to criticize him right now or was this a you know what to President Trump for all the awful things he said on the campaign trail i think its the latter interesting how President Trump was lauding mccain as a hero and saying hugh heroic it was for him to come back from arizona. What the saerpt denator by comi, he stabbed his republican colleagues in the back for goodness sake, if you cant find a way to repeal this destructive act, find a way to work with the house and go to conference and get to a compromise i think it was a disgrace, it was disloyal and now were talking about john mccain, the thing that he enjoys the most. When he came back he cast a critical vote to bring this whole matter to debate so he voted for and with the administration on that occasion. You know, tyler, it reminds me of john kerry back in the days when he said he voted for money before he vetted against it john mccain votes for it moving forward and then voted against it he acted as he always does as jaim t ja john mccain the maverick we were talking about that show the gladiator. Remember that . At the end, what do they do . The king, right, he would do this mccain, even if he wanted to vote for this bill, do you think he gave the thumbs down to donald trump because he wanted to i think there is definitely a piece of that. I dont think it felt bad for john mccain after all the things that trump said about him on the campaign trail that he likes heroes that werent captured, all that stuff to be the guy who tanked health care reform. Ill put in a word for him about rons comments he did try to explain it and say i dont like whats in the skinny repeal if were not going to have something getting rid of the obamacare taxes and mandate without something to replace it, im not for it you could make the conscious he voted his confidence look, one other thing on this also is that the idea that there is some landing place on health care that the house and the senate will be able to agree to eventually i think is really myth making. Its better for them to have this over with now than later. I dont think there was agreement that can get done. There was never going to be agreement. If were talking about tax reform, which is also going to be difficult, there is a lot of agreement on a lot of pieces of it to move forward again and get it done. Thats not the case with health care let me go back to scaramucci. Tony, one quick question if Anthony Scaramucci appeared at a trump rally today, would he be cheered or booed . Hed be cheered we have to remember were living in a different world right now with some of these thing we look at this and say wow, this is chaos. How are they going to do it . How are they going to get anything done . They look at it and say this is entertainment, were speaking frankly and directly and its more raw if he went to a rally and the president introduced his new Communications Director Anthony Scaramucci, they would all roar in cheering him. All right gentlemen, thank you very much ben, ron, and tony. Another developing story, the u. S. Treasury announcing new sanctions on iran which are in retaliation near the recent Ballistic Missile launch taking a different approach than the Obama Administration when it comes to iran. Markets lower today. Not that much. Nasdaq and s p negative for the week, a week which there were records set. There is a lot of u uncertainty j. P. Morgan out saying the nasdaq 100 could be headed for a pull back. Should you be worry ied about yr money . Jo im going to start with a question that may be a little off kilter charley, how can the markets be so zen when washington is so not . Well, because equities are better than a lot of the other investment alternatives. Tha thats been true for a long time y its why stock markets keep going up that makes stocks look attractive stocks tend do to well in a growing economy even if its a slowly growing economy and thats what weve got. So my words here, matt, charley seems to think that fundamentals trump trump, right . Yeah. I mean, the fundamentals look okay when you look at Earnings Growth we had a great First Quarter we had a good Second Quarter i think things get more challenging. You also look at the economic numbers and they keep coming in a little less than great gdp is a good example. So i think it gets a little harder from here then you add in the washington factor and the fed trying to reduce its Balance Sheet theres some head winds, i believe. To followup, maybe we can flip it. D. C. Has been a disaster since i was four years old and all of stock market does is keep going up. Do we pay too much, by we, i mean the media do we pay too much attention in d. C. We pay too much attention to the insignificant part of d. C. , people yelling at each other, people swearing at each other. That really doesnt matter what does matter in the end are policies this is a funny day to say this. But the general policies of those in power tend to be relatively directional favorable for corporate america. Thats still true no matter how vulgar our president and his aides are. Lower taxes, et cetera. Exactly and especially regular la tore reform which really has been a foot on the neck of particularly the financial sector. That is indeed happening. Weve seen the congress roll back so many regulations, they dont have to worry about the white house to do those things are you concerned about a delay in tax reform . Were talking about 2018, not twec 2017 it seems. Sorry, i thought that question was for me. I am a little concerned. The agenda the administration has is having a hard time moving forward. The lightning lod of health care is moving on to probably the most important part which is tax reform i think it will be a real problem for the market i hope they can get their most important part of the agenda accomplished i take both points. I think it may be less that investors think the administration will be able to do, but it is more about the knowledge of what they wont do. That is they wont take on policies that are antibusiness. Lets go to some stock picks so we can leave our viewers with some ideas to put money to work. Charley, you like a couple of Asset Managers broadly speaking. Tell me why. Because one of the big trends thats going on that everybody recognizes, massive move in the index funds and etfs what people miss is some stocks that have been left behind that cant be owned by those indexes. My two favorites kkr and lazard. They cant be owned by s p theyre making tons of money kkr had a spectacular quarter. Great Business Trading about eight times its earnings because its not owned by the index. You like an asset manager too, t. Rowe price i would say theyre a proud actively manager 80 of their funds aroe outperforming on a three and five year basis. They have a Retirement Plan business a lot of lifestyle and target date funds that everybody pours their money into retirement funds, theyre growing their business through that. Theyve got 5. 4 billion in net inflows this year. They just got on schwab and Fidelity Networks which will expend their retail presence that will be a huge avenue. Theyre spending moneys to get overseas gentlemen, thank you both for the conversation charley, matt, appreciate it thank you well, its friday that means the rig counts are out. Jackie d. , are we putting more rigs in the ground yes, we actually did. Baker hughes is telling us we added two rigs here in the United States. Oil rigs total 766. Compare this to last year at this time. 392. So we added rigs for the third week in the last four. That makes sense when you see oil prices chtrading just under 50. But at the same time its the same problem that pushes us down as we saw earlier in the low 40s. That certainly becomes a problem. Thats really what the producers have to watch. We are watching that. You are right, it is my favorite time of week which says that my life is incredibly pathetic. Jackie, thank you. Coming up, amazons earnings missed the Company Keeps spenniding li a drunken Lottery Winner is it time to pull back . Heck no, buy the stock well find out why coming up 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. The stock would plummet. When youre amazon, its kind of business as usual. Investors have gotten used to their spending sprees. Maybe thats why the stock is only down about 2 today your next guess, youve got to buy the stock. 