keep an eye on this it's breaking out. >> john, you're watching etsy. >> today it traded over 9,000 calls like that. i bought it. >> guys, good stuff. great having you here. see you again tomorrow. kev, always a pleasure. >> thank you. >> mr. shark back with us today. that does it for us. "power lunch" begins now. and welcome to "power lunch." i'm michelle caruso-cabrera with tyler, melissa and brian, everybody's back together. welcome. the s&p 500 hitting new highs. the dow is joining the party today. also hitting record highs. here we go, the dow jones industrial average right now is up, i can tell you that much. by 123 points. 18,350, the s&p higher again today gain of more than 16 points. 2153 and nasdaq higher by 37 points above 5,000 wiping out its losses for 2016. oil is also rallying today.

in the positive by $1.9, a gain of more than 4%, 46.65. we are not close to 50 yet, but let's see. investors are selling treasuries. the yield on the benchmark 10-year note hitting its highest level since the end of june. look at that cracking a whopping 1.5%. bob pisani on the nyse floor with more on what's moving the markets. >> it doesn't get much better as this, michelle. steady as she goes, just off the highs for the day. look at the dow you want to look at 18,312, that's the closing high. well above that right now. let's put up some key metrics today because this is about as good as it gets if you're interested in stocks. dow at a new high, crude's popping, gold is down. this is the fourth day in a row gold is down. and the dollar index has basically been flat. the 10-year up just a little but not a lot. this is about as good as it gets for stock investors overall. you must think there are tons of new highs out there.

there are some but not a lot. the dow is a price weighted index so bigger names tend to push around a little bit. cisco hitting a new high. johnson & johnson, ge, proctor & gamble, let's not quibble about half a percent or so. a number of big names on the dow are way, way far from new highs. some are very high priced names. there's the ftse 100, as you can see. that's a sector most people thought would not be popping today. and would not be up. this is the key international groups, international stocks in the uk, that's unexpected thing that's happened overall. we've seen some breakouts as well in other groups like the emerging market etf or the eem that's also breaking out to a 0 10-month high. i want to get back to my point, a lot of stocks -- goldman one

of the higher priced stocks, boeing also one of the higher priced stocks, 13% off the highs and boeing has been bucking most of the aerospace stocks that are sitting at new highs. melissa, back to you. >> thank you very much, bob pisani. amazon hitting all-time highs in its second annual prime day. the online retailer offering deals on 100,000 products for its prime members. take a look at shares i mentioned new high, but we did back off that high. shares are down by about 0.5% right now. courtney reagan has the latest on prime day. >> hi, melissa. amazon's deals are more appe appealing than last year's which launched #primedayfail on social media. still 11 hours left to go for shoppers. in terms of consumer dollars spent prime day still way behind black friday. last year's prime day generated between $375 and $400 million in sales. and says this year that figure could double. well, amazon hopes to use the deal day to gain new prime members, everyone else is doing what they can to compete. there is a measurable spillover

effect. e-commerce advertising firm hook logic tells cnbc retailers and its network seeing traffic up as much as three times the average for a typical day in july. but more importantly convergence or traffic that actually makes the purchase is up 21% over a typical tuesday. slice intelligence data which comes from 4 million shoppers online receipts shows walmart could also get a boost. on amazon's prime day last year walmart generated 3.5 times the average daily revenue for july by touting no gimmicks with its sale prices. this year walmart is offering free shipping with no minimum purchase for the entire week and you don't have to be a member of anything to get that. brian, back to you. >> courtney, thank you very much. prime day taking its place, guys, just above arbor day on list of important holidays now. >> oh, come on. but invented holidays it's pretty hot. >> it's super hot. >> i love the competition that walmart fights back. i think that's great. that's the way it's supposed to work. >> think of the margins for

these guys, compressed. >> what does it mean for shopko? sorry, just got back from wisconsin. walmart has been the better stock this year, it's up about 19%, amazon up 12%. you could buy both these stocks, but i don't think that would make for a very interesting segment. so if you had to buy just one, which of those names is the best for your dollar. making the case a long-time walmart shareholder, kevin, i'll begin with you because we love to make these compete. but here's -- there's a huge difference between amazon and walmart. amazon is at an all-time high. walmart is well off its all-time high of $88 last year. why do you still see value in walmart stock? >> all right. well, i think it's easier to make the case from a valuation perspective for walmart because you really don't need all that much to get the stock from valuation perspective to higher levels.

