Transcripts For CNBC Power Lunch 20171006 : comparemela.com

Welcome, everybody, to power lunch. Im tyler mathes the win streak for the s p is clearly in jeopardy on this friday, this jobs day. Mornings job report, the s p, six record closes inthe row. The longest streak since way back in the clinton era, 1997. Financials, the best for forming sector today xlf hitting the tenyear high. The move could be a result of the treasury treasury today recommending looser Financial Market controls repealing sections of the dodd frank act and biotech is on the move with the ipb hitting nearly 2. 5 for the week speaking of highs, netflixs alltime high after it announced price hikes yesterday. Costco surprisingly the worst performer in the s p 500 it is rarely that. But it did report a drop in Profit Margins and that will do it, pete. Michelle the stock is getting hit hard, but we begin with the jobs report 33,000 jobs lost last month. The hurricanes being blamed for the first monthly decline in seven years. So should investors just throw the report away . Steve liesman is joining us now from austin, texas, with details. Steve . Reporter yeah, michelle. I think throw away the weakness, but sort of useful in gauging the strength out there in fact, economists are sort of looking and saying this shows us that maybe the underlying economy, the underlying job market is stronger heres what joe naroff said, quote, most of the data in the report pointing to nothing amiss in the labor market other than the hurricanes you can see that when you look at the overall data. As michelle said, minus 33,000 on jobs. We had a little bit of a revision, but high levels for july and august. But look at the wage number surging up a half a point. Unemployment rate declining. The Participation Rate, more people coming into the workforce, 63. 1 and take a look at these hurricane havoc numbers. You can see what kind of havoc that the hurricane played with the jobs report. 2. 9 Million People worked parttime due to weather 1. 5, the most in 20 years didnt work at all due to weather leisure and hospitality down 111,000. Someone got jobs, how about Insurance Adjusters up by 11,000 what does this all mean for the fed Going Forward . Take a look at what bmo said, quote, the underlying strength in the september jobs report will encourage the fomc to lift policy rates in december but hold on just one second, because we talked to robert caplan, the dallas fed president , who said hes not quite ready, so sure to hike in december because he sees this connection between inflation and wages a little bit broken. Heres what he said in our exclusive interview. There should be some building wage pressure. The ability of companies, though, to pass on wage increases in the prices, i think, is much more challenged companies have far less Pricing Power today because of Technology Enabled disruption. I think the trend is very different. Reporter so unlike harker from philadelphia who we talked to yesterday who is a go on that december rate hike, caplan is more of a waitandsee he could be convinced because theres more data to come to really lock that in. The market much more sure. You can see in the 80 or 90 of profitability in the december rate hike. Steve liesman in austin, thank you very much. Listen to this, theres been a lot of big scary and sad headlines dominating the news. Earthquakes, hurricanes and of course, las vegas. No doubt, its been grim, but maybe lost in all the headlines are pretty incredible Economic Data points that have rolled in and that you might have missed ahead of the jobs report in fact, economically, everywhere you look, there does appear to be good news why do we say that consider in the past few weeks we have learned that manufacturing is at a 13year high the Service Sector at a 12year high, that includes retail, which by the way has actually added nearly 700,000 jobs in the past year. Housing, pretty strong, too. The median home sales price up about 5 year over year as of last data read but thats not all, air traffic is up. Rail traffic is at record highs from an intermodal perspective, and auto sales are on the rebound, too if you consider transportation and freight a good leading economic indicator, check this out. According to jpmorgan, sales of tractortrailer trucks are soaring with orders for certain kinds of trucks up 60 this year heres the bottom line, the front page of the paper has been pretty tough to look at lately we all know that but underneath all that, the American Economy remains resilient. Lets talk more about it and find out if your guests agree with this thesis tom portrelli, Ernesto Ramos and dave donabedian, the trust cia tom, is the economy really this strong or are these, in some ways, false tells . No, i mean, its funny, people love to define these things in very blackandwhite terms. We have been saying that the underlying strength of the economy is, i think, without question its been resilient much as you highlighted, but we are defining it in the 2 to 2. 5 truth trajecto trajectory we have been saying that for years now, so nothing has changed in that regard we continue to run at that pace. But i would caution with, dont take those ideas too far dont run them up field too much but sure, if youre trying to build the case for a 2 to 2. 5 backdrop, then yeah, we totally agree with that. Ernesto, the numbers do seem to have improved the mood seems to have improved with respect to the economy. Whats happened . What has change in the last year or was it just the followthrough of momentum that had been building . Well, i think what is it . I think specifically in the last month what has happened is the expectation that tax reform will go through has lifted the Economic Outlook for a lot of people and i think theres a reason well transit that to happen given the need that the Administration Needs a big win by the end of the year we still think that, by and large, we are in the later stages of the economic recovery. And therefore our approach to stock picking is more focused on Growth Stocks. Because when growth is scarce as it is in the later stages of a recovery, you want to own those stocks more growthy. So thats why we favored Growth Stocks at this point. You think were in the later stages of the recovery, so are we in the later stages of the rally . Does the overall market start to slow down . Timing rallies is always very tricky they dont tend to die of old age. Something happens that triggers a high evaluation to kick in and bring them down. However, theyre not that extended evaluation is about 22 times, which is relative to bond yields if you do the old inverted earnings yield, its reasonable. So something will have to kick in to bring it down. We will have a correction at some point, a 5 correction, which we always get, but i dont see anything right now other than geopolitical events that may make that happen any time soon. Dave, we are not trying to be polyanish here, but we are looking at the data points here that have probably gotten lost, rightfully so, and all the scary stuff going on around the country. To tylers point, things have been good, but recently it does seem like theres been a secondary push that could maybe get us into 3 gdp growth for the next couple of quarters. What do you think . Well, i think theres a possibility we touch 3 or above in one quarter i would agree with toms earlier comment, though, that the trend line is probably still more like 2. 5. Theres no question that the shortterm data has picked up here and is reinforcing for the stock market here. It reinforces inflation trade and the idea that we are in the macro sweet spot with decent economic growth, low Recession Risk and at least low headline numbers. And so that may sound polly annish in the shortterm, but we have a pretty good window into 2018 beyond that, though, my concern is that the current positive sentiment about reflation morphs and rates rise faster in 2018 than the fed is currently projecting. And that can result in the death of a bull market, right . Ernesto, when the fed raises rates faster to stabilize inflation, do you agree we are nesto that growthy names, i like it, growthiness is what we should be investing in right now . What i would say is the way we like to think about expansion, we like to break it into thirds. We are in the final third, but you are beginning the final third of, excuse me, of this expansion. So this can go on for at least another few years. Look, im sympathetic for what brian is trying to do, pardon me, but we know the right way of thinking about this is not to just sort of look at the key data point that is have said things are going one way or the other. Instead, i would say, just think about where we are from, lets just pick on the consumer, the state of the consumer, we love right now, right we would define the consumer Balance Sheet at really pristine shape. So from our perspective, its really easy to make the case at 2018 is probably going to feel pretty similar to 2017, which is to say, a pretty good year so i think all the pieces are in place for the expansion to continue if you wanted to press me on when i think the next downturn happens, i will tell you, it is probably two to three years away to be clear on that point, my crystal ball is not better than anyone elses, but the way things are shaping up now, i like how things are unfolding over the next couple of years and say one last thing really quick, people are always asking when the next recession will come to be honest, that is probably not the right question a better question to ask is, what does the next recession look like . And what i would say is barring some financial calamity, the next recession could look like the old downturn and that was interesting in that the consumer came through totally unscathed. Again, i want to be clear on this, my crystal ball is not fantastic over the next three to five years, but thats the right way of thinking about how this thing could evolve. Dave, i dont want to put words in your mouth, but the way you sounded similar to what we were hearing from tom, this could last for a while when it comes to the stock market. Are you still putting money to work in equities right here . Or are you getting nervous about the duration of this rally we have really held our equity allocations stable. Its overweight to fixed income versus policy. What we have done, though, to deem risk a little bit is move money into the developed international markets, which we think are both cheaper and actually have a stronger pace of earnings acceleration even than in the u. S. And funded that from the u. S. But our overall equity allocation has remained the same they are wrapping up us, but give us a growthy name you like. A great example is boeing its not the growthiest name in the world, however it is benefiting from Consumer Spending in the u. S. People are making more money than ever. And the cash pool gets put into new places and the rest of the world, if you look at chinese tourism, for example, its just taken off and so boeing is a sweet spot right now to continue selling planes for the next few years. So things are looking very good. Ernesto, tom, dave, appreciate you being with us lets go to seema moody for this weeks rigged count. Highlight of my week, seema. U. S. Oil drillers cut rigs for the fourth week in five. That according to baker hughes now u. S. Oil drilling rig count is down two at 748 in the week to october 6th how is the Energy Market responding oil has been trading marketedly lower today. Wti crude at the lows of the session down nearly 3 they are pulling back from that level right now. Back to you, michelle. Got