12. 50 target on it. Securities, i mean, does it bother you at all, michael, that amazons operating income is only 38 million a quarter more than dollar tree and one tenth that of walmart . You know, brian, i think you said it very well. Back when amazon was trading under 300, which was not that long ago, three or four years ago, people thought that when bezos spent money, he was irresponsible. My note says drunken sailor. Now hes a sly fox hes delivered consecutive orders of profitabilities. As long as youre spending out of profits and not deficit spending, were going to assume youre doing something right revenues keep chugging along as long as this invest ment is turning into growth, i think investors are going to be tolerant. Were tv anchors, so were geniuses about everything. I know everything. Except ive run out of questions for amazon weve all been covering the stock for 20 years t. Doesnt matter what they do. Is this its a story that you buy because its amazon almost at this point. Its almost mythical the Balance Sheet and all the stuff were taught in Business School to understand doesnt seem to matter yeah. You know, it matters as if they start, like, losing money. People care. Weve talked about this before people dont care about netflix burning cash they would care about amazon burning cash because they would think maybe theyre doing something irrational the categories theyre spending on, when they build mull filament centers, you know thats going to lead to more centers. I trust bezos. I think hes pretty smart. I dont know that whole foods is going to lead to dramatic growth if he starts ramping up amazon fresh, were going to buy into it this guys earned the right to spend investor money because hes provided a return for quite a while. I think people will tolerate this for maybe four or five quarters if they start generating losses, no, i think people will get fed up and stock will go down. Were going to have a segment later where were going to talk about Big Oil Companies and im going to ask one of the analysts, why would you ever want to own the two companies were going to talk about. Why will you want them with amazon the question is sort of the reverse why would you not want to own amazon why wouldnt it be, if you have a portfolio of individual securities, one of your Core Holdings you probably dont know that i spent 15 years working for Atlantic Richfield, so im an old oil guy. I see the contrast amazon is going to dominate retail, period retail is going to go away, period theres just no question that they are the winner as retail goes away. Yeah, you have to own it the Global Retail sales are 23 trillion amazon gross merchandise value may be 230 billion. Theyre at 1 of retail. Theyre heading to 10 theres just no question its going to happen. So yes, i agree with you, why wouldnt you want to own the future dominatrix and thats them i like that i didnt know you worked at Atlantic Richfield i did but i did know you have a really cool car because you took me for a ride in it once there you go. Thanks a lot. What car is it . A little porsche. The details on the new club this rocket eeer is set to join im crazy stressed trying to figure out this complex trade so i brought in my comfort pony, warren, to help me deal. Isnt that right warren . Well, you could get support from thinkorswims inapp chat. It lets you chat and share your screen directly with a live person right from the app, so you dont need a comfort pony. Oh, so what about my motivational meerkat . Inapp chat on thinkorswim. Only at td ameritrade. Thank you so much. 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. Developing story north korea launching yet another missile. Hans nick ols live at the pentagon this was an intercontinental Ballistic Missile. It flew for 45 minutes but that really isnt the issue. The issue is the time a lost which gives awe a theoretical distance that it could go much far further than the previous muscle thats what were learning now still waiting for official confirmation july 4th was their First Successful intercontinental Ballistic Missile test weve been expecting thchl t the pentagon had been observing just what was happening. There was an important date in north korea, day of victory for what they think is an important date there it didnt happen then in part because of weather now it happened and theyre trying to figure out how dangerous this is. Pentagon assesses and the military assesses they will have a nuclear chip warhead on an icbm as early as twae2018 this week they moved that whole date forward from 2020 to 2018 and then guys, ive got to say, the discussion of military options and there are no good ones thanks very much. We appreciate the report meantime crude oil closing in on 50 a barrel but havent we been here before . Take a deep oil dive air b and b causing price line and other companies to change thr sisseibune models. Hello, everyone. Here is your cnbc news update for this hour. Clashes breaking up between muslim worshippers and Israeli Police after the main muslim prayer session at the mosque isreal recently got rid of enhanced security measures but banned men under the age of 50 from entering the shrine german place say one person is dead and four injured after a man with a knife attacked several people at a supermarket in hamburg witnesses followed the suspect and alerted police who arrested the man near the scene no word on any possible motive wells fargo has agreed to refund 80 million to customers hit by car loan insurance they didnt need. The money will go to some 570,000 customers wrongly charged for those loans. The unnecessary cost forced more than 270,000 customers into delinquency on their loans do you want to eat chicken and play video games at the same time kfc has the answer apparently. Their gamers box comes with a built in bluetooth controller as well as a Smartphone Mount along with of course a box of chicken. Its a tie up between kfc and mountain dew its not for sale. Rather then boxes can be won as prizes in a contest. That is the news update this hour ill send it back to you guys. I wont be participating in that contest but i wish them the best of luck greasy fingers on the no this generation has everything chicken video game boxes nylon underwear. We have nothing. Jealousy is ugly. Shares of American Airlines are lower despite an earnings eat on the top and bottom line Qatar Airlines expressed a desire to acquire a stake in American Airlines. Doug speak to cnbc on the Halftime Report a short time ago. Its not fair our job is to make sure that we point out that its not fair and do everything we can to stop them from being able to expand into our markets and take away american jobs. So were fighting like crazy well continue to fight. American airlines said it cancels its co share agreement with Qatar Airlines which allowed the airlines to back passengers on each others flights. Shares of American Airlines are up more than 30 over the last year. Your next guest knows a thing or two about travel. He is the worlds 11th most patented investor inventor and founded a Little Company called i did it we had a whole conversation during the break you got in my head. Its her fault. You can say what you can say. Hey, just because youre awe genius doesnt mean you criticize us you also founded a Little Company called priceline now were on a Company Called upside travel. Jay walker, good to see you again. Glad to be on the show. Travel is evolving. Maybe not as fast as some thought. Air b a Airbnb Airbnb is hugely powerful. What do you see travel in five years . Changing information, changing how we find things, discover things, how we share things so travel is not changing in terms of crowded airports, planes that are full we dont have enough infrastructure and the system is breaking under the load. Its just braking planes are 102 full. Travel itself senior actually about experiences, about doing things in youre a leisure traveler the more money a country makes, the more the citizens travel and the more businessmen have to get on planes and work alongside those leash isure