if you got something like 2% or 3% or 4% revenue growth out of walmart and little improvement in the margin it would go a long way to get that stock back up towards $100 with a whole lot more beyond that. if you do the same thing for amazon, which by the way i think amazon is a fantastic business, you go and look at the valuation metrics, try to run whatever kind of cash flow model or whatever you want to run. you have to have some very lofty assumptions about growth and margins to make that math work. so for our money the way we look at it even though we're very fond of amazon's business, we think the valuation case is much better for walmart than it is for amazon. >> all right. kevin and channing, sit tight, because while those companies sell a lot of stuff, the one thing they do not sell are bonds. but we have a news alert in the bond market where bonds are being put up for auction. we'll get back to our debate in just a second. rick santelli, professor, how did the 10-year auction go? >> well, i think everybody needs to hold their nose on this one. we gave this one a d-minus,

dog-minus for demand straight up and shares a lot with yesterday's very weak 3-year note auction you'll see in a minute. the yield of these 9-year 10-month notes because this is the second reopening of this issue is 1.516. what's notable about it is the high yield in market was 1.151. we tailed badly. 2.33 bid to cover lowest since march of '09. over seven years. does that rhyme with yesterday's 3-year? it certainly does. 64% is the ten auction average for indirects. this was 54.3 weakest since january of 2015. and directs were on the light side at 7.9, 7.2 last auction. you have to go back about ten to get another low one. that was the good news 37.7% of this go to primary dealers. good luck with that. so i guess in the end here's what i hear, they didn't like threes, they didn't like tens.

that's what a 14 basis point, 15 basis point concession meaning yields have popped that much since friday's post-employment close. tomorrow will be 30s and many on this floor thought we'd get a good reption for the juicier yields. and that yield of 1.516, the second lowest on record. the lowest on record of course was from july of 2012. that was around 1.459. many were betting we would challenge that. they were wrong. back to you. >> rick, thank you. now let's get back to our walmart v. amazon debate. channing, i can run through the numbers. i'm sure melissa has them on the top of her head because they talk about them all the time. 24 times price-to-book, three times price to sale, so far above any other retailer it's ridiculous, why don't traditional valuation metrics seem to matter at all with amazon? >> it's a great point. and people have really misunderstood amazon. if you look at the last decade, amazon has been investigating in

infrastructure and warehouses and their logistics. they've been investing in prime, web services. and what you saw last year is you're finally starting to see that bear fruit. and we expect that you're going to see earnings of $7 this year. we see $20 in earnings by '18. and then by 2020 this company could be earning $40 a share in earnings. so we think there's a big opportunity there. and how do you get there? that's the big question a lot of people have. we assume about $275 billion, $300 billion in 2020. apply a 10% to 13% operating margin on that, divide by share count and give it a multiple of 20, 25, 30, and the valuation doesn't seem that ridiculous. this is a company that is perfectly position ed they are the leader in north america and by far the biggest leader in cloud services. the earnings trajectory for this company is absolutely tremendous for the next five to ten years. and no one can match them. so i think what investors are underappreciating is the

earnings power that's just now beginning for this company. >> kevin, toipt go back to walmart and your sort of explanation of the valuation here. when you take a look at a price-to-earnings multiple, yeah, hands down walmart looks like the better buy compared to amazon. but what are you paying 16 times current p/e for at this point? because for this year the street consensus numbers are for negative growth, sales growth, and negative eps growth, and only marginal upside in the next year. i think we lost kevin. >> he didn't want to answer. that's it. >> he's shopping on amazon prime day right now instead of being on television with us. >> another good point about, when you look at walmart, they're really a gdp grower. and they've been fumbling around with their strategy for many, many years, today look at what walmart's doing is defensive. what amazon is doing is going out and try to get 400 to 500,000 new prime subscribers that will help revenue growth for the coming years. walmart's a one day this is defensive trying to protect a little market share.

