good jobs report. i wanted some names that could outperform today, and they are. >> what do you think? banks, j.p. morgan, citi, wells, thursday, friday. >> people talking about what the housing market is doing, lending market, are you seeing cracks in credit. >> all right. guys, have a great weekend. lyd, we're going to miss you. welcome to "power lunch." happy friday. i'm melissa lee along with michelle caruso-cabrera, tyler mathisen. brian is off today. strong jobs report and strong rally on our hands today. major averages in fact back above their pre-brexit levels. take a look at where we stand right now in the markets dow is higher by more than 1%. as for the s&p 500 this is very important, we're just about half a percent from our highs here up 1.25% with strength in leadership and materials as well as financials today. and the nasdaq the best gainer of the three up 1.4%. >> today's rally putting all the major averages into positive

territory for the week. this would be a second straight week of gains. gold, however, is under pressure not by much, lower by five bucks at this hour. yields on the benchmark 10-year note they moved higher earlier, and then curiously they have backed off. and now they're back to where they were this morning before the jobs report came out. check out wall street's so-called fear index. the vix hitting its lowest level in a month. everybody's quite relaxed apparently. bob pisani on the floor of the nyse. tell us more about what's going on on the floor today. >> it's a remarkable situation because with the jobs numbers better than anticipated overall we might be in a sort of perfect situation. let's look at the markets in the middle of the day. we haven't used the world goldilocks in a long time, maybe overused, but not in this situation. overall here job gains are returning and the fed still on hold is the major point here. breadth 8 to 1 advancing to declining stocks all day. new highs keep expanding. we're not at a big, big level

like we were prior to the brexit, but we're getting there. the volumes on the moderate side. heard from michelle post brexit low in the vix sitting at 13. sectors, well, it's like the old days here. risk on. banks, when was the last time you saw banks leading? retailers, materials, industrials, financial, all the classic risk on sectors. what's holding back? i kept mocking the new acronym s.t.u.b., staples, tech, not gone away, dr pepper, at&t, you see the bond the 10-year as she noted earlier price still on the upside, yields moving down. new highs though. this is an interesting -- of course we're getting some new groups on the new high list, like u.p.s. hasn't been there before. 3m was a few times, ge just hit yesterday. nucor, steel company, vulcan materials, that hasn't been there before.

i'm looking for these kinds of stocks to suddenly start appearing. that's a sign the market is really expanding overall. finally look at the s&p 500, thanks to my friend paul hickie for noting we have crossed the 2,100 level, michelle, 25 times in less than 18 months. if that's not range bound trading, i don't know what is. again, thanks to paul for pointing that out. >> you can see it on the one-year chart hovering around that level. thanks, bob. seema mody has news from the oil patch. >> we have the baker hughes weekly rig count. u.s. oil rig count up 10 to 351 down 294 versus a year ago. u.s. nat gas down one, but u.s. horizontal rigs up 11. no big movement in crude at this point. >> seema, thank you very much. to the jobs report we go, if you haven't heard a whopping 287,000

jobs were created in june. that is the strongest month of hiring since october. steve liesman is here to break it down. my question, steve, is what happened in may? >> that's one question that's being asked, but we have a way of resolving your confusion. >> all right. >> despite this big number, tyler, there's some good and bad news in this report. jobs did buck the declining trend we've seen since october. since october that peak in the middle has been coming down, down, down. and then as tyler quickly points out it cratered in may with just 11,000. revised down to that from 38. so the snap back in june, you have to average out that weakness. and that's what economists are doing. that's how they're treating this number. they average out over three months and there's your three-month average chart. comes out to 147,000, a much more manageable realistic number. they think it's more likely the right trend of job growth. note it's below the 200,000 trend of earlier this year, but it's above the 114 three-month trend of last month. one more good and bad pair, job

growth, broad base big gains hospitality, retail, information technology along with manufacturing and michelle's favorite sector government added 22,000. she's holding back right there. her smile. but on the other side of that wage gains were muted up just 0.1%. that's the smallest gain since february, but year over year growth is still not doing too badly up 2.6%. the fed, what's it going to do? it's going to watch these wage gains but is going to be careful there are no serious consequences from brexit, overseas weakness or anything else like that and that the job gains are intact before considering a hike. that could be until fall maybe when we start talking about the possibility of another hike a couple months later. >> let's bring in bill rogers, former labor department economist and professor at rutge rutgers, university. i was going to call you mr. rogers, but dr. rogers will do in this case. what are we seeing in the economy? how healthy is it? >> yeah, so as steve said, you know, we got this wonderful bounceback from last month. and i agree with him that you got to take the average over

these last three to four months. and what does that get you? it gets you an economy that we're not in a soft patch nor are we accelerating like a gang buster, but we're steady as we go probably second year. but with no chance of acceleration. >> i'm not sure i heard steve really answer my question about what happened in may. was that a statistical anomaly? or did people really just stop hiring? and if so, why? >> yeah, i don't think it was an issue of stop hiring. i think if you looked at the data by industry, you saw a really certainly a contraction in the service sector industries. but i think -- >> there was a verizon strike, i'm sure that -- [ overlapping speakers ] >> can we put that chart back up the individual monthly bar chart. >> show the bar chart. >> there's a couple ways to think about this. one is that some of the earlier months you had warmer weather so you borrowed a little bit of strength there and you gave it back in the month of may. plus, remember what happened in

january and february? you had a tremendous concern about the economy recession fears, overseas weakness. you could have had a situation where businesses stopped hiring. they didn't fire. so the jobless claims remain low. they kept their current employees on step but didn't hire new people. >> and the brexit would not have been captured by the jobs report, it will be next month's. >> but the thing about from the point you just raised, steve, if we believe that these seasonal adjustment sort of approaches that bls imparts on the data where they take into account these weather related factors that occur, you know, each january or february or march or last month, that should take a lot of this out. >> so i'm going to get the hook, bill, from being too wonky, but i can tell you this. they do not take into account ano, ma'malies from the weather that's expected. when you have a warmer than normal month, they expect may to be warmer than april. and they expect april to be warmer than march. but when may is -- >> january warmer -- >> it's not a consistent thing.

>> when i look at that three-month line graph that you put up, the three-month average, it doesn't look good. it looks like it's going down. >> it is going down. i'll let bill talk, but it should go down. there's a reason for that. i think bill probably pick it up right there. >> yeah. >> this shouldn't bother me what i see here? >> well, when you're seven years into a recovery, this is the kind of job creation that i think we historically see. and the other piece is, you know, you have a variety of uncertainties out there. the one that's going to be coming up on us is this issue around the election. and we have the conventions are going to be 11 to 14 days. and you have two very different views on how to address this big structural income inequality that the nation faces. >> another response is that job growth should equal the growth in job demand -- sorry, labor supply. labor demand should equal labor supply in a perfect world, which it's obviously not. one of the things a lot of fed

folks have said is we need about 100,000 -- we add about 100,000 to the workforce every month. >> people. >> that should be equilibrium. the idea we've been at 200, 250, depending upon this great argument about how much slack is in the economy, 100 is more normal than the 200 we had before. so the idea that we've come down, we've come down to a more sustainable level. >> got it. >> but i have to say -- >> final thought. >> maybe it's more sustainable, but in this report one of the things we saw that jumped out at me when i was looking at the data this morning was that the growth in participation was all in the high end, college graduate men. and so, you know, if we're going to continue to really address these systemic issues of stagnating wages, growing income inequality, look at policies and approaches that help to lift, you know, all workers, bottom, middle and top. >> bill, thank you. steve, good to have you back. let's go to seema mody for a market alert. >> hi, tyler, thank you.

the u.s. jury has ordered dupont to pay additional $500,000 in punitive damages to the man who says he developed testicular cancer. dupont responding saying the verdict will be appealed, but there were concerns that the punitive damage could have been much higher, perhaps in the millions but coming in at $500,000 which is maybe less than what the market is anticipating and that's why we're seeing shares potentially of chemoours and dupont higher. >> seema mody, thank you very much. let's turn now to the tragic shootings in dallas. nbc's sarah risario is there with the latest details. sarah. >> yeah, tyler, the police chief here in dallas tells us he doesn't feel like he's exhausted every lead into this shooting. and he says there's a possibility that someone else could be out there.