travelers and thats a nightmare when you travel on business whats the next cool things in travel . The old thing service. If youre a Business Traveler, you get no service its awful. Awful youve never met a market of 15 million people, every one of whom spend 1,000 and its missable there is no service. Why in part because theres no money in providing service theres no incentive f. Youre a leisure traveler, you can barely afford to give service you dont make any money the airlines dont pay you commission if youre a Business Traveler, then you can afford because youve got a lifetime value. The phone is going to change it. Youre going to have an app on your phone its going to be there with you 24 7 knows where theres service, youre essentially going to have an angel on your shoulder. Are they going to smile when i ask a question no. Theyre going to take care of you for the first time youre so abused as a Business Traveler, nobody has ever taken care of you. They put you on hold when you travel business airlines, youre treated much better than when you sit in the back where they act like you didnt pay anything for the seat at all. Except a lot of Business People near that back. A lot of times the middle seat is the business guy and the college kid sitting next to them paid half the price for the ticket that Business Traveler couldnt book until a week ago but i am confused i hear your point about service. But i also hear your point about technology so why would Service Matter if were going to an app based economy where youre going to probably cut the people out of the equation anyway . No, youre not. Service matters. I disagree. If we go into say a hotel. There are a couple that do it well kempton, they have i know them well. You can bring your dog, they feed your dog. Theyre very good. You walk in. Three people working the hotel counter. Yooufr g youve got the app you walk right by them, dont acknowledge them check in why would they be happy . Service is when things go wrong, not when things go right. Fair enough. Service is when youve got to change your rental car, your hotel, your flights, all because some cloud formation, who are you going to call . You deal with t. Press one and hold for a week. Human service is the key are you fixing this you bet your ass. How were fixes it because essentially we facility an entire Service Infrastructure from the ground up we designed an app thats always on you press the button and our rep knows who you are and your whole itinerary is in front of them. Am i talking to ea human being . Human being how much does it cost theyre in the middle of the country. Who you talking to . Our people in omaha how much does it cost less. Because when you buy your air and hotel from the package, we get discounts from the carriers that are below the published rates. If i paying any fee no. As long as i purchase my flight and hotel on your app together on the app or the website and weve got enough profit to give you real customer service. How is it going so far . We have a lot of customers. How many . Tens of thousands to start. But were really just beginning. Whats the name of it upside. Because thats what Business Travelers should have some of for the first time. How do travel companies are not alone in this by the way your Insurance Company it be whomever when you call them, if you want this, press one. If you want this, press two. Its a nightmare. You go down to eight. How do they know, how do they know that what i want is never one of the eight options because they have designed it specifically to irritate you and it seems to be working. Great job, tyler. I dont know if this is whats going on in most of the world. The fact of the matter is technology and humans together are better than technology alone and better than humans alone you need both. Those humans need Real Technology the difference is with voice recognition, youre going to have better and Better Service in the real world. Business travelers pay enough for their flights and rooms, you give them real service right now. We were talking during the break about hiring is it easy to find people . Its impossible to find Software Engineers in the United States you know what . Its an incredibly competitive world. Every company is reinventing their business there isnt a company in america that isnt hiring Software Engineers that have to completely restructure the information layer of their business thats true if theyre a product business or Service Business were rewriting business from the ground up. Its as if electricity was started. Where are your engineers . W were all over but our headquarters are four blocks from the white house in a cell area that has no cell service literally. We get a lot more done in our offices. But were all over the world we use offices all over. You have wifi. Thats why you cant find workers. They keecant be on their phone. No signal. Im out. We all have wifi just regular cell service is hard to get. We enjoyed having you the 11th most patented investor. Another big day for earnings bob has highlights from the nc. Were seeing downward pressure on banks today. Its been rough for the banks this month theyre down again today some are down 2, 3, 4 good year had a big slash. Their profit outlook mattel missed. Starbucks disappointing. Been rough for the Consumer Discretionary stock. Big story is in oil. Exxon, 52 week low the chemical business did okay same situation essentially with chevron, although they had an earnings beat. Exxon did not. You see the differences between the two of them. Look at how difficult it was for these guys to get the earning situation. They kept cutting the prices of the analyst expectations for exxons numbers. 22 eventually they still couldnt get it right. Thats because nobody could get the direction of oil right, so where is oil going look at this a lot of people are talking about royal duchess ceo. He came out yesterday and said we have to we have projects that are resilient in a world where oil has peeked lower forever. Yeah, thats the mindset guys, lower forever, that was a big moment out here. That was the big talk on the desks late last night. Back to you. Robert, thank you very much lets bring in roger reed, an oil analyst with wells fargo joins us on the cnbc news line how do you react to that last little nugget, the ceo saying oil will be lower forever . Thats a long time thanks, tyler glad to be on. I would say we all struggle making a real price forecast for the next 30 days and 30 months, much less forever, but i think it does encapsulate the industry right now where technology is helping us lower operating costs and Development Costs and then, you know, the market is not really cooperating in terms of what we all thought opec might deliver at the beginning of the year lets talk about the two stocks that are on the radar today, exxon and chevron youre pretty lukewarm on both of them. Is there a reason for me to own either of them ever . Yeah. There definitely will be a reason we look at them, theyre both dividend and slow growth companies. Theyre struggling today to grow either way either production earnings or the dividend payout. But these things are big companies, diversified companies. Theyre the super tankers. Slow to turn, but once they get pointed in the right direction, theyre going to be able to hold that for quite a long time we think its maybe not quite the right part of the psyche toll b cycle to buy these two the dividend play, its best to wait until the cycle turns. Are there any acquisitions you can see either of them doing that would energize their growth yeah. As weve looked at them over a long term Significant Growth really only occurs with acquisitions and we dont believe at this particular time that those acquisitions are likely but as they present themselves, thats what youll see the companies do for sort of a stair step improvement between now and then its all about cost management, getting the cost down, getting the capitol down, tearing off the assets and operations that dont help them do that, invest in the new ones then youll see cash flow growth, operating growth and then well see that dividend grow mid Single Digits maybe a little bit higher. Probably two to three years away from that process. Roger, thanks very much roger read, we appreciate it. Thank you coming up next, todays power pitch, h2o that is supposed to make you beautiful magic water. Does it get picked or panned stick around first rick santelli, he doesnt need any water to make him beautiful. Hes at the cme for todays bond report i could risk a couple gallons. If you look at an entry day of two year, were down one on the day but up one on the week a lot more action on the long end, although not necessarily today. Ten years down two on the day, up five on the week. Heres the chart everybody is looking at you see this chart 1. 