it, thank you, seema the biotech index is up 28 this year earnings season is right around the corner which of the stocks do you need to buy now to make even more money . Plus, were still dealing with the damage done by harvey, irma and maria and now, look at that, here temes na could have a big Economic Impact as well. The latest on that impact coming up on power lunch. Im living that yacht life, life, life top speed fifty knots life on the caribbean seas its a champagne and models potpourri on my yacht made of cuban mahogany, gany, gany, gany, gany watch this dont get mad bell mnemonic get e trade and get invested earnings season officially kicking off today. The etf that tracks the sector, the ibb, hitting the highest level since december of 2015 and now its up 27 so far this year what natures should you bet on heading into earnings . Lets bring in ronnie now. All three names youre going to tell us about have underperformed the overall index. Is that by design . Not really. But they tend to be that way. Got it. Lets start with biogen up 15 , which is pretty good, but still an underperformer. They have a multiple scatter scg they have speranza launching better than most people expected and being used by many patients. This is still underestimated by the street and why they will do well in the quarter. Then they have in the development a treatment for alzheimers in phase three it is not expected before 2019, but Additional Data in that market or development that suggests or could suggest the drug as a higher hopes of being successful and i mentioned that the stock is higher between now and the middle of 2018 how about allergen . I always joke this is the no frowning stock. Thats been a thorn in my side all year. This is a very Good Business spread among 20 different products the largest one is in esthetics like botox, and now these are the new hot things. What is that . Asking for a friend. The fact that you know what that is im just asking. There are tv ads for this everywhere now you sit in a chair and they hit you with ice or something. And it melts your fat off. First, it doesnt make you skinny but it will help you contour the body better. So if you work out and do that in addition, you kind of lose the weight from the right places the way to think about it is, if you need to fit into some clothes before your kids wedding in the next two weeks from now, this thing is probably the right thing to use in my mind, theres no question that it works. It sells 400 million at the allergan level, the doctors double up the price when using it on patients and a million dollars, all consumer paid. Kind of hard to argue that is not something that works, just from the numbers and this is like the ultimate proof that this is now hitting the mainstream. It works on the numbers, does it really work on the body yes yes, okay ronnie, are you sure you want to mention that on the air we have a second delay we can rewind maybe i should be using it, but thats a different point altogether so no, so its a very Good Business they have a couple of aging products they got from a couple acquisitions in the past that im going to go generic, some in the next three to four years and people are concerned it may happen a little earlier, especially with the fda now approving more products on the generic side and that is, and that is why the stock has been down. But its down 20 . Which is more than the entire eps contribution of this project. And consensus comes down to meet the expectations the stock is very acquisitional over the next three months. That answered the question, why is it down so much why hasnt everyone else noticed what you mentioned and mylan is also one of your top three picks. Yes, they are completing work on the genetic thesis. The products are going to compress and it did it with the entire area compressing they are look at the entire differentiation of products that were impossible to make generic so far, they will begin to come to market. Scott dodley, the commissioner of the atf, is going to start approving more of these products earlier this week, mylan got the first product approved yes, the stock already took a big move this week it can get more out of that announcement not out of that announcement, but they have another half dozen products that look a lot like the done and difficulty of manufacturing waiting on the sidelines. And to the extent that the fda will follow through, this wont be another onetime event. They are getting approval. And people are beginning to get convinced that there are further products along the way right now it is viewed as a onetime. Thats interesting because there was a time when the stock got hit because people were worried about what was happening with the generics, and now mylan is on the other side of the trend we are potentially seeing. Thats right. Thank you, ronny. Another powerful storm bearing down on the u. S. , which one headed for the Oil Infrastructure in the gulf we will get the latest forecast on Tropical Storm nate and as the country recovers from harvey and irma, the u. S. Economy lost 33,000 jobs in september. Our jobs panel will weigh in on that and more when power lunch returns. Usaa to me means peace of mind. We had a power outage for five days total. We lost a lot of food. We actually filed a claim with usaa to replace that spoiled food. And we really appreciated that. Were the webber family and we are usaa members for life. Well, another powerful storm is heading to the u. S. Tropical storm nate is the name. And lets get the latest forecast from maria larosa of the weather channel. Tyler, yes all eyes on nate next week with a Tropical Storm and we still have a land mass in the way before we have to talk about the potential landfall here along the gulf coast. That is, of course, the yucatan peninsula right now. The forecast still showing at this point that the center of this Tropical Storm will stay just off land. And with that core over water, we still think that is going to be some strengthening. As you can see as early as saturday morning into the gulf of mexico, by saturday afternoon into the evening, approaching the gulf coast, the forecast right now from the National Hurricane center saying, a category 1 hurricane, but could very well be a strong Tropical Storm as well. Regardless, there will be impacts of wave action as well as that storm surge. But also heavy rain and some gusty winds. So we have the hurricane warnings in purple the Financial Market<\/a> controls repealing sections of the dodd frank act and biotech is on the move with the ipb hitting nearly 2. 5 for the week speaking of highs, netflixs alltime high after it announced price hikes yesterday. Costco surprisingly the worst performer in the s p 500 it is rarely that. But it did report a drop in Profit Margins<\/a> and that will do it, pete. Michelle the stock is getting hit hard, but we begin with the jobs report 33,000 jobs lost last month. The hurricanes being blamed for the first monthly decline in seven years. So should investors just throw the report away . Steve liesman is joining us now from austin, texas, with details. Steve . Reporter yeah, michelle. I think throw away the weakness, but sort of useful in gauging the strength out there in fact, economists are sort of looking and saying this shows us that maybe the underlying economy, the underlying job market is stronger heres what joe naroff said, quote, most of the data in the report pointing to nothing amiss in the labor market other than the hurricanes you can see that when you look at the overall data. As michelle said, minus 33,000 on jobs. We had a little bit of a revision, but high levels for july and august. But look at the wage number surging up a half a point. Unemployment rate declining. The Participation Rate<\/a>, more people coming into the workforce, 63. 1 and take a look at these hurricane havoc numbers. You can see what kind of havoc that the hurricane played with the jobs report. 2. 9 Million People<\/a> worked parttime due to weather 1. 5, the most in 20 years didnt work at all due to weather leisure and hospitality down 111,000. Someone got jobs, how about Insurance Adjusters<\/a> up by 11,000 what does this all mean for the fed Going Forward<\/a> . Take a look at what bmo said, quote, the underlying strength in the september jobs report will encourage the fomc to lift policy rates in december but hold on just one second, because we talked to robert caplan, the dallas fed president , who said hes not quite ready, so sure to hike in december because he sees this connection between inflation and wages a little bit broken. Heres what he said in our exclusive interview. There should be some building wage pressure. The ability of companies, though, to pass on wage increases in the prices, i think, is much more challenged companies have far less Pricing Power<\/a> today because of Technology Enabled<\/a> disruption. I think the trend is very different. Reporter so unlike harker from philadelphia who we talked to yesterday who is a go on that december rate hike, caplan is more of a waitandsee he could be convinced because theres more data to come to really lock that in. The market much more sure. You can see in the 80 or 90 of profitability in the december rate hike. Steve liesman in austin, thank you very much. Listen to this, theres been a lot of big scary and sad headlines dominating the news. Earthquakes, hurricanes and of course, las vegas. No doubt, its been grim, but maybe lost in all the headlines are pretty incredible Economic Data<\/a> points that have rolled in and that you might have missed ahead of the jobs report in fact, economically, everywhere you look, there does appear to be good news why do we say that consider in the past few weeks we have learned that manufacturing is at a 13year high the Service Sector<\/a> at a 12year high, that includes retail, which by the way has actually added nearly 700,000 jobs in the past year. Housing, pretty strong, too. The median home sales price up about 5 year over year as of last data read but thats not all, air traffic is up. Rail traffic is at record highs from an intermodal perspective, and auto sales are on the rebound, too if you consider transportation and freight a good leading economic indicator, check this out. According to jpmorgan, sales of tractortrailer trucks are soaring with orders for certain kinds of trucks up 60 this year heres the bottom line, the front page of the paper has been pretty tough to look at lately we all know that but underneath all that, the American Economy<\/a> remains resilient. Lets talk more about it and find out if your guests agree with this thesis tom portrelli, Ernesto Ramos<\/a> and dave donabedian, the trust cia tom, is the economy really this strong or are these, in some ways, false tells . No, i mean, its funny, people love to define these things in very blackandwhite terms. We have been saying that the underlying strength of the economy is, i think, without question its been resilient much as you highlighted, but we are defining it in the 2 to 2. 5 truth trajecto trajectory we have been saying that for years now, so nothing has changed in that regard we continue to run at that pace. But i would caution with, dont take those ideas too far dont run them up field too much but sure, if youre trying to build the case for a 2 to 2. 