so until they've exhausted every lead, he says they're going to continue to keep on looking into this. you can see officers are still out here, we're told some snipers were shooting at officers from an elevated area and one of the areas is the garage you can see just in the distance behind me that is still blocked off from police. while this investigation is going on police do not want to release any more information about the gunmen than they already have. here's what what we know so far, micah xavier johnson, 25 years old, he's from the dallas area and he was killed by a bomb detonated by police. it comes after hours of negotiation between he and police and officers say that they chose to do this because they felt like they had no other option. we're also learning more today about his motive. police tell us he told negotiators that he wanted to kill white people, especially white police officers. he also tells police he was upset about the black lives matter movement and also other recent shootings involving black men and police.

now, he told officers he acted alone. and the feds have ruled out any ties to terror. now, authorities say they do have three other people in custody, one of them is a female. and while investigators continue to look into those leads, again, they're not releasing any more information about the suspect. five officers killed, seven others wounded. several of those officers are being released from the hospital. police chief tells us their conditions are improving. reporting live in dallas, sarah risario, tyler, back to you. >> sarah, can i ask you one question, the deceased gunman says he was, quote, acting alone. what more do we know if anything of the three individuals who are suspects and being held and whether they were actually shooters or not? or is the working supposition that there was only one shooter? >> reporter: right. so police say that this gunman said he was acting alone, but they're not saying his connection to other people. the other people that they have in custody. we know the three others are in

custody. one of them is a female, but they're not giving us much more information. again, they're telling us they're withholding that information because of several reasons, one, safety of residents here. and also because this is a very active criminal investigation and they don't want to give anything away while they could be looking into other people that could be involved. tyler. >> sarah, thank you very much. and we'll take a break and come right back. andrea sikon. medicadoctor from cleveland clinic, watson, let's review the electronic medical record of the next patient.. no pblem. it's a pretty huge file. done. sorry for the wait. that was quick. as part of our research, then cross referenced it witht. and i get the benefit of mh more data, and a lot more timto plan the best treatments. i stay foced 24/7 d never sleep. you sound like a lot o medical students i know. i stay foced 24/7 d never sleep. steve, other than makingme , i'm here at the td ameritrade trader offices. what are you working on?

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welcome back to "power lunch." with the market close to hitting new all-time highs take a look at technology. the sector turning positive for the year up about a half a percent. year-to-date winners include nvidia and applied materials, both hitting new all-time highs today and up more than 30% so far this year, only negative sector yoear-to-date is financials, today's best performing sector, in fact. >> thank you, seema. volkswagen is paying the state of california $86 million in penalties related to diesel emissions scandal in addition to the $14.7 billion previously reached with u.s. regulators. shares of volkswagen are higher by more than 3% today. polycom considers a superior bid from serious capital group. serious will pay 12.50 per share in cash for each share.

nintendo new app -- because melissa downloaded it. stock is up 16% for the week, 10% today. tyler. thank you very much, michelle. the aftermath of the brexit is creating uncertainty with investors both in the u.s. and around the world. but despite this global uncertainty, rbc is releasing its updated list of top 30 global stock ideas for the second half of the year. the list includes some u.s. stocks and even some. we'll talk about that with rbc capital markets, welcome back. you had a couple picks in january. do you still love them? >> look, i take just fine. i think we're on something like january 14th i came on, we had launched the list. i talked about the ideas and we talked about three names at the time. they were aramark, newel and dollar tree. we've got newell up --

>> i'd take all of those. your worst is up 8%, that's a good year for me. >> we try to think longer term we're sticking with these three and i can give you a couple more as well. >> let's talk about the ones that are uk-based on the list of best ideas. >> so what we've tried to do is frankly going into the year the uk economy was not as strong. we actually frankly avoided a substantial number of very heavy uk-based names on the list. the list was split about 30 names, 15 in the u.s., 15 in canada, 15 spread across europe and the uk. even though we're based there we tried to actually sort of relieve too much pressure from that. as you can see that's kind of worked out. the list overall right now up about 1% i think at this point. so, again, against any of the global indices, especially the ones we compare. >> one uk picks -- one of the uk picks was indeed lloyd's, again, little more challenging situation. what we tried to do is take a

number of financial names, maybe five or six financial names and they were our sort of bet on financials without going heavy into making a capital markets bet. lloyds was one of those. >> so you said you had a couple additional names to add to those three that have done well. they are, the envelope please. >> so we have yum brands, the taco bell, the kfcs of the world, they're going through a transformational execution right now into the end of the year. they're going to split the company off. basically the china piece is going to become its own and the remaining parts will stay within what they're calling new yum. it is a story where we still have a lot of cost takeout. we have an opportunity to increase the number of own franchisees within that remaining yum. it's one of those stories where again without a lot of help from the economy we can see this company grow. again, restaurants in particular quick serve restaurants have not been doing that well, but this is a company even apart from that with that kind of transformational execution i think can do some pretty exciting things. >> another one is broadcom.

>> broadcom avago have now come together, two names compelling as a list in the semiconductor space. again, a company worth $200 in a fairly short period of time it's up about $50 from where it is now and our target price sort of comment about this is $16 in eps by 2019. that's how we get there. it's a ton of cost takeout. and just a ton of synergies between the companies, and there's more m&a to be done here. this is a space that continues to consolidate. we've seen probably in this space more than any others more m&a than you've seen in any other part of the world. we think there's more to come. >> all right, mark, thank you. great to see you. >> thank you, tyler. >> congratulations on those earlier picks. they're doing well. >> thank you. >> you can see all the names we discussed plus the fill list from rbc at powerlunch.cnbc.com. final gold trades crossing for the day. we will have the metals close on deck when "power lunch" returns. ♪

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welcome back to "power lunch." i'm melissa lee. let's get a check on the bond market on the back of that jobs report. rick santelli is tracking action at the cme. rick, what's interesting today a bid for stocks and a bid for bonds on the back of that jobs report. >> i say get used to it, melissa lee. get used to it. i think many of the things we are afraid of on brexit didn't occur. things we're afraid of that may occur probably are positive for u.s. markets. but the biggest dynamic today is

that monetary policy contagion, ultralow negative rates, well, they make longer maturity sovereigns look like chocolate to kids. i mean, they're in a chocolate factory. they can't eat enough. look at how all these charts look the same. and we had good data. which pushed yields up. look at our 10s, look at our 30s. looks a the gilts. i could show you the bunds, it's the same thing. they spiked on the logical assumption of stronger fundamentals. they came down because let them eat cake or long-dated paper in this instance. the dollar index something hugely important here. look at the intraday chart. it did a u-turn too but that's not the biggest deal. you see the high today 96.70. that was the high when we learned brexit vote on the 24th. and when we came back on monday that was the high. exactly the same. you want to watch 96.70. where do you think the stops are? right above that. melissa lee, back to you. >> all right, thank you, rick santelli. let's get a check on the final

gold trades. they are crossing for the day. if we can pull that up here. we are just about flat here 1359.70 as rick mentioning we had a bid for stocks we're seeing a floor in some of the safety trades and this is one of them. check the rest of the metals complex, of note copper trading to the downside today. it's down more than 4% on this week alone. we're seeing more than 1% gains meantime for silver as well as palladium. seema mody's taking a look at the miners. >> well, some tremendous moves in the commodity complex, right, melissa? look at miners, gold miners rebounding from yesterday's first loss in the last six trading days. the vectors gold miner's gdx gaining about 1% so far or even more now. big components like newmont mining, barrick gold and for the year gdx has more than doubled. look at copper miners, rio tinto

a getting a boost and these big moves helps the ftse 100 also outperform, michelle. >> absolutely. thanks, seema. dow back above pre-brexit levels. are we heading higher from here, or is earnings season going to put a damper on the rally? "power lunch" back in two minutes. ♪ amazing sleep stays with you all day and all night. sleep number beds with sleepiq technology give you the knowledge to adjust for the best sleep ever. it's t final days of the lowest pris of the season sale, with the our bestuy rated c2 queen mattress now only $699.99. know better eep. only aa slp number store. don't put off checking o your medica optio until 65. now is a good time to get the ball rolling.