17, weve touched both sessions this is big time because zoom zoom, you have to go all the way to the end of 2014 to find 1. 17 closes on the euro versus the dollar as we think many technicians think well see 1. 20 and 1. 20 and beyond shes nationally recognized for her compassion and care. He spent decades fighting to give families a second chance. But to help others, they first had to protect themselves. I have afib. Even for a nurse, its complicated. And it puts me at higher risk of stroke. That would be devastating. I had to learn all i could to help protect myself. Once i got the facts, my doctor and i chose xarelto®. Xarelto®. To help keep me protected. Oncedaily xarelto®, a latestgeneration blood thinner. Significantly lowers the risk of stroke in people with afib not caused by a heart valve problem. It has similar effectiveness to warfarin. Xarelto® works differently. Warfarin interferes with at least 6 bloodclotting factors. Xarelto® is selective, targeting just one critical factor interacting with less of your bodys natural bloodclotting function. For afib patients wellmanaged on warfarin, there is limited information on how xarelto® compares in reducing the risk of stroke. Dont stop taking xarelto® without talking to your doctor, as this may increase risk of stroke. While taking, you may bruise more easily, or take longer for bleeding to stop. It may increase your risk of bleeding if you take certain medicines. Xarelto® can cause serious, and in rare cases, fatal bleeding. Get help right away for unexpected bleeding, unusual bruising, or tingling. If youve had spinal anesthesia, watch for back pain or any nerve or musclerelated signs or symptoms. Do not take xarelto® if you have an artificial heart valve or abnormal bleeding. Tell your doctor before all planned medical or dental procedures. And before starting xarelto®about any conditions, such as kidney, liver, or bleeding problems. Its important to learn all you can. To help protect yourself from a stroke. Talk to your doctor about xarelto®. Theres more to know™. Elon musk space x soaring to new heights. 21. 2 billion thats how much Elon Musk Space x is now worth thats based on 350 million series h round of funding analyzed that now makes the space startup one of the most valuable private companies on this planet space x declining to comment on this, but equi date arrived at that by corporate filings. This represents a 75 jump since 2015 when an investment hedged spacex at 12 billion its unclear who is participating this time, but there is a lot of stuff under way at spacex starting with f falcon heavy which musk tweeted last night will be launched in november musk has already cautioned that this first test could be, shall we say, dramatic theres a lot of risk associated real good chance that that vehicle does not make it to orbit. I want to make sure to set expectations accordingly i hope it makes it past, you know, far enough away from the pad that it does not cause pad damage i would consider even that a win to be honest he said that last week, but keep in mind risk of explosion is a given in the launch business investors know that going in certainly know that where it comes to spacex which as youll recall less than a year ago did suffer that explosion on the launch pad at Cape Canaveral it is rocket science. It is rocket science. I think equidate sounds like a dating app. And a Credit Agency at the same time. It is time for todays power pitch where entrepreneurs have 60 seconds to convince a panel of experts that their business has what it takes to be the next big thing. I am founder of all beauty water, a company focused on changing the beauty conversation to make it about beauty from within our skin is our largest organ and what we put into our body you will have an impact. Skin experts agree that many molecules and Skin Care Products do not penetrate to the deeper layers of the skin and that hydrating and nourishing from within is critical yet, many of us dont drink enough water we either dont like the taste or find it to be boring. This was my inspiration for all beauty water benefits to combine food and beauty into one. Each bottle has two glasses of water in it. Eight skin vitamins, seven additional skin newt utrients we recent le expand our distribution from 20 to 150 stores, launched our first chain account stores in the northeast and are working with two distributors and a broker team. Welcome to todays power pitch. You just saw kimmys pitch now lets meet the panel alicia, venture capitalist chu okay, condeyou are in the hot s, alyssa, lets kickoff you say your product is to special hydrating skin, is it a special slogan or special data to back it up. All ingredients have resea h researched behind them how are you differentiating yourself the message is beauty from within and healthy looking zskin we are looking for people to drink more water now, i was not a fan of the taste but the only criticism i have seen with your product online is the price. What are you going to do to bring the price down well be able to bring the price down after efficiency. What are you bringing to this company from that experience i was able to get experience in both food and beauty and retail also, i worked on formations and launching of new products, all of these things have come into what our beauty water is today you are marketing this as a beauty water how are you going to get in the beauty isle . We would love to be in the beauty isle in addition to the beverage isle. A lot of people when they go to our store are looking for refrigerated or chilled products as an introductory place for people to discover the beverage, thats one of the places that we have targeted. You heard what kemi had to say, now we want to know if our panels are in and out. This is a competitive space you have an entrepreneur with a strong consumer background she gets health and beauty trends and i really like the product myself so i am going to go in. Kelly it is a little early for me to commit to this. I dont want to see whats happening. Right now i am out kelly i was the judge that was not crazy of the taste with that being said, this is an entrepreneur of a team of one accomplished a heck a lot in a short time so i am in. All right, two ins and one out. Whats your reaction . I will continue to grow our beauty water and focus our beauty from within thank you, kemi and our focus as well. Thats todays power pitch. It is time to find out if you are in or out of all beauty water. Follow our conversation on twitter and using th the powerpitch. And for more log onto cnbc. Com a call and one stock is sending its sharp lead down. We are back after this we created the ripple the doughnut in a doughnut in a doughnut. Right away, it was a success. I mean, it really took off. What people dont know is that it all started with points from my chase ink card. I bought the ingredients, utensils, even custom donut cutters. Wow all with 80,000 points. What will you create with your points . Learn more about the ink business preferred card. You are loved 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. It is time to street talk. If i recall believes of free cash flows is poise to improved of the companys effort to reposition their capitol we got something pretty cool coming up. I do. I am going to tune in okay, good. You have a choice. Very interesting there. Second stock is paypal coholdin cantor paypal is stating its margins and Paypal Technology gives it a competitive advantage. Next up u. S. Steel of u. S. Flat role place prices for the remainder of the year. Also, we are worrying about end market risks