5 backdrop, then yeah, we totally agree with that. Ernesto, the numbers do seem to have improved the mood seems to have improved with respect to the economy. Whats happened . What has change in the last year or was it just the followthrough of momentum that had been building . Well, i think what is it . I think specifically in the last month what has happened is the expectation that tax reform will go through has lifted the Economic Outlook<\/a> for a lot of people and i think theres a reason well transit that to happen given the need that the Administration Needs<\/a> a big win by the end of the year we still think that, by and large, we are in the later stages of the economic recovery. And therefore our approach to stock picking is more focused on Growth Stocks<\/a>. Because when growth is scarce as it is in the later stages of a recovery, you want to own those stocks more growthy. So thats why we favored Growth Stocks<\/a> at this point. You think were in the later stages of the recovery, so are we in the later stages of the rally . Does the overall market start to slow down . Timing rallies is always very tricky they dont tend to die of old age. Something happens that triggers a high evaluation to kick in and bring them down. However, theyre not that extended evaluation is about 22 times, which is relative to bond yields if you do the old inverted earnings yield, its reasonable. So something will have to kick in to bring it down. We will have a correction at some point, a 5 correction, which we always get, but i dont see anything right now other than geopolitical events that may make that happen any time soon. Dave, we are not trying to be polyanish here, but we are looking at the data points here that have probably gotten lost, rightfully so, and all the scary stuff going on around the country. To tylers point, things have been good, but recently it does seem like theres been a secondary push that could maybe get us into 3 gdp growth for the next couple of quarters. What do you think . Well, i think theres a possibility we touch 3 or above in one quarter i would agree with toms earlier comment, though, that the trend line is probably still more like 2. 5. Theres no question that the shortterm data has picked up here and is reinforcing for the stock market here. It reinforces inflation trade and the idea that we are in the macro sweet spot with decent economic growth, low Recession Risk<\/a> and at least low headline numbers. And so that may sound polly annish in the shortterm, but we have a pretty good window into 2018 beyond that, though, my concern is that the current positive sentiment about reflation morphs and rates rise faster in 2018 than the fed is currently projecting. And that can result in the death of a bull market, right . Ernesto, when the fed raises rates faster to stabilize inflation, do you agree we are nesto that growthy names, i like it, growthiness is what we should be investing in right now . What i would say is the way we like to think about expansion, we like to break it into thirds. We are in the final third, but you are beginning the final third of, excuse me, of this expansion. So this can go on for at least another few years. Look, im sympathetic for what brian is trying to do, pardon me, but we know the right way of thinking about this is not to just sort of look at the key data point that is have said things are going one way or the other. Instead, i would say, just think about where we are from, lets just pick on the consumer, the state of the consumer, we love right now, right we would define the consumer Balance Sheet<\/a> at really pristine shape. So from our perspective, its really easy to make the case at 2018 is probably going to feel pretty similar to 2017, which is to say, a pretty good year so i think all the pieces are in place for the expansion to continue if you wanted to press me on when i think the next downturn happens, i will tell you, it is probably two to three years away to be clear on that point, my crystal ball is not better than anyone elses, but the way things are shaping up now, i like how things are unfolding over the next couple of years and say one last thing really quick, people are always asking when the next recession will come to be honest, that is probably not the right question a better question to ask is, what does the next recession look like . And what i would say is barring some financial calamity, the next recession could look like the old downturn and that was interesting in that the consumer came through totally unscathed. Again, i want to be clear on this, my crystal ball is not fantastic over the next three to five years, but thats the right way of thinking about how this thing could evolve. Dave, i dont want to put words in your mouth, but the way you sounded similar to what we were hearing from tom, this could last for a while when it comes to the stock market. Are you still putting money to work in equities right here . Or are you getting nervous about the duration of this rally we have really held our equity allocations stable. Its overweight to fixed income versus policy. What we have done, though, to deem risk a little bit is move money into the developed international markets, which we think are both cheaper and actually have a stronger pace of earnings acceleration even than in the u. S. And funded that from the u. S. But our overall equity allocation has remained the same they are wrapping up us, but give us a growthy name you like. A great example is boeing its not the growthiest name in the world, however it is benefiting from Consumer Spending<\/a> in the u. S. People are making more money than ever. And the cash pool gets put into new places and the rest of the world, if you look at chinese tourism, for example, its just taken off and so boeing is a sweet spot right now to continue selling planes for the next few years. So things are looking very good. Ernesto, tom, dave, appreciate you being with us lets go to seema moody for this weeks rigged count. Highlight of my week, seema. U. S. Oil drillers cut rigs for the fourth week in five. That according to baker hughes now u. S. Oil drilling rig count is down two at 748 in the week to october 6th how is the Energy Market<\/a> responding oil has been trading marketedly lower today. Wti crude at the lows of the session down nearly 3 they are pulling back from that level right now. Back to you, michelle. Got it, thank you, seema the biotech index is up 28 this year earnings season is right around the corner which of the stocks do you need to buy now to make even more money . Plus, were still dealing with the damage done by harvey, irma and maria and now, look at that, here temes na could have a big Economic Impact<\/a> as well. The latest on that impact coming up on power lunch. Im living that yacht life, life, life top speed fifty knots life on the caribbean seas its a champagne and models potpourri on my yacht made of cuban mahogany, gany, gany, gany, gany watch this dont get mad bell mnemonic get e trade and get invested earnings season officially kicking off today. The etf that tracks the sector, the ibb, hitting the highest level since december of 2015 and now its up 27 so far this year what natures should you bet on heading into earnings . Lets bring in ronnie now. All three names youre going to tell us about have underperformed the overall index. Is that by design . Not really. But they tend to be that way. Got it. Lets start with biogen up 15 , which is pretty good, but still an underperformer. They have a multiple scatter scg they have speranza launching better than most people expected and being used by many patients. This is still underestimated by the street and why they will do well in the quarter. Then they have in the development a treatment for alzheimers in phase three it is not expected before 2019, but Additional Data<\/a> in that market or development that suggests or could suggest the drug as a higher hopes of being successful and i mentioned that the stock is higher between now and the middle of 2018 how about allergen . I always joke this is the no frowning stock. Thats been a thorn in my side all year. This is a very Good Business<\/a> spread among 20 different products the largest one is in esthetics like botox, and now these are the new hot things. What is that . Asking for a friend. The fact that you know what that is im just asking. There are tv ads for this everywhere now you sit in a chair and they hit you with ice or something. And it melts your fat off. First, it doesnt make you skinny but it will help you contour the body better. So if you work out and do that in addition, you kind of lose the weight from the right places the way to think about it is, if you need to fit into some clothes before your kids wedding in the next two weeks from now, this thing is probably the right thing to use in my mind, theres no question that it works. It sells 400 million at the allergan level, the doctors double up the price when using it on patients and a million dollars, all consumer paid. Kind of hard to argue that is not something that works, just from the numbers and this is like the ultimate proof that this is now hitting the mainstream. It works on the numbers, does it really work on the body yes yes, okay ronnie, are you sure you want to mention that on the air we have a second delay we can rewind maybe i should be using it, but thats a different point altogether so no, so its a very Good Business<\/a> they have a couple of aging products they got from a couple acquisitions in the past that im going to go generic, some in the next three to four years and people are concerned it may happen a little earlier, especially with the fda now approving more products on the generic side and that is, and that is why the stock has been down. But its down 20 . Which is more than the entire eps contribution of this project. And consensus comes down to meet the expectations the stock is very acquisitional over the next three months. That answered the question, why is it down so much why hasnt everyone else noticed what you mentioned and mylan is also one of your top three picks. Yes, they are completing work on the genetic thesis. The products are going to compress and it did it with the entire area compressing they are look at the entire differentiation of products that were impossible to make generic so far, they will begin to come to market. Scott dodley, the commissioner of the atf, is going to start approving more of these products earlier this week, mylan got the first product approved yes, the stock already took a big move this week it can get more out of that announcement not out of that announcement, but they have another half dozen products that look a lot like the done and difficulty of manufacturing waiting on the sidelines. And to the extent that the fda will follow through, this wont be another onetime event. They are getting approval. And people are beginning to get convinced that there are further products along the way right now it is viewed as a onetime. Thats interesting because there was a time when the stock got hit because people were worried about what was happening with the generics, and now mylan is on the other side of the trend we are potentially seeing. Thats right. Thank you, ronny. Another powerful storm bearing down on the u. S. , which one headed for the Oil Infrastructure<\/a> in the gulf we will get the latest forecast on Tropical Storm<\/a> nate and as the country recovers from harvey and irma, the u. S. Economy lost 33,000 jobs in september. Our jobs panel will weigh in on that and more when power lunch returns. Usaa to me means peace of mind. We had a power outage for five days total. We lost a lot of food. We actually filed a claim with usaa to replace that spoiled food. And we really appreciated that. Were the webber family and we are usaa members for life. Well, another powerful storm is heading to the u. S. Tropical storm nate is the name. And lets