crude oil. same thing joe is watching. brent and regular contracts got pulled back. >> right, goes over $50 today as does crude, up for the first time since october g stuff. we'll see you tomorrow. >> all right. thank you for watching as well. send it over now. "power lunch" begins right now. >> thanks, scott. welcome to "power lunch" n less than one hour from now, donald trump is expected to unveil his big energy plan live from north dakota on a day when crude cracked above $50 for the first time since october. it pulled back just a touch right. there overall, the crude run is massive since oil's february bottom. crude gained nearly 90%. welcome, everyone. along with tyler mathisen, i'm melissa lee. we're drilling down ott big crude come back.

>> let's get pumped up. we're being joined about it founding partner of agin and we have a kmg manager of tortoise capital. you've been negative on oil. we're back to $50. why? are you changing the tune in the price forecast? >> i'm not that constructive on it. i see the dollar rallying as the fed goes into interest rate hike mode here. balance of the year. i think some of the outages that have driven the latest leg are transitory. you have already seen the canadian outcut come back. you're seeing libya barrels starting to load. and the situation in nigeria isn't great. iran, iraq, saudi arain yashgs all set to ramp up production even further in the coming weeks. >> so you're negative? you think this is a short term pop. you expect prices to fall again? >> and we're at a critical level here matched up right with the october high. it would be a prominent double top if there is a failure here. >> okay. what we do know is that prices have rallied. as oil prices rallied, so, too,

have manufacture the stocks. what have you been investing in? do you agree with john's per inspect they've oil is not going to fall again and what are you investing in? >> yeah. that's what makes a market. we'll take the other side of that trade. you know, oil is really, i think, just starting to gain momentum here in spite of the u.s. dollar strengthening. what we're seeing is big production declines, u.s. is down 800,000 year over year. rig counts are down 80% in the u.s., 35% internationally. we're not making enough crude to meet growing demand. we're starting to see that now. we drew four million barrels of inventory on wednesday. we think by midyear they're back within the five year range on the inventories. we're pretty constructive. >> you want to get to your

responds to that? >> yeah, i just don't see the demand side of the equation being too strong either. we need asia to come tlouchlt a lot of folks are saying kline sim porting oil which they are. but the processing it into refine proukdz. you see the support that market seen from gasoline prices now fade away in my view. >> that's what takes to make a market. obviously, you're a buyer. you got a couple of stocks that you've been buying as wm. we talk oil. we're like exxon, chevron. why is liondel basil an interesting stock and investment for you? >> it's a commodity player. a commodity chem. they take derivatives from natural gas and the derivative products they use is input. creates huge margins for them. the output is tied to crude oil prices. so the margins are continuing to

expand. they've been, you know, basically printing free cash flow over last several years. buying back significant amounts of stock. 10% of the outstanding stock the last several years. reupped that program. keep bumping the dividend there. it's a question of where do they deploy all this free cash flow? there is a lot of new chemical facilities coming online over the next several years. they're an intergrated producer. basically, they're not particularly tied to the ethylnie. >> matt, a real pleasure to get you on. thank you very much. john, i'm sure we'll see you soon. let's switch gears and go from oil to the bond market. seven year notes up for auction. let's find out if that is lucky seven. rick? >> it wasn't a bad auction. after the twos and fives, it

wasn't that graechlt it was pretty good. if i look at the yield for these 28 billion seven year notes, 1.652. now if you don't have a real sharp pencil, 1.65 1/2 was trading. yeah, it was good in that regard. it wasn't stellar like yesterday. 2.57 bid to kofrment a little over 2 1/2 times over subscribe. too close to the ten auction average. 64.6 on indirect. better than the ten auction average. there with was a xuchskew. we had some in the 40s that brought down the data. that is the best since august of 2014. so will 88 billion in supply done. i gave that a b. so now let's watch. the street now has 88 billion in supply. let's see how the market acts. many times you see a bit of a rally. i see yields dropping. >> i'll pick it up, rick. thank you very much.

host of billion dollar buyer is joining us and ceo of landry's and other businesses he runs. we have a lot of real estate to cover today. we'll cover all of it in one way or another. let's start with oil. back at $50 a barrel after dipping down there into the mid upper 20s a few months ago. do you sense a change in the mood, the propensity to spend, go out, dine out, do the kinds of things that patronize your businesses? >> there is always a lag. just because oil is at $50 right now, that doesn't mean where it's going to be in 90 dayors 30 days or tomorrow. and i think what you're going to see happening is if it continues to go up, things are going to get better in houston. but the consumer has not stopped spending money in houston. lenders aren't lending there anymore. your real estate prices are starting to drop. but the consumer hasn't really been hit that hard yet.

because you've laid off a lot of people. but houston area is a huge area. >> did you find as oil prices began to recede that business customer was less likely to come out and spend or that the big ticket dinners that you might serve were not as frequent? >> 100%. you're not getting that. people's expense accounts have come down. you're having cancellations of all your little small energy conference that's would come to town. the private dining high ticket in the steakhouses is down. of course. people are going out of business. there is more bankruptcies happening with the service companies in houston than people even realize. i mean, every day right now you're having a small company in texas file bankruptcy. >> but preople are still going o bubba gump. >> or some other place. >> yeah. >> but what they're not doing is having christmas parties, that kind of stuff.

>> big ticket items are dovenlt even the big companies, just to set an example have pulled back. how does it affect exxon? how does it affect your big schlumbergers, halliburtons? but they realize that they -- >> layoffs, no bonuses, pay cuts? >> definitely. >> and business entertaining down. >> 100%. >> and is that -- you have national, international businesses s that true across the country or not? >> the country, just like we saw in retail the last few weeks, the consumer is choppy right now. and i don't -- it's not oil necessarily. but restaurants, retail, it is definitely choppy. >> what do you think it is? if it's not energy prices and what's going on in houston and the local economy with the bankruptcy that's you're seeing and no one else is paying attention, to why is the consumer so hesitant? what are you hearing? >> you know what's funny? there is a hotel company out there that was looking at raise something money and they pulled back and said for the first time

ever our adr is dropping everywhere. average daily rate. and we don't know why. and it is across all of our different concepts, whether it's a high end hotel or a low end. so there is definitely something happening out there right now. >> i'll take the other side. we postulated this with apparel. in that people aren't buying jeans because they're buying houses. and they're buying cars. you look at the home sales numbers and the car sales numbers are very strong. it is possible that the week -- i say that with air quotes, weak consumer is actually not going out to dine as much for the same reasons because they're doing big things and they say honey, we can't afford to go on a weekend trip or out to eat. >> that always happens.

when people move into suburban america and housing is booming, you know, the first thing they stop doing is spending money at clothes and restaurants. but sometimes there's a lag. remember there was a huge lag -- problem in the financial markets in january and february and march if you remember. let's hope it comes back as quick as the financial markets did because you don't want to go into a sum wert momentum we have now. we do not have momentum nlt restaurant and retail industry right now. >> interesting. interesting. tim, we'll talk more about this and other topics throughout next few hours. >> sounds great. >> with oil on the rise, how do you play it? let's bring in the managing director of seacorp. do you think the worst of for your sector is behind it? >> first of all, i have to say

nice surprise that share some air time here with tillman. i'm down in houston. tilman goes above and beyond as far as charity work he does in houston as far as md anderson and police force. he is a great guy in houston. great to have him on the show here. is oil and gas we reached the point here where things are getting better. we're at the point now we're $5 away from hitting the long term price target here. what we're afraid of you is get to that $55 price, guys start minting money down here in houston. you have the supply problem potentially all over again. between 2010 and 2014, 80% of the growth worldwide in oil supply came from the u.s. so you're going to start seeing growth, you know, the volumes are going to turn up here as you cross $50. for a long time people have been saying that production needs to come off line permanently. let's say oil stays right around here at $50.

does the consolidation, the bankruptcies, do they end as you say there's a self fulfilling prophecy where oil is high and they pump more. there's no production coming off line permanently. and so it's just a vicious cycle. >> yeah. at $50, it's a have and have notes world at $50. there is a group of guys that crush it. they're talking about 100% irrs in the basin and new places like the stack. and then there are guys that are overlevered that need to go away at $50. so you'll have a little bit of both. >> so who are the guys with the high irrs? >> you go to the basin, isb, die monld back, parsley energy, pioneer natural resources, simerex. stack play, newfiled, continental, gas star, cimerex. >> and more upside from here? >> yep. we believe.