listen to this rate counts should be peeking. And theyre thinking autosectors are rolling over Something Like that and finally your last stock of the day, it is alexion pharma. The pipeline is moving along and historical evaluations his target there on alexion is 138 and about 30 upside seen on al charlie the latest from dc after the break. Plus, the count down is on, the test of the big night for the model three. The first 30 cars with roll off the assembly line. What does it mean for tea. Sl well go behind the wheel and a skin skinny power lunch. Experience unparalleled luxury 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. They always refer to me as master sergeant. They really appreciate the military family, and it really shows. Weve got auto insurance, homeowners insurance. Had an accident with a vehicle, i actually called usaa before we called the police. Usaa was there handson very quick very prompt. I feel like were being handled as people that actually have a genuine need. Were the webber family and we are usaa members for life. Usaa, get your insurance quote today. Welcome fox to the second hour of power lunch. I am tyler mattis. Fda is looking to lower nicotine to non aaddictiddictive levels. Pl plus, a green day for redfin a 40 , the ceo, a happy ceo once expects and will join us in our first on cnbc interview. Millennials are not buying traditional homes but they are buying mobile homes. Power lunch part two starts right now. All right, welcome back, thanks ty, lets get a check down on your money, stocks is not doing a whole lot. The dows hitting an all time high whatever thats going down in dc, the market does not care amazon is slowly climbing back it is now down less than 2 and it is down more than 4 earlier today. It is the biggest one day drop more than two years. Mattel is sitting at its lowest level in six years and boston beer is soaring a developing story at this hour the pentagon confirming of a basic Ballistic Missile from north korea tch korea, the missiles flew for about five minutes there is no damage at this point. The pentagon is assessing the situation and will have more information for you soon and well bring you the latest headlines. After a bitter fight in the Republican Party the republicans attempt to repeal obamacare is coming to a screechi screeching halt. Lets bring in our john harwood john, we began last hour of the question of can anything get done when the white house seems so fought and driven by internal warfare. It had to do with the mismatched of what they have been promising the last seven years and what was popular and what was it and all of that brought it crashing down obviously, a dysfunctional white house does not help. If you are donald trump and you are trying to drive the next item on the agenda of whether tax reform or infrastructure, it is all the more difficult if you have a situation where it is opened warfare in the white house. The next few weeks reeince priebus is going to be replaced and we dont know the replacement. This white house is not stable and it is no t a formula for success. A lot of people are bidding on trump and dangerous to sell him short. Thats true what happens now to the august recess can they go away now the senate is due to be in on nominations for a couple of weeks. My guess is the couple of weeks are going to get shorten once senators know there is not a healthcare issue going out there, theyre going to want to get home as soon as they can the immediate priority is to get going on tax reform. Remember though, tyler, to get to tax reform they want to do they need to get a budget passed first. They do not have consent of what a 2018 budget is going to look like theyll have to settle around deficits and in the house and senate exactly of what the reform is going to look like is there an analogy between the divisions in the gop on healthcare and the divisions within the gop on tax reform are those as deep on tax reform as they seem to have been on healthcare i would not say quite as deep because tax reform is home turf for republicans. The tax issues and tax cuts in particular here is the challenge, on healthcare, they failed because taking away smog from people is very difficult to do on tax reform if you are going to cut rates, you dont want to increase the deficit without the revenue mechanism like that, theyll need to have smaller rate reduction or theyll have to expand the deficit and thats not easy to sell in both houses in congress. John harwood, thank you very much have a good weekend. The Second Quarter is a rose ier one for the economy. Here now with some more on the numbers is Steve Liesman First Quarter as you know has been historically weak and Second Quarter rebounds common 2 plus or minus as joe has said across the economy, Consumer Spending of 2. 8 we have positive numbers and invest ms up 2 and thats the business under the economy and government up, 0. 07 all of these were healthy bounce back and sometimes negative figures. The president set this 3 bed mark for good growth most are below 2 . Mid 2 is a healthy number should be good for job and it is good science so far and what i am hearing on the street is remaining in the mid 2s thats the lowest probability we have seen for the contract and we have been here before and another one brian, maybe you can add the psycho killer no, thats not appropriate. We keep on ending up 2 growth we are not followed by the house though not when it comes to growth thats a good one stick around. A rock n roll. I am going to start with the first question that steve opposed, we got this nice number today, bounced back and First Quarter of the start of something really big, mark sanders, what do you think we are growing 2 we have been experiencing since the expansion began and you know it is eight years long the length of it by definition means that something bad is going to happen based on cycles no, it does not an interesting factoid the average length of time is three years. The clock is ticking on the expansi expansion. It does not have to be three years and a lot of things can happen it is a regulatorregulatory once you hit employment, you tend to pass on it thats a recession steve richutto. This week is pretty significant and it appear that is the health camera reform effort is dead and they move onto tax reform. We are fulltimeinally consequel news and a lot of that is going to be built in gdp and a lot of taxes were going to go away and etcetera and etcetera, thats not going to happen. Tax reform i dont know, who knows. What do you think of their impact on what happens to gdp . I dont think there is any chance that the company is going to accelerate of the second half you know and part of the reason is that we got the Federal Reserve thats pulling away from combination. It is not just the Federal Reserve thats pulling away, it is every single bank around the world of the importance of ppoc, ppoj, i should say china is pulling away itself out of the equation and we are not going to get any physical stimulus coming down the pipeline i think this economy has a Great Potential under perform then over perform as we go forward. We are not building a credit in balance in this economy. This is going to be the longest expansion of our city. On average, our economy tends to run into trouble the variation around that is pretty wide. I think we can be looking at another five years of this low growth, low inflationary and continuing can i share one idea out there on the Positive Side we have conditions of good Consumer Spending and the job numbers. They should under pin this 2 or 3 one of this things that changed and makes my optimistic and i want to see more than one quarter in a row of this is the business spending side we have been essentially in the business spending for what now for almost a year or 18 months depending on where you dated from if we get the business side together, we can do two and a half and 2. 