but they don't have a strategy. secondly, if you look at what amazon's doing internationally, what they're doing in india, they can take this business model and move this to india. they can move it to emerging markets. think about emerging market consumers, they don't follow the big box retailer concept. they have moved straight to e-commerce. look at alibaba. so amazon is very well positioned for international growth. and that, too, we don't think is in the stock. international grew 26% year over year last quarter. we think it's just the beginning of international growth there. >> all right. channing and, kevin, if you're out there somewhere, hope he's all right. >> jamie dimon says too many people are not getting a fair opportunity to get ahead. what he's doing to change that on "power lunch" when we return.

welcome back to "power lunch" everybody. jamie dimon has written a "new york times" op-ed and was published today about how he plans to help the economy and boost employment for the next generation. he starts by announcing a pay increase over the next three years for at least 18,000 employees. let's bring in steve oddland, ceo of the committee for economic development and former ceo of office depot and auto zone. steve, welcome, good to have you with us.

it seems to me this is the way the system ought to work, where you have businesses making independent decisions about how to compensate their employees and at what level rather than having it imposed from above. do you agree or disagree? >> no, i think that's exactly right, tyler. i think the situation follows the financial crisis where the banks let a lot of people go and then they held wages down for a long period of time. now you see a systemic increase in wages. we're up about 2.5% most recently. and the labor market is tightening a little bit. so i'm not surprised jamie is making this move. i think it's a good move for them. remember it's not a lot of money for them. it's only about 0.2% for their total sga. it helps retention, it helps them attract more educated and more skilled people. you know, they're paying as little as $10 an hour for some of these customer service and these teller positions. and those are not unskilled positions. so it makes a lot of sense.

but i think the important thing here is jamie said in that piece that this is not a blanket thing for all companies that every company should do the right thing for their company. and i think in this case we see that government intrusion was not necessary to make this happen but companies like j.p. morgan and walmart before that are taking independent actions that are right for their companies and their employees. >> why haven't more companies done it? >> yeah, well, i think that, you know, some companies needed to do it. you saw walmart take a billion-dollar hit to their labor costs by raising -- you know, they've got pressure from the shareholders and owners if they're private not to do it, but i think as the labor markets tighten they've got competition out there for this kind of employee. they also have expanded their training, which i think is really key because right now a lot of people are coming out without the proper training. and as we know customer service positions in particular need

specialized training. so he's expanding that as well. >> maybe there was no official law that they had to do this, but you don't think there's any political pressure here? almost anybody who becomes the next president of the united states has campaigned on hating the banks. >> yeah, well. >> and jamie dimon has suffered in the past for complaining about regulation, et cetera. i mean, the cynic out there could read this and say he's trying to curry favor here by saying he's raising his minimum wage. >> no, it's an excellent point. and they've been under pressure for a long time. the banks have been the whipping boy i think since 2007 at least. but, look, is it politically driven, it seems to me if it was you'd wait until the new president was in rather than doing beforehand. i think it's the right move. i think jamie was positioned in a way that was, you know, good for his company and good for his people. i think it was optimistic. but i really like the fact he said, look, this is the right

thing for j.p. morgan and every company's got to make the right decision for them. >> as i was thinking about this, it's largely directed at customer service representatives and tellers as those are some of the lower people in their pay sort of spectrum. but between now and 2022, i suspect they'll be even fewer tellers working at banks as they automate more and more. so this may end up costing them really even less than you described, which isn't all that much. >> you're probably right. and this has been happening over time. i think more and more banking is moving online. that's what i'm saying, i'm not sure how many positions are really at -- going to be at $10 an hour or what they're talking about raising it a couple dollars an hour. so it doesn't cost him that much, but i think it's indicative of the fact they're trying to make moves and he's trying to put, you know, a big bow on it. which i would too, but look, there aren't a lot of jobs that are really truly at minimum wage. mostly in the restaurant

industry and even that's moving today. so there aren't a lot here anymore. >> steve, thanks for your help today. appreciate it. >> good to see you. china just lost a major battle over the south china sea, at least in court in the hague. why the ruling could have a lasting impact around the globe. and as we head to break, take a look at the biggest dow movers this hour. "power" back in two minutes. real is touching a ray. amazing is moving like one. real is making new friends. amazing is getting this close. real is an animal rescue. amazing is over twenty-seven thousand of them. there's only one place where real and amazing live.