so. >> you know, mike, pioneer and scott sheffield, we've had him on the show, it is partially run by his son. but people consider scott sheffield the smartest guy as a operational guy for oil. he's going to be retiring z that concern you and affect your investment recommend sngs. >> no, they have a great staff. there the coo is taking over f you're on the conference call. he hits everything operationally. the guy is a stud. so they're g. in good hands. no concerns there. >> mike, we're going to wrap it up. thank you, mike kelly. >> fuel a biggish knew france today. protesters are blocking oil depots ands nuclear power plants over labor law reforms. this comes two weeks before france hosts a major international soccer tournament. you see the fires and water cannon there at play. long lines for gasoline throughout france because of fuel shortages. france's prime minister says the labor reform will not go away

but the government is open to negotiation. news alert now on microsoft and facebook. dom chu has it. >> very interesting story here. two tech titans getting together in a partnership in this case here what they're looking to do is put down a cable connecting northern virginia and spain. to a 6600 kilometer data and internet connection cable in essence that will connect the u.s. with spain and then move on to other global network hubs all over the place. they go on to say here that it's because of growing customer demand for high speed reliable connections for cloud and online services for both microsoft and facebook and their customers. the construction of the cable will commence in august of this year with completion expected in 2017. they also again say that microsoft and facebook are collaborating on the system to accelerate the development of the next generation of

internecessary infrastructure and support the explosion of data consumption of the respective cloud and online services. the next evolution in internet infrastructure is being put down and in this case a partnership between microsoft and facebook for a new transatlantic cable. of course, tyler, many companies in ocean depths. it's interesting that it's microsoft and facebook collaborating. >> not a telecom provider, obviously. obviously users there must be a lot of traffic between annandale. >> there are a lot of company that invested in laying down global like global crossing, enron -- oh, wait. >> i was waiting for you to say that. i mean, obviously these companies are a lot more well capitalized. we talk about tech valuations. some of the companies valued on eyeballs and all the metrics now. we're talking about new undersea cables. break out the 1999 fashion. >> putting down 3%. when you buy a home, it is now

possible that one of the nation's largest mortgage lenders. it is a good idea or are we entering the danger zone once again? "power lunch" is back in two minutes. man 1: i came as fast as i could. what's up?

man 2: this isn't public yet. man 1: what isn't? man 2: we've been attacked. man 1: the network? man 2: shhhh. man 1: when did this happen? man 2: over the last six months. man 1: how did we miss it? man 2: we caught it, just not in time. man 1: who? how? man 2: not sure, probably off-shore, foreign, pros. man 1: what did they get?

man 2: what didn't they get. man 1: i need to call mike... man 2: don't use your phone. it's not just security, it's defense. bae systems. there's a place for vacationers than just a little time off. the ones who choose to go big or stay home. ♪ come with me now... where every amazing, despicable, wizarding adventure reveals moments that are truly epic. this place is made for those who do more than just vacation. ♪ whoa go with me now it's made for those who vacation like they mean it. universal orlando resort. another sign of big time streng njt spring housing market. pending home sales up 5.1% hi

hitting the highest level in a decade. they boost sales overall. on that note? >> the largest mortgage lender announcing a program it says will encourage first time home buyers to make that big purchase. the terms of the loans have worry that we've seen the story before. diana olick joins us with that story. >> melissa, this one is really hitting a nerve. hundreds of comments on our piece on cnbc.com. wells fargo is calling it your first mortgage. 3% down payment and wells says less complicated than other 3% products which have been unpopular until now. it's a conventional fixed rate loan. so $417,000 or less, backed by fannie mae. gifts are fine. mom and dad can make the down payment for you or use a community down payment assistance program. you don't have to complete a buyer education course but if you do, you can earn a .8% interest rate deduction. now minimum fico is 620. you do need mortgage insurance.

roll that into the race which is likely going to be a little higher on the average 30 year fix. they're estimating about 4.a%. still though, not a the love skin in the game on this loan. wells claims it's low risk to the bank. >> with this product, it's very clear they have to have the ability to repay the mortgage. we have to make sure that they have a history of repaying debt. or at the very least responsible management of the finances. >> that's the issue. a 620 fico score means you don't have a good history of repaying debt or managing finances. i spoke to the executive in charge of this at fannie mae. he admitted it would be rare for a borrower to get approved for that loan. >> let's bring in the chief economistist with red fin and michael calhoun, president for the center for responsible lending. we should note that your first

mortgage program was developed in partnership with wells fargo and self help which is in itself a affiliate of the center for responsible lending. michael, i assume you think this is an example of responsible lending. even on the surface, it does hashgen back to times when some of the loans to people with low credit scores at low down payments were anything but responsible. why is this different? >> so this is a safe proven program and these mortgages are the exact opposite of the kind that caused the housing crisis. >> why? >> these are fully documented loans that the borrower has to show they're qualified and that they can afford the payment. they're also skin in the game from entities such as ours. we're putting our money at risk on the loans as are private mortgage insurers who have to think this say reasonable loan. and in the housing crisis, we

will no doc loans with exploding payments. we did $4 billion of these loans leading up to the crosses. we had losses of less than 4%. if the rest of the mortgage market had done that well, there would have been no housing crisis and no great recession. and lastly, this is a critical program not just for these home buyers, but for the whole housing market and the u.s. economy. right now we're missing about a million loans a year that in 2000 and before were there for first time home buyers. but tightened underwriting requirements which understandably got tightened after the crisis and there was overcorrection. the borrowers are being

excluded. it's creating a disruption of the whole housing market and a drag on the whole economic growth. >> do you think this will bring new buyers into the market. buyers that would otherwise not be able to secure that loan and buy their first home? >> not at first. i mean, there is a huge missing market in the housing market. those people who can't put 20% down who have less than stellar credit but enough income to make a monthly payment. these borrowers are not being well served by the current market. i think this product is a little bit more about the banks than the borrowers. you know, banks have stepped away, especially lit big banks from originating fha products. they were badly burned. there was legal risk taken. they were accused and often admitted of wrongdoing. so there is an opportunity, in my opinion, for a big bank like wells fargo countries largest mortgage lender to create a

product, circumvent fha and produce a low down payment market product which has the hopes of reaching this underserved population. >> michael, i need a very quick answer. is someone with a 620 credit score really likely to get one of the low down payment loans? very quickly? >> there will be some borrowers. many of those were innocent victims of the housing crisis where they acted responsibly but lost the job due to the recession, not to any action on their part. >> so the answer is yes, some will. >> there are and will be responsible borrowers at that level. >> michael, thank you. appreciate it. brian. >> all right. let's bring back in our friend. what do you think? good idea? or does it seem like we've been here before and it did not end well. >> it didn't end well. but remember, you used to be able to finance your down payment. and all will you to do is breathe to get a market. wells fargo is one of best secured lenders in the united states. as a matter of fact, they probably are the best secured

lender. they know what they're doing. the 3% is given to people an opportunity but you're not getting that loan just because you have the 3%. okay? you have to have a great fico score. stle to make sure you've been at your job a long time, they're going to know exactly what you make and know everything about your dna. >> but can you still do the 3% as a gift. in other words, you could lend me the money, i could -- i have zero real skin of mine in the game. >> no, your skin is going to be you want to live in that house though. just because you're a start-up and have a good job that you haven't been able to accumulate the cash, okay, the bank is still getting it for security and people, they're looking at who they're lending to. >> they have a class. we'll go in a second. they have a class can you tachlt i put a twitter poll out. you know, one of the informal polls, should they be required to take a home buyer course. 62%st respondents said yes. i was shocked by. that do you think that a class should be required for first time home buyers? half a day?

>> teach them something in college. not let's make you take classes to live in the real world. maybe we need to get rid of anthropology in college and teach things in high school and college that you live with every single day. >> be careful. >> our education system is what we need. >> our anthropologist viewers may have a bone to pick with you. >> i was just kidding. >> you just made three people really angry. we're expecting to hear from donald trump within minutes. this on a day where he hit the magic number of delegates needed to clinch the gop nomination. empty podium now. filled with the trump soon. stick around. & in a world held back by compromise, businesses need the agility to do one thing & another.