get the latest forecast from maria larosa of the weather channel. Tyler, yes all eyes on nate next week with a Tropical Storm<\/a> and we still have a land mass in the way before we have to talk about the potential landfall here along the gulf coast. That is, of course, the yucatan peninsula right now. The forecast still showing at this point that the center of this Tropical Storm<\/a> will stay just off land. And with that core over water, we still think that is going to be some strengthening. As you can see as early as saturday morning into the gulf of mexico, by saturday afternoon into the evening, approaching the gulf coast, the forecast right now from the National Hurricane<\/a> center saying, a category 1 hurricane, but could very well be a strong Tropical Storm<\/a> as well. Regardless, there will be impacts of wave action as well as that storm surge. But also heavy rain and some gusty winds. So we have the hurricane warnings in purple the Tropical Storm<\/a> warnings in red. There are still watches up as well and as we get closer in time, some of the watches will become warnings so you can see the storm surge warnings as well in hot pink storm surge watches as you get into florida that means that push of water a couple of feet as we get in through tend of the weekend, but a lot of rain to go around, as much as three to five inches in place through monday and tuesday. Tyler . Up. Maria, thank you and listen to what President Trump<\/a> said during a photo op after a meeting with some military leaders he doesnt know what this represents maybe its the calm before the storm. Reporter what is the storm it could be the calm before the storm. Reporter what storm, mr. President . Youll find out the calm before the storm what does he mean by that . Youll find out he promises well be right back. Hello, im zsue herrera with your cnbc news update at this hour we are getting an update on the Hurricane Relief<\/a> to say his government in puerto rico is working to get kids back to school. Thanks to the leadership and collaboration of Governor Scott<\/a> from florida, he has empowered our secretary of education to at least for 20,000 students be able to utilize the Virtual Education<\/a> system that they have in florida for kids over here. Mcdonalds is testing a Mcvegan Burger<\/a> but theres a catch. You have to travel overseas to try it, at least for now the soybased patty is available in finland for a limited time. But word of the mcvegan is getting positive vibes over social media and a newlydiscovered copy of the declaration of independence will be auctioned off on november 11th at planchards Auction Service<\/a> in upstate new york it recently surface in a private collection it is expected to sell for between 500,000 to upwards of a million dollars. Well be following that one for you. Thats the news update at this hour. Michelle, back to you. That is super cool. It is well take a look at the movers, thank you, sue the Exchange Stocks<\/a> are hitting multiyear highs etrade, cme group, ice, charles schwab, they have come down, but they are on pace for the sixth weekly gain. Lgi homes, kb home and Sherwin Williams<\/a> are getting boosts today. General motors is up by more than 2 today. Hurricanes harvey and irma taking a big bite out of jobs in september. Hiring fell by 33,000 last month. As businesses closed in texas and florida, at least temporarily, it was not all bad. A record 154. 3 million americans were at work last month. And the total workforce hit the highest level ever joining me is the president and ceo of the National Urban<\/a> league and a former mayor of new orleans, also ron christie, the ceo of ron christie enterprises. The string of growth was ended with this report i think it goes back to seven years of job growth. But i also note that the Unemployment Rate<\/a> fell to 4. 2 , the lowest since 2001. The job market is pretty healthy, isnt it . Good afternoon, tyler yes, it is it is 4. 2 , and as you know as we talk nearly every month, i look at the labor workforce Participation Rate<\/a> with millions more american who is are now back at work so im just hoping that this is just a blip, that the hurricanes really did have a Ripple Effect<\/a> downstream across our communities. But next month will come back and have a more positive jobs report so again, i think it is a blip in the record. At this juncture, im not too concerned about longterm. It feels to me like a blip. Mayor morial, you may see it this way but one of the other items in this report you can it inpick a little bit, but nevertheless, a good number, incomes were up 2. 9 year over year. We have been rating for that and now it seems like were beginning to get at least a little of it any time you have job losses after a sevenyear streak of job gains, theres caution so i wouldnt put a green light on i would put a yellow light on because it bears worth watching. Its a tremendous swing from almost 200,000 jobs per month to now losing jobs. So lets watch this. Lets hope that its all about the hurricanes and all about what has happened in the country. But it could very well be that it is the beginning of a slowing in job growth. Well, time will tell on that. But im noting that in the numbers that an awful lot of the job losses happen to be in the hospitality, restaurant, hotel areas. And that could certainly be traceable to the fact that people in florida werent going to people werent traveling to florida and the people who were there or were in houston werent going out to eat and dine and so people werent working. So you know what is clear, ty, is that the rebuilding in houston and in florida and the rebuilding in puerto rico, when it gets charged up, when the government certainly appropriates the money needed for rebuilding, when insurance proceeds are let loose to homeowners and businesses, thats going to create an uptick in the regions theres going to be a great deal of, if you will, dynamism for Construction Materials<\/a> or construction laborers of a skilled craft that are going to be involved, i think, for not only months but for years in rebuilding what was damaged in texas and certainly in florida and in puerto rico and hopefully my beloved hometown, new orleans, will be spared from hurricane nate, but it is bearing down today and im praying for everyone there. As we all are as we are praying for those victimized in the virgin islands, puerto rico and houston. Ron, i want to replay the sound bite from last night when the president was assembled with some of the top military leaders and their spouses at the white house. And he said something that caught an awful lot of people by surprise lets listen and you have to listen carefully you guys know what this represents reporter tell us, sir. Its the calm before the storm. Reporter whats the storm . It could be the calm before the storm. Reporter what storm, mr. President . Youll find out the calm before the storm ron, you have worked in white houses and worked for president s who are maybe a little more s circumspect in what they say my reaction is, if you were speaking locally, you can imagine what i might say but what do you think he intended there what was he trying to do and how does that kind of tease help anything . Well, ive been a little nervous, ty, this week of listening to the president and watching him over twitter. His comment earlier in the week to the secretary of state, Rex Tillerson<\/a>, saying youre wasting your time negotiating with north koreans while he was abroad in china. We need the chinese cooperation and participation to try to find the diplomatic solution. And then you hear what the president said last night. And i thought to myself, whoa wait a minute, are you just saying theres a calm before the storm for what are you signaling military action in north korea . Are you signaling military action anywhere in the world and it gives our allies and adversaries pause for reflection to say, what is the United States<\/a> about to do and i will candidly tell you thats not the way for the president that i worked for, that you use the bully pulpit. You have to be very measured and calm in your tone. And i just hope my friends in the white house recognize that the president may have made a lot of people very nervous today. Do you think, ron, that the president has yet to fully grasp the power of his words i understand the history that hes had in entertainment with the apprentice. Where teasing, you wont believe what is after the break, thats a tease. That matters in television, even in news, but do you think he has fully, really grasped that every word he says is going to matter . No. Brian, no, absolutely not. The tweets that we see, the tweets from air force one, the tweets at 4 00 in the morning, give a lot of people pause to say, what in the world is the president of the United States<\/a> doing sending out these messages and every sentence, every word that the president utters is going to be measured, is going to be calllated and analyzed, not just by our friends, but by people who seem to want to do us harm around the world. And to my friends in the white house, i have a constant dialogue with them to say, you have to tell the president , he must recognize the importance of his words and the importance of his bearing have a lot more subliminal meaning that he realizes. I wonder if he thinks hes playing good cop, bad cop. Go ahead, i assume you want to chime in here. It is donald trump being donald trump, but you dont telegraph your blows thats important to strategic counsel. You dont telegraph your blows i might add, that the vast majority of the American People<\/a> do not favor a preemptive strike against north korea. And i think the vast majority but what he was talking about iran or firing tillerson i think he was talking more about tillerson. Do not want well, tillerson, but do not want a preemptive strike. And he shouldnt take the military option off the table, but i think solving that problem is, to some extent, what he may have referred to all right, gentlemen, thank you very much. And i guess well learn, well learn soon what he meant because thats what he said. Hes going to tell us eventually gentlemen, thank you very much and mayor morial, we agree with you. Our hearts are with the folks down on the gulf coast as this new storm approaches thanks, guys good to see you breaking news from the commerce department, lets head to kayla touche in washington. Michelle, commerce has imposed an additional 79 tariff on canadian jetmaker bombardier on top of the 2. 9 tariff it imposed last week. That results from the complaint launched by boeing to accuse its rival of being unfairly subsidized by the canadian government boeing says in april 2016 ordered by Delta Airlines<\/a> for 75 Cseries Bombardier<\/a> jets came from those of airbus in the 1990s. Boeing says delta bought the jets at, quote, absurdly low prices, end quote. One keynote here, none of the tariffs are final until approved by the International Trade<\/a> commission, which is not expected to make a final decision until next year back to you. Does that mean the tariff doesnt happen yet until that decision is made or they happen until that decision is made, do we know well, the final tariff is 300 tariff, michelle, it would seem that the treasury ruling needs to be upheld by the itc. But well get you more details as we have that. Terrific, thank you all right, we were talking about the unemployment report out this morning boy, did you see what yields did when it came out at first . Now they have come back down well go to Rick Santelli<\/a> tracking the action. Rickster one phrase that you nailed it, you look at the intraday of tens the rollercoaster ride is fun, meaning you get big intraday highs or lows, but ultimately it only matters where you get on and off, meaning the close, in particular and if we were to close much higher than the high yield today, it could have changed things lets open the chart up. If you start out in july, you see the last high, that last high yield is around 2. 