Stocks are holding in the red. Ibm, home depot, united health, the biggest laggards in the dow at this hour. Oil also headed lower on unexpected build in u. S. Stockpiles last week. The death toll continues to rise in central italy following a magnitude 6. 2 earthquake. We are headed to the scene straight ahead. Welcome to power lunch. We have a big two hours coming your way including mounting pressure on the Clinton Campaign and its uncomfortably close ties to the Clinton Foundation following a release of yet another new round of emails. Susie welsh is with us for the entire show. So good to have you here. Thank you. First, lets begin with mylan labs down close to 8 since we reported on friday. The company is once again raising the price of its life saving epipen allergy drug. Lets get to meg tirrell with the latest. Hi, guys. You are seeing continuing pressure today though its not been quite as bad of a day as previous days. Wall street analysts coming out acknowledging the pressure youre starting to see on Investor Sentiment because of raising the price of the epipen so much. But trying to kind of downplay how big epipen is as a part of mylans business saying its going to be a decreasing part over the coming years. However, the political attention is really only increasing. Senator Bernie Sanders now piling on today tweeting out mylans greed is apparently limitless. They didnt just raise the price of epipens 500 , they also dodge u. S. Taxes. And tweeting a link to Los Angeles Times column citing inversion to the netherlands recently as for that. That piles onto more political pressure that youre seeing from senators urging inquiries from senator blumenthal who you spoke with yesterday, grassley. Youre also seeing the American Medical Association coming out with a statement saying the ama has long urged the pharmaceutical industry to exercise reasonable restraint in drug pricing and with lives on the line we urge the manufacture of mylan to do all it can to rein in these costs. Former medtronics ceo bill george this morning on squawk on the street weighing in as well. Take a listen. Shes pricing that way because she can get away with it. But i can tell you this is going to put at risk after a new administration comes in whether or not theyll continue this. And i think the Drug Companies need to show a lot more restraint and stop pushing up prices so rapidly because theyre harming the american consumer. Bill george theyre referring to mylan ceo Heather Bresh saying she stepped in a hornets nest here with raising the price of epipen by so much. Yeah, meg, youre going to stick around as well. Bring in susie welcwelch. A company not only under fire for epipen but other drug hikes. To be fair there have been other pharmaceutical companies that have raised prices as well. What would your advice to mylan be . To get into the room as fast as they can with the advocates and come up with a negotiated solution and get in front of the press together saying this is the way were going to find the right thing for the consumers and for the company. Right now theyre probably hunkered down, theyre in crisis mode. They dont know what to do. And then theyre not talking to the press. This is a company thats already got very bad optics. Were dealing with a product which is a life or death product that mainly children use. And its a monopoly, its got the optics of the inversion. Its such a perfect storm that the only thing you can do is quickly find a solution with the advocates and get it out as a negotiated solution in front of the public. Do you think they need to lower the price . It looks like they have to. I dont know how they can get away with this without lowering the price. Lets bring in former fda commissioner now the president for the center for medicine in the public interest. You said something during the break, im going to repeat it, i hope you dont mind. You said this is a perfect storm of stupidity. It certainly is. This is a company with an annuity product. Its been around for a long time. And theyve stepped in a hornets nest probably the polite way to put it. Whats going to force the fda to do finally is prioritize products that are off patent through the generic drug or generic device approval process. Because thats how you drive competition and keep prices down by making sure theres competition. Congress keeps wanting to blame the company. But you highlight the fda. This drug, theres nothing special about this. In theory lots of competitors could be making this. The price is high enough certainly to draw supply to the market, but its not happening. Is that the fdas fault . I think its the fdas opportunity to prioritize these types of propositions. Well, to michelles point, teva had a product last year rejected in november of 2015. And the fda pulled sanofis competing product called avi it has dispenser issues. Two more facts in europe where i think the Regulatory Burden is far higher than anything weve ever seen in the United States, there are two competitors to the epipen. Why arent they here . There are two problems, first when you dont have only just one player in the game, the cadillac product, you risk shortages. Especially when the fda shuts down production facilities. More importantly when the fda doesnt prioritize these types of applications and doesnt help the company succeed and teva is a great example World Class Company they know what theyre doing, youre allowing the company to do the wrong thing. The interesting thing, Heather Bresh, president of mylan, shes the daughter of senator joe manchin. So hopefully labor day theres some discussion going on here about doing the right thing. But at the end of the day i dont think the fdas going to hold the bag on this. The company is and the companys executives and managers and leaders. Theyre the ones who will have to either fix this or there will be blood on the floor. Hes