5, if the potential is two i mean it is certainly a possibility and i am not going to take it away from you, steve. What it happened is the drive up in Energy Prices and causing the big shift around Reduction Energy and Energy Investment and Energy Prices where they are right now is 50 a barrel. We are not going to continue to get that it is confidence number the spending is going to look better if luke at corporate earnings, a lot of them are starting to report that their order books and their backlogs are expanding. Here is another we can talk here is another positive take on thing. It is not just Business Investment there is no head wins to the economy now. So early on in the expansion, there are head wins. It is stuffed and the shifting of the new product and heavily discounted products. They did not go well of the automobile thats a big, big persuasive industry in terms of the u. S. Economy. The Federal Reserve is backing away from accomodation thats a head win. To me it is tightening we are going from qa to qt quantitative aiding and quantitative tightening. I would not argue with you. Those are good points. Look, consumers are going to do their things despite the high Interest Rate and despite the weakness of the autosector business invest ms are going to be fine and normalizing and trade is no longer a drag because the Global Economy is firm and u. S. Dollars stabilizing and down a bit Government Spending is positive. I disagree with you on the trade. Guys, guys, sorry, i would love the comment talking smack hes my friend. Thank you, steve. Shares of starbucks is down almost 10 of an unexpected Third Quarter revenue. This morning, Kevin Johnson defended these companies results. We are proud of the fact that we posted a 5 comp in your largest market with 1 growth and transactions now, i challenge anyone to point to any other food and beverage merchants in our scale posted with 1 transaction. It was a strong foerm man slaughter and a great result our next guest gives starbucks a four star under valued rating. You are with us yesterday talking amazon and now we talk about starbucks. Is the markets reaction is over done yeah, certainly some markets warranted here if you dig deeper in the numbers you will see things of program numbers, thats slowing. We saw deceleration through the quarter and right now of 3 to 4 range and down to what they were there is some conceptism i think you will take a step back you got Digital Infrastructure thats further along most retail concepts there is an opportunity for marking. I think the Company Needs refinements on its menu and platform how is their digital ordering working for them when i go in, there is some disorganizations and people are cutting line and i order my stuff over here and i want my stuff. It is not a friendly moment. Having too much people, changing the lay out of the store. They got point for mobile orders something that you dont do every night but something that can be done. It reminds me of panera where they had problems and they ended up solving that. How big is teavana, the brand itself is successful a retail base of tea concept, i am glad they did not pursue further. It is something thats not going to work and little traffic it is better to run through the starbucks stars. There is a number of people joining Loyalty Programs it is going up but not as fast as it used to. If you lay that through the company, well suggest declining growth thats one area that i so concerned about. For a company this size and the Market Leader coffee to have a program of 30. 3 million the Company Needs to take a look and decide what they are, is this a millennial focus brand or going after ordered demographics and find their target audiences and thatll help them out. That really is key for keep repeat business and driving in traffic and environments we have things like a unicorn frappuccino and happy hour, that was designed for Younger Generation thats something the Company Needs to look at, maybe they spread themselves too thin at this point yes or no to buy the stocks here it is a huge opportunity and i think having a lot of demand for your product is a problem that you can work out. It is going to take some time and you get the risks. Rj, well see you monday. Rj of morning star. Redfin is making its debut today. Well speak with the ceo teslas big night. The company is set to deliver first mass electric vehicles in the form of model three soon and cigarette stocks sink stick around, you are watching power lunch. Welcome back to power lunch. Shares of redfin here is first on cnbc, the nasdaq, the ceo, glenn, congrats to you and your employees. So much fun lets take in a little. Hundred bucks to trade stocks 15 years ago is basically free now. Five to six percent and split with two brokers are you going to change the Real Estate Sales model oh, we are. Sometimes it takes longer to win. You trade in stocks every single day and someone screws it up and it is not the end of the world it is the biggest transactions of their lives and sometimes they adodont do it once every n years. If you are for Better Service and less money and thousands of dollars less and you sell homes for more money, you are going to take shares. So what is the difference and there was a Southern Beach one what is the difference in your model for our viewer who is dont know it how much do you charge and differentiating yourself and winning business of the bankers of the world we charge about a third of a price. 1 enlisting the homes instead of the typical pay to agents we are the number one brokeage website. We use technology at every step of the process can you get realitors to work for you . Oh yeah, year over year 4,000 home, 5 and 20,000 commissioner and you split it two ways, ten each, what are they going to make under redfin. You are thinking of it the wrong way. I am thinking numbers a typical agent is going to sell six or 10 home as year. A redfin agent is going to sell less theyre going to make it up in volume. Theyll have technology on their side to make sure they can do that to serve the customers well they earned twice the industry average and theyre working for a brand that does not feel like radio shack or real estate it is a good customer covenant and a Great Technology platform and a great career our agents are 16 years younger of the traditional realtor whos 57 there is a new generation of folks. Come on our customers are 41 is my redfin agent is going to meet me at the house to show me around . Yes here is how it works thats whats going to happen the lyft and uber El Real Estate you are apple and you are lyft and you are uber, i am loving it. You want to click a button and instantly to get in the tour if you are a new customer especially, well make sure you get the lead agent and hes the one responsible for taking care of you all the way through and help you stage the house in. Yes, we help you stage the house and we do this cool visual 3d scan view where you are inside the house so you can look into the ceiling and the floors. We do all sorts of things. One out of five consumers are buying a house without seeing it online until they get to inspection google is not profitable. When are you going to be profitable well, we are not profitable yet . You got to cut my some slack it is my first day of a public companys ceo. The company is doing well. All of our numbers are gaps so it does not klein you hinclude. Lets have some fun looking at the share accounts of your worth of 30 million today, all of a sudden what are you going to do with it and the first thing you are going to buy i think i am going to go get some cough drops, i have got a little bit of sore throat. How does it feel . Thats what our viewers dreamed about. You go public and worked hard and now you are multi millionaire because i will never know come on, seriously. I am so proud right now of the company, like thats how i feel i know it sounds like a bucket of balogney to you but i swear, it feels great we believe you venezuela clashes well break down whats at stake. The commodity is approaching 50 bucks the highest levels sinceay m closing trades in 3 minutes and 13 seconds were facing 20 billion security events every day. Ddos campaigns, ransomware, malware attacks. Actually, we just handled all the priority threats. You did that . We did that. Really. We analyzed millions of articles and reports. We can identify threats 50 faster. You can do that . We can do that. Then do that. Can we do that . We can do that. [ intense music playing ] ] its here, but its going by fast. The opportunity of the year is back the mercedesbenz summer event. Get to your dealer today for incredible onceaseason offers, and start firing up those grilles. Lease the gle350 for 579 a month at your local mercedesbenz dealer. Mercedesbenz. The best or nothing. When this bell rings. 