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hello everyone. i'm sue herera. here is your cnbc news update for this hour. the dallas shooter who was killed by a police robot equipped with a bomb has been identified as 25-year-old micah johnson. "new york times" reporting johnson was the sole gunman. he was an army reservist deployed to afghanistan from november of 2013 to july of 2014. attorney general loretta lynch calling for peace and calm in the wake of the dallas attack saying that violence is never the answer. she spoke at a news conference in washington. >> to all americans, i ask you, i implore you, do not let this week precipitate a new normal in

this country. i ask you to turn to each other, not against each other, as we move forward. let us support one another. let us help heal one another. >> a minnesota prosecutor says he has asked for a prompt and thorough investigation following the fatal police shooting of a black motorist whose girlfriend streamed the gruesome aftermath of that shooting on facebook. the prosecutor said the video will now be part of the investigation. nato leaders including president obama taking a family photo, if you will, as they begin their two days of talks in poland. the summit likely to be dominated by britain's decision to leave the european union. that is the cnbc update at this hour. michelle, i'll send it back to you. >> thank you, sue. stocks are hitting session highs this hour. the dow is back above 18,000, above pre-brexit levels, the s&p 500 we're talking about 2100 again, the major averages up seven out of the last eight sessions. everything's fine, right? or are earnings season going to

put a dent into this rally? joining us, jack ablin, chief investment officer and ben chief investment officer of hm. bob pisani highlighted how many times we've been here before with the s&p 500. can we get much more out of this rally? >> yeah, michelle, it's great to be back where we were over a year ago. so that's a good thing. in the context of earnings being down about 5% or 6% over that period of time, so you've had multiples continue to expand. i think this is most recent runup is anticipating the earnings recession isover. we're going to see a slightly negative second quarter, but third quarter, fourth quarter and into next year you should see at least 5% to 6% positive earnings growth. and that should allow equity markets to continue to run up a bit. >> you have a target of 2200 by year end. >> yes. >> that's not that much more from here, is it? >> no, not that much. but in the grand scheme of things when we were looking at

going into the year being up about 6% to 7% in the context of cash being zero, bonds being 1.5%, 2%, that was our target going in. we didn't think it was going to be a great year, three or four months ago we thought we were way off, now we'll stick with that 2200 target and look at 2017. >> jack, what do you think? is this market fairly valued, she tried to say, or is there more to go? >> i think it's fully priced based on where fundamentals are. i would tend to agree with ben. the thing is we're going to need earnings, we're going to need something to sink our teeth into to support higher price from here. we've had this challenge at 2150, somewhere in there, we keep bumping up against it, we've been here, as bob has said time and time again, we are going to need something more tangible. the jobs number was great, but right now analysts are anticipating a 5% decline in earnings over the last four quarters. they're expecting revenues to be

roughly flat. we're going to need to see that turn around in order to get equity prices to sustain higher levels from here. >> so, jack, what stocks would you buy here based on that? >> sure. so the types of stocks i'm buying are pretty much large cap dividend supported companies. these are companies that will pay a dividend through just about anything. companies like johnson & johnson, chevron, lowe's. i mean, chevron was remarkable. when oil was in the 20s, chevron had a 4% or 5% dividend yield. this is a company that's had 100-year history of maintaining and growing a difd dend. so they were going to eat peanut butter and jelly sandwiches at their desks before they cut that dividend. >> i remember when it got to 6%. it was like, wow, i wonder if you should do that or not. and here we are. guys, good to have you on. thank you very much. >> thanks, michelle. >> jack ablin with bmo.

go to powerlunch.cnbc.com, see how jack and ben are playing the u.s. as investors derisk their portfolios. time now for street talk. >> analyst recommendations on stocks you need to know about. we kick it off with apple. raymond james lowering and keeping market perform on stock. raymond james saying institutional investors already increasingly pessimistic about apple's near-term performance. it's not clear if miss on estimates will cause stock to trade in a lower range. apple in a, quote, washed out phase 67 phase. not exactly a ringing endorsement. >> it can't go down much more. >> you're saying -- >> yeah. the second stock in enthera pharmaceuticals. the firm is focusing on the company's upcoming readout on their drug sulpura. the stock could almost triple

from current levels, the firm says it expects the drug to be successful due to the trial design. >> amazon bullish on amazon ahead of july 21st consensus according to mkm, too low particularly on international growth and aws, amazon web services margins, aws revenue expected to decelerate to 56%. consent on margins is 400 basis point increase. but mkm says that is probably too conservative. also, second annual prime day. >> i'm waiting for it. july 12th could be a good source of q-3 upside. it's a made up holiday, like most of them. >> i know. the fourth stock is molson coors brewing. the firm increased the company's target to $110 from $97. the firm says an acquisition of the remaining 58% of miller coors is becoming more likely. bri

bryan garnier says increase in price in beer in u.s. and canada. going to raise the price target if it's already above it. >> exactly. you have to. 45% performance, that's one of those safety trades. final pick, capital one financial, da davidson upgrading. credit concerns overdone and there's an improving environment for card losses. unemployment the analyst points out is the main driver of card losses. that continues to be very benign especially after seeing the jobs report this morning. delinquency data also suggests seasonal improvements are likely from here. getting a nice pop in today's session 4.5%. let's check in with seema mody. >> with the dow up 224 points, look at transportation stocks. a very strong day. the dow transports many times seen as a leading indicator outperforming the broader market up more than 2% pulling out of correction territory. some of the names lifting the indexer include avis

budget, united continental, delta, we'll see if the market can surpass the all-time high levels. >> seema, thank you. donald trump's fund raising picking up in a big way. we speak with the man who's driving that effort next.

welcome back to "power lunch." i'm tyler mathisen. donald trump met with congressional republicans yesterday in an effort to build stronger relationships with the gop, but did he? john harwood is live in washington with the answer. john, what is the answer? >> well, tyler, look, by coming to washington yesterday and meeting with house members and senators, donald trump showed he's bending partly to the conventions of presidential politics as we've come to understand them, but only partly. he had a fairly smooth meeting in the house of representatives with house members. he was introduced by our friend larry kudlow, cnbc contributor trying to rally the party behind

him. but there were tense moments in that meeting with the senate that donald trump didn't like very much, in particular he had an exchange that was difficult with jeff flake, the senator from arizona, who stood up for his senate colleague from arizona, john mccain, the famed vietnam war veteran. here is jeff flake on that exchange. >> you don't talk about somebody who spent five years as a p.o.w. and could have come home earlier if he'd used his status because of who his father was, but he stayed there. and then to be told that, you know, have that just dismissed, that's just wrong. and so i thought that he needed to hear it from maybe the other senator from arizona. >> now, jeff flake said he had told donald trump he wanted to support him, but he wasn't able to because what he'd said about john mccain, what he'd said about the judge of mexican decent, other incendiary comments. donald trump didn't take very

kindly to that. he told jeff flake he might have political problems in arizona, jeff flake informed him he wasn't up for re-election this year, john mccain is. donald trump also had some sharp words for mark kirk, a senator from illinois who's distanced himself from him. donald trump doesn't play the game -- he's doing it on his own terms, the question is whether he'll be successful. we don't know that. >> his own terms and very pugnaciousness, sort of what made him stand out with the voters, right? >> it got him to win the republican primary in a divided field. that's a strength that he showed. no denying that. the question is, does it work in a general election contest when you need almost unanimous support from your own party the way our parties are polarized right now. every recent republican nominee, tyler, has gotten 90% or more of the republican vote. donald trump is not there right now. and every republican leader that he antagonizes makes it more