highlighting what should be. Youre highlighting what is likely to be. I just think that the people who are going to look bad and the company thats going to take its going to be mylan. But again, to be not defending the price increase from mylan, but we brought it up yesterday. I think its important to note that many of the top drugs have seen prices increase this year. Some more than doubling. In fact, four of the top ten drugs have seen massive price increases over the past 12 months. In fact, there was a New York Times article on april 26th, i think it was, despite price increases the pharmaceutical industry hasnt learned its lesson, something to that effect, peter. The idea being its not just mylan, its everybody. What the hell is going on . You have two separate silos here. On the generic drug side you have people that have monopolies on products needed by a lot of people and the fda can certainly help. On the innovative drug side you have companies raising the price because theyre being forced by pbns and Insurance Companies to give them deeper and deeper discounts. What is the role of the pharmacy benefit manager, the pbm, the names none of our viewers probably ever talk about that are in between the pharmacy and the pharmaceutical company, their profits and revenues have also been going up dramatically the last few years. But they get no attention. Sure, when people say drug prices are too high, thats the sound bite, right . What people really mean is their copay at the pharmacy is too high. And thats not a factor of the pharmaceutical industry because theyre giving 20 , 40 , 70 discounts to the pbns, Insurance Companies who are not passing along the savings to the consumers which goes back to obamacare, the aca, where people realize having Health Insurance and having access to health care are two completely different things. So its this whole ecosystem of people playing nicer in the sand box. That was really nicely summed up. I want to ask you though, how does the fda solve this problem of the generic backlog were seeing . Why when they reject the teva application do we just see certain deficiencies cited and dont know anything else about why it was rejected or how theyre working together to fix the problem . Firstly the information in that file is confidential to teva, if they wanted to share it, they could. I want to know at the fda this should be priority, we should work with this company to make this happen, wheres upper management, adults saying careful attention, attention must be paid, we have to avoid shortages and make sure competition exists, which is the concept behind relative to drug anyway. Thats the fdas role in helping price, value and quality. Its a triad. They get to market with a degree of speed that impacts peoples pocketbooks. Youre describing something that only happens in a nonbureaucratic situation thats not the government. The day this gets dealt with is the day a very unfortunate child or Family Member dies because they didnt buy the epipen because it was too expensive and then it blows up and then the government does something about it. And thats why the political attentions so important. There will be hearings in the senate. Things will happen. Speaking of politics, im not sure what you were trying to raise with the fact the ceo of this company is a daughter of a senator, but when i look back at the history of this company, you can read that they were very, very good at marketing. They were very good at building it reads to me that they were very good at regulatory capture. This is what economists use to say you lobby and you lobby and lobby the government. Suddenly the epipen for years it was around, but now its required to be at school. Youre required before you can go to camp. You must buy it. It has been legislated into profitability. I bet due to the success of a lobbying of the company. And the fact that its actually a really terrific product. But im not but relative but it was a terrific product long before mylan took it over, right . Thats exactly right. They knew what to do. They knew how to get it out in front. My point about heathers dad being a u. S. Senator is she should no better. In an election cycle no less to do Something Like this expecting something not to happen is just naive. All very interesting. Yeah. Peter, great to have you on. Thanks so much for weighing in. Thanks so much. And suzy is sticking with us through the show. All right. Rick santelli at the cme, whats the demand like . The demand was pretty good and i think this is a major statement of two good auctions in front of jackson hole. Today, 34 billion fiveyear notes yield at auction 1. 125. Pretty much spoton with the when issued market. I gave it a bplus. A little better than yesterdays twoyear note auction. Bidtocover 2. 54. Basically two and a half oversubscribed to, better than 2. 4 ten auction average. 68. 7 on indirects. I dont have a higher indirect number on my database. And 6. 2 on indirects little light but a bplus nonetheless. Tomorrow well finish out the week with 11 billion in supply with 28 billion sevenyear notes. Do you think the feds going to normalize . These auctions, well, the investors dont seem to think so, at least as of now. Michelle, back to you. No, they dont. Okay, rick santelli, thanks so much. Now the latest on the terrible earthquake in italy. Nbcs lucy kafanov has the latest. Reporter this is someones home that nearly collapsed in the earthquake that struck the city amatrice in central italy about 3 30 a. M. Local time. Earthquake, the blast was so powerful that i felt it 100 miles away in rome. Here though in the epicenter you can see it completely destroyed this building behind me. Theres a car thats been trapped by the rubble. Rescue workers have been racing against the clock to try to find any people who are still trapped beneath the rubble. Officials have confirmed at least 17 People Killed in this italian town. And for the earthquake to strike at this time, summertime, people, tourists have been up here visiting family, going through here. Amatrice is the birthplace of pasta. The home of a very famous pasta dish. So this would have been full of people, idyllic italian town withstood the test of time. The mayor this morning saying theres basically nothing left. And as you can see behind me, those words ring true. Guys, back to you. Nbcs lucy kafanov reporting from italy on that tough story. Coming up, well get back to the markets and call it the 1 market. Has nothing to do with the wealthy but may have everything to do with what could be the new normal for your money. And it is the story that will not go away. Mounting pressure on the Clinton Campaign following the release of a new round of emails. More on the very cozy relationship between the foundation and the state department coming up. Discover how a lexus master craftsman turns an ordinary experience into an extraordinary one. Get great offers at the lexus golden opportunity sales event. Lease the 2016 es 350 for 329 a month for 36 months and well make your first months payment. See your lexus dealer. We were just talking about mylan labs, the epipen politics. Well, Hillary Clinton has just said stuff about this. And meg tirrell is there with a statement from Hillary Clinton. Stuff she has said, michelle. Hillary clinton saying theres just no justification for the increase in the price of epipen and saying therefore shes calling on mylan to immediately reduce the price. Calling this outrageous. Just the latest, quote, troubling example of a company taking advantage of its consumers. She says she believes her pharmaceutical and Biotech Industries can be an incredible source of American Innovation giving us revolutionary treatments for debilitating diseases. But she says its wrong when Drug Companies put profits ahead of patients raising profits without justifying the value behind them. She says here kind of going back to the conversation we were just having that her plan puts forward a way for her to produce alternative products, increasing competition as a way to keep down drug prices. But, you know, Hillary Clintons tweeting about these kind of drug price increases going back to last september when she treated about Martin Shkreli really impacted the sector. There was a biotech tweet and we saw a direct impact, the biotech index fell sharply. Did it ever recover . It fell 5 that day and been on a free fall ever since. Thanks, meg. Thanks, guys. Well, heres a pretty incredible statistic. The s p 500 is now gone 32 sessions, a month and a half in calendar days, without a more than 1 move either way. That is nearly historically the flattest and arguably the most boring market in human history. But yet some are still figuring out how to make money. Portfolio manager at wells Fargo Management with us. Margie, i will go with you first. How does anybody make money in this kind of market . Its literally just flat lining, what are you doing . Well, i think you can see underneath that flatlining there are some sectors that have had very good moves. And theres also been sector rotation. So i think the way to make money is simply to be on the right side of those sectors, be in those sectors that have good news, that have some growth. Things like technology. I think that part of the tools and devices in Health Care Sector are some examples. And also really consumers. Theyre doing pretty well this year. I think that those sectors will all continue to do a lot better than that flattish 1 market that youre talking about. Craig hodges sitting with us onset. Somehow in this market you have made, am i correct, 26 on your hodges fund this year . Yeah. Trying to be opportunistic. Well, youve obviously hit the right opportunistic spots. Yeah. But what have you done for us lately . What are the stocks that you like now that you are buying now to just continue that Pretty Amazing 26 run this year. Yeah. Well, youve got to be opportunistic. This market isnt cheap, but i dont think its expensive. There are opportunities created all the time. An example last thursday remember prison stocks were clobbered. Yeah. We followed those stocks for 25 years, we know thats a very small sliver of their business thats not going to effect them necessarily long term. Did you own them already and bought more . A little bit. We had a 3 position in small cap fund, took it down to 1 and now were back to 3 . So those things almost got cut in half that day. But the market in this type of market it will give you opportunities all the time. So the market like i mentioned is not cheap, but there are a lot of opportunities. The one part of the market that i think it is cheap is the nonenergy part of the market thats been affected by energy. Things like frac san. Thats one example. But not the pure energy companies, Companies Like texas banks that have been clobbered or a company like la quinta. The Hotel Company . Yeah, because texas exposure, 25 of hotels are texas. When you say opportunistic things, you mean particular companies that are hurt for the wrong what you think are the wrong reason. Right. When you can buy Great Companies on sale thats what we try to do on the hodges fund. Hold on a second, we have another news alert related to mylan labs. Meg tirrell hasnt gone anywhere. Thats right. The calls from washington on mylan keep oncoming. Now its a letter from the Senate Aging Committee, senators collins and mccaskill writing letter to ceo Heather Bresch about the epipen asking for more information about the decision to raise the price, any analysis used by mylan related to the pricing and market share of epipen since 2007 asking they provide a briefing to the committee on the pricing of epipen no later than two weeks from today. As a reminder, the Senate Aging Committee is the committee that also he