38. Zoom back to may and youll see the yield was right around 2. 40, a little higher. So basically if this would have closed and started to take that out, it would have faded completely according to technicians to have enough horsepower to reverse the failure and get back towards unchanged. We settled at 2. 44 last year but things are backtracking a bit. You can see it when you look at tens minus twos, the yield curve. It steepened to 88 basis points and gave up 3 quick. Three basis points is a pretty aggressive range and the dollar index, same scenario 94, key technical level, we are above it and now below it. If your a chartist, key levels are important, but keep your powder dry in many ways, specifically in relation to important spots in the close sully, back to you santelli, thank you. Well, every year in america more than 200 billion dollars worth of food is just thrown out completely wasted. And a new movie goes inside the problem and shows us how some wellknown chefs are trying to fix it feed america and speaking of the great wasted, the american beer festival is underway well a take you there live with the brewing battle, tyler, the brewing battle between beer and wine bedistilled my beating heart. There we go tmobiles unlimited now includes netflix on us. Thats right. Netflix on us. Get 4 unlimited lines for just 40 bucks each. Taxes and fees included. And now netflix included. So go ahead. Binge on us. Another reason why tmobile is americas best unlimited network. At ally, we offer a credit card with unlimited cash back. But if thats not enough, we offer a 10 deposit bonus into an ally account. And if thats not enough to help you save, we could help you cut the cord. Thats right. Cancel it. What about my reality shows . Ok, if thats not enough, well give you reality. This is too real maybe a comedy . Alright, how about a comedian . Arsenio . Aint nothing funny about laundry well do anything, seriously anything, to help your money grow. People just walking in my house. Ally. Do it right. Giveyoure finished curse you, heman, you interfering imbecile give us one good reason we shouldnt vanquish you to another dimension ok, guys, hear me out. Switching to geico could save you. Hundreds on Car Insurance<\/a>. Huh, he does make a point. I do like to save money. Catch you on the flip, suckas geico. Because saving fifteen percent or more on Car Insurance<\/a> is always a great answer. Traders theyre always looking for advantages. The smart ones look to fidelity to find them. We give you research and datavisualization tools to help identify potential opportunities. So, you can do it this way. Or get everything you need to help capture investment ideas and make smarter trading decisions with fidelity for just 4. 95 per online u. S. Equity trade. Fidelity. Open an account today. What are people drinking these days who better to answer this than landon dowdy at the Great American<\/a> beer festival viewers like blue moon here are excited to show what they have on tap. More than 60,000 people are expected to ape tend the event and it kicked off last night beer goers lined up waiting to get in and get a taste of more than 3500 different beers. We have so many people out there trying their hand at different types of things and just bringing a whole new generation into loving beer. Now despite jason there in the overall scene, the beer category is actually struggling. And the sales are down so far this year. And a lot of that has to do with wine and spirits paying a big role in that but beers are adapting and getting innovating thats what we saw at the festival. The consumer wants more flavors and variety than ever before and people are experimenting with brands that change constantly by the season the other thing is, clearly, beer lovers want that experience they want to connect with brands so ways to engage with beer lovers rather than offering them a product. Give them the experience reporter well, the trends have been positive dont rope beer out just yet, we have seen signs of hope. Q3 showed growth year over year. And there are more than 800 brewers pouring beer here. And a record 5700 breweries investing in their businesses, thats a Record Number<\/a> and investing in the turnaround of beer, guys back over to you. Thank you very much as a little aside, the governor of the state of colorado, governor hickenlooper, made his career at a brewer down in denver go by there, its really good. Go by their place, they have a brew pub there reporter we did, in fact its great we we are trying to go live from there but ended up at blue moon. Trust me, full reporting done here. Just checking them out. Checking out the beers all right, landon, thanks. Michelle up. 130 billion pounds is how much of americas food supply gets trashed each year were talking perfectly good uneaten food that goes straight to the garbage the u. S. Is not alone, around the globe 1. 3 billion tons gets thrown away annually we are joined today with the owner of Mission Chinese<\/a> food, chef chu welcome to power lunch. Thank you for being here thank you for having us. Why did you want to make a documentary about the wasted food we do a lot of work with chefs. And time and again the thing they hate is waste the food you throw in the trash is basically throwing money away he was noted for we aberrating kitchen. It is a sign of training and chefs are motivated by this to do better. And not just because they want to make new flavors and food and delicious dishes, and so we started going into that. And then the Rockefeller Foundation<\/a> got involved. And they were trying to make a dent in food waste they committed 130 million to reducing food waste by half. But the mission isnt for restaurants to save money, right . Isnt the mission to somehow get that food that otherwise wouldnt be beaten to people who could eat it its a lot of Different Things<\/a> it is both that. In terms of food being used, having that redirected to people hungry or food and secure and it is creativity its like, you can do something, you have that whole animal, so why not use all the parts of it. You know what is weird, youre a chef in new york city, and this area is a little different. Here it is about flavor and quality of ingredients and if you get a small plate of food, thats fine. You are originally from moore, oklahoma you know as well as i do that the majority of restaurants, the big ones, they exist by selling, in some ways, the most calories for the dollar right quantity you want to see a big plate of food at those chain restaurants. If you dont, it goes right into the garbage. How do we combat the big restaurant mentality thats a good question. And something that i have taken a lot of thought on myself because i did grow up going to eat and the food is piled as high as you can see. Chef they have shoneys buff, not knocking it. I went to a sushi buffet that just opened and they charged you for the amount of food they would weigh your plates and charge you for it. For what you did not eat. For what you did not eat. That was back in the 90s when i was still in junior high so i feel like, i think that is something that could help is if we started to look at that because no one wants to be throwing food away i feel like that is a Business Model<\/a> where people halfway get people in the door i think it is very wrong and something we need to change. Are you doing things differently in your restaurants to combat food waste well, of course, as a cook, the first thing you learn as a cook is not to waste food. Because its instill in you. My first job, i had to try a trash bag around my waste, like a plastic bag and my chef made me take all the peoples and scraps that i generated throughout the day and put it in this bag he would come check every hour and look at it and be like, okay, man, come on that was the first day i was in the kitchen. So in the kitchens, you know, were taught not to waste something. Every turns into a broth or scraps go to family meals to feed the staff but it is more of, how are we looking at the Grocery Store<\/a> chains like, these places that are, like, putting tons and tons of food, like, 30 of the food they merchandised to make it look so bountiful actually goes in the trash. It is written into the cost as a 30 loss just to make it look bountiful. But because food obviously goes bad right michelle and i have both traveled extensively around the world, im sure you all have if you go to cairo, theres hundreds of thousands of people who live in a cemetery they have broken into crypts because they have place to live. How would you get the food from the u. S. To them what is the solution for moving . Can we move this around the world to feed those with our embarrassment of richness in the United States<\/a> when it there is who are hungry and food in secure in terms of the u. S in terms of all of the stuff thats coming up in the super mark, finding a home for it is kind of a brand. What you need to do is go to the store and why are we making so much food and buy into the system of over abundance what was it like coming to netflix . It is not with netflix. It is a documentary that premiers in theaters you are not going to be featured no, we are available through digital down load and amazon and itunes and everything next friday oh, amazon. Whatever itunes or available individu digitally. You are one of the most famous tv people in the world. Who somehow is 180 pounds and eating his way in the world. Is he going to do something outside . Guys like that can really get on the map thats part of the reason why it was great to have tony attached to the project because hes a celebrity and hes a smart man and i think that people listen to him hes a taste maker and hes an floo influencer, thats the term. So if he says something that people may stop and think twice about it maybe it is something that makes the world a better place so i think just in terms of being involved of those projects are going to be a big deal thank you ladies and gentlemen, the movie is called wasted. The story of food wasted lea drop in Gross Margins<\/a> an feeling concerns of this intensifying, pricing more of amazon take a look at shares at costco, you will see that it is down at 7 shares of target and walmart and kohls are taking a hit. Tyler, back to you. Coming up one stock analyst says you should not be a chicken about selling. President trump declaring National Manufacturing<\/a> day today, holding an event at the white house, well bring it to you next at power lunch. This is tim barckholtz. Thats me this is something he is researching at exxonmobil using fuel cells to capture Carbon Emissions<\/a> at power plants. This is the potential. Reducing co2 emissions by up to 90 . While also producing more power. This could be big. Energy lives here. Time now for our daily dive. What do you got in. First up. Stocks still carrying risk by kraft. However, all those pressure to pursue more accusations. Thats what they like to do. Thats why they are doing the upgrade. Price target, they lowered it from 90 bucks to 92. We just talked about food number two. Just keep that in the back of your head for a segment coming up okay. Second stock, sanderson farms. Concerning of the recent supply of chicken get this, weekly egg sets, what comes