difficult for him to do that. >> all right, john, appreciate it. john harwood in washington. all right. according to his campaign donald trump has raised more than $50 million over the past month with the help of hedge fund manager steve manucin who took over as trump's national campaign chair last april when his war chest barely contained a million dollars. steve joins us from southampton. thank you for joining us. >> thank you, pleasure. >> i'm sure you heard donald trump doesn't have the full backing as we all know the full support of the gop. is that hurting your ability to raise money? >> i don't think we're concerned. i mean, donald has huge support out there and that's what we saw in the fund raising. we just started our digital effort last month. we had a huge response to that. and i think we're super excited about heading into the convention. and we think that's going to be a huge push towards the election. >> the $51 million, is that june

exclusively? does that include -- i was reading -- i'm confused. does that include a week of may? or is that june exclusively? >> so the trump victory number, which is what the rnc includes one week of may, so that's the $25 million number, the $26 million includes just the month of june. so $51 million combined with another $4 million that he contributed brings it to $55 plus he forgave a $50 million loan. a very big month, a lot of cash in the bank. >> i was going to say apart from a mnuchin factor, what kicked in? i'm giving you a chance to take a victory lap. >> thank you. >> what kicked in in june? >> we got a lot more work to do. first of all, we just got started. as i've said, i've been on the show twice, i said before we

were having terrific response and it came out in the numbers. and i think the thing we're really proud of not only the 22 fund raising events but much more we're really proud of the digital effort and the broad response that we got across from america. and i think, you know, we're picking up a lot of bernie sanders supporters and seeing a lot of support online. >> you said you raised $3 million in donations in a single day online, correct? >> that's correct. we had multiple days at that level last month. so it wasn't just a one-day effort. >> how many? >> i don't have the exact count. but it was multiple days. >> do you remember offhand what your max was on any particular day? >> i think a little over $3 million was kind of our largest day. but as i said, we had several days at that rate. and, you know, over 400,000 contributors. so a huge response across america in support of the campaign. and people that want to see donald trump as president.

>> how much of the cash that you have on hand, by the way how much do you have on hand? but how much of the cash that you have on hand has been donated or lent the campaign by mr. trump personally? >> well, again, right now there's nothing that's been lent to the campaign. there had been approximately $50 million that he had lent to the campaign. that was forgiven last month. so there's no debt on the campaign. and at this point his total contributions are close to $54 million. >> of his personal money. >> that's correct. >> has the campaign put any restrictions on whose contributions are welcome? you know, mr. trump certainly early on as he was moving through the primaries said nobody can buy me, i'm not taking personal -- special interest money and so forth. so how as the chairman do you navigate that?

what rules do you have in place? >> well, i wouldn't say there are any specific restrictions per se, but i would say specifically we haven't solicited any lobbyists. to the best of my knowledge this number doesn't include any money from lobbyists. in regards to the rest of the people who are contributing, we've made it very clear nobody's buying influence in this campaign. this is people who want to contribute and want to see him as president. >> how big a list do you have when it comes to your online donations, when it comes to distribution? how many millions of people? >> you know, without going into the exact details it's millions and millions of people that we are soliciting online. >> so what do you say to "the washington post" they were quoting digital fund raising experts, whatever those are, who said, wow, 3 million in a day means you'd have to have a list of 6 million people. and we're not sure they'd be able to have gotten that many together and be able to manage a

list that unwieldy at this point. >> i'd say they have no idea what they're talking about. that's what i'd say. we have state-of-the-art technology. we have lists that are in the multiple millions. those lists are growing every single day. and we have broad support. and i think people were shocked by the numbers despite the fact that we've said there is broad support out there. i think the other thing we're proud of is we haven't spent a lot of money. so, you know, this money is going to be used for the ground campaign. we think with the rnc we're going to not only help donald but help the rest of the party. we got about 5,000 volunteer who is are being trained for the rnc in the field. and, you know, we have over 750 people in the field. but we're going to have the necessary resources ain all the battleground states to win this election. >> i was going to ask you, when the federal election commission paperwork finally comes out, how much cash do you think you're going to have on hand? because people have observed that it didn't look like the campaign was spending very much

money. >> you know, to be honest with you i really haven't focused on the cash numbers. i focus on what we raise. and the reason for that is there's obviously multiple accounts that we're using and there's transfers between these accounts. and since, you know, we're not desperate to have cash in the bank, whether the cash sits in the jfc account or the cash sits in the campaign account for the moment, it's not a problem. but as i said, you know, the number raised and the cash is going to be approximately the same. >> what's your prediction for how much you're going to raise overall? >> you know, i've been on this show before, and i've said we'll raise hundreds of millions of dollars, and we'll raise whatever it takes to make sure he's in the white house. >> do you have a goal? >> we don't have a goal. i mean, i think the goal is we'll raise whatever we need. and, you know, kind of as you can see we started with only five weeks we had no fund raising effort whatsoever. and in five weeks with very broad support you see how we're

doing. and i think we'll continue at that pace. and as we get out of the convention i think it will increase significantly. >> not when you compare to the $68.5 that hillary clinton brought in roughly the same time. i mean, she's still ahead of you, but boy have you closed the gap compared to where you were in may. mr. mnuchin, thanks so much for joining us. >> thank you very much. appreciate it. all right. american airlines and tsa looking for new way to cut down on long security lines. how? taking humans largely out of the process. that story still ahead. thank yo. ordering chinese food is a very predictable expienc i order b14. i get b14. no surprises. buying business internet, on the o o hand, cabe a roller coaster white knuckle thrill ride. you're promised one speed. but do you consistently get it? you do with comcast business. it's reliable. just like kung pao fish. thank you, ping. reliably fast internet

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surprisingly strong jobs report fueling a rally. number of stocks hitting all-time highs. amazon hitting high all the way back to ipo in may 1997. crossing above the $350 billion market cap level for the very first time today. also take a look at ulta trading back all-time highs in '07. dr pepper, smuckers, all on all-time highs.

our next guest believes this recent rally is a bull trap. we'll talk to him next.

welcome back to "power lunch" everybody. stocks rallying on the back of that strong jobs report earlier today.

the dow topping 18,000, back above pre-brexit levels. major averages now headed for a second consecutive week of gains. and rather sizable one. but our next guest believes this recent rally is a bull trap. joining us is peter chakini, chief market strategist and global head of equity derivatives at canter fitzgerald. peter, welcome. explain what you mean by a bull trap. i know you began the year calling for a 10% or more decline in the markets. we had that. now you seem to be thinking that we may have it yet again. >> uh-huh. yes, i think that's correct. it would not be surprising to me if we rally another half a percent. we test the old highs and perhaps even take them out intraday. however, the fundamental backdrop for u.s. equities just isn't there for a sustained rally above that old level. you know, with trailing earnings at about 20 times, you know, and global growth slowing, again,

the backdrop is just not there for a sustained rally above the old highs in our view. >> i guess we're still in some kind of bull market, but it doesn't really feel that way, peter. why not? >> well, it has been a choppy sideways move for about a year, year and a half. the volatility came back into the market in about 2015. and if we remember one of the reasons for that volatility in august of 2015 was because of a rapid yuan depreciation. the market proceeded to drop 10%. the yuan stabilized coming into 2016 it depreciated another 4% and the markets dropped another 10% plus, and what's interesting to note is that we recently had another yuan devaluation of roughly 4%. and yet i think because of concerns about brexit which frankly have ob fi skated concerns like the yuan, we haven't seen the markets react to that yet.