book a seaworld vacation package and eat free. hello prashant bhuyan. co-founder of the fintech services start-up. hello watson. your analysis of social media and conversations on various trading floors, helps us uncover insights. insights that help investors predict market closes, well before markets close. you know, your analysis has helped us improve our predictive accuracy by over 500%. 550.2, to be precise, but we can always do better. i like your attitude watson. rebecca barlow was running a nanny company when her husband of 13 years suddenly passed away, leaving her to manage his failing water damage business, acme flood. she rebuilt the company from scratch which is now grossing more than $2 million a year.

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china lost a major court battle today related to territories in the south china sea. seema mody is here with the latest. >> really a historic moment, michelle. the south china sea dispute for years has been a source of anxiety. and now the united states over the past couple of months have been getting involved to protect the philippines, american ally. the concern by the international tribune which rejected china eastertorial claims in the south china sea will result in beijing expanding military presence around these 250 islands which experts say would dramatically increase the chance of an unintended conflict. but the former national security council member james keith telling me china has to walk a fine line, exert a powerful stance in order to alleviate concerns domestically but not rock the boat too much on the international stage. it does have two important events coming up this fall, the g-20 summit hosted in china and the sdr inclusion in october where it's widely believed

china's currency will be officially added to the ims basket. that's been a huge economic goal for the chinese leadership. the other topic that's been spoken about today is whether this geopolitical event will impact china's economic policy. in order to preserve china's sense of nationalism china will perhaps try to spin the news to show its citizens that it's still supporting a sense of sovereignty in the south china sea but it's still unlikely china will use economic policy to protest this ruling. unless of course a large conflict does erupt. on that note, a lot of economic data coming out over the next couple days from china, gdp, industrial production and retail sales. keep that in mind. >> which tend to be market movers. >> absolutely. >> seema, thank you so much. seema mody. let's bring in general wesley clark, former nato supreme allied commander. thank you for being here. >> thank you. >> how worried are you about what china's response to this ruling, does that lead to an

increased risk of accidents, so to speak. unintended conflicts. >> well, i think it certainly raises tensions in the area and there's uncertainty in the area now about china's response. but i would be surprised if china takes any bold military actions as a result of this. or even increases what it's doing. i think china's got to find a way through this. it's got domestic pressures. obviously it's not going to say, okay, we made a mistake, you can have the south china sea back. but on the other hand it recognizes the weight of international law, and i think china also recognizes ultimately international law will work in its favor as it grows in its great power status. so it's got to figure out a way through this thicket. >> it suggested that it actually doesn't believe in international law, correct? they have consistently rejected that this court in the hague has any sovereignty over them. and in the wake of the recent brexit decision by the people of the uk who wanted to reject --

wanted to take back their sovereignty, so to speak, that's got a powerful argument in the world at this moment. do the chinese have any right to reject this decision by the hague? >> well, they claim they have a right to reject it. and they don't accept this as a valid tribunal, that's what they say. and there's a lot of invective out there against the united states for having behind-the-scenes orchestrated this in what they've said to the public. but the truth is i think china's leaders have a longer term and broader perspective on this. so they've got to negotiate amongst themselves the right way through. they've got to discover the right way through this. they don't want to surrender their claims. they don't want to completely disavow -- they certainly don't want to mess up their economic growth by getting in a major conflict or dust-up with the united states over this. so how they thread the needle on this is going to be very interesting to watch. and of course it does create uncertainty and anxiety. >> sir, general, i couldn't have

you here during the political season without discussing politics of course. you've run for president on more than one occasion, there are reports now -- actually, he's just confirmed it with us that retired admiral james stavridis might be a v.p. pick for hillary clinton. what do you make of the political situation at the moment in the united states? with both donald trump and hillary clinton almost matching when it comes to their negatives. >> well, i think that as the campaign gets underway and the american people really start to focus on this that donald trump's numbers will fade away. he doesn't have the policy. he doesn't have thestature. he doesn't have the experience. and he doesn't have the ideas to