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. Hello everyone, i am sue herrera. The u. S. Is slapping iran with new Ballistic Missile sanctions. The sanctions target six iranian subsidiary locations charlie gard has died he became a dispute between his parents and doctors on whether or not he should taken to the u. S. For treats. He would have been a year old next week. The tariff on american beef sits at 38. 5 . That rate will go up 50 from august 1st until the end of march. O. J. Simpson will not be invited to watch practice or take part in any functioning at usc. Head coach clay clayton denied him coming back. You are up to date. Brian, back to you the market is closing for the day and week lets go to jackie deangelis. We saw an 8 gained in crude prices very close to that 50 mark. Trading at 49. 81 session high there are three factors throwing us high this week. The weaker dollar was definitely supported of this trade. You had the saudis thats going to cut their export and the large draw down u. S. Crude supplies and giving people confidence that seasonalty is starting to kick in today. Thats not to say we can see it going down a little bit later. We test a couple of times and usually we tend to break the level that we are testing. Back over to you the Trump Administration threatening sanctions of venezue venezuela. Numerous leaks suggest that the sanctions are considering banning or taxing heavily of the imports of Venezuela Oil u. S. Refineries thats most impacted, the biggest of 2013, sweeney texas of refineries, you can see it is all in the gulf coast. 45 million of louisiana. Number three is valero here and number four is sweeney, texas and corpus cristi. What will the impact be . Joining us is our strategy in nbc. Hi helena, if of no imports of barrels . We would lose it everyday day. It would be good for canada and mexico but this will be a problem in the bottom x. You can see gas prices rising here i shally until those supply issues are sorted out. That would be the issue. That was my next question that was the other Nuclear Option that they could do. Venezuela government cannot tran sakt their dollars so unlike all other refineries, they could continue to operate thats right it is out of business. This has to two effects. Again, it can drive up gasoline prices here and differential and mexic mexican mines but we can see real impact. What if theyre default and they cannot pay their bills thats a good question depending on what type of sanctions are put in place i watch the dollar sanction for that you can convert the refinery from the thick salt and as well as heavy venezuela crude can we make it up with u. S. Production well, this is just taking time and we are talking about a peak summer driving season there will be an impact longer term, could they send america 10 or 20 billion people . You cannot slap sanction in iran there is other countries that can supply us, we can make odd occasions of refineries, we can do this. Better to bring this story to an end, so i think thats the fight. I some in the white house are saying we need to step you want sanctions. Hes making it terrible, lets end the story. Helena, thank you very much. Thank you for having me tobacco is there any is taking a hit today the group plans nicotine lefrls in cigaret lef levels to non addictive levels mr. Kessel l, go, good to hau with us. Good idea . Obviously, no regulations should passed. This is a start for the public that people are not going to Smoke Cigarettes if you. Are there pay weigays to make a sifsi safer cigarette . Thats a big question the question is, i will confront that for decades and we won that battle. The question is, what are you going do for the person who is addicted you cannot just take and do it as an experience and reducin nicotine level what if we find somebody thats already addicted. If you take nicotine lefvels down if you make cigarettes and not deliver why people smoke can there be a form of nicotine do delivery thats still a big question trying to do that [ inaudible [ inaudible it changed hundreds and thousands of lives David Kessler we thank you very much. Coming up, a lot of news, next week is apple as your main echt to report their earnings. Do you pie apple now or is there a wait a newly bought super car is gone in less than 20 minutes a story of a man and his formal very rare and expensive ferrari coming up. President trump is speaking of the failed healthcare bill moments ago with a speech no long island, new york, john harwood has more trying to rebound the setback last night on healthcare hes giving a speech to Law Enforcement officers providing restrictions and violence and saying hes going to crack down on that. He took a detour into healthcare and said that what his stance now which is let obamacare go away and it is been vindicated here is what he said oh boy, oh boy, they have been working on that one for ser seven years. Well get it done. Let obamacare implode. Now keep in mind, thats a program that hes squoering to over seas and now has 18 people on those obamacare places. What happens to those people and enrollment for the new years well have to see how he handles it and i dont think how in Congress Wants to have a bipartisan quick john harwood, thank you shares of tesla. The automaker is planning to deliver its first model tonight. Will the model three help pushed tesla even higher the moment is here but i wonder james, as always the stock build up already been priced into the actual news . A great question, first of all, thank you for having me the oncing understanding of ho market is, it is something vitamine investors and the mark et is trying to get their arms around. Those brands on the a 4 and c class and affordable priced vehicle, tesla is showing they can differentiate against the higher price segments and this is their first for ray into the much bigger market thats something that people are trying to diverse. Qualify barry burbafrankly what are we making of the stocks this is also like a solar panel company. How do we look at it . Not the car, not the company but the stock . I understood, it is another great question look, i think for now, we are going to have to make their mumbai building and ramping production of the car. I think when you want to figure out how tesla fits into sort of a pivoting, Broader Energy cycle question, certainly power storage when coupled and bringing new energy of a nye life as we look around the country, we a autoanalysts but we do look at some degrees. Transmission disabuse is antiquated in the u. S. Solar generation can be stored and units that tesla can provide. Thats an entirely different market of unpacked opportunity that we think for shares why is this car is cheaper . It is smaller and not having all the finish if you will of the larger model s or model x. The smaller battery pack and downgrading if you will and upgrading if you will the opportunity to showcase new amendmenti amendmenti amenities. The opportunity to buy hardware that well couple in a few time you wiultimately the big opportunity as you scale hundreds and houns of thousands of units over the fix cost of production thanks so much much, we appreciate it. Millennials may not be buying traditional homes, but they are buying rvs. Ro reporter thats right, they are totally anngchgi the way of where they camp. Tell you that story afterwards coming up next on power , power lunch. elegant music and let me play bell rings [ light music playing ] youve wished upon it all year, and now its finally here. The mercedesbenz summer event is back, with incredible offers on the mercedesbenz youve always longed for. But hurry, these shooting stars fly by fast. Lease the c300 for 399 a month at your local mercedesbenz dealer. Mercedesbenz. The best or nothing. Millennials seemed to be buying rvs. Landon seems to have the story hi landon dowdy. Reporter move over, thats right, it is not just baby boomers