but we think it will. global growth remains very, very weak. china is a real source of concern for us. >> you say we are now at the precipice of the abyss. what do you mean? how bad could it get? what does it imply i should do with my money? i assume it means you think we should sell these rallies. >> yes, we've been in that mindset really for the second half of 2015 and for most of the year this year. the credit markets are not supportive of equities right now. lending standards have been tightening for three consecutive quarters to commercial industrial borrowers while still easier for consumers, there's certainly a lot less easier than they had been. the conditions for banks are not very good. the yield curve is very flat, which makes it difficult for them to be profitable. it makes it difficult for them to lend aggressively. and of course banks are sort of the foundation for financial market liquidity by definition. and without that it's very difficult for risky assets to

perform well. so, yes, the conclusion really is to sell rallies, to put some money in cash and look to buy, you know, those 10% to 15% dips when valuations are more favorable, especially in large cap u.s. equities. which frankly are still the best game in town globally. >> interesting call. peter, thank you very much. peter cecchini of cantor fitzgerald. >> stocks are very close to session highs. take a look where we stand on the dow right now. it is higher by -- there you have it 228 points. 1.3%. s&p 500, this is the key level to watch 2132, that would be a new high. so we're watching that very closely. about six points away from that. all three major averages have recovered all of their brexit losses. one sector we are watching very closely today, the biotechs. that's up by more than 1% today, but down 20% so far this year. today big mover juno therapeutics, that stock tumbling as fda halted study of cancer treatment after two patient deaths.

let's break down the biotechs, michael, great to have you with us. juno therapeutics trading as if there are no hopes for it. what's your assessment? >> so juno therapeutics, as well as another stock both similar both trading down on a couple drugs -- revising some of the protocol. they'll submit that back in and i expect that clinical hold to be reversed, that stock will get back on track. and i expect kite, competitor, same thing, we talked to that company yesterday. no impact there. i expect that stock to recover as well. >> seems like the circumstances for juno are specific. if you go into it you'll see that the difference in terms of that mid stage study was the introduction of chemotherapy, a chemotherapy drug which could have caused the patient deaths according to the company.

in the kite study the level of chemotherapy drug that use is much lower. so there are differences between the two even though both are trading lower. >> that's absolutely right. so kite is using a lower dose of the conditioning regimen. i don't expect any issue there. they have a pivotal study going on. in fact, yesterday they announced they completed enrollment in the first part of that pivotal program and the data is coming in a few months. i think that data will be positive. i think that data, which has been going on for a while, has no issues. the fda has been looking at that i think there will be a positive surprise in a couple months on kite. i think they're up. >> people hoping for good data, certainly juno didn't provide that yesterday, and then also animal spirits, the existence of m&a, we have some rumblings surrounding biomarrin and medivation. do you think it will pick up in the second half of the year? >> i do. i think there's three parts to

the theme. one is that the great stocks performing very well, the yield stocks, the defensive safe havens, you look at some of the med tech stocks, johnson & johnson obviously a huge outperformer, we think a lot of that money is crowded in that space. and i think some of that money's going to rotate back into some of the unloved negative areas of health care which has been biotech as you said 20%. and i think some rotates back post the election. and i also think m&a remains an important theme with medivation and bioma rin. i think biomarin is potential takeout. i think that reminds us where the valuations are in some of these stocks. absolutely right. >> michael, great to speak with you. thank you. michael yee of rbc capital. let's get to bob pisani at the new york stock exchange. are we on all-time high watch, bob, down there? >> nine points, 2131 -- 2134 was the intraday high. we get into all these technical things. let's not kid ourselves we're almost there, folks. let's take a look at where we

are. you want to know why this is happening? well, some of the bulls are arguing this is one of those return of the goldilocks moments. the fed still arguably on hold, one more at the most even some in the next year that's a goldilocks scenario, if the dollar could behave and yields stop dropping. that's a big order though 8 to 1 advancing to declining stocks hasn't changed all day. new highs 300 at the new york stock exchange. volumes on the moderate side. sectors here this is all the classic risk on group here. haven't seen this in a while but banks, retail, materials, industrials all on the upside. i like the high list because i stop seeing the consumer names we keep joking about here but united parcels a new one, newcor a new one, vulcan materials, that gets technicians saying breakouts in prior sectors that hadn't been before like industrials and materials. we're also having a great day

globally here in the u.s. they're buying foreign stuff. remember, exchange traded funds you can own foreign stocks. here in the u.s. the italian etf is up 4%, spain's up 2%, south africa, even china. that's the fxi hong kong china also up 2%. global rally, guys, back to you. >> bob, thank you very much. health care sector's been somewhat of a roller coaster over the past year. may put mildly but has made a comeback in just this past week up nearly 2%. is this a trend we'll see keep up or is a correction ahead? let's bring in sarah james and sammi sam eisly. sam, let me start by asking you about the biotechs and whether the all-clear horn has been sounded there. >> all-clear is never the case in biotech. we know that today by the decline of juno. so it's very company specific. but if you go back a bit, about

july in 2015 these stocks hit the intermediate high. two of the indices, one the nasdaq biotech and the other called xpi, more broad and smaller cap oriented index fell by 30% and 50% respectively. they are off their lows. they look better now. the pace of scientific advance is extraordinary. m&a is rampant. an auction broke out for medivation this week as we know. and there will be many, many more. the prior speaker spoke of biomarin, yes could possibly go, market value above typical sweet spot for current m&a. so we suffered through not catastrophic but a very, very difficult decline. it seems to have bottomed. the scientific advance is good so we're looking better for the balance of the year in biotech and big pharma and other areas of health care because we are

also active across the board. >> sarah, let me turn to you, and i'll come back, sam, to you in just a moment on the health care companies. obviously they're the two deals that are getting a lot of headlines this week, anthem and cigna, aetna, human a, what do you think is going to happen with each and what should you do if you think what's going to happen doesn't? >> so we're 80% to 90% confident that the aetna deal is going to go through. the spread really broadened, it's now mid 30s on the arb spread. we believe there's a doj meeting today so we could see some update possibly talks of next steps or what a divestiture profile might look like. so we've seen opportunity for stocks to move on that. we're still highly confident that goes through. with anthem cigna we think that's much more complicated. our confidence level in it being approved is still 60%, but we would say over the last few

weeks confidence decreased to less than 50%. if both deals fall through we believe a round two. who would buy who, someone like aetna, humana or cigna looking to move more into medicaid, someone like sentine, well care but we think there could be a breather of a year or two. we also think well care part of the bull thesis has been propped up from people believing they're going to buy some of the divestitures of aetna, we think we could see pressure on wellcare as well that day. >> if those deals don't go through, very quickly, sarah, what will be the hit to the target companies? >> sure. we believe that consensus is that humana could drop to as low as 140 to 150 well above where it's trading today. we think it's going to recover, we think there could be a second

half guidance boost. on cigna we think the downside is much more limited about 5% to 10%. on both of the acquires we think the initial reaction could be down five but anthem could trickle down through the year due to mix and structural issues. >> sam, i'm going to come back to you with a jump ball, you can take your choice if you want to react to sarah's thoughts on those two deals. that's one avenue. the other would be to go back to biotech. you suggested there would be a lot more deal making coming down the pike. if so, who are the likeliest buyers and targets? >> if i could take a little bit. >> sure. >> i can't detour on a jump ball, the metaphor doesn't work. first of all, i think the insurer of transactions are likely to close. the opportunities of profit are pretty big, as sarah pointed out. the arb spreads are 20% to 40% depending on the day and depending on the pairings. and then a lot of other things

could happen subsequently. but there's money to be made in that space. now, we're also active in med tech, which has been a great place to be this year, particularly led by boston scientific and by intuitive surgical who makes surgical robots. there's been a big buy of st. jude. there's a lot of activity there, there's some smaller buys. we think the med tech looks much better with more use in hospitals and more procedures. and in addition we are very much on national investors we look worldwide and we're active in a couple places. stocks in brazil have been extraordinarily good this year. so we look a lot of places beyond pharma and biotech. pharma looks pretty good. the advance of science is powerful. and we see a lot to do -- we're pretty sure that these stocks are going to close higher for the year rather than down. >> exciting news. sam, thank you very much. sarah james, thanks to you as