first, the egg or ts or te chickens with all these chickens coming home to roof, the stocks are moving beyond fundamentals the target there are at 134 buffalo wild wings, they have been struggling on prices. All right, so we go to the team here. Ups is raising their price target from 72 to 62 cities higher Product Sales<\/a> cannot believe they had flat operating expense. Analysts can help draw attention to stocks. What about companies who stocks have zero . Well, they are out there well introduce you to one, coming up. The president declaring today, National Manufacturing<\/a> day, holding an event at the white house, well tell you more about it when power lunch returns. Not rebalancing your portfolio. Pursuing your passion, not reacting to market downturns. Focused on what you love, not how your money will last through retirement. Let us help you with those decisions, and get on with your life. We make it easier to plan for retirement with day one target date funds from prudential. Look forward to your 401k plan. All right, breaking news on a friday as we come back here at 2 00 eastern time, we are waiting statements from the president whos set to sign a National Manufacturing<\/a> day proclamation we are going to bring it to you live as soon as it happens earlier, the president hosting an event for hispanic heritage month. Lets get more with eamon javers. Thats right, the president of the National Manufacturing<\/a> here, this is not a breaking news for the president but it is a commitment from the president to recognize manufacturing as part of his Campaign Promise<\/a> and his agenda here in the white house. I think you are going to see the president realish the moment here we saw last night where the president called in reporters when he was meeting with military leaders and said this maybe the calm before the storm as he posed for photographs with those leaders. Well watch for a moment like that now as well, brian, the president as we know when the cameras come in the room, he likes to talk about things that come to mind eamon javers lets bring in hughes hewitt, good to see you again. Good afternoon to you the president when he said this photograph may represent the calm before the storm when he was asked what he was talking about, he was allusive and he said you will find out and you will know soon how does that help anything there is three interpretations on that. One is hes twirling the world having fun as he does sometimes, too. There is a shake up thatll impact the senior staff of the white house and primary focused on the secretary of state. Not to exclude military action, i dont think it is ever been quite center on the table before as in the past six months. Which of those three do you think it is or do you put equal probability on them and segway into whether you think Rex Tillerson<\/a> will be a rexit . I do think there is going to be a rexit and thats where my money is along with jonathan swan, the secretary of state will be the former secretary of state and cia director and mike pompeo will be sliding in behind him. I picked up a reporting today that senator tom cotton is on the short list to go to state or replacing cia. Enjoying his conference. Both experiencing measured around the world of people he had access to or listening in the oval office. The exchange is pretty complete i dont know how thats repaired if you call your boss a moron, i doubt you will be hosting it it goes that way it is probably a fair point you think the camel that broke the straw back here. There is a lot of dysfunction dysfunctions of the secretary of states there will be no freshman at west point or mid shipment entering indianapolis. He has not staffed the assistant secretary level. There is a lot of senior ambassadorial positions. I think you have seen the professional state Department People<\/a> that council on Foreign Affairs<\/a> and the republicans. Theyre all upset of rex ti tillerson. You talk a lot with speaker paul ryan, what is he telling you of the tax reform bill and what about state and local deductions are they going to stay in or out . I talked to him yesterday and the Speakers Office<\/a> for my msnbc show tomorrow at 8 00. I could give you this preview, ker kevin brady, i have been defending against my republican friends, i ask the speaker if he will confirm it. I dont want to contradict my chairman, i read that as being the state and local deduction for taxes of debt, debt, debt. Thats 1. 2 billion of tax reform spending. I think it is gone out of the house version. If it gets out of the house, it does not get to defend in the state senate it is depended by blue state republicans, the republicans who held back the assault on the exemptions for state and local taxes. It is all gone are you saying it is out of the bill or in other words, it will stay or people will no longer be allowed to deduct their state and local income tax . The ladder, i believe it is going to be out of the tax code of people from california. Not autoout of the bill. Definitely in the bill and of the chairman of ways and means we had guest yesterday that your position will be wrong. No, it is not coming no . Kervin brady and paul ryan do not like it, i have done my best to persuade them of the key two states they believe that the addition of the property tax deduction, protect those taxpayers. I dont myself but they are persuaded and i believe it is going to absolutely be thrown out of the bill that emerges from the house i dont see the senate restoring it we are forgetting 2634. Thats the federal disclosure act that requires you if you own a bunch of stocks, you get sell it taxfree. If you serve in government for a year, we know tillerson had hundreds of millions of dollars in exxon tax and hundreds of other positions worths hundreds of dollars more. If he makes it until the end of january, he gets to sell it all taxfree dont you think thats enough wilhelmsen activit incentives for him to hang on whatever hes got. Nobody knows about that. Yes, it would be a great in wilhelms incentives do you think this president may want to induce it . You know what i dont think he is cruel in that regard. I dont think hes going awhile. It certainly did not matter. I went to law school and that was a waste of time. If the president really was a angry at tillerson, tillerson not only firing him but sticking of the giant tax bill. If you do call someone a moron, you are asking for a white house going back at him. It was a confirmation that he called the president a moron and our colleague at msnbc adds colorful details and it is not just a moron, therefore, it is words that i cannot use on television we are talking about the moron comment right now and i will be talking about it tomorrow and meet the press. People will talk about it for weeks until the president makes an example, i think the secretary of state or will i return this. It is a dysfunctional cabinet department, the north korean sanctions are not working. We have got a break down in the eu and a tremendous array of problems they need a steady hand at stake. Hughes hewitt on msnbc. Thank you. Lets get over to kate. Kaley is in twashington with th details. Hey, michelle figuring out exactly what needs to be cut or changed Going Forward<\/a>. That wish list identifies dozens of regulations in the capitol market take for instance, what it wants to do to cut down on disclosures for Public Companies<\/a> to have to make they say it will make Companies Going<\/a> public think want to let people invest in private market. It suggests reconsidering capitol needed to hold complex of debt security clearinghouse you said of the u. S. Needs more regulations. The International Rules<\/a> should be tailored to meet the u. S. Need most other recommendations require new rules be written by the securities and Exchange Commission<\/a> and the commodities and futures trading commissions. Neither of which had a full panel of commissioners both regulators responded mostly positively to the report they look forward to working with treasury to implemented and noted the rules der relative relative relative relative derivatives most notably, guys, a merger of the two agencies which has been talked about for nearly a decade treasury says it is now off the table. Michelle maybe they could not agree on a price. Thank you is that a joke that no one is laughing no, it is good. So could the treasury recommendations spur growth and encourage more investing lets bring in our cnbc ron saunders and dennis, dennis, le me start with you. Does it help bring in investors and we can get more Companies Going<\/a> public absolutely. This is the wisest thing to do, i have not been a fan of many o f the thing that is this administration have done i am worried of what they are signing this afternoon i think this is a good step forward. I think it is good for the Banking System<\/a> and wall street and Economic Activities<\/a> and i am for it i think this is absolutely the right thing. Ron isana we have seen some other issues the biggest problem of dodd frank is the extent which limited banks and other lending institutions from bringing low Interest Rates<\/a> to the average citizens as opposed to corporations and other large borrowers. It needs to be addressed what they are going to create is a blow off rally and stocks if they do too much on the regulatory front 50 in the last 20 years we had Companies Going<\/a> private because they did not want to handle the compliance. Right again, in the case of ipos limiting desurisclosures, leadi all kinds, i would be more concerned about that yes, there is more atfs and individual stocks. Dennis, how do you handicap the market now the market is doing as well as the wolf pack. Well, thank you for getting that in. I wore the red white tie to celebrate the victory last night. Margin usage, the market is extremely high and as i have said for a period of time, you have to be gingerly so, these things will end and it will end badly when it does end it is a attractive market. First off, congrats on the wolf pack. Yes, we can make all the evaluation arguments we want however, if inflation comes and eat bonds, are equities there going to look a lot more reasonable because the bond market is going to look a lot more like Florida State<\/a> than nc state. It is a hard argument and i will rarely ever argue with peter, hes one of the smartest guys on the streets. I will say stocks with extremely over valued at this point. I think it would be an ill advise idea to be aggressively buyers at this time. You would see price earnings and ratios get compressed and depending on the pace and of which they do. Thats where they become problematic. Thats a temporary phenomena based on history . Well, okay. [ laughter ] based on the fuchture well, there is a direct relationship my point is that history does not always this has never happened before when you are talking about price earning ratios that are within striking distance or at or above all time highs. Those very metrics have to come down by virtue is part of the argument of the people who say well, stocks are not over valued when you compare them to bonds, they are no all if Interest Rates<\/a> start to go up and become attractive relatively, they offer more c e competitio competitions you will see on high yield spreads and that puts pressure on stock markets and a whole new host of things in that regard. 1994, speaking of history, the Federal Reserve<\/a> raised rates by 2. 5 . 