behind the wheels of rvs. Recent growth to younger buyers. Homes volume are increasing. The biggest pop of 20 euro over the year according to Rv Industry Association we talk to some of the buyers here at the campground we picked this one because it has a kitchen in the back and outside. Something we can grow a family livelives. We selected the bug traouser because we have some room. Rv manufactures like this company is taking notes and upgrading the electronics. It is up grating the electronics and adding features they are are used to a lot of rvs are cap ompatible o iphones or running your ac when you are on or jacks when you get there, it makes it easier to camp it is not just these affordable weekend that millennials are using. They are using things like tailgate or concert and some of them are passing everything you will and selling what they can aint take wi take with them it is like a vc van way before you were born i am do that, do what you described. Reporter air streams are cool again. Say that again, please. Reporter air streams are very cool again. Were seeing a lot of those. Very popular people are buying the new ones, rather than used ones and these millenials are taking their families talked to a bunch of these moms traveling across the country they are home schooling their children and if theres a geology lesson they are going to the grand canyon if there is they are talking civil war, they are going to gettysburg. Landon, landon, first off, as the only rv. I have two, one doesnt work. Do you want a towable reporter youre not a millenial. I have a classic rv, one is for sale but it doesnt run but it has two giant eagles, 40 feet long. Reporter maybe we can talk to some people. And these things, all we hear landon is that your folks, the millenials have no money are they paying for it . Are these all finances are people taking out massive loans . Reporter so its actually a little bit easier to get an rv than you think had they can start anywhere from 5,000 to upwards of 500 grand plus for the really fancy ones but its pretty easy to get a loan Thor Industries says 50 are paying cash and 50 are getting a loan so its easy for them so its 5 grand, may not be the one totally updated with all the fancy technology that can be with your iphone, but there are affordable options and even if not that, were millenials, all about the sharing economy, use outdoorsy like an uber or even, you know, rent one from other companies. You are in Northern California i imagine theres sharing of other stuff going on at the campground in Northern California, you know what i mean, mendecino. Reporter weve got the vin yards, plenty to do around here. Thanks, landon. Soda stream. They are cheaper than a house. That has 18 batteries. Got to operate a house. Get off your moms couch and into the rv. Two words for you gray water. Youll understand. Time for trading nations to talk about apple. Mike olson who covers apple for Piper Jeffrey joins us now hello, mike. Earth to mike. Couldnt hear you. Just asked you a joanus question what are you looking for from apple . Sorry, couldnt hear you there. Our expectation is an in line june quarter for the september quart they are could be a little bit of downside in the guidance relative to where the street is. Now the street is getting somewhat right sized in their model. Weve seen over the last week street estimates for revenue that have come down by a billion and a nickel on eps and whats happening is where theres smoke theres fire people have seen enough rumors for potential for the iphone to launch later than expected numbers are getting shifted from the September Quarter into the december quarter i think if they guide slightly below for september and, you know, basically essentially gets pushed into december, it really wont faze a lot of investors. Eddie, what are you looking for in. Spiraler alert. They will beat earnings for this past quarter, but really what people want to look for is that Forward Guidance a few things first it is there are those rumors about slowdown, potential delays with the iphone people want to know about that also about the recurring revenue that you get from like the app store, that nice steady revenue stream investors love that, and also want to hear about china and other places remember, apple is losing market share globally, but the key thing is this iphone 8, are we talking about the same customers buying a slightly improved thing, or is apple opening the door and bringing in new investors . Yeah. I dont think this looks good here right now i would sit back and wait. Make a prediction they are going to beat appreciate it. For more trading nation go to tradingnation. Cnbc. Com. Michelle. Check, please is next dont move hand now the latest from tradingnation. Cnbc. Com and a word from our sponsors 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 a double top consists of two welldefined peaks at approximately the same price. Traders often view a break of the lowest low in the formation as a bearish signal. A used car, break out the eagles and giant american flag, all next week well highlight Companies Across the country making their products in america and also making it. In other words, they make it, and they are making it well highlight five different companies, guys, all over the country. They say you cant make stuff in america. Guess what duluth pack, Guardian Service and a couple more. They are just proving it it will be a really fun series next week. Cool. Looking forward to it. Break out the eagles, break out the giants and break out the redskins, my favorite team. Nice. The nfl Training Camps begin this weekend, and i am a huge fan. Check, please. This is check, please how do you like that he interrupted me. What was i going to say . Oh training camp. Football. Training camps are opening, and obviously in light of the findings earlier this week that 110 out of 111 brains tested of former nfl players who donated their brains to look at cte, chronic traumatic encephalopathy. We know what you meant. They had it, and so i think the nfl begins under a bit of a cloud. I dont think people will not play football, but as and father of a son of an 11yearold who really wants to play, its a conversation in every household i know yeah, i bet. My check, please, a little more light hearted than one. Just because you buy a really fast car doesnt make you a good driver a lot of people buy this hot car like im a racer some guy totalled his rare and expensive ferrari an hour after buying it. Its a special model, 288,000, really fast. Less than an hour. Car like caught air, burned down hes okay. Did he survive . He had a bruised ego and bruises, but he was fine if you buy a car like that, folks, take some lessons. Those cars can get away from you. Something may happen with the car, so i dont want to knock him too much be careful, man. Im a racer. Those cars can get away from you. All right this say it. David august. Say it. Is a company that makes mens suits, and in light of all of the excitement in washington in the last 24 hours we thought this might be appropriate for a certain new member of the white house. The fu pinstripe suit, the effu pinstripe. We show you a slows up but the pinstripes spell out in tiny letters. That might look similar to what you might have read nor a new yorker article that interviewed a certain Communications Director. Someone gets close. Right. Wonderful. All right thanks for watching power lunch, everybody. Have a good weekend. Closing bell starts right now. Have a nice vacation next week. Thank you hi, everybody. Welcome to closing bell. Im kelly evans at the new york stock exchange. Been a while since weve stood over here. Done that sonny and cher thing. Im Bill Griffeth dow fighting back from earlier declines trying to close higher for a fourth straight session. This would be a record high if it does. Any close would be a record are to the dow the s p is lower though. So is the nasdaq, by the way. Yeah. Weve been watching that one the last couple of sessions going back to yesterday afternoon. Then you had amazon off the lows of the day after reporting disappointing earnings the company across the tech sector which has had a huge run so far this year coming u