well. we turn now to dallas where five police officers were killed last night by what the "new york times" is reporting a lone gunman. earlier this morning police had said they believed there were multiple shooters. sarah risario is live in dallas with more details. sarah. >> reporter: that's right. well, the suspect was killed by police here in dallas overnight. it comes after several snipers were standing in elevated areas shooting at officers down below. one of those areas is that parking garage you can see just over my left hand shoulder. it's still blocked off by police, but it's all the way at the end of this road. now, today the police chief here in dallas says he's being very cautious with the information that he is releasing about the suspect because he says this is a very active investigation. and he's also very worried about residents' safety. much of downtown dallas right now is closed off as police continue to investigate. they told us earlier today they don't feel they have looked into every single lead. until they have they will

continue to stay down here. police are describing this as a coordinated ambush style attack. happening near the end of a peaceful rally protesting recent police-involved shootings. when it was over five officers tragically killed, seven others wounded along with two civilians. police immediately rushing in towards that gunfire. they cornered the gunman. they had a standoff with that gunman. and they were able to kill him using a controlled explosive device. now, the gunman before he died he told police he was acting alone and he was acting out of anger against recent police shootings. he said he wanted to kill white people. he wanted to kill specifically white officers. he said he was angered by the black lives matters movement. so now dallas and the entire nation is grieving this national tragedy. police have also now released the name of that suspect, it is micah xavier johnson. we know he is 25 years old, he is from the dallas area. again, police not releasing much more information about him because they say there is a possible -- it is possible that other people could be involved.

and the police chief says while that possibility still lingers he will not rest until everyone involved is found. reporting live in dallas, sarah rosario, now back to you. >> thank you, sarah. coming up, former mayor of new orleans and current president of the national urban league, mark muriel right after this. you're watching "power lunch."

five police officers are dead, seven wounded following a sniper attack at a black lives matter protest in dallas last night. it took place just days after fatal police shootings in minnesota and louisiana. joining us is mark muriel, president and ceo of the urban league, former mayor of new orleans. also chris welcome to both of you. in this segment we typically talk about the jobs report. i suspect we'll talk about it a little bit. but mayor muriel, let me begin with you, you put out a statement today, you as a former mayor i'm sure you have had bad days where you had to console and comfort service people, policemen, firemen, who lost their lives in the line of duty. >> this is an incredibly tragic day. tragic set of events in dallas.

and certainly coming behind the tragedy in baton rouge and in minnesota. this is a difficult week for this nation. ty, we've got to heal as a nation. right now we've got to support the families who've lost loved ones. and we've got to really work hard to understand why this seeming culture of violence in the use of a gun and violence to solve or to carry out anger by anyone is even part of what we are as a country today. this is chilling. and i know dallas, i lost police officers when i was mayor of new orleans. it is difficult, it is challenging and it's tough. but this is a week of tragic events in this nation. >> ron, let me turn to you. and i don't really know how to phrase this. but it feels to me as though our

social fabric is fraying. >> good afternoon, ty. i agree with you. this has been a very, very tough and difficult week for america. and i look to our national motto, e pluribus unum, we're one society, there seems to be such a di visiveness not just in this last week but certainly in the past several years that i really worry for my country right now. i think it's going to take us all regardless of our politics or ideology to come together and recognize the greatness of this country is our people. and as long as we have divisions amongst us, i think we're going to have tough times ahead. >> i believe, but correct me if i'm wrong here, ron, that you have questioned or been critical of the black lives matter movement on the thinking that basically it plays into polarization and it separates

us. and obviously all lives matter. do you want to elaborate a little? >> i do. if you look at the black lives matter really got its genesis, it was the michael brown shooting in ferguson with the hands up don't shoot. of course we know that did not happen. it was a fiction. and i understand why so many are upset, and i understand why people think that the police are targeting people of color. but if you look at black homicides by the police last year, it was 4.4%. if you look at white and hispanic homicides by the police last year -- excuse me, it was 12%. so there are things going on and there's narratives that are being spun by those who i think are looking for a political advantage. >> those statistics are not really the point. the real point of the matter is is that the black lives matter movement is embraced by people across racial grounds. if you look at these protests, it's not just african-americans. it's young people primarily of all backgrounds who are making a

statement about the broken system of police community relations in many communities, the broken criminal justice system that incarcerates too many and rehabilitates too few. and this is a consciousness movement that's spontaneous. so while it's easy to criticize, the fact is that condemnation of violence, whether it's black-on-black violence, black-on-white violence, whi white-on-black, whatever it may be, i expect you'll follow the highest standards. now, saying that, the tragedy of dallas in response to baton rouge and minnesota shows us how broken things are in this country when it comes to these issues. and there's no easy solution. there's no switch to turn on or

off. it's going to take a lot of work. so i think we should embrace the essence of what the black lives matter movement. those particular snipers were independent of the protests in dallas. they were acting on their own. and i'm shocked to see one of them is even an army reservist. >> let me say this, mayor, all lives matter. it shouldn't be # blacklivesmatter. it shouldn't be #xyzest nisty. >> the reason why you say black lives matter is because all lives matter and historically what this is saying black lives may not have mattered as much. you've got to understand the context, ron. >> oh, believe me, i understand the context. i'm a student of history as you are here. >> because black lives matter, because the foundation -- >> well, the foundation of this country of course is that we are all equal under the law. we are all represented by our

government. if we have grievances with our government, we should take those grievances based on actualities, not just based on skin color. and that's when ty asked me the question, i really worry about the direction we're going. we're polarizing by race. we're polarizing by socioeconomics. we should be pulling together as americans and not just saying #black folks or hash tag something else. >> can i ask you a question, mr. mayor -- >> it's easy to question black lives matter, ron, but how about the course rhetoric coming from the politics today from the right. >> mr. mayor, can i ask you a question? it's michelle here. i'm so sorry to interrupt. we are so distressed by race relations in kmeamerica. what distresses me i thought things would get better after we had an african-american president. why doesn't that seem to have not helped? why does it feel it's gotten worse? >> there may be people in this

country that may not be comfortable with the idea that the commander in chief is african-american. that's what the polling showing. the polls shows most americans believe this president has worked very hard, but he's also been the subject of very vicious attacks, the birther attack, the challenge to his nationality. those kinds of things have helped to feed this negative narrative we have. well, where are the voices beyond the president at the national stage on this issue today? the president came out and made a statement -- >> ron, do you think there are no other voices on the national stage. >> michelle, your platform should be to call -- >> mayor, mayor -- >> -- and ask them. >> let me answer that question. my good friend paul ryan spoke on the floor of the house this morning and gave a very impassioned speech saying we need to pull together and recognize that the strength of this country it's the fabric of this country is ourselves.

and the more we divide ourselves, the more we define division, it's going to be hard. to answer the question, i think race relations are the worst they've ever been in my lifetime. we had an administration that had so much promise and the attorney general told us that we are a nation of cds of the unitd states that said cambridge police officers had acted stupidly, and there are so many more instances that the administration could have led -- let me finish, mayor. >> we'll get back to you. >> there's something called civility in politics, mayor. this president had such a great opportunity to bring the country together. and he and his administration have said several things that have caused many americans to say this administration is polarizing the nation on race and not bringing us together. >> ron, in every instance it's a cheap shot at president obama. in every instance where there's an opportunity to say would paul ryan work with barack obama, you introduce old worn out political rhetoric. if we are going to come together

as a nation, then people have to meet in the middle. and just pointing the finger. we've got the tragedy of dallas. people do not want to hear this same old washington beltway criticize the president or criticize someone else. they like to see leaders working together on the underlying challenge. let's pass a criminal justice reform bill in congress. let's address police-community relations. the role of leaders is to deal with the substance, but also let's step away from what the beltway always brings us, and that is finger pointing. >> well, today shouldn't be a day about politics, mayor. today should be a day about healing and bringing our country together. and i think that's something you and i clearly both agree on. >> gentlemen, thank you very much. we appreciate the thoughtful conversation. marc morial with the urban league. ron kristi with christie straj strategies, more "power lunch" when we come back. shows your sts

are actually about human connection, even love. great storytelling needs drama and emthy. my cognitive as can help any business better connect with its audienc you should try writing a book. find a remote hotel. bring the family.