1995, the dow rose 33 . And last year we added 22 beginning of january i am not making the argument. I am saying history can be a meaningful guy or you get the correction, i am not saying, you can get a fair market by technical information. It does not mean the world is coming to an end, it means that higher rate tends to draw higher rates from the economy and not the other way around thank you guys. We are calling it the uncover, it is our new look, looking at stocks that had zero a. Analyst coverages. You may be surprised and block change, the backbones of bit coins we have an ex clue soclusive ofc giants big pharmacy plan. Stick around and since we planned for it, that student debt is the one experience, im glad shell miss when you have the right financial advisor, life can be brilliant. Ameriprise strengths of power domestic index. We are all better off when we make, buy and sell more products made in the usa. Thats whats happening in our country and you will see it and the levels of enthusiasm have been incredible. Today and the coming weeks manufactures in all 50 states will hold events to courage americans to pursue careers in the hightech world of modern manufacture. My administration strongly supports that goal and we have been supporting it for a long time and it is really now starting the pay off as everybody behind me knows. Thats why i have asked members of my cabinet to travel across the country and meeting our workers, they are hard workers we created tens of thousands of new manufacturing jobs plants of companies are coming back in our country. You see from announcements of Automobile Companies<\/a> to every kind theyre coming back in and more importantly, they adodont want leave anymore. We are creating thousands more jobs and our historic tax cut, the largest of the h istory of our country and tax reform the framework that we put forward. It will be more so under the products made in america, our tax and marginal rate of 35 and sometimes much higher than that, putting our manufactures at a tremendous disadvantage of the manufactures of other country we want to reduce the tax of manufacturing so we can compete and win on the worlds stage and, i will tell you the reset activities of what we are proposing is fantastic and perhaps, the most importantly, we are making our workers happy and they love to work so i want to thank everybody for being here and maybe a couple of folks behind me would want to say a few words, would you like to Say Something<\/a> sure. Thank you mr. President and your administration taking on 300,000 regulations. It is going the make us easier to do our job and morkeith morkeith more competitive you bring up a very good point. We are talking about in ten months, we have cut more regulations than any president s o or administrations we have a long way to go so highways dont take 20 years to build and other things taking deck kaades and finding out aftr the process we cannot build it anymore. At the same time, i like regulations, it is fine. We want clean air and we want Crystal Clear<\/a> water. What we want also is we want safety but, there is a point which we have to take care of our country and our workers and companies. So we are honor and it is a great point that you brought up with regulations, thank you very much anybody else yes . Thank you very much for having us here and thank you for all the support that you have been given to manufacturing. According to recent survey with nam, this tax reform is going to help us hire more people and get more machineries and equipment and factories. I know all the manufacturing, thank you. Thank you very much thats very nice anybody else wants to say anything well, i want to thank you all very much. Yes, jay. We just released our Quarterly Survey<\/a> that we conduct with all 14,000 with our members across the country thises the Third Quarter<\/a> where we have seen record optimism by manufactures the three quarter average is the highest of 90 of the entire 20 years history of our survey. Manufactures are saying that they believe that tax reform regulatory relief and Infrastructure Investments<\/a> are the key to making sure that Manufacturing Sector<\/a> is growing and strong thank you on behalf of all manufactures i knew about the survey but i did not want to bring it up. They would say that i am bragagocious thank you, jay, thats great. Thank you very much. This is our proclamation and of the success that we had over the past nine months you mentioned your cabinets secretary is out about 600,000 students and teachers and Community Leaders<\/a> will be participating so they can learn all the great things of our modern manufacturing. We are hopeful that many will join the fine people and their manufacturing. Theyll be. It is happening. Thank you very much, jay appreciate it. So the big question is, who gets the pen . Should we do it . What do you think . [ applause ] come on [ laughter ] [ applause ] mr. President , what did you mean the calm before the storm yesterday, what did you mean by that you will find out thank you very much. Thank you everyone, lets go you will find out well see. The president is at a signing ceremony for National Manufacturing<\/a> day surrounded by people working in hightech manufacturing and jay timmons. You heard he was asked once again to elaborate of what he meant when he said last night at a photo opt opportunity that this could be the calm before the storm. Hes a tv guy and part of his life, once again he teased us by saying you will find out. He cannot help himself to Say Something<\/a> and he came back with you will find out. Well, it got to all linked in every News Organization<\/a> is talking about that comment hes a master of getting our attention. Amazon is pushing the Health Market<\/a> getting closer to reality. We got an exclusive stories straight ahead Customer Satisfaction<\/a> s beenn over cable for 17 years running. But some people still like cable. Just like some people like banging their head on a low ceiling. Drinking spoiled milk. Camping in poison ivy. Getting a papercut. And having their arm trapped in a vending machine. But for everyone else, theres directv. For 1 rated Customer Satisfaction<\/a> over cable switch to directv. Call 1800directv. Hello, everybody, i am sue herrera. Here is your cnbc update at the hour the support of the nuclear deal of iran. It says the deal is working and all sides should stick to its commitment President Trump<\/a> is expected to announce that he will decertify that agreement because he says it is not in the best interest of the u. S miranda is making its voice heard o heard. The creator of hamilton was on the today show and he expressed his opinion of President Trump<\/a>s tweet. Those were the only words that i had to express my feelings on that he says the number of people infected by the so called puppy virus has climbed to 55. It issued the warning and made a surgeon case in the u. S. The virus is transmitted to humans from affected puppies, it can cause vomiting and fever and diarrhea thats the news update at this hour, i will send it back to you guys. All right, thank you sue herrera. Animalysts can certainly pl a big part on success. What about the small group of companies who are completely ignored by him we did some research and found that there are 35 companies with market cap of 5 million who have no side Analysts Covering<\/a> them here is the big bold headline, even in the mark, those stocks reason average are out performing the big independenxi. The 35 stocks have returned 32 in the past year and 8 point. Lets meet one of these wall streets and these are the most unusual of all his firm is well known for its analysts andrew is the ceo of hyp how is a bank of mini analysts not have any Analysts Covering<\/a> it . Well, brian, it is certainly disappointing. I think the primary reason is the lack of Trading Volume<\/a> in Piper Jaffrays<\/a> security thats the case when you see of uncovered companies what does it mean to not have a wall street Analysts Covering<\/a> your stock we talk about it everyday here we go through upgrades and downgrades is it positive or negative i am sure it is negative. The reason is it limits the number of investors, typically and Institutional Investors<\/a> are going to want to see someone independent model and expectations on earnings number two, they consider it quite valuable to get an objective opinion and how the company is performing relative to its peers and competitors the lack of that, i do think has an impact on Industrial Infrastructure<\/a> yeah, it is interesting, too, because you guys are the business partly of having self side researches and new changes. You anticipated that down the road there will be more Companies Like<\/a> yours that are uncovered by wall street and maybe more opportunities for investors doing a little more deeper digging i do think thats potentially of an outcome. You are referring to our believes thats coming to the u. S. And suggesting a smaller wall so potentially the outcome is in the industry then limited coverage so i do think there is potential for more and i also make the assumption that you do that is potentially for investors and are willing to do the work of good opportunities now, let me ask you a question that came up a few minutes ago if i might the fact that the number of publicly traded stocks have contracted so dramaticallydecad. Do you see anything that would change that trend in either direction . I do think it is personally regulation and i am a believer in job ads and some reform on dodd frank and it will ease the complications and the burden of going public i think that could be positive so you think more companies would do that because i would think that one of the big impediments is all the Regulatory Compliance<\/a> things and all the things you can and cannot say and why do i need to deal of outside investors, right . Yes absolutely, you couple that with the amount of capitol available and the private markets that led to that phenomen phenomenal all right, andrew duff, ceo of piper jaffray, thank you, andrew well try to highlight one of these companies becausetheyre not mentioned in any upgrades or downgrades as a group, they are doing better and everyone the best performing major index well dig some of these names out. What you dont know may help you. We wont know it until we say it thats right. Straight ahead, cnbc exclusive on amazon business well bring you the first look ahead. Most etfs only track a benchmark. Flexshares etfs are built around the Way Investors<\/a> think. With objectives like building capital for the future, managing Portfolio Risk<\/a> and liquidity and generating income. Thats real etf innovation. Flexshares. Built by investors, for investors. Before investing consider the Funds Investment<\/a> objectives, risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. Yeah, i got some financialbody guidance a while ago. Howd that go . He kept spelling my name with an i but its bryan with a y. yeah, since birth. That drives me crazy. Yes. Its on all your email. Yes. They should know this . Yeah. The guy was my brotherinlaw. Thats ridiculous. Well, i happen to know some people. Do they listen . What . Theyre amazing listeners. Nice. Guidance from professionals who take their time to get to know you. Walgreens boots are all falling right now and cvs health lets bring our reporter of the scoop, our Kristine Farr<\/a>, it is good to have you here. Thank you for having me on. This is a topic that i have been breaking for month of amazon breaking into pharmacy market. Consumers would love to see this happen because there is no transparency for drug prices christina, backup for one second whats the news, they are gettige getting into the business . They have been having conversations for a while. They plan to make a decision