deal with a lot of the issues that he's brought up in this campaign. and hillary does have the stature, the experience, and she has the ideas to deal with many of these issues. >> are you concerned about the way she handled classified material? >> actually, if you -- just think about this. there are 30 some odd thousand e-mails turned over and there were a hundred that had problems. and maybe she didn't recollect that a paragraph was mark ed "c" but she's reading hundreds of thousands of words per week. and she's working all hours of the day and night. so, yes, it would have been better if it hadn't happened, but on the other hand every secretary of state preceding hillary has had the same system. they weren't investigated the same way. the nation was still safe afterwards. so i think hillary's said it right. she said she wouldn't have done it -- she wouldn't do it again. she made a mistake.

but i think we have to move on from that issue. >> general clark, thanks so much for joining us. >> thank you. >> general wesley clark joining us on the situation in the south china sea. the final gold trades are crossing for the day. the metals close is on deck when "power lunch" returns after this.

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i'm sharon epperson. here's your cnbc news update for this hour. appearing before the house judiciary committee attorney general loretta lynch declined to answer questions on the probe into hillary clinton's e-mails, saying it would be inappropriate for her to comment. she was then asked why she did not recuse herself. >> the matter was handled like any other matter. it was reviewed through the chain by those independent career agents and prosecutors. and in considering the matter there was no connection, there was no need for a recusal or independent prosecutor. >> hillary clinton is vetting james stavridis, retired four-star admiral served nato as possible running mate. stavridis currently the deen at

fletcher university. he oversaw operations in the middle east, afghanistan, libya and syria. starbucks is increasing prices on some of its beverages. select sizes of brewed coffee will rise 10 to 20 cents while espresso and tea latte will increase by 10 to 30 cents. this comes a day after it would boost the base pay of all employees in the u.s. and the running of the bulls continuing in pamplona. some 1,000 people taking part in day six of the nine-day event. no one was gored in today's run, which lasted just over two minutes. that's the cnbc news update at this hour. back to you, melissa. i guess it's a success. sharon epperson, thank you. >> that's how they gauge it. >> final gold trades crossing for the day. let's take a check here finally in today's session as we do sit at new record highs in the dow and s&p 500, we're finally seeing a more decisive rotation out of the safety trades. part of that is the drawdown

that we're seeing in gold 1335.30. taking a check on the rest of the metals complex we see declines for silver as well as platinum. but check out the pop in the price of copper. it is up by 3% right now. ty. all right, folks, the dow and s&p 500 are hitting new intraday highs today while the nasdaq has turned positive for the year. this is all because the four of us on "power lunch" are back together for the first time in probably a month. how much higher can we go? joining us to discuss that mary ann montane and john canali. welcome to both of you. john, does it get any better than this in terms of where all of the little tumblers are clicking in for the economy, for interest rates, et cetera, et cetera? >> it seems to be. and the fed seems to have backed off a bit, earnings season just about to start.

it looks like global growth might be reaccelerating here. and we have hit a new all-time high. i think there are some hurdles out there right now we're kind of backing off the macro that's been driving markets and focusing more on the micro with earnings season coming up. there's plenty of micro to digest in the next couple of weeks. >> mary ann, i've been musing in the past several days that here we are at all-time highs. we are clearly still in a bull market, but it doesn't feel all that good. i mean, we're back where we were. we've kind of been circling around 2100, 2130 for a couple of years. normally when we're at all-time highs like this there's a kind of euphoria. maybe it's healthier that we're not feeling it. >> well, maybe the euphoria is because the gains have all been in utilities and staples and not very exciting kind of stuff. aside from bond substitutes. we think going forward with the good jobs number we saw on

friday and follow on volume on friday although we were, you know, close to a record high then, light volume summer trading. but we think we'll get confirmation in the next couple of weeks with more trading and probably a rotation into the growth stocks. >> rotation into growth stocks. and so where can i find some things, mariann, that are still worth buying maybe because their prices are down? >> well, that would be health care. that's one of our focuses on growth. and focusing more closely into biotechs. these are really the outsourced r & d departments of the large cap pharmaceuticals. so as they make progress with the fda, they get progress payments from their partners in the large cap pharmaceuticals. and that's where you see progress in the stock prices. the two names i like in particular are alexion and