stocks are trying to make a stab at fresh all-time highs. look at the s&p 500, 2129 is where we're at. 2132 is the level we're watching. we're a few points away right now. the oil market is about to close. final trades next.

thank you. ordering chinese food is a very predictable experience. i order b14. i get b14. no surprises. buying business internet, on the other hand, can be a roller coaster white knuckle thrill ride. you're promised one speed. but do you consistently get it? you do with comcast business. it's reliable. just like kung pao fish. thank you, ping. reliably fast internet starts at $59.95 a month. comcast business. built for business. hi everybody. i'm sue herera. here's your cnbc news update for this hour. the dallas shooter who was killed by a police robot equipped with a bomb has been

identified as 25-year-old micah johnson. the "new york times" is reporting johnson was the sole gunman. he was an army reservist who was deployed to afghanistan from november of 2013 to july of 2014. investigators could be seen walking in and out of what is believed to be johnson's suburban dallas home. about a half dozen police vehicles were parked outside the two-story brick home in mesquite. japan's mitsubishi taking a bit in bitcoin exchange. hopes to offer bitcoin transactions via american exchange coin base, approval offered to transfers in 35 u.s. states. and it is day two of the insane running of the bulls in p pamplona. more than 1,000 people took part in the event. six people were gored. the running lasted nearly six minutes, more than twice the normal running time.

that's the news update this hour. back to you, michelle. >> maybe the bulls were tired. i hope that's not a metaphor. >> oh, yes, exactly. you're right. >> thank you, sue. oil closing for the day close to the flat line, but it has been a rough week down 7%. for more on oil slide this week and where it goes from here let's bring in founder of again capital and a cnbc contributor. inventory data came out. we had a lot more than we thought, right? that's the reason for the big decline for the week. >> yeah, we got set up by the american petroleum numbers on wednesday night showed enormous decline in inventories. >> decline in inventories, so we used it up, that would normally be bullish. >> that's right. almost 7 million barrels the government data totally undercut that by showing a small 2 million barrel build in crude oil within the normal range of things. and gasoline inventories despite all the record drivers and all the record miles driven held steady. >> it's like the employment

report. you never know what the numbers are. so the rig count was out today, seema reported it was up. do we know if those are drills that were going to come on anyway because people had invested and finally they were getting around to it? or do you know if these were rigs brought on that had been shuddered for a while and now the price of oil drawn them forth again? >> they're likely these drilled uncompleted wells, these ducks we talk about where they're pretty much set and ready to go and waiting for the right price point. this is the fifth week in a row of a rise in the rig count. and i do believe it's been induced by the near $50 print we've had for a while. >> i mean, perfect commodity story, right? higher prices will draw supply to the market. >> yeah, that's why guys like me like commodities because it's kind of easy that way. you have a lot of something, the price is low, not so much i don't have to worry about employment and things like that. >> that suggests this pattern continues, you're never going to have a big rise, right? never say never, but it doesn't seem that anything gets priced

up. >> i have not been constructive on oil for a while even despite the run up. and for me it's precisely because of that. there seems to be a natural limit on the price because these companies are scrambling to generate cash. so the first chance they can to make a dollar or two per barrel they're going to do it. and i just think there's been a rush to judgment about this market coming in to balance because of some of these events that have populated the news wires. >> talking nigeria, venezuela. >> exactly right. there's no denying that the demand for gasoline here has been strong and will continue to be strong because of these great employment numbers. no two ways about that. so there's also some natural support to the price. pu there's a glut. there's a glut now of diesel fuel in asia in particular and tremendous glut of gasoline here in the united states that's not being worked off. so these prices have to correct again, at least one more time, before this whole situation can clear and maybe we can get to a more sustainable higher price. >> john, thanks for coming in. >> thank you. >> john kilduff.

let's bring in the trading nation team. oppenheimer and acg ananalytics note we are close to session highs. we're just three points away, ari, from new highs here. after we hit those highs what are the levels you're watching? >> that's right, melissa. and let's be crystal clear here, the charts are indicating a resumption of the bull market. here's the key point. here's what you have to know. s&p 500 once again we haven't pushed through that level that you mentioned just yet at 2134. we sold off there last may. we sold off there again coming into the year. here's the key difference, and it comes down to the internal breadth of the market. the participation under the service is much stronger now than it was last year and coming into the year. for instance, on the new york stock exchange last week there was a print of 334 net new

52-week highs. this was the highest count since june of 2014. so rallies with underlying broader participation, with a lot of stocks rallying with the market are the rallies that tend to continue. this is what we have right now. i think it supports that breakout and an ongoing resumption of this rally. >> you know, larry, this is all good news for the bulls out there. at the same time we've got a curious situation where we have treasury yields actually trading lower right and 10-year treasury yield specifically trading lower than the jobs report. can we be in this environment when we're hitting fresh record highs on the s&p 500 and yet hitting fresh record lows on the 10-year yield? >> well, as a long-term bond bull on this network i've turned very bearish. we've created -- we've actually lost there's 350,000 more people unemployed in the latest data. there's 95 million people out of

the labor force. 54% of americans are not working. one of the greatest economic fallacies in the world of fraud is the unemployment rate. it's a complete fraud. the unemployment rate based on where the labor force participation rate is actually about 8% right now if you use historical numbers from say 2000 or 2005. so one thing for sure is over the last three or four years what's worked is buying fear, sitting in the boat, waiting for fear, putting money to work. don't chase these rallies. investors have been burnt over and over again. >> okay. we should note as you see at the bottom of your screen the s&p 500 right now trading above our record closing high. this is certainly something we're watching. we're a few points away from exceeding our previous record intraday high. guys, thanks so much. for more trading nation go to tradingnation.cnbc.com. let's talk more about where the markets are headed from

here. one of the best bets for your money. steve oth, cio of equity investors $370 billion under management. steve, good to have you here. >> good to be here, michelle. >> tell me about the five ones world. what does that mean? five ones. >> five ones are one dollar, one year or one pound 1% 10-year rate and one and done by the fed. i think that's the world we're moving into. it means we think britain is under a lot of pressure here. there's still a lot of uncertainty. it's no longer going to be a safe haven within the eurozone. so it's safe haven status disappears. i think we grind lower on the pound the closer to parody. >> so one-to-one that means. >> yeah. euro goes with it because, you know, with the uncertainty over britain comes the uncertainty of the next referendum in europe. no one really knows when that's going to be. >> so parody on the euro as well

one-to-one. >> one-to-one. that pushes the dollar up. it's the only other thing that can go up besides the yen. yen, you know, japan's already kind of in a recession. they're trying to get going by weakening the yen but global events have overtaken them. you have europe in a difficult economic situation, japan you got the dollar going up. i think your last discussion with john was on oil. i agree with him. i think oil sort of stuck in a range at best, 50 at the upper end and more production comes in. so oil goes lower. for the u.s. earnings to expand, michelle, you need the oil prices to go higher. you need interest rates to start to go up. and you need the dollar to go down. and right now in a five ones world we're getting the dollar going higher, we're getting oil probably reversing and we've got interest rates have to come down in the u.s. >> uh-huh. >> we're way above everywhere else. >> so, you know -- steve, we're

talking about new highs here. and yet it sounds all so pessimistic and negative. you sound very cautious. i assume you're cautious. >> michelle, as you probably know i've been one of the bulls on wall street for the last seven or eight years. but we've been cautious this year. and, you know, there is a little bit of a silver lining here. and i'll give you this, you're not -- two things drive stocks. one is earnings and the second is valuations. earnings are going to be tough to come by, we think, in the next 6 to 12 months. eventually when we reaccelerate we'll get that leg. but now what we do have is valuations. and these especially bond like stocks, dividend paying stocks, as expensive as they seem they're very cheap relative to bonds. and if the 10-year's going to 1%, they can go higher. so, you know, we think stocks can still hang in there. but you've got the potential for