by thanksgiving this is according to an internal email that was viewed by myself at cnbc. They said within four or six weeks they should know whether they want to make a play of complex space that comes with a lot of opportunity you are not surprised by this you have been reporting by the fact that they have been thinking about this for some time tell me of other evidence that shows you they thought about getting into healthcare . Well, there is been a ton of hiring from healthcare and we see amazon picking up smart people from inside the supply chain and they have been consulting and talking to experts about whether now to break into the market. It is something they have been thinking about from a very long time it goes all the way back to drugstore. Com and jeff bezos is also interested in that area theyre not taking it lightly and theyre making sure they are talking the right people before they make that just to make sure i understand, the idea is if they go into it, they become a company that comes through say, a comcast and says dont use cbs or express script or whoever you use, let us do it instead, this is not about amazon saying to me as a direct prime customer, buy your drugs from amazon it could be a combination from the two it could have hurt Companies Like<\/a> comcast and cvs lets join up and thatll be a huge play. From there, you can see them getting into pharmacy and selling drugs to you as a consumer that would mean with your prime membership, you can get drugs delivered to you in a matter of hours. We are seeing it done in a combination. Is there any suggestion that they would choose to enter this business by acquiring an existing pbm thats absolutely a possibility. A lot of firms see a potential for them to both partner with the pbm or buy one both of these options are on the table for amazon we know that they are talking to a lot of start ups and angelina jolier compa a lot of companin seeing whats out there and whats the right strategy for them to get in the market of the next one or two years Kristine Farr<\/a> allan ace greenberg. The famous name. 78 to 20 now, he performs in a one man laonipithi he wrote about his retish wh s father well talk to him next. A new off broadway play of the life of the legendary wall street allan ace greenberg, his son, ted greenberg, is joining us now many of us had the pleasure to meet your late father, he was a character and out spoken and he said what he thought and often profanely. Yes why did you write this play what are you trying to tap into here i wrote it because i had a great perspective of my dad and i felt that i can represent a picture that i had not represented. Which is . A guy thats super generous and strong and where that came from in his life how he develop the discipline. He did not pull that out of thin air of the slogan. That came of the way hes brought up in his culture. You are writing a story about your father. Because your life took a different turn you did stand up and you drove cat rides. Absolutely. I am a 27yearold whos driving a cab and it does not make him happy it did not make him happy did not matter to me as a 27yearold. This is a true story . Yes would it make him happy . Yes, it would make him very happy. It presents him as a kind and objective person Decision Making<\/a> but very emotional regarding. You play both you and him i think i played both beautifully. Can you do that the next ten seconds . We have twominutes lets go to it no, we dont have time for you greenberg, stick to me, ted green. Different guys and different approaches you were just taelling a stoy how your dad stayed calm in the 1980 crash absolutely. What gave him that level of calm was when he realized he could not control . And what was really important was that his great grandparents got on the right boat out of europe and he was lucky to be alive. Relative to that, stroke of luck, what else can hurt he many. Exactly he had that sort of perspective and he carry ied it with him everyday. Did he talk about it at home . That was one of the biggest teaching moment that we are lucky to be where we are and our responsibility are to be generous it was his pleasure and his responsibility as a result of that did you ever want to work for him . No, i did not and it was never an option as you know they a they it was not an option and it would not be a good idea. The great idea is the play. Thank you aceistheplay. Congratulations what a pleasure to meet you as well. Thank you, ted. Power lunch rolls on right after this short break bell rings screeching tires bell rings at ally, we offer a credit card with unlimited cash back. But if thats not enough, we offer a 10 deposit bonus into an ally account. And if thats not enough to help you save, we could help you cut the cord. Thats right. Cancel it. What about my reality shows . Ok, if thats not enough, well give you reality. This is too real maybe a comedy . Alright, how about a comedian . Arsenio . Aint nothing funny about laundry well do anything, seriously anything, to help your money grow. People just walking in my house. Ally. Do it right. Tenyear yield rising to a threemonth high after this mornings number boris, erin gibbs with s p global erin, okay, weve been here before, a little bit do you think this time for real we really mean it, the beginning of a multiyear higher rate cycle . Or just another tease . No, i do think we not only just increasing the fed rates, but also the Balance Sheet<\/a> reducing the Balance Sheet<\/a> i mean, that is going to tighten rates and push the yields up so i think we are going to see slowly that recovery weve been seeing that for about the past, you know, two years or so so it can be slow and steady, but definitely higher rates. Bori srns, you think rates ae going up, up, up is. I think the end of easy money is over. Everybody has been talking about the fact altil the major banks,i you look at it in the recent quarters, rate of expansion has decli declined, knnow were going to into go negative and weigh on easy money and, therefore, absolutely, rate are going to go up and create tightening conditions and probably threaten the stock market boris, is 2. 5 , 3 on the ten year, is that not easy i remember 5 was bad news. Its all relative 2. 5 could seem like a mountain. Thats all imsaying i ithink the tide, regime, is changing to a tighter Monetary Policy<\/a> not just in the u. S. But broadly. Thats going to have an impact. Its higher rates, too, erin, when it comes to equities. Are they going to be good or bad for equities as we just said, the rate are still 2. 5 not as if were going to have everybody suddenly dump all their stocks and move into bonds. Were still looking at doubl doubledigit Earnings Growth<\/a> for the next two years those are strong fundamentals. I dont see people suddenly moving out of the u. S. Markets and just getting straight into bonds. I think this could be very good for financials and good for stocks for still the next 18 month. Erin gibbs, boris, looking at higher rate and stock. Thank you both very much for your trading nation as always, remember, folks, go to the website, http tradingnation. Cnbc. Com. Check please is next and now your trading nation stats of the day and a word from our sponsor. When you own a stock thats going higher, help lock in profits by raising your stop order. As your stock moves higher, your risk reward ratio may fall out of balance so consider raising your exit point to under a significant support level. Allowing you to ride the trend as long as possible. This is electricity. This is a power plant. This is tim barckholtz. Thats me this is something he is researching at exxonmobil using fuel cells to capture Carbon Emissions<\/a> at power plants. This is the potential. Reducing co2 emissions by up to 90 . While also producing more power. This could be big. Energy lives here. Pthey dont invest inn stalternativesds. Or municipal strategies. What people really invest in is what they hope to get out of life. But helping them get there means you cant approach investing from just one point of view. Because its only when you collaborate and crosspollinate many points of view that Something Wonderful<\/a> can happen. Those people might just get what they want out of life. Or they could get even more. Closing a big round of funding by presenting itself as the antiamazon of logistics for companies that dont want to hand over all their data to amazon the ecommerce giant deirdre joins us with that story. Hey, deed ra. Reporter thats right, Logistics Company<\/a> flexport closing 110 million funding round valuing it at close to 1 million. Cnbc has learned backers in this round include dst, yuri milner and wells fargo. Counts gv among its earliest investors. Whats interesting, guys, about this company, it sits right within the delivery wars that amazon is heating up when company do not want to rely on amazons logistics pipeline, they turn to flexport which takes care of the entire International Freight<\/a> process. Its 1,800 customers include buzziest new names in ecommerce like casper, warby parker, the Honest Company<\/a> founder and ceo of flexport tells us why others should be skept school ical of handing ove entire process. Theres a lot of his tesitant turn over Sensitive Data<\/a> amazon may not make glasses today, who knows about tomorrow. If youre warby parker, do you want to trust them with your factories . I would be hesitant. This is where flexport come in, a big part of the reason its had so much success raising money to play in a market where amazon is just Getting Started<\/a> guys, back to you. All right, thanks very much, deed dra. All right. Time for our end of the week check please if youre a bull on equities, the last thing you want to see if youre smoports, on cover, sy youre going to get hit the next week look at the economist cover this week. The bull market and everything, guys. That is very bad. Is that the contrarian indicator, you dont want to see . That is the counterpoint to the death of equities on the cover of business week back in the 70s. 77. When the bull market started for the bottom of the market was marked by a magazine cover 78ish, 79ish. The only cacaveat, it staid e asset prices too high . Question mark. Maybe thats the reverse. Theyre still i cant get over the stock going cold im going to lean like this. The economist folk are pretty smart, i have to say they president. Theyre all what are you saying the subhead is theyre questioning whether or not the they question themselves. Economists, you got to have more conviction in yt cover. Thats wimpy. Question marks. Come on. The tother twohand the economists on one hand. Thanks for watching power lunch. Closing bell starts right now. Hi, everybody. Welcome to the closing bell on this friday, im kelly evans at the new york stock exchange. It sfriis friday, isnt it . Tgif im bill griffeth. S p under a little bit of pressure today after six consecutive record closes which, by the way, was a 20year record well see whether the market can make a comeback. In h this final hour he said optimistically its been a hot first day of trading for the data center ipo called switch. That says the treasury suggests cutting down on disclosures for Public Companies<\/a>","publisher":{"@type":"Organization","name":"archive.org","logo":{"@type":"ImageObject","width":"800","height":"600","url":"\/\/ia903402.us.archive.org\/4\/items\/CNBC_20171006_170000_Power_Lunch\/CNBC_20171006_170000_Power_Lunch.thumbs\/CNBC_20171006_170000_Power_Lunch_000001.jpg"}},"autauthor":{"@type":"Organization"},"author":{"sameAs":"archive.org","name":"archive.org"}}],"coverageEndTime":"20240629T12:35:10+00:00"}