omeros. >> all right. john, how about you? where do you see the market at year end, higher, lower, about the same? and where are your picks residing right now? >> well, here at lpl research we just published our mid-year outlook, and we see some modest upside here for stocks between now and the end of the year. maybe a couple percent. i think the real story will be on the bond side, maybe flat to down over the year for bonds. right now favorite sectors in the growth area, technology, health care, mlps, reits also look attractive and beginning to dabble for the first time in a long time in emerging market equities which have been, you know, really struggling in the past six and a half years and finally now showing signs of life. >> john, thank you very much. ma mariann, john, thank you. go to powerlunch.cnbc.com to see what john picks. we are almost to the moment

you have all patiently waited 364 days for. the naming of cnbc's 2016 top state for business. scott cohn is in that top state, which of course he is still keeping secret even from us. but he does have the runner-up. scott. >> reporter: brian, we've been doing this ten years now. there have been trends that have come and gone. there's also been consistency. and this state falls into that latter camp. let's continue our countdown now with state number two. texas, the lone star state, is number two this year with 1564 points. texas also finished second last year. this year was supposed to be a challenge for texas with oil prices at a fraction of their peak. but true to form texas barely missed a two-step beat. growth has slowed, but the texas economy is still number one in the country. that's because it's big and diverse, home to 45 companies in the s&p 500. and despite the big budget

challenges brought on by low oil prices, state finances are strong. the job market is healthy too with unemployment just below the national average. but texas stumbles badly in education, a perennial weak spot coming in 40th. and quality of life drops to 37th. texas is an unhealthy state with the largest percentage of uninsured residents. it is also among the least inclusive states in the nation, one of only five states with no anti-discrimination laws for public facilities. texas has no individual or corporate income tax, just a state franchise tax at 0.75%. the state and local sales tax tops out at 8.25%. texas' largest employer is the heb supermarket chain. the largest industry is mining including oil and natural gas. texas is the only state to finish in our top five all ten years of our study, including top state finishes in 2008, 2010 and 2012.

so we have sufficiently narrowed this down. where am i? we will give you one more diabolical hint, and that is eight is enough. eight is enough. what could that be? give us your guesses. #topstates. coming up on "closing bell" we will reveal america's top state for business in a way you will not want to miss. that's coming up on "closing bell" right here on cnbc. >> brian wasn't here yet, so eight is enough. yesterday it was one stop shopping. and then this morning i was on "squawk box" and you had original call and those are all about the number one state. >> that's correct. yep. we have all of these hints we've been giving out. go onto twitter with hash tag top states, you can look at the guesses, look at what we've been hinting. you can weigh in with what you think, who should, who shouldn't be. >> all i can think about eight is enough, scott, is the actor, the child actor adam ridge. and he had a bowl haircut in the

'70s. is it a state that makes bowls? >> what? >> sorry, i've been gone -- >> you're starting to get into my head now, brian. >> is it micronesia. do territories count? i can't remember the rules. scott, we'll see you soon. >> we're thinking we should expand it to provinces. >> there you go. >> not the united states, not the territories -- >> new finland. >> yes. >> six people celebrate. >> thank you. >> scott, we'll see you soon. he's going to be breaking down -- thank you. all right. yeehaw. yesterday it was the s&p 500, today it is the dow hitting record highs. but not every stock and sector's back at new highs. some aren't even close. we're going to let you know which ones are what we're calling the dumpster fires of the stock market coming up. "power lunch" back in two.