an incline on the way. we're staying defensive, in defensive names and waiting for better times. >> okay. all right. steve, thank you so much. steve staying cautious with fed rated investors. we should point out today at least we got a nice rally. the dow jones industrial average higher by 260 points. the nasdaq is higher by almost 80 points and the s&p higher by almost 32 points. at the highs of the session in the wake of jobs report this morning. sue herera has breaking news. >> yes, indeed, health officials in salt lake city are reporting the first confirmed zika-related death in the continental united states. they say that this was a resident who was infected with the zika virus, elderly with underlying health condition as well and they died in late june. as we said they had an underlying health condition. they had traveled this year to an area of the world where mosquitos are known to spread the zika virus. however, they cannot definitely

say that the death was caused by zika. so they're cautioning it's zika-related. and they also say they may not be able to determine whether or not zika was a contributing factor to it. so you're up-to-date, the first zika related death in the continental united states reported by salt lake city officials. "power lunch" is back after a quick break. and now the latest from tradingnation.cnbc.com and a word from our sponsor. the best method for reviewing trades is to keep a trading journal. when you enter a trade, write down the reasons you went into the trade and the conditions under which you will exit both for profit and loss. and take a screen shot of the chart. when the trade is completed, take another screen shot of the chart and look to see if you followed your initial plan.

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ones that transcend channels anlocations, anticipate expectations... creating new ways to engage at every imaginable touch-point. it's a new day in retail, and together, we're building the store of the future. digital works for retail. let's talk about how digital works for your business. we're watching that s&p 500 very carefully because we are a stone's throw away from fresh all-time highs on that index. 2130 is where we stand right now up by 1.5%. we briefly traded above the closing high of 2130.8. we're now back below it. but the number that we're watching 2134.72, that was the all-time high. again, just about five points

away right now. ty. all right. two engineers who interviewed with google but were never hired now are suing the tech giant. alleging age discrimination, they were 47 and 60 years old when they applied to google. and the government is also starting to take notice. the u.s. equal employment opportunity commission now investigating google's employment practices. this according to the lawsuit. let's bring in mar t ta fuentealba, works with tech smart start-ups. and chia mand lbalm specializes in employment cases at ruddy based in san francisco. i've done my names for the hour, folks, right there. let's move on to the question. let me start with you, marta. does silicon valley, more broadly just than google, have a problem with age discrimination in hiring?

>> yes, it does. we see it in attitudes when people are looking for designers and other employees. it's pretty broad. >> chia, do you agree? >> yeah, i think there are things about silicon valley and the workforce that make it an acute problem. certainly age discrimination is a problem across sectors of the economy, but i think it's a particularly acute in silicon valley. >> so, marta, when someone comes to you and you help them with recruiting, are they ever as dumb as to say we want someone young? or we don't want someone old? >> oh, exactly. we actually hear people say i want someone -- i don't want anyone over 29. and sometimes i coach them and say, are you saying you want someone more junior? or a lower salary? and, no, they really put their foot in their mouth and just come right out and say that. >> so when they say that, what do you do?

>> well, we don't work with them. we won't do it. sometimes there's a little bit of lecturing that goes on on our part. i have nothing to lose by telling them they're wrong. but we just don't go any further with them. >> chaya, let's talk about the google case. how big could it blow up? >> well, the plaintiffs just applied for what's called conditional collective action certification. and if they win on that, then all of the job applicants for these engineer positions that are older than 40 and interviewed in person will be notified of the lawsuit going back to 2010. so it has potential to grow expe exponenti exponentially. >> in other words class action makes it a bigger, bigger deal. >> absolutely. >> marta, just intuitively younger people are earlier adopters on technology, they're the first ones to get on some of these platforms. that's where the growth is, et

cetera. i mean, is it wrong for a company to want to hire employees that they think will better identify with their clients and their customers? >> well, their clients and customers are often a really broad demographic. maybe that's my vision of just the bay area in general. but, yeah, they're wrong. that might be the perception, but it's a misperception. i don't think it's accurate. those employees might be less expensive. >> chaya, do you want to react to that? >> it's also -- >> go ahead. >> i was just going to say in addition to maybe wrong as a matter of assessment, it's also illegal even if that was right. that type of argument stems back to the arguments you heard on things like race discrimination many years ago with respect to, well, we don't have a problem hiring an african-american to work in our ice cream store, but our customers will.

well, that's illegal. that type of justification is illegal. >> you know what happened in television, guys? they just give people contracts which say you can't sue and they do all kinds of things to get around all of this stuff. i mean, it doesn't sign a waiving arbitration agreement. >> definitely. what's different here is these are people who were job applicants. they weren't employed by the company so they have an advantage, right? in that they haven't waived away their right to sue. they can go right at them. >> yes, that is the one silver lining, i suppose, in not getting a job. they aren't subject to company's arbitration agreements so they haven't waived their rights to pursue class actions. so if this case is successful,

that may be a viable, logistically feasible class age descrimination. >> thank you very much for coming today. a potential solution to the long airport security lines. we'll explain what it is and how it works, and we're all over the markets as the s&p nips right up next to an all-time high. amazing sleep stays with you all day and all nit. sleep number beds with eepiq technology give you theknowledget for the best sleep ever. it's the final days of the lowest prices of the season sale, with the oubest bated c2 queen mattress now only $699.99. know better sleep. only at a sleep number store.

>> for the first time since may. winners this week include tail taylor morrison, catatlantic. looking for a way to cut down on long security lines. automatic baggage screeners, they will install them this fall in american terminals. both the bin return and the scanners are automated so if the computer detects a weapon or other prohibited material, the bag is moved to an inspection

area where a search will be done by hand. let's bring in the former chairman of continental airlines. gordon, great to have you with us. it seems like the key ingredient are in on this with the tsa. it obviously helps them in some way. how much would it help their bottom line? >> well, they're denied the revenue if the passenger missed the flight which is heard often here in the past. they don't get that revenue. it's harder to rebook a flight because there aren't enough available seats. they need that stream to make their schedule and they're getting involved in the process. i'm glad to see it happen. >> are we going to start hearing about airlines and their earnings call saying we're going to spend x, y, and z on scanners? it's not only the automated bin but they say they plan to add computed tomography for carry ons in phoenix. >> that will be a big shift.

that would be a government expense because they are -- that's not an airline expense. however, the airlines will benefit obviously from american's $5 million estimated loss on passenger revenue. so working with the tsa is a way to do it and working with the tsa's processes are also very helpful. >> so are we going to see no more delays? will we expect to see the equipment rolled out across the country? are we talking four heads here? >> no more delays? >> we could be smoking something. >> go to denver. >> i think those long lines will disappear if they continue to address it the way they're doing it. they're working on it the right way. >> that's a start, gordon. thank you very much. >> much more on this very big day for stocks as the s&p sits at 2131 right now. stay tuned.

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s&p 500 after it briefly went above its close. stocks leading the s&p. cf industries upgraded to outperform. retailer gap on strong june sales helped by old navy and alcoa higher than 5% ahead of its quarterly earnings next week. >> seema mody, thank you very much. 2134.7 is the all-time high in the s&p 500. we're a stone's throw away from that.

interestingly we're seeing a 52 week high on the bond etf. rates 1.36%. all weird which is a very strange -- >> you know what's going to be weird. >> yes. >> on monday our executive producer jason gowertz will be moving. i know you're going to kill me for that. you were great. >> "closing bell" starts right now. hi, and welcome to the "closing bell", everybody. i'm kelly evans at the new york stock exchange. >> i'm bill griffeth. stocks have hit record highs. the s&p, that's the one that's doing it. briefly above the record closing high on the back of that strong jobs report this morning. the dow, the s&p, nasdaq now have all erased their brexit losses. >> remember that? >> it seems like ancient history right now. we'll see if that can continue in the fall. >> it's been a tough