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interesting day in gold. 1230 an houns is where it's trading. we're not seeing the bid for safety for gold. but we're seeing bid for safety in the bond market. take a look at the etf that tracks the bond market. it's doing well. take a look at the rest of the metals complex. gains across the board with the most notable gain in palladium. >> all right. is this a time to bet on consumer stocks? do we also have mr. ramos of

pmi? ben, you like consumer stocks? we just heard tihlman saying that consumers are choppy right now. >> we think that the economic growth is going to be largely driven by the consumers. frustrated that the consumer didn't pick up as much as we thought they were going to in the first quarter. but we're seeing a greater sense, greater retail sales. i think everybody is getting used to the way the consumer spends now post recession, buying more online. but they're buying. i think within the consumer sectors, it's going to be very much a stock picker's paradise for lack of a better term in that you have to be in the right names. we any general the sector should do well. consumer discretionaries froefrt of 2016. >> if you don't name names, i understand. but you said being the right names like what? >> just, for example, the

general generalal tis. the shoppers are not going much to the mall. that is hurting the macy's and nordstroms of the world. we're seeing the pickups in the amazons and even walmart starting to see a pickup right now. so i think that's going to be the big difference and who the winners and losers are. consumers are spending. that started in april. it should continue froefrt of the year. >> ernesto ram yoos. you like costco. >> yes. we do. it's doing really well. piggybacking on what you talked about, we like a play on internet sales. syncrony international have

amazon and walmart and all the partners in the space that is growing the fastest like internet sales. so we like that stock for that reason. and it only trades at 11 times earnings which is a bargain compared to most of the consumer stocks out there. >> thank you very much. jay powell became the first governor to talk about the possibility of rate hikes coming. he said rate hikes are appropriate fairly soon. he supports gradual rate hikes if the data confirms the forecast. now this is important. he expects 2% economic growth but he wants to see significant strengthening in the second quarter growth. later during question and answering, he suggested he's not really in that big of a hurry to hike. >> waiting are frankly not so great. you know, this doesn't feel like an economy that's, you know, that's bubbling over or threatening to break into high

inflation. at the same time, i think you have to balance, really, the right splan a gradual set of rate increases over time. >> same time he said that brexit does not represent a systemic risk and he does see a gap between the fed and the market view on the longer term outlook for interest rates. he's inclined, me list yashgs he said, to listen to the markets. >> all right. steve, i'm going to pick it up from there and go back to our two guests and get reactions here. ben pace of hpm, do you have any thought about how the seeming growing consensus that rates are going to move up this summer by at least a little bit is going to affect the investing climate? >> it's interesting, tyler. it hasn't affected it as negatively over the last week as it did when the fed was socializing four rate increases in january. the markets basically said, no, you're not going to do. that i've said that just as unprecedent the as this ease was in 200 will 8 and 2009, that's

how unprecedented the ease is going to be. i think everybody is learning as we go including the fed. so i think that's going to continue. i think the economy is much more ready for a much more gradual tightening than was envisioned in that area. >> earnesto, final thought. i don't think that a quarter point interest rate hike is going to affect people's propensity to go to another of your choices, mcdonald's. >> no, i don't think that's going to change that either. we think that interest rate environment thou is beginning to shift, obviously lyobviously, low environment to a higher environment. that is fueling some of the changes we're seeing in today's marketplace where more cyclical and interest rate sensitive the stocks are starting to outperform such as banks and others. and that plays well with our pick because they will be beneficiaries of interest rate hikes. a lot of people are positioned to continue with low interest

rates and especially the more defensive sectors. some of the stocks that pay high deaf dendz. they're very, very overpriced. we see that as a big risk. >> we leave it there. ben pace with hpm partners. tilman, do higher interest rates affect your business in a really significant way or not? >> not at all. but i think what the fed is doing right here is being safe. we just came with bad retail numbers from everybody. i think the fed wants to tell everybody things are good in this country. we're going to raise rates a quarter. i look for them to raise them and then don't look for them to raise them in september. at the endst year they will. i think they want to say things are good. we're going to raise rates f they don't raise, that means the economy is weaker. >> what about borrowing. >> yeah. you financed a lot of your businesses with debt. >> yes. >> do higher rates affect your ability to borrow or your desire to borrow? >> not yet.

because i'm a libel borrower. so it's got to move up a lot to get to that number. it really won't start affecting me until it probably moves up a point and a half or two points which will be sometime at the end of '17. >> so a quarter point isn't going to kill you. >> no. but you have people that borrow billions of dollars, i mean, i owe a lot of money out there. i have a lot of assets and a lot of debt. when you start talking about one point on a billion dollars or two points on a billion dollars, it's meaningful dollars. so you better make sure the business is good so it will happen. remember, as rates go up, m & a will slow down and multiples in business go down. the reason we're paying crazy multiples is because people can afford to borrow. the world is going to change with higher rates. don't ever forget that. >> any moment we expect to hear from donald trump live in bismarck, north dakota. power is back in two.

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from the gop presidential candidate. donald trump live in bismarck, north dakota. it's a press event prior to unveiling his energy policy which you'll do later today. this is the day where donald trump got over the fence. he is now by delegate count the republican nominee. he has sowed it up to day. he'll talk about that from bismarck in the next few moments. now a news update. >> the faa says flights arriving and departing lax slu expect delays up to 30 minutes due to equipment issues. an initial ground stop was lifted but it will take a while to clear out the residual delays. paris police scuffled with protesters as several thousand people marched throughout french capital to demand the government strap a new labor bill. protesters are angry at the bill. greek authorities say they have

completed the evacuation of the make shift migrant camp on the bored we are mass doan yachlt it's now empty. at the peak, some 14,000 people were held in that camp. all state will offer home sharing insurance conference to hosts in six states in mid august. those states include arizona, colorado, illinois, michigan, tennessee, and utah. that's the cnbc news update for this hour. for now, back to melissa. >> thank you. to the bond market now. rick santelli tracking action. how are things sets willing after that auction? >> the end of 88 billion in supply. a lot of markets outside of equities closing early. three day weekend. i don't think it's a surprise that pretty much we're looking at the high prices in the low yields of the week and pretty much all maturities. speakingst aucti of the auctiond the note behave? it dropped. it was bate of a catalyst along with the other issues. it's like the last hurdle. people are talking about not coming in tomorrow. train day 30 years, you see its effect there as well.

even the dollar index pulled back a bit. here's an interesting one. a year to date chart in the hyg, etf for high yield, junk if you will. it is fresh to making fresh highs on the years. close but not quite. there back to you, tyler. >> i'll take the, rick. thank you. we're expecting to hear from donald trump within just moments. this, of course, on a day when we hit the magic number of delegates needed to clinch the gop nomination. so we'll check in with the presumptive nominee in two minutes.

donald trump will be speaking from bismarck, north dakota. as soon as he takes the podium, we'll go straight to him. let's check in on the markets. fairly flat day.

hitting new 52-week highs in today's session. take a look at. this people want to buy lipstick and dollar goods. take a check on a water company that's been on this all time high list for a number of days in a row. only one stock today on the s&p 500 sinking to a 52-week low. and that is the ticker abc. >> all right. so we want get to your take on this story and hear from viewers as well. mcdonald's, shutting down the hekdz because of protesters. that is at the annual meeting today. third year in a row that mcdonald's had to ask heck workers to stay home for the day. this is employees at restaurants pushing for the $15 minimum a wage and form a union. it comes on the news that foxcon is going to replace 60,000 factory workers in china with robots. so the reason we brought that story up seems incongruous. at the same time, we talk about ought ma automation and robots number

industry is at risk as much as the restaurant business. where do you see it going five years? >> people look to automate everything they can, especially in the kitchen where you can build equipment to do certain things for you. if the government and the states continue to push this $15 wage and not give tip credit for the waiters, it's -- you're going to see a huge layoff in people. people are going to streamline their menus and not have the same prep items. >> we're told by -- listen. you own a business. but when we had the debate, people say that's not true. it will put more money in people's pockets. that will lift all boats. that's watt pro -- >> the ceo of mcdonald's today specifically said if minimum wage is raised 20 to $15, twhoe have to look to automated functions. >> you have to do it. when you calculate how many hours and how many employees they have, they could do and do the research and technology and spend a billionon dollars on equipment just so you can start

automating it. when you look at the payout over a number of years, you cannot pay somebody $15 an hour when somebody is buying a hamburger for $4. it does not work. the numbers don't work. >> they're going to automate anyway. >> dominos has done it. >> i go to my quick check and instead of place my order on a screen or i go to wawa, i do. that explain the tip credit and why it is so critical you to. i think a the love people don't, including me, understand exactly how it works and why it is so fundamental. >> when you're in full service like i am and so many of my thousands of employees are waiters, okay, they're used to be a government tip credit. and there still is but states are getting away from it. so you might make $3 an hour where the minimum wage is will $8 an hour f a waiter makes the other $5 in tips, then we don't have to pay them because they're maching that up. >> you don't have to pay them the $8 an hour.