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welcome back to "power lunch." republicans have begun their decent on cleveland. eamon javers is there live for us. >> reporter: yeah, that's right. the police are certainly here, but guess who is not here? a lot of the big names from corporate america. this political season has just been so intense, a lot of names simply shying away. we polled a bunch of companies to find out those that have contributed to political conventions in past years whether they were going to do it this year or not. a lot of them gave us a whole bunch of different reasons why they're not going to be here. a lot of them said their decision not to be here was in fact made before any nominee was selected. nonetheless here is the list. take a look at this graphic. you'll see big names, general

electric, they gave $100,000 last cycle. nothing this time around. amgen, similar picture in 2016, nothing. j.p. morgan chase, they've decided not to give to the conventions this year, but they are donating to charities in the cities where the conventions are being held to help the communities there. also, ford, motorola solutions and u.p.s. all giving $100,000 or more last time around, this time around zero, zero, zero across the board for all of those guys. again, different reasons for each company, but ultimately a decision not to participate in the political spectacle that is a national political convention. most of these companies are not contributing both here at the rnc and at the dnc in two weeks in philadelphia, guys. so just a whole pullback, generally, from politics is what we're seeing from corporate america. >> yeah, those numbers highlight it quite starkly. thanks. eamon, thanks. managing to push the

democratic party platform further to the left, more now from cnbc contributor larry kudlow also an informal advisor to the donald trump campaign. this is my favorite part in the campaign where the two candidates in the primaries are beating each other up, hillary clinton said he had to retract being friends with the president, and today. >> love. >> they're pals. >> american style to quote another '70s show. >> actually, none of this is as bad as it used to be in the 19th century when they used to just kill each other. actually, there were threats, i mean, i was around for most ofts last quarter of the 19th century. >> yesterday was the anniversary of the burr-hamilton -- >> there you go. >> politics today is really quite tepid. this is not a shock. i don't think this is a shock. i do think what eamon is suggesting or others suggesting this really does move the

democratic party pretty far to the left. i thought it was a foregone conclusion in the primaries. mrs. clinton, just looking at her stuff, is not mr. clinton. economic justice, workers rights, womens rights, minimum wage, family leave, environmental justice, social justice, raising the inheritance tax, raising taxes on individuals, raising taxes on corporations. we have a growth problem in the u.s. i don't care which party you're in. we have a growth statistical problem. my friend austin gools by would agree, left of center smart guys. i don't see what mrs. clinton's antidote is. i don't see her solution and i think that's going to be a bigger problem. >> reports are she's vetting former nato supreme commander stavridis, what do you think of that? that sounds very hawkish, doesn't it? >> i guess, although nato is something that's going to have to be restructured. it's already getting

restructured, i'm not sure what that does for her. >> the party is very, very left. very, very anti-war. is that the kind of person you want on the ticket? >> well, i don't know. i'm not sure that does much. >> how does it change the calculus for how trump thinks about who he picks? >> very important to know that people vote for the head of the ticket. that's really like big, big -- >> really doesn't matter. >> almost doesn't matter. >> vice presidential choice. >> there are some smart political guys that will tell you geography's something. so the home state is not unimportant during consequential. i, myself, think donald trump is looking at the midwest. we've heard all the mike pence rumors. >> what about kasich? might deliver you ohio, might deliver western pennsylvania. >> he doesn't want it. he's not even going to the convention we hear, right? >> i'm just throwing names. a lot of people say a lot of things in politics and reverse the next day. >> i think so. i think you have a point. as far as i know there's no

communication between mr. kasich -- >> eamon javers, who works for cnbc by the way, tweeted out earlier today that a top gop operative told him off the record without mentioning a name that a big name gop-er could still jump in and try to seek the nomination. >> oh, for heaven sakes. >> do you believe that is possible? >> no. i think that's just silly. >> well, it's technically possible, right? you could have a change in the rules committee, they could do a vote on monday. >> do you know what, reince priebus, who in my opinion has played his hand just terrific during all this turmoil, has ruled that out. they don't have any votes for such a change. it is not going to happen. put that completely out of your minds. completely out. no way. >> you said v.p. pick doesn't matter. is that true for trump this time around? because a lot of people have said i want to see who he puts on the number two. >> well, i think that's fair. i think at the end of it, it doesn't matter. but i think positioning toward

it, look, trump has openings in the midwest, which republicans haven't had in quite some time. so let's put john kasich aside, although i agree with sully that would have been a very interesting pick. mike pence who is frequently mentioned, covers a lot of that ground. he's been an excