about this gund lach call. now the prospects of the ten-year going down to 2.2% and what it could mean to this rally. quickly? >> i disagree. i think the output gap is closing. three central banks are looking to get out. i disagree. >> that does it for us. power starts now. halftime is over. the second half of your trading day begins now. scott, thank you very much. big shake-up in washington. the majority leader eric cantor losing his congressional seat. it usually doesn't happen. when it does, if it does, it's usually to somebody in another party, but not in cantor's case. it was a primary. today what it means for business. cantor was at the forefront of several major issues. we have three ceos to react, what does it mean for markets, for corporate reform, the debt limit discussion, and immigration. these are all very critical issues to business and

investors. first, though, let's check in with sue. >> hi, ty. good to see you. the market today is a bit messy. some are blaming that on the upset last night for mr. cantor. the dow right now is down 90 points on the trading session. the nasdaq is holding on to a fractional gain. s&p 500 is on a quarter of a period. the transports are on the about 51 points. the russell 2000 is off a third of a percent. let's bring in alan brown, senior adviser as schroeder's, which has $4 billion, andrew is on the floor with me as well. he's a morgan stanley solutions. welcome, gentlemen. allen, i'm going to start with you. the cantor upset is the market reacting to that? >> i don't know about the immediate reaction, but i think it will have consequences in the longer run. there's actually an interesting parallel with europe. we saw the election where we saw the right-wing parties both in the uk and france in particular

score big successes. the net effect is it brings the centrist parties more to the right. it's getting harder and harder to find common ground. that always used to be the great thing about american politics. >> find common ground. >> i'm never seen american politics more polarized than in the last few years. >> do you agree, andrew? >> no, i don't. what i do agree with is for the last 37 days the market hasn't moved plus or minus 1%. we're in a low vol world. what better than a political surprise to create anxiety in the market, but if you look at the last 5 1/2 years, every time -- it's a colossal mistake, because what investors are not focusing on is the economy is recovering, we're having stronger earns, better dividends. that is a tougher conversation than to talk about politics. >> near term you're a bit cautious, right? >> yeah, moving into the summer,

corporate news flow sends to slow down, and political events take center stage. that creates anxiety. we've a pretty good run, so i think it's time to be more cautious, but i would be careful. every time people poll base on that news, it's been a mistake. >> what about that? we've had a economic recovery slow and steady. it looks like the fed will keep tapering, but keep rates low. that seems to be an environment that's working for the environment right now. >> i hope andrew is right, and for the moment that's my sense of view, but i'm very cautious. >> i knew there was a but coming there. >> as andrew said. we are unusually low levels of volatility. >> and volume too. >> liquidity coming out of the systems, qe is turning off. less money coming in, and the current account improves here. for me, the great unknown is how quickly the yield curve will

steepen as monetary policy gradually is norm attize. if discount rates rise too quickly. it could undermine equities. my great hop is all the guidance will slow down the increase not only at the short end, but the longer end and keep markets on track. >> you both manage an enormous amount of money for clients, so where are you putting the money to work? >> i have to eliminate the noise. my responsibility is moving portfolios forward. within this bull market, there have been pockets of opportunity. things that haven't worked tend to start to work, so energy stocks, which didn't work last year, you have companies that are starting to report better numbers and stocks are cheap. so i think you're seeing rotation within a bull market and that's very healthy. >> alan, very quickly. >> still to equities, intrinsic value for equities is still reasonable. it's very, very expensive. i'm very much looking for value, and i'm looking for the value

plays that people have ignored so far. the one that really intrigues me is the potential big possibility of emerges markets. >> all right. on that note, gentlemen. thank you. great discussion. back up to ec and dominic chu for a market flash. >> check on you lulu lemon, which is down more. you can see we'll call it 3%. the company is responding to the respond founder and big respect shareholder who criticized the board of directors. in farther -- the board of director and management team have been consistently focused on enhas beening shareholder value an will continue to take action toss achieve this objective. the shares are down year to date, so the company has ground to make up, but still the company responding to the founder and single businessist shareholder criticism of itself. back to you. >> thank you very much. brent crude is picking up a bit. last trade is up about 34 cents.

this comes amid serious dpee tier yags of the security picture in iraq. yesterday rebels linked to al qaeda took over the important city of mosul. today they were moving south towards baghdad. this is video just, just south of mosul, which cross it is straight into bag dam. it reportedly shows a burning oil refinery in that city. there were firefights today between the al qaeda linked group and the iraqi army which has abandoned its post. the fightic began earlier this week when al qaeda forces attacked a university in northern iraq. they also took over several government buildings in mosul. iraqi forces admitted defeat, moving back in the direction of baghdad. iraq produces nearly 3 million barrels of oil per day, the second largest in the world and ranks fifth in the world of proven reserves. so aisle again is up 34 cents at

109.86. we'll keep watching it, ty. lots of developments to catch. >> thank you very much, sue. another big international story. you know what it means, the world cup, this is the official ball. the first game in the month-long tournament is tomorrow down in brazil. the host team versus croatia. morgan, i'm throwing you the ball. john here, catch it, man. the world's most watching event, but the question is, is brazil ready? you had a stadium collapse last year, there's some images of that. a roof of a major airport fell in just last month. this week a monorail system in sao paolo fell apart. joe leahy is the brazil bureau chief for "the financial times." simple question for you -- is brazil ready? >> hi, tyler. i think we are going to have a

world cup, yes. it's just a matter of how smooth or not smooth it will be. last night on television, the president bill marusso had an impassioned speech, telling brazilians to get behind the event, but we see the concerns, the concerns you mentioned, as well as there could be a metro strike. metro workers are still threatening to go on strike. >> we will obvious oy know better tomorrow. this tournaments takes place over several locales, several cities. are some better prepared than others? quickly. >> absolutely. some in the northeast have been prepared for a long time, while others don't even have the turf on their grounds in the proper conditions. >> joe, i'm sure we'll be checking in with you as the tournament rolls on. thank you for joining us again today. we always enjoy having you on.

joe leahy of "the financial times. ". taxi drivers from several cities across europe taking to the streets today to probest uber, and companies like uber for being allowed to operate there. these happen to be in london. taxi drivers in spain holding a 24-hour strike, spain's transportation mincety saying users could be hit with fines up to $800, and taxi drives in paris orly airport scuffling today, drivers accusing shaw fewers with private cars and motorcycles of stealing their clients by using the uber app.. morgan brenner is looking at the economics of uber. this one is curious, a theoretical value of $18 billion for a car service? >> yeah, well, let's break down some of the smaller numbers and why so many people are jumping

in. there is a battle brewing in the cabby xhoo community, it's uber versus yellow taxis. european drivers say the smartphone app. is threatening their livelihood. so let's break down the ube uber-nonics. it doesn't take much to start picking up rides. you must be at least 23 years old with a driver's license. you have to own your own registered four-door car, and you need to buy some additional insurance. so drivers pretty much have most of what's necessary to get started with uber-x today, and they have ads guarantees $5,000 a month in fares. now, compare that to what it takes to get started as a new york city taxi driver in the highly regulated industry. there's a laundry list of fees you must pay and training classes you must take just to get behind the wheel. that's sky-high price of a taxi

medallion. at last count it cost north of a million to buy one. if you're a driver, you can rent out the medallion cab for $115 per 12-hour shift. what about the fares? uber pricing is based on demand, but both offer flat fares from manhattan to jfk airport. uber charges $65 including tip. after a generous 20% tip, yellow cabs come out to $63. so that's actually a $2 savings for the yellow cabs, tyler. >> you say they were incensed. i've never known a cabdriver to be incensed, right? >> never, no. >> it is a real debate. there are justifiable reasons that a lot of the cab drivers are incensed, because they have to go through all of this to do what the uber drivers apparently in many locales haven't had to do so far.

>> a flat fare to an airport ubs for example, they'll actually be making less money. >> thank you very much, morgan. the dow down about 1 his points. let's go to dominic for a quick market flash. >> check out what's happening with sin nappics, this after confirming it had agreed to buy renasys which provides display chips for apple iphone. it also raised the current quarter forecast, the shares are up 20% just off session highs. in a programming hope, the ceo rick bergman will be live in a first on cnbc interview on "fast money" tonight, 5:00 p.m. eastern. tune in. you won't want to miss that interview. we are going to run down to washington for some breaking new with john harwood. >> tyler, we talked about about how house republicans are meeting at 4:00. it appears at that meeting

they're going to learn that eric cantor is leaving his post as how majority leader. i have not talked to cantor aides to confirm that. but it appears having lost the primary and being in a lame duck situation will step down as house majority leader. >> john, who do you think is the front-runner to replace him? >> kevin mccarthy, now the whip, is very likely to move up, though he could face a challenge from people liable jeb hencer ling of texas, also a fight for the position that mccarthy would vacate if he does move up. >> what has this do in sort of systemic effect on the house republican caucus? what has it meant? >> what it's likely to mean, tyler is that it shuts down the house republican caucus from doing anything, as one republican strategist told me last night as the news was

breaking, members are not going to be willing to take any risks that they say somebody like eric cantor can go down in a primary. they're watching their backs, their careers, so it does not look as if there's any near-term prospect for compromise between the house republicans, the democratic senate and president obama. >> wow, john heart wid, thank you very much. more developments to come, i'm sure. the financials are under pressure, and many of the top leaders and power players are gathering for a bick meeting, and we are there. allied financial's ceo will join us exclusively, and of course you'll want to hear what he has to say about the health of auto loans, the consumers and the reaction to the shocking upset in washington. we're back in a moment. having the cloud allows us to rapid prototype a lot of ideas.

being able to pay as we go is crucial for a start up. having to fork out a lot of money up front was risky. we can launch a feature really quick, and if the feature doesn't work, we haven't lost anything, and we can have something up and running in days. and this would not be possible without the cloud. we are now supporting over 25 million users each month.

you're mary thompson is at the new york stock exchange. >> hey there, tyler. thank you so much. we are going to be joined by michael carpenter, the ceo of allied financial from the conference uptown in new york city. mr. carpenter, thank you so much for joining us today. >> mary, thank you for having me. >> you've seen rapid transformation at allied capital, which is the former finance arm of gmac. in april you said there were still a number of things you need to improve the profitable of this company, targeting

double-digit r.o.e., one way to do that is to cut expenses. where are you on that front this quarter? >> well, i can talk about the first quarter. i'm not allowed yet to talk about the second quarter, but we reduced our expenses in the first quarter $70 million over q4 of last year, and our overall plan is to reduce our control of expenses about 25%, which is around $400 million between now and the end of $15. that is part of a three-point plan in which we are improving our cost of funds, reducing our cost of operating expenses, and hoping to get regulatory relief and three of those are elements of our plan to get adequate returns on equity to our shareholders. the first quarter results on all at least of those dimensions i think verified we're on the right track. >> one of the keys as well is

getting the treasury to exit its position in allied, 15% holding, which you said could happen by the end of the year. what would prompt the treasury to sell that stake any sooner? >> i think treasury, if you think about it, we go back to about this time last year, treasury's away was fully diluted in the 90% range. so we've made huge strides in getting treasury down to 15%. treasury is not a long-term shareholder. my expectation is when they find the time is right, and i personally believe that will be between now and the end of the year, they will exit and i think that will be obviously a tremendous win for treasury, because as of today they've gotten back 17.9 billion on the 17.2 billion they put into the company. the remaining overage is a billion 8, so for the american

taxpayer this is a hole run. i think they're anxious to declare the home run and take the victory lap. >> mr. carpenter, i want to get your reaction to the defeat of eric cantor in the primary overnight. what kind of impact do you think this will have on the business community with regards to its relations in washington? >> well, you know, i'm certainly not a political expert by any means. i look at this as a continuation of a trend of frustration and rejection by the american voter with the conduct of politics in washington. we could hope that this serves as a wake-up call. i don't think this will have any direct impact on business, but to the extent that it serves as a wake-up call to our politicians in washington, to get on with the job, i think it will be a plus. >> mr. carmen terr, thank you so much. from the morgan stanley

financial services conference. sue and tyler, back to you. dominic, a quick market flash. >> check out what's happening with general electric, moving lower on news that siemens is in talks with mitsubishi heavy industries on a possible joint bid for the energy aassets of france's al stom. the companies will decide by june 16th on whether or not to make that joint bid or not. shares trading off as well, down by about 1%, sue, back over to you. dom, thank you very much. we're off 101 points near the low of the session. when it comes to equal pay, there are some very unequal views out there. cnbc's all-american survey is coming up next. power is back in two. predicting the future is a pretty difficult thing to do.

but, manufacturing in the united states means advanced technology. we learned that technology allows us to be craft oriented. no one's losing their job. there's no beer robot that has suddenly chased them out. the technology is actually creating new jobs. siemens designed and built the right tools and resources to get the job done.

but with less energy, moodiness, and a low sex drive, i had to do something. i saw my doctor. a blood test showed it was low testosterone, not age. we talked about axiron the only underarm low t treatment that can restore t levels to normal in about two weeks in most men. axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. women, especially those who are or who may become pregnant,

and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. report these symptoms to your doctor. tell your doctor about all medical conditions and medications. serious side effects could include increased risk of prostate cancer, worsening prostate symptoms, decreased sperm count, ankle, feet or body swelling, enlarged or painful breasts, problems breathing while sleeping and blood clots in the legs. common side effects include skin redness or irritation where applied, increased red blood cell count, headache, diarrhea, vomiting, and increase in psa. ask your doctor about axiron. we told you at the shop of the show about the deteriorating situation in the security aspect of iraq. there's been a lot of fighting, as a result of that, as you know, turkey shares a border with iraq. turkey is now calling for an

emergency nato meeting on the security situation in iraq, according to the turkish foreign ministry, quoted by reuters. we'll look at oil and see how it's basic. it was getting a slight bit underneath the market. we'll keep watching it for you as things dome. let's go to dominic chu. >> check out what's happening with h & r block, one of the leading gainers in the s&p 500. the stock is moving higher after the tax preparation giant posted better than expected fourth quarter profits. that stock off session highs. tyler, back over to you. >> dominic, it is wednesday. welcome to our weekly series, "power pitch." start-up founders get 60 seconds to pitch their business to a panel of experts who decide whether those businesses have what it takes. >> get around solving a problem

we call car overpopulation. we started get around, because we saw an opportunity of the feature of connect the cars to the world today. . hi, my name is jessica scorpio. i'm one of the founder of getaround, we engable car owner to share their cars. there's billion available car hours in the united states. we're connecting car owners with people who need a car. to rent a car, you can get it instantly with your phone. you can unlock it with your phone because of getaround, which is a core enabler. getaround provides a million of insurance as well as roadside assistance and we do identity to -- and we're in five top u.s.

markets. we are growing really quickly. we've had a million rental hours in the past year, and there's a huge environmental impact to this business. so it's not only about finances, but each -- pick 32 cars off the road. that's getaround in a nutshell. >> on the power pitch panel, it's a partner and vast ventures. . also joining us from washington, d.c. is evan morgan, a private equity firms. from seattle, angel investor and many of the quorum group.

we have quite the panel today. why don't you tell us what you thought of the pitch. >> nuts and bolts, and supply-side inventory. it would be great to get, how much it would cost to acquire a car under the platform? >> people talk about t. and owners love talk about how much they've been able to make. people are make money every month sharing their cars. referrals account for about half of our new sign-ups, then we found some great digit at marketing channel to acquire users. we grow the business on a hyper-local base. they pay $99 up front and $20 a month. >> i question your value --

versus an uber or lift. >> we started getaround to solve a problem we call car overpopulation. there's a billion cars that sit idle 23 hours a day. it's a tremendous expense to the car owners. we're enabling people to rent a car when they need it forrer ran or weekend getaway, we're extremely complementary to the on-demand ride-sharing. with getaround you're using it a bit of a longer trip. >> matt, what about you? >> you guys have a who's who list on your investor list. i've done deals with marisa at google and yahoo, she's very smart. what is the hook? what is the investment theory she got into the deal? >> she was very impressed with our team and the roadblocks we could knock through to get to market, the legislation we passed, and most importantly the hardware, which lets people unlock the car with their phone and provide security features.

>> we all heard what jessica had to say. are you in our are you out on getaway in what about you? >> i think there's a lot of competition in this space. i think uber, sidecar, prime valuations, a lot of cash in the bank and will continue to do so. i think flight car and the other car rental folks are in a good position at this point in time. so there's a lot of stiff competition. indirect and direct. that being said i think it's a big market, and i don't think it's a winner take all market. i support it. >> evan. >> i agree, i 24i there's a lot of capital that's flown in, so there's a big consumer mind-share game. i think the space is interesting and large, but until more cities are proving, i would have to be out. >> one in, one out. >> i think the real risk is you end up like avis, we're number two, we try harder. i absolutely love the community aspect, and i think the people that own these expensive cars

want them to be productive assets, and i'm in. >> we're not only in, we're excited. two ins and one out. jess ka, what's your reaction? >> there's a huge opportunity here. the magical experience is be able to open many app., book a car and drive away. i think there's an opportunity to have a positive impact, have more freedom and have a better life. that's what we're going for with getaround. we're excited to have you guys on board. >> since you're planning to be in new york in the next 12 months, i certainly will try it as well. thank you very much for sharing your story, and thanking to our panelists as well. we want to update you on plater, a food delivery service. since the airing, the start-up team has doubled, seen a 1,000% increase in registrations, the founders appeared on "shark tank" and scored investmentses from mark cuben and kevin oleary. plus other venture capitalists,

so big congratulations to them. good for them. back to the main question. are you in our out on go aheeta? join the conversation on twitter. you can do that by using the #powerpitch. sue? let's look at the gold market right now, as we go into the close, we've had a big rally in the what laidium market, up about 0.7. we also want to check gold with turkey, as we told you, checking oil, turkey as we told you called for the emergency situation as well, a meeting of nato to discuss the security situation in iraq. you may recall that iraq militants took 80 turkish citizens hostage during a lightning strike and advance, and basically that situation has put a bid under the oil market,

because they are so concerned about the deteriorating situation in iraq. it's called for that emergency situation of united states, rebels are attacking northern iraq and moving south. we're now up better than a quarter of a percent in the oil market as 109.84. let's go back up to e.c., and dom any chu for a market flash. >> it certainly seems as geopolitical risks are at a play still. this is the fallout from tyson's 7.7 billion takeover of hillshire. according to dow jones, hillshire is seeking to end its deal to buy pinnacle to clear the way for the deal to be bought by tyson. it says that pinnacle is considering options to seek a higher payout from hillshire, this according to dow jones president the current breakup feel is about dlsh you can see there currently trading about flat around today's session. back over to you, tyler. >> equal pay for equal work, but some unequal views.

steve liesman here with the exclusive results of our cnbc all-america survey. always interesting, and clearly a hot topic. >> we ask people the question that maybe hasn't been asked in a national poll. people ask the issue of, do you support efforts to make pay equal in the country. we ask people, do you see it in your workforce? and what you see here, the orange line said most men and women say it paid the same, but very critical differences. on the issue of men are paid more, take a look at women versus men. that's the blue column there. what you see is a big difference between men and women. also on the issue of are you unsure? men are more unsure, women are not unsure about that issue. how about more generally in the economy? going on, you can see all the adults say yes, it happens today, in the economy, more than two thirds of the public said there's interesting differences here when it comes to political parties. democratic men and women are pretty much the same on this

issue. gop women, however, a lot more like the democrats. gop men, however, less sure about it, but still a majority of gop men say unequality pay happens in the workforce today. moving on to some of the main issues out there, we asked you -- we asked the public, 800 americans polled here, what's the number one issue now -- equal pay. 31% was number one. even the 65-plus, the seniors getting involved here, and across all of our income groups. how about raising the minimum wage? number one for men, democrats and nonwhites, especially african-americans in there. i don't mean to make it -- this is not a joke, but lowering corporate taxes, only republicans thought that was number one for the economy right now. >> it's interesting to me, in your first graphic, the majority of people feel that equal pay does exist, there is no difference, right? >> when it comes to their

particular workforce. >> but that flies in the face of facts, that women make 74 cents on the dollar? >> it does seem to fly in the face of the facts. the other is how aware of people in their workforce? in america, we don't share salaries. >> no, don't tell me what you make. >> you can read about all the results from the survey, the views on the economy, cnbc.com. >> steve, thank you very much. >> a pleasure. we're going down to sue. >> instead you are. goldman sachs holding its first north american summit bringing togetherically leaders, kate kelly is live with the ceo of nrg. >> thanks so much, sue. i'm here with energy's nrg, who just came off a very interesting panel. talk to me about your business, david, in both conventional a

and -- energy, 50,000 of the megawatts are conventional, yet you're the biggest solar provider in the u.s. explain that. what's the context of that? >> we're at an early stage in the transformation from the conventional fossil feel fleet, which as you said 50,000 megawatts to what i think is the driver of the future, which is clean energy, wind and solar, particularly solar on the household, but it has a long way to go before it's the dominant source of energy in the united states. >> many people have been talking about barriers to entry, whether it's the permitting process or the lack of subsidies, or any manner of other things stopping the progression of it. i wanted to ask you a quick political question, if i want. there has been a lot of talk about regulation today, the epa's new climate rules, and you were commenting on that. what does this shift in the house do to the possibility of some really forward-thinking

legislation on energy, on renewables? >> well, maybe everything is about the reference point, but we had a very low -- we had very pessimistic, as you say, any enlightened energy policy was coming out of the washington, and i think the cantor defeat makes it even less likely there's compromise between the two sides, but this revolution we think is coming will be driving by the american energy consumer. it's sort of beyond the reach of government regulation. you know, this is a very heavily regulated industry, but my biggest concern in the future when, i'm going to face competition from home depot and walmart. you know, people do-it-yourselfers and all. that's not something the government will regulation. so there are inefficiencies in the system now, and unnecessary cost, but i have great faith that the americans capitalist system will get those out of the

system. >> speaking from competition from home depot, lowe's and others, you mentioned walmart, amazon and coke in an interesting way. why do you think those guys will be opinion leaders for various reasons on energy policy? >> wonderful most exciting things we have happening are not only major consumer facing companies facing sustainability, but traditionally it was all about recycling. now everyone recognizes it's about embracing energy. it's not only about greening up your own operations, but greening up your supply chain. >> right. and they're until some political pressure to do that, no? >> i don't follow whether they're under political pressure. but the point i was making at the conference, as i become older, i realize that most ceos want to leave a personal legacy. people tend to think of their legacies at the beginning or the end of their term. walmart has a new ceo in doug mcmillen, i'm convinced he wants

sustainability to be part of his personal legacy. so i think they can -- corporate -- multinational corporations contrary to the traditional stigma of being a laggard on social chak, on this issue of sustainability, i think the multinational corporations will be in the lead. >> they could be thought leaders on this issue. we've got to leave it there. thank you so much, david crain. the political earthquake that shook the republican party, house majority leader eric cantor losing to little-known tea party challengers, is it good or bad news for wall street? we'll get the traders' take on that, coming up next. mine was earned in korea in 1953. afghanistan, in 2009. orbiting the moon in 1971. [ male announcer ] once it's earned, usaa auto insurance is often handed down from generation to generation.

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welcome back to "power lunch." a down day for the nasdaq. chip stocks, for example, many times seen as a defensive play a tech, continue to mo move to the up side. micron, up about 5% just this week. credit suisse put out a bullish note talking about -- apple also bucking the downward trend,

deutsche bank raising the estimate on better iphone sails, though high expectations later this year. lastly annual zone, concerns over market expansion resulted in shares selling off earlier this year, but amazon has been rebounding, up about 50% over the past one-month. let's get the action here at the big board, with me at post 9 cnbc market analyst kenny polcari. guys, i'm going to turn to washington. which is negative for the market. >> i have the mind-set that the only reason the guy , and open

election, in an open primary to put him in office, because they knew the democrat will win. so that's actually going to aid the democrats' case. 2 20%. and first down 100 points on the dow is not a big deal, but i think that gives everyone the excuse, the catalyst to take some off the table, cutting global growth as well as u.s. growth, is also adding to that excuse of, you know, we've had a nice run. i think that's exactly. >> goldman sachs cut their number, too. >> so i wanted to get your take. two of the smartest guys i know down here. >> meet more people. >> stop it now. [ laughter ] all right.

let's look at the bond market. the treasury didn't go as well as people thought. you're a naughty boy, ben. let's see where the ten-year yield is holding a 2.644%. ty, you're up to day. >> thank you very much. >> shares of bj's restaurant, rising about 20% for one month. open hyper is hot off the stock. bj's restaurant ceo greg trojan joining us next. let's take a picture, shall we? i guess not. there he is. there he is.

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well come back to "power lunch." a couple hotel stocks are lower on the day on news that blackstone plans to trim its stake in the company.

hilton you can see trading down by about 2.5%. marriott is also following, this says mcrory, downgrades the stock, based on valuation. marriott down about 1.5%, tyler, on today's trade. back over to you. thank you very much. eric cantor to step down as majority leader after the stunning primary defeat. what's the fallout on jobs and the labor market? one segment is the restaurant industry, which hires people, and tends to have a good read on a -- and let's get a read from all of this from greg trojan. welcome to "power lunch." >> thank you. and congratulations on the smart moving of going to the university of virginia. we'll get back to another virginia, mr. cantor, in a moment. how's business? >> it still is a bit difficult on the middle american consumer, and disposable -- are still a drag on the fundamental

performance of markets and retail, caters to that consumer. >> average ticket in one of your restaurants is about? >> $14. that's a big advantage we have. they find great value in that respect. and the issue is, you know, how do we innovate and make our conaccepted more reg vanity and an even better value in the tough economics. >> are you adding stores this year? >> we are. 11 restaurants are being opened this year, adding stores at a double-digit rate annually, and we have a lot of great space to join this concept. your competitors are the likes of? >> people think of us as the casual dining folks, but i view it as all the eat at home providers, including grocery stores, high end fast casual all together. >> one of the interesting things we were talking about, and we were talking off camera about a new app. that allows you to not only order from home, go to the

restaurant, get seated, and pay using your phone whenever you're ready to go. >> yeah, i think it's an important -- in general it's important to overcome these headwinds by innovatic. i think the dine-in restaurant space has been slow a bit recently. one of the things we hit upon is people have less time than ever before in their lives. they need an answer of getting in and out at times, whether it's lunch -- people don't have an hour for lunch any longer. moms are busier than ever. it allows you to order ahead, when you're seated, your order goes to the kitchen. and we allow you to pay when you're read counter to pay. >> love that. i just want to come to one of the restaurants just for that alone. ate less turn to the political tremor in the state of virginia, where you spent some time, where your daughter goes to school, hopefully you don't mind. mr. cantor apparently ran into trouble over questions, in part,

over immigration. what would you like to see done in your business, which hires a lot of labor, including a lot of presumably immigrant labor. >> right. >> on this issue? >> look, it's in our best interests as an industry and frankly my view as a country to come to the right middle ground, to make that labor available. there are a lot of hard-working folks in our restaurants today that are obviously legal. we spend a lot of time going through the e-verify system to assure that, but we certainly are in favor of widening that valuable to a very important labor pool not just to our industry, but the economies particularly in california and elsewhere. >> this is a huge social and business issue. thank you very much. >> thank you. it's been fun. i appreciate it. sue, down to you. thanks, ty, a diet pill dedelay, why lu lu lemon's founder wants to shake up the

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biggest shareholder chip wilson criticizing the retailer's board, saying he voted not to elect new chairman and one other director. down 2.6%. and taking a bit hit today, the fast extending the review period of the company's obesity drug by three months. three market winners for you on this down market day. a new low for the trading session. first here's mandy with what's coming up on "street signs." >> hey, as nevada and texas are squaring off to try to win tesla as multibillion battery making plant. also why the militants and insurgency in iraq is back on our radar. and herb says, guys, when it comes to older, we've got it all wrong. what's the right thing to focus on? lots of things coming up. top of the hour.

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the nasdaq composite, ty, is almost off about 12.3. anadarko petroleum and sandisk with all the nice percentage gains. >> sue, thanks very much. that will do it for this edition of "power lunch." thanks for watchle. "street signs" begins right now. yes, america, stocks can actually go down. are they falling? we're going to -- whether they're really lower because of the gop shake-up or something else. how the grows crisis to slam e the. i am seeing also some, brian that i have not seen in a long time. do you know what i'm talking about?