but remember, they're making 100, 200, $300 i have stake houses where they walk with $500 every night. so don't make me pay the waiter $15 an hour the same amount that i'm paying the guy in the kitchen $15 an hour. because the government is saying now you can't take some of their tips and use it to tip other people in the kitchen or whatever. we're so regulated. they don't seem to get the tip credit. if you want to make me pay somebody in the kitchen $15 an hour, that's fine. if they're not a kid and it's not a training wage, if i am okay with. that but you have to give business a tip credit for these waiters that make a lot of money. >> let's be clear. this is not even -- this comment and statement is not about your industry. i mean, the majority of policymakers, men and women, hard workers, smart, but most of them have never run a business. many people in office have been in office their whole career. so you get these regulations, not just you but any business owner handed down from

government. do you have any recourse. if they did something completely ruinous to your business, how you would fix that? >> something's happening right now and i'm thinking about suing a government agency for that reason. >>ly no idea about that literally before i asked that question. >> that is how fed up i am right now with the regulations by the united states government. and the so-called spinoff that's are really appointees of this administration. >> what is the issue? >> the tip credit? >> no. it's an issue about -- legal issues with my employees and their rights to sue me or not sue me where something could be worked out very easily through arbitration, okay? they instead want to tell me, no, you can't do. that you can't solve it the simple way. we want to put it in court system and solve it that way. >> there's a ln. because, what, 90% of congress is or have been attorneys. >> 100%. >> and having gone to law school, i can assure that you lawyers are very good at propagating themselves, right?

accountants are got at making rules that require you have accountants. lawyers are good at writing things that only they can understand. >> you are 100% right. >> and with that i retire. sullivan drops the mike. out. >> all right. any moment now, it's like the fifth -- that's not donald trump. we're going to keep saying it until he shows up. donald trump expected to hold a news conference in bismarck, north dakota. [crowd cheering] i could get used to this. now you can. when you lease the 2016 es 350 for $329 a month for 36 months. see your lexus dealer.

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this place is made for those who do more than just vacation. ♪ whoa go with me now it's made for those who vacation like they mean it. universal orlando resort. same place, same podium, same wait for donald trump to meet the press news conference on this day where he surmounted the delegate threshold to become the nominee of the grand old party. your thoughts? >> i think it's going to be a close election. i think it's totally a tossup. i think all republicans are going to get on the trump bandwagon just like the bernie sanders people are going to get on the hillary bandwagon. trump gave a great speech at the nra the other day. there are a lot of people in this country that have guns.

there's a lot of democrats that love to go hunting and have their guns. trump is going to xart people that you're not going to be able to go hunting and target practicing and have that gun anymore to protect yourself. remember, most of the violence is in certain little pockets in every city. guns are not a threat to most of us. >> from a bis perspective, do you back trump? >> you know, i don't know who i'm going to support in this election. i'm truly undecided. >> between the democratic side and the republican side? >> i am more a republican, okay, but i don't know who is going to be the best president at this point. i'm kind of shocked that we are where we are. i think hillary, of course, would make a very good president. i wish our supreme court was not bipartisan, okay? i mean, i think it all comes

down to the supreme court. and that's where everybody needs to judge who they want tloekt president or not. >> all right. we're going to leave it there. and we're going to keep watching that empty podium. >> i tell you, that podium is a great guest though. >> we're going to take a quick break and we'll be right back. with another hour of power. will your business be ready when growth presents itself? our new cocktail bitters were doing well, but after one tradeshow, we took off.

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we're not just waiting for donald trump to speak, he is going to be laying out his energy plan. that's why he is in north dakota. obviously, a huge oil production state. they suffered, as we showed you by being up there, so it's not just trump talking. it's going to be about him and his energy plan. anybody in the oil, gas, coal, whatever business. they want to listen to. that as soon as he begins speaking, that was a photograph, we will bring that to you. okay. so speaking of oil, for the first time this year, oil went above $50 a barrel. it's not there now. it hit 50, 21 a barrel. we're below that now. the dow, not reacting. we're seeing the dow down 28 points. not a lot going on with the dow overall. but home depot, apple and pfizer are the best three gainers. and apple, a lot of people aligned it, the best performing

dow stock this month. >> since the buffet bottom. >> you know what today? it is birthday of the dow jones industrial average average. the dow turns 120 years old today. when it comes to the u.s. stock market, this is the benchmark. that is most people think of. is this 30 stock index still relevant to today's investors? >> david, you're in charge of the dow and the s&p 500. most investors would argue that thesomesome or even a broader index is a better representative of the u.s. stock market. why does the dow matter still? >> the dow matters, first of all, it's 120 years of history. nothing has more history and unless you were through the

financial crisis in the last ten years, you know history matters. second of all, it is the index that average individual investor understands and recognizes names of the stocks, he can calculate it in the back of an envelope. and it tells him where the market is and to a large extent where the u.s. economy s the 500 is more of a professionals index. both of them together tell us what is happening in the markets. and in the u.s. economy and to a very large extent, what is happening all over the world. >> one of the criticisms, david, of the dow and i don't mean to wonk out here, is that highly priced stocks have an out sized influence on the, not necessary lit bigger stocks, just the ones that have higher prices, have an out sized influence on the index itself. explain why that is not something i should worry about. we have a rule. it's in our methodology that

says the ratio between the biggest and highest price in the smallest price should be no more than 10-1. and it is within that range at this point. we feel the price weighted version has a lot of other benefits f you've been following the indexing, all you hear about is smart beta. a fancy way of saying it's not capitalization. the dow is not. and the dow is potentially a smart beta index. and given what was just mentioned about apple, i think anybody who is tracking the dow probably very happy about that stock right now. if you look at the stocks every decade, it is interesting to see where the stocks would be today. because you change out, what, two or three every couple of years because the other ones aren't doing that well.

so do you really get a real good view at what is really happening out there with the dow? >> yes, i think we do. some companies merge with other companies and if they disappear, they have to come out and be replaced. some companies start very small and get bigger and bigger and become major players. in fact, most of the technology list in either index started so small. nobody could see them at that time. so the change wez make are to make sure that we -- the market is as it is today. in fact, every measure change noes matter what it is. >> i want to bring you in. you have open folio. this sounds luke a crowd sourced index. so you create this other index base ond what investors at large have in their portfolios. why is this a better measure? >> because it's more relevant

and more relatable. why do i as an individual investor, why do i care about the stock prices of 30 multinational corporations? they're irrelevant. the dow is dead to mechlt i care a lot more about what other investors like me are doing. so what we do is rather than average 30 stock prices, we take 70,000 investor portfolios and get all this data to create an index and benchmark whast real average invstor looks like. >> don't you get a skewed view? if you're aggregating what many, many investors have, then you're sort of biassed toward the crowded trades. is that sort of index that you want to use as your benchmark? >> it's to understand where you fit n i care about how i am relative to other people. so now i get to understand how i'm doing relative to other investors or even have a personalized to be investors like me. >> there are a series of papers

for 15 years ago called trading is hazardous to your wealth. a nice cute title. but what it shows and what behavior financials shows is that individual investors, especially the active ones that tend to trade which i'm guessing are the same ones that are likely to file the portfolios with you and keep them up to date, they don't do very well. >> that's why i jump and say what we actually are doing is not skewed towards active investors. we have a lot of passive investors on our platform. and what our data set shows, we're here to engage the users and help them understand they shouldn't be active traders. it's a way to engage and help create a relevant benchmark and we have data that show that over trading actually causes underperformance. >> well, we would agree on overtrading. i suggest if you want to -- you don't want to overtrade. the best demonstration, better than all the other indices we mentioned to day is a total market index, one chf we run. >> i'm a believer in benefits of passive investing. what you and your team have done

in terms of furthering the goals and aims of passive investing is incredible. but you step back and we have data that show that maybe people should listen more to what you're doing. i think the real power of this social benchmark and social bench marks in general is that ability to engage people, have them think about the finances and potentially improve their investing style in ways that you can agree with. >> how does -- excuse me, david. i want to ask, how does the performance part of your index and based, a crowd sourced index as i understand it, how does the performance of your index, that main one we're talking about, compare with the performancest dow or the s&p 500 over -- you give me several time periods. >> over the last year, the average investor according to the portfolios has underperformed by eight points. >> eight percentage points? >> is that because -- because they have diversified portfolio that includes bonds and stocks?

cash? >> the most interesting thing is really relating back to what david is saying. it's over trading. we actually see that when the market turns down, we see investors sell some of the portfolio. they lighten up on the positions. they panic sell. and they don't reinvest before the market rallies back. >> so my -- so if i were to compare my performance to your index and say okay, i want to benchmark against your index, i would presumably be walking in performance that was below that in at least the past year of the s&p 500 or the dow? >> we're not an etf that you invest in and track. we're not managing your money. we're purely just providing you context for hour your own envestment strategy fits n i hope that your portfolio outperforms the average. i hope you're doing better than average. >> maybe i should sign up my portfolio. mine saul indices given what i do and our compliance rules. >> right.

>> i guess, you know, what i would say is that it is a good sign that minimal trading, minimal fees and index investing is a very successful way to go and so on. as an educational effort, there is no question i would be in favor of it. i think it's very different from either the dow or the s&p 500. and that's really the item. if anything, those will 8% you mentioned, i'll tell our marketing guys to put it in a quote and run it in an ad and get permission first. >> great discussion. thank you very much. >> thanks very much. >> thank you. you know, we never ask you about the stock market. you vaul the restaurants and everything. do you invest in the stock market? >> definitely. last time -- i think you were in europe we talked about it. and definitely invest. and don't forget. i was public for 18 years. >> yeah. >> so you watched your own. >> yeah. but i own a lot of stocks.

>> do you care about the dow? what do you look at? >> i look at the s&p 500. because the dow changes out, you know. as soon as a company doesn't do well and only looking at 30 stocks, you pull it out. you put another good one in. so the dow is going to always do well. >> let's throw-in some and then you make it look good. >> you're right. but what we would -- you know what they need to do? they need to publish, take the dow -- any of kous do fit we want to take time to do the rsh. take the dow stocks from 2010 and 1980 and if you ran them as if they were the same dow 30, where would the dow be? take out the ones, if it's an m & a deal, that's what happened. but don't pull something out because it's not doing well. that's what they do. if you are not one of the top performers in the united states, you get pulled out and somebody else put in. >> or if it gets bought by somebody. >> yeah. but that's what i'm saying. in that case, yes. that's why i said you have to

give them. that but other than that, the dow is the dow. >> i like the challenges. i'm trying to see who is in the dow. melissa, you and tyler and i have been in the dow. i'm trying to look. >> ge has been in it for the longest. >> so the dow in 1982 was allied chemical,al he could yashgs american kan, at&t, bethlehem steel, kodak. >> yikes. >> good argument for taking them out is they no longer represent the economy. and that's why they had to add apple. >> sears. >> yeah. >> but what is funny though, right. but if you looked at it, you know where the dow would be? probably had 400. >> woolworth. >> take a look at the dow additions like apple whether it was added, it did horrible. after that, it went down. >> and they never took that away. are you sure they didn't take it out? they'll take you out and put you back in. >> and verizon they took out has done well since being taken out of the dow. there is another aspect of this as well. >> when you look at that, brian,

you see how the world changed. isn't that amazing. from 1980. >> we live in a different world today. >> in 1925, they dropped mack trucks and they also dropped the recommendington typewriter company in 1927. this is really interesting. i'll going to ignore the rest of the show. north american company. >> we're going to have a pacific name. >> we'll let brian do more research and come back at 10 past 2:00 eastern time. the call just came in. she's about to arrive. and with her, a flood of potential patients. a deluge of digital records. x-rays, mris. all on account...of penelope. but with the help of at&t, and a network that scales up and down on-demand, this hospital can be ready. giving them the agility to be flexible & reliable. because no one knows & like at&t.

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welcome back to "power lunch." we're still awaiting for donald trump. once donald trump, the presumptive nominee goes to the podium, we'll go there. we're expecting this to be followed by a speech on energy policy. so in the meantime, let's talk more -- >> half the population of north dakota is on that stage. >> all of business smashg on that stage now as we wait for donald trump. in the meantime, what should america's energy policy look like? back us with, tilman. >> great to have you us with. i'll start off with you. i don't get the sense that donald trump wants to end america's oil addiction. just the opposite being that he is going to be in bismarck, north dakota, delivering an energy policy speech. >> you know, who knows? he's been on both sides of so

many issues. he's been on both sides of gun rights. he's been on both sides of choice. he's been on both sides of renewable energy when in iowa, he was strongly for wind power subsidies and ethanol. but then he's been against clean energy subsidies. >> i'm guessing you parsed through his past tweets, past statements, et cetera, to try and formulate what you might think could be a trump energy policy? >> look, i'm just going to wait. i'm going to wait and see. he is in favor of federal regulations to mandate ethanol. he is in favor of fracking. he's against the paris climate agreement and he believes that -- he says global warming is a host perm traited by the chinese to undercut american manufacturing. that is from a tweet in 2012. so we have something out. there but we're going to see -- we may see and just a little bit the most comprehensive statement he ever made. >> is there anything he can say or do that would change your

outlook for oil? >> if he said something about iran, for example, a decision to roll back the iranian nuclear deal, i mean, that could be something that could be potentially negative for iranian oil getting on to the market. but beyond that, i don't really see anything beyond a lot of rhetorical and bluster coming out of this speech. >> one would think you go to coal s that bad for natural gas and the fraccers? >> there is bad. he wants to get miners back to work. how are you going to make natural gas more expensive? this is a market driven development. it will be interesting to hart facts or the plans. >> i want to come back to the title of your book. how do end america's addition to oil? is it -- there he is. by the way, the people would are gathered there in bismarck and there is mr. trump. maybe we better get ready for that. the people around the podium are the north dakota delegates to

the gop convention. and there is mr. trump shaking hands. >> another reason he may be in north dakota is the north dakota delegates are unbound. >> right. >> these are the guys that actually can -- they appear to be all men. these are the guys that can -- there you go. >> they can say screw the rules. we're going to do what we want. they said basically as much. >> so trump unbound. we'll see here. just in a moment. so how do you end the addiction to oil? >> you know, this issue of the addiction to oil this is not a particularly partisan issue. >> let's listen to mr. trump. we need to listen. we'll come back. >> from north dakota. so north dakota had a big statement. i really appreciate it. we will not forget it. thank you very much. i want to thank a very good friend of mine, harold ham. i guess we can consider harold the king of energy. nobody like him. i'll tell you. he knows more about it than anybody that i know.

i've been on the cover of every magazine. i think he's been on more covers of magazines than me. congratulations and thank you very much for your support. okay, folks. yes? yes, john? [ inaudible question ] >> that's good. is that right? i love that word. he used a bad word. he knows nothing about business. when you rattle someone, that's good. because many of the world, as you know, manufacture our countries in our world, our beautiful world have been absolutely abusing us. so if they're rattled in a friendly way, that's a good thing, not a bad thing.

>> aren't you showing a cavalier attitude and thinking about what is required to keep america safe. i wonder if you tlik respond to that. >> the president has done a horrible job. everybody understand that's. 'loud manufacture the countries to totally take advantage of him and us, unfortunately. and he's got to say something. it's unusual that every time he has a press conference he's talking about me. so, you know, it's just one of those things. i will say this. he is a man who shouldn't be really, you know, airing his difficulties and he shouldn't be airing what he's airing where he is right now. i think you'll see it stop pretty soon. he has ooez not done a good job. today we're giving a big speech on energy. we're going to see amazing things happen. but president obama, you see where we're going. we have tremendous difficulty and problems.

we're going to solve those problems. we'll solve them fast. okay? >> your campaign chairman told the huffington post as you're building your vp list, it's probably unlikely there is a woman or a minority in that mix. because that would be pandering. >> we don't do it for any specific reason. we're looking for absolute competence. i expect we'll have many women involved with not only -- i mean i've had it with the campaign, you about wheat have many women involved. i look forward it to. he's been misquoted. but we'll have women involved at the highest levels. >> mr. trump, are you going to consider -- >> mr. trump, during the republican primary, you repeatedly tacked your opponents for, you know, being funded by

big donors, big money donors. how do you convince your support thaerdz you're not going to become the puppet that you accuse your opponents of snk. >> i'm no puppet. i'm raising the money for the party largely for the party. and we intend to raise a lot of money for the party. we're raising it for senators, congressmen, congresswomen. we're raising it for a lot of the people that are running. we want to have majorities. it's very important. we have a tremendous staff of people. we raised a lot of money for the party. this is money that is going into the rnc. and we are going to have, i think, a tremendous -- we're getting thanked all over by the republican senators by congressmen. and hopefully we'll raise a lot of money. this is money raised for the party. i'm also continuing to fund big portions of my campaign.

>> mr. trump, he was also quoted as saying did he release your taxes. he said it would lep the adversaries. he seemed to sound as if you're not going to release your taxes. >>, no i'm releasing when we're finished. the irs is very professional. and they continue to be very professional. i've been audited for 15 years. i don't know people that are audited for 15 years. i've audited all the time. the irs is very professional. and as we move along, as soon as that's finished, whenever that may be, hopefully it is before the election. i'm fine with that. okay? >> do you pay some federal taxes? >> i do. yes. >> mr. trump, welcome to the -- >> mr. trump, in the wake of yesterday's inspector general report from the state department about hillary clinton's e-mails, you said you have doubts about whether or not she can stay in the race against you.

are you prepared to call on her to get out of the race so that americans can have more confidence in the integrity of the front runners? >> i said i like her in the race. i want to run against her. look, she has bad judgement. probably illegal. certainly it is bad judgement. it's devastating the report. it's dpef staevastating tlaen i reason for it. skirting on the edge all the time. you look back at her history and this is her history. it's a really, really aharsh report. so it is shocking to see it. it's shocking to see what she did and more than anything else, it's bad judgement. that will be up to her if she wants to continue running. >> you talk a lot about uniting but when you were in new mexico, you went after the governor there zshgs there clinching this number now, does this change

your approach at all? >> well, i think it will. i haven't had the support of the governor of north carolina. she was on somebody else's side. that is fine. that serve's right. i imagine she'll come over to my side. if you look at what's happened tremendous support from all over the country. we have governors all over the place and vast majorities, i think the approval up is to over 90%. that's tremendous from where we started. i won the lections in landslides. very important to sachlt you look at the lections. we go to new york and win almost 62% of the vote with three people running. we then go to pennsylvania which is going to be i think a state that we're going to do apladzingly well. i think i'm going to win pennsylvania easily. we have tremendous support

there. maryland, connecticut. we win delaware, rhode island, and then as we win, you know, we had a tremendous, tremendous success when we went to indiana that was incredible. bobby knight helped in all fairness. we're going to have tremendous successes. the thing i'm most proud of, not the fact that i'm watching hillary instead of hillary watching me. we were supposed to be going into july and a lot of people said it wouldn't be solved during the convention. there is a new convention in august and here i'm watching hillary fight and she can't close the deal. that should be such an easy deal to close. she's unable to close the deal. so i'm watching her. and we'll see what happens. >> i was inquiring, are you planning on recognizing tribal sovereignty on a nation to nas basis based on the u.n.

declaration of the rights of indigenous people which the u.s. had endorsed? >> i have to look at it individually and i will be doing that. number of people have asked me. i will be doing that. okay? >> what is your message to people that have not supported you. do you have something to say to martinez directly? >> we've this h. tremendous support from almost everybody. and even if you look at congress, i mean, the support has been incredible. i spoke with paul ryan last night. it's moving along. he's a good man. we'll see how that works out. we had a very good talk. >> also nin the huffington post -- >> i don't read the "huffington post." i'm sure it is misquoted. i didn't think they covered politics. do they cover politics? >> apparently they do. he said you were going to start softening your position on the

muslim ban? >> we are looking at a lot of different things. we have a radical islamic terrorism problem. it's a worldwide problem. not just this country. and we have to find a solution. and we have to be vigilant. we have to be tough and smart. >> were you serious when you said you wanted to debate bernie sanders? >> i'd love to debate bernie. he's a dream. i said last night on jimmy's show, it was -- i said i would debate him but i want a lot of money put up for charity, if we can raise $10 or $15 million for charity which will be a appropriate amount. i understand the television business very well. i think it would get very high ratings. it should be in a big arena somewhere. and we could have a lot of fun it with. i'd love to debate bernie. the problem with debating bernie, he's going to lose. because honestly, has system is rigged just like our system is rigged. look, if i didn't win bypassi me

majorities, i wouldn't be standing here. bernie hasn't been able to knock out. but the super delegates for the democrats, so on, i mean, it's so unfair. i'd debate him anyway if they want to put up money for charity. so we'll see. we actually had a couple calls from the networks already. >> you have started talking to the promoters? >> they have to pay a lot of money for it. i'm in first place. i won something over $10 million. >> you'll get on a debate stage with bernie sanders? >> i would love to. i love debating. i know you people never write this. but every single poll on every single debate the online polls,

drudge and "time" magazine and all of them, i won every single debate. i didn't know i was going to do that. i never debated. you know, politicians are all talk, no action. i created jobs. and businesses and did great. but i never debated professionally. you know, i ran against all these people. they debated professionally. but according to every single online poll after the debates i won every single debate by every single poll. so i don't mind debating. i like to debate. you know, the one thingcy said to myself, i wonder how well i'll debate. you know, guys like this great gentleman right over here is one of great oilmen of the world, we're not debaters. we're people that put people to work and do things and a lot of good things. how many people do you have working for you? >> tens of thousands. >> tens of thousands. that's what he z i'd rather debate harold. but i will tell you, he may surprise you. he may do very well. but we don't do that. but somehow it worked out well

for me. it worked out well for me. so i actually lot of debating process. i had a lot of fun. i was soenter stage for every single debate. the only time i was upset with the networks is when we had even numbers. like eight. that means you had two in the middle. i always insisted on having odd numbers. go ahead. >> what hold do you think the federal government should have on energy now that you're at this petroleum conference? >> i think the federal government should get out of the way. the federal government is in the way. we have so much potential energy that people wouldn't even believe it. in fact, my speech today is on energy. the coal mines are shut. what they've done to -- what hillary clinton, she's worse than obama. i mean she actually openly said i want to put the coal miners out of business. i want to put the coal mines out of business. essentially, she's saying i want to put the steel mills out of

business. we're not going to have any businesses left. i dobt know how she can do well in pennsylvania. she certainly didn't do well in west virginia. and, you know, i think she made a big mistake. she is catering to certain people. i think ultimately jobs and these incredible people, the miners. i asked a couple of them, why don't you go into a different profession? they said because we love going after coal. i'll never forget the answer. you know, you think it's dangerous and you are going deep down into these incredible crevasses. i say, wow. but they love doing what they do. that's what they do. it's like me, you know, i grew up. my father was in real estate. i'm in real estate. and now i'm in politics. he wouldn't believe what happened. he's looking down saying what happened? but with the coal miners, they love doing what they're doing. hillary clinton, and such an important product. hillary clinton should not be putting them out of business.

>> would you be for bringing more refineries here to the u.s. so we can become more energy independent? >> i want to be energy independent, yes. absolutely. i want to be energy independent. and i haven't spoke ton harold about. that i would say energy independence is what we all want. and we also want to sell our energy to other place that's don't have the great natural resources that we have. don't forget. through modern day technology, we found out that we're sitting on energy. i'm going to be talking about it in a minute. but that we're sitting on energy like nobody would believe. i want to be energy independent. and the answer is yes to your question. >> paul ryan has still not endorsed you. what policy concessions are you willing to make to get the endorsement? >> we'll see what happens. we've had great conversations. we'll see what happens. >> do you still believe -- you would still want to ban all foreign muslims on a temporary base snis. >> as of this moment, i'm very unhappy when i look at the world

of radical islam. i'm very unhappy it with. we're going to find a problem. and we're going to come up with a solution. obama could never come up with a solution. number one, he's incompetent. and number two, the solution just is never going to be out there for him. he won't even mention the word. they say to me, thank you. thank you. this is a problem. it's a problem that has to get solved. and when you see people that are looking to do tremendous destruction like in california with the 14 people killed, they lived in a house where they had bombs all over the floor. people knew they were up to bad stuff. nobody reported them. people have to report when they see. okay. go ahead. >> does your band still stand? >> you said you would bring coal mining jobs back. i'm a reporter in wyoming, the largest coal producing state. >> i see. by far. i was very impressed. >> one of the main factors of the jobs going away and mines

are closing is because of low natural gas prices. poor decision making by coal companies. >> and by government. >> and also because of slowing international demand. so do you believe you have power as the president to actually bring the jobs back and how? >> i think ultimately goal is very inexpensive. you have to get rid of some of the regulations. i spoke to some mine owners and they were showing me some of the regulations where it's on a daily basis going in checking, checking, checking. they have people that do nothing but deal with regulators. and it's out of control. market forces are going to be whatever they are. all i can do is free up the coal which i'm going to totally do. get the companies back to work, market forces. that something i don't want to get involved. that's beautiful to me. a market force is beautiful. >> sir, i think i'm the only canadian press here. the he could stone excel problem

created problems pt you would aprofit keystone xl and would you contract to build it? >> yes, i would. it should be approved. i'm not saying it shouldn't be a better deal. hillary is probably not going to approve it. i'll absolutely approve it 100%. but i want a better deal. listen, here's the difference between harold ham and myself and you or obama who doesn't know what the hell he's doing. here's the difference. i'm going to say, folks, we're going to let you build the pipeline but give us a piece. we have to use eminent domain. eminent domain. the favorite project is the keystone pipeline. if you read the documents, the whole big section is devoted to eminent domain. without it, pa pipeline wouldn't go ten feet. you understand. that i want the keystone pipeline but the people of

united states should be given a significant peefs the profits. right now obama would say yes or no and most politician was say yes, we'll approve it or we won't. i'm saying we'll approve it. i want it built. but i want a piece of the profits because we'll make it impossible for it to happen through eminent domain and other things. i want a piece of the profits for the united states. that's how we're going to make our country rich again. one way out of thousands much that's how we're going to make our country rich again and how we're going to make america great again. you understand what i'm saying? >> they would like to build a pipeline and mr. ham could ship the oil through -- >> this is a different pipeline. >> do you like the zbld. >> it's great. >> do you like the idea as a reporter? >> i'm the only person that rates energy. i love it. >> i'm going to look at anything. i'm going to look at anything. a lot of times pipelines are so

much better because instead of going on trains and having all of the problems caused by that, it's underground and environmentally they're better in many cases. but we're going to take a look at it. >> pipeline would involve mr. ham to export oil through canada into canada and also overseas through canadian ports. >> well i'm not aware of that one. we'll certainly take a look at it. my basic bias is to approve. i want to approve for jobs and the concept of pipelines is kafrme kafrment. >> sir, a local small business magazine, so for small businesses and chambers of commerce across america, what are the keys to economic vitality? two of them, lower taxes, we're the highest taxed nation by far. and the other one is we're overregulated. and i will tell you, i made a speech last night in front of a group. i said regulation -- and this surprised me, really surprised

me. i've seen it ever since i have been doing this for like ten months or so. and regulation is even more of a problem for people than the taxes which surprise me. but they're both problems. so we're going to lower under my plan, we're lowering taxes very substantially as you know for businesses, for middle income, for everybody. so taxes are going to go way down and we're going to get rid of the tremendous numbers of rules, regulations, probably 75% of which are absolutely takerible for our country. okay. >> is that offensive. >> you tell me. >> i'm sorry about. that pocahantas. is that what you said? >> why are you having this conversation? >> no, she tweets about me.

every once in a while i tweet, when i tweet, not many people are watching their tweets. when i tweet, they watch. i'll say this look, she is a senator that is highly overrated. she's passed very little legislation. she has been a real disaster for a lot of people including the democrats who frankly can't stand her manufacture the democrats. just ask hillary clinton how she likes her. and i would say this. i'll debate anybody. i don't care. i'd debate her. she's done very little for massachusetts. the beautiful thing is i got up to almost 50%. and she was fighting me. so i really think if her record was exposed and the fact that she was a native-american, she said she was native-american but she wasn't able to document it, she said well i have high cheekbones. you see, i have high cheekbones. i'm a native-american. and then she -- i noent foe if it is a fraud, but she was able to get into various schools because she applied as a native-american and probably able to get other things.

i think she's as native-american as i am. that i will tell you. but she's a woman that is very infective other than she as a big mouth. go ahead in the back. >> you said you would do a debate with senator sanders and raised t ed the idea of raisingy for women's health issues. >> we raised a lot of money. nakt, on tuesday, we're going to be releasing a tremendous list of all the money we've given with the debate when i decided that i wanted to do this instead of go to a particular debate. i felt i wasn't treated right. i did a speech. during the speech, i said let's see if we can raise money for the vets. on tuesday, we're going to have a press conference in trump tower, tuesday at probably 10:00 or 11:00 and we're going to release a full list of all of

the people, almost $6 million worth of money was raised. now when i started that, i said maybe -- i started it. we weren't going to raise anything. it was a idea that came to me. i said let's raise some money for the vets. and one of my friends who was there, very substantial person offered $1 million. carl icahn gave half a million. somebody else, another good friend of mine, i believe he gave $1 million. all of a sudden, we started getting a lot of money. i love seeing it. and on tuesday, we're going to release a list of all of the different veterans groups that got the money. close to -- pretty close to $6 million worth of money. and that was great. and what i do if we did this debate, i'd like to do something similar where they'll pay this. in this case, it will be just a payment about it networks. why should the networks have a dean like this, mach a fortune, sell it to sponsors and put the money in their covffers? >> vince foster's sister --

>> now that you hit the magic number of 1237 -- >> i'm so honored. >> that is really good. >> so honored to be in north dakota. >> we're glad to be here. >> so honored by these people. >> exactly. but now you set the sights on being president, what do do you in the first 100 days? >> well, number one, i'll be unwinding various executive orders. and i'll be unwinding executive orders in particular having to do with the bored wrer people are pouring into our country that aren't supposed to be here. and we'll be unwinding that. we'll have a lot of things to do. we're going to start rebuilding our military. we have no choice. we have no choice. it's not like gee do you want to do it? we're going to build our military stronger than before. i saw the other day, actually on cnn, but where the jet fighters were using parts from museums and graveyards, plane graveyards where they're taking old parts for our fighters for f-16s and

interviewing the pilots. these are great people. and they were saying they're so embarrassed and so ashamed of what is going on. this shouldn't be the united states. so we're going to rebuild our military. we're going to have the finest equipment in the world again. and nobody's going to mess us with. very simple. by the way, i'm the last person in terms of the draw. i won't have to worry about the draw. i'm the last person. i didn't want to go into iraq unlike hillary and other people. and we shouldn't have gone into iraq. iraq was a mistake. and thent way obama got us out was a tremendous mistake. so we'll have -- we'll have a lot of fun that first 100 days. we'll start prot ses of making america great again. how about a couple more? >> i was wondering, first, you have to get through the general lection. how close is the campaign staff for being ready for the general election campaign? >> one of the reasons i made a deal with the rnc is, which to me is -- i think they have done a really good job. they build staffs in every state. you can't do that or you can't do it very well if you're doing

it all over the next few months. so now i just learned i got the nomination. this is going to happen according to some people in august and some people were saying because of the second convention which would have been ridiculous and many people said it was going to go into the july. and then we had that massive victory in indiana. i won't forget the people of indiana. that was a massive victory. is so here i'm sitting. i love watching hillary and bernie go at it. bernie has given me great lines which i'm using, believe me. but i will say that as far as building, the infrastructure, they've been doing it for many years. he has really upped it. and all over the country they have very good people. and partst benefit is we get to use those people. while i'm raising money for them, they're going to use it for other people running for office, it's been an honor.

i met some of the people in different states. i met a big group of people from different states that work for the rnc. and down the that over a period of just a short while. you know, we have november is coming up very rapidly. it will be very tosoon. and they are set up with really great fran struinfrastructure. >> vince foster's sister called your comments to the "washington post" about cruel, irresponsible, and wrong. >> the question was asked about vince foster. and it was asked of me. what do you think of vince foster? >> i really know nothing about the vince foster situation. i haven't known anything about it. somebody asked me the question the other day. i said that. a lot of people are very skeptical as to what happened and how he died. i know nothing about it. i don't think it's something that, frankly, unless some evidence of the contrary i've seen come up i don't think it sure be part of the campaign. but if you reveal something to

america i'll answer it in the appropriate way. okay. one more. >> mr. trump -- >> yes? >> here in north dakota, fracking is on the forefront of everyone's mind. bernie said he would ban it all together. how you would deal with it? >> bern ji going to ban fracking. hillary is going to ban fracking. hillary is going to abolish the second amendment in case you have any questions. she's going to abolish your right to own guns. she's going to abolish the second amendment. i'm the opposite. i got the endorsement the other day from the nra which is a great honor for me. they're great, amazing people. i'm a member of the nra. my sons are members of the nra. but they want to absolutely knock out fracking. you do that, you'll be back into the middle east and begging for oil again. it's not going to happen. not with me. we're going to open it up and be energy independent. we'll have all sorts of energy. we're going to have everything can you think of, including

solar and i know a lot about solar. solar is very expensive. i know a lot about solar and gone solar on eection. it's a very expensive thing. wind is very expensive. without subsidy, wind doesn't work. you need massive subsidies for wind. there are places maybe for wind. but if you go to various places in california, wind is killing all of the eagles. if you shoot an eagle, you kill an eagle, they want to put new jail for five years. yet, the wind mills are killing hundreds and hundreds of eagles. they're killing them by the hundreds and nothing happens. swind a problem and it's very expensive and doesn't work without subsidy. but i -- despite that, i am into all types of energy. i love the farmers and the farmers are incredible. we have to remember this was

largely a farm state. and they produced tremendous crops of tremendous different goods of which i eat a lot of them. i just want to pay my respect to the farmers of north dakota because they have done a great job. one more, go ahead. >> mandate passed 2022? >> we'll look at that and meet with the governor of iowa who is tremendous, tremendous guy and a friend of mine. we'll talk about it. a lot of people want that to happen. we will be making a decision fairly soon. okay. >> given the low cost of crude oil exported since the ban and regulations were lifted by the federal government recently, what you would do to increase and stimulate growth in those volumes? >> that's going to be -- i'm going to open it up so they can sell. that won't be up to people like harold if he wants to sell to other places. i'm not going to help him. nobody can sell like him. but now i would open it up and keep it open, get rid of the regulations and people like harold ham and, you know, people that i know that are really

competent, super competent, believe me. and we'll start -- we'll make so much money from that, from energy because we're blessed with something. you'll hear some numbers in a little while. we will make so much money that we will start to pay down our $19 trillion in debt. and we'll start to lower taxes and we'll start to take care of our social security and our medicare. we're going to open it up. go ahead, david. >> i have to let him do this. >> i have a couple of bad ones, too. now that a couple of women have taken issue with the way they were portrayed in a recent major story. >> so honored by that. >> do you think you're done answering questions now about whether you're a sexist? are you done or do you expect more of that? >> i think. so i was so honored. "the new york times" did this massive story on the front page. and they quoted three women and then another woman. manufacture the women have come forward saying we have great respect for donald trump. we really like donald trump. that's not what we said.

that's not how it was portrayed. and they actually said this was going to be a wonderful piece. and "the new york times" has been totally discredited. and the construction person i just presented many, many e-mails and i think i sent them you to, david. i did send them to you. many, many e-mails where she is asking for a job back. because after she was gone i never took her back shechlt. she wanted her job back. she wrote a book and said the nicest things about me. she said you're the least sexist person. i didn't know why she mentioned it. anyone that would mention that if a letter is strange. nobody accused me of it. but she writes me a letter. but she wrote many e-mails asking for her job back. she's been totally discredited. so "the new york times" story has been totally discredited. "the new york times" i can tell you from personal knowledge is very, very embarrassed. it was a total hit job on donald trump. and to put a story like that above the fold with a massive picture of myself standing with

miss universe contestants or maybe usa contestants who, you know, which i own, which i sold recently to img, i sold the pageants to img, good deal, by the way, but for them to put pue that above the fold, "the new york times," i can tell you they're very ashamed of that story, and for the women to come o out, to come ow and be brave and say, who dwould that, that would be so nice. did not speak to her when she did this. i spoke to her more recently and thanked her because it took courage for her to do that. and for her and others to come out and go forward and say, you really, really mistreated us by writing the story the way you wrote it, and we have great respect for donald trump and like donald trump very much, "the new york times" was totally discredited. and honestly they should be ashamed of themselves. so it's been a great event for

me. i hated reading the story, even though this was not, you know, major allegations of very much stuff, you understand what i'm saying. one said, don't eat that candy. in fact, a friend of mine called up and said, it's not too sear yu. but they made it like it was a big violation. don't eat that candy. i appreciate the story you wrote about it because "the new york times" has been totally discredited, and i will tell you. they're very embarrassed by that story. so ladies and gentlemen, thank you very much. >> who created that? >> a talented person. he's been here a long time. come on. get over here. he's been here right from the beginning, right? >> you've changed my life. i guess if you're one of the first seven or eight members of congress to endorse somebody,

your life gets changed. my life's been changed. i'm glad you're here. i appreciate your invitation, your comments on energy, and look forward to hearing the rest of it. [ inaudible ] >> i missed voting for the energy and rep pragss bill that failed miserably, so i didn't miss a thing. >> thank you, everybody. >> speaker ryan suggested that he's withholding his endorsement. >> let's see what happens. thank you, everybody. thank you. >> donald trump has a bit of a hard time saying good-bye, we have to agree. he likes taking questions and he likes punching back around counter-punching, we got everything from killer windmills to diet tips, don't eat the candy, and a little bit of energy policy thrown in on this day where mr. trump will later today give what's being portrayed as major policy statement about fracking and energy policy. and here to talk about that is

our round table. how the next american president can end the united states oil addiction. helima, it sounds like mr. trump is strongly in faber of more oil exploration, fossil fuels. he doesn't think much of sew lafrmt windmills kill eagles? and energy independence. i think one of the questions is are we ever going to be independent. you can have this u.s. resource, you can explore it, but ultimately we will still need to be dependent on these middle eastern producers. i'm going to be very interested to hear how he talks about that on his speech. >> david? >> he's peddling some outdated material. today 200,000 are working in the

solar industry. that's three times more than working in coal mining. solar has dropped about 80% in cost. we'll see what he says in speech. so far energy independence. he said he's going to put cole workers back to work, but he hasn't told us how. and at the same time he's going to increase fracturing which is the maybe reason prices have gone down and put cole minal mi out of work. >> helima, when i first joined cnbc, i made a montage of all the presidents saying we're going to end our independence. johnson, ford, reagan, carter, one after the other. we haven't done it. like what you're saying about renewables. that has come dramatically down. what i don't understand, david, is this. why do politicians act like it's

an youts come. we're going to need everything, are we not? we're going to need wind, solar, giants hamsters, whatever. >> you're absolutely right. the other thing is we need to improve the efficiency of our energy use. we're doing that in our vehicles. we waste so much energy in our buildings right now. we've made some good progress, but that's part of the package too that all of the above, that's what we're talking about. >> cars still run on gas and it will. we can't be deep see independent with the deep seadrilling and -- >> if we want to do it, we can do it. we might not choose to do it. i live with all those oil guys in houston. they tell me what they can and can't do and we can totally be

energy -- you've got to remember. the energy that a building uses today, a million square foot building compared to one that was built 30 years ago is like 22%. we're aegd all these people, but we're using -- >> that's a national security issue frankly. to me that's how i look at it. so that we're not forced to be so involved in part os testify world where people don't like us. >> i think that's the argument obama made. we do keep getting dragged back. the reality is we need a heavier barrel down in the gulf. that's what saudi arabia and venezuela produce. there is a bit of a mismatch in terms of what u.s. shale uses. we will still need oil for the foreseeable future. >> the one thing he said about coal, you said and someone

chimed in. the reporter from wyoming asked a very good question. trump said he's going to bring back the coal system. it's not killed by regulation, by market forces. >> the natural gas price, yes. >> machines have taken jobs away. by the way, and the reporter said this, decreasing demand around the world, in particular kai na. we haven't heard from donald trump yet, what he plans to do wall those forces. >> if the keystone pipeline is approved, which he said he would do 100%, what does that do for the wti profits? >> they're going to take it. >> we're going to buildnd and take our pay for it. >> we've heard this with walls. >> somewhere up in calgary in

his office, someone fell off their chair. >> you know, one other topic. we saw a record tesla put out a new product. it had 400,000 advanced orders there. that's going to affect the energy mix as well. >> somebody's got to provide -- >> hold on. we've got a news update on twister. >> it looks like two more are leaving twitter. they're leaving the social media network. it looks as if one current employee who's the vp that currently runs twitter amplifies the twitter advertising business is going to take over most of those roles. it does say she left on her own accord and this has been confirmed by our own julia boorstin. back to you. >> thanks so much. this is, of course, twitter is about 60 cents away from its

all-time low. you use twitter now. what's going on here? >> i do. what's amazing is the young people are not using twitter. they love snapchat and instagram. so if you don't have the younger ones embracing twitter, you're in trouble. they need to do something and obviously they are. they're going to sell. >> when you're a -- listen, as a guy that runs businesses, you know, you've got two major executives leaving a corporation under whatever. >> it's an effect. it's an effect. it's an effect. if i lose two of my top ten people, i feel it. >> yeah, absolutely. >> all right, folks. that brings us pretty much to the end. i had to wipe a lot off the slate there. >> we had gott watch trump which we never get to do. >> no eagles were killed. >> why don't we take a quick market check do. we have time?

why not. the s&p up a little bit. the dow down a little bit after two days of big gains. the irrelevant index as we debated an hour ago and the nasdaq is hire. >> so for our entire family, i thank you for watching "power lunch." >> "closing bell" starts right now. ♪ i think i know what that music is and i think i should know. welcome to the "closing bell." i'm kelly evans. >> i'm bill griffeth. you are wise, kelly. that's the "walking dead" theme song. you see there the man who plays daryl dixon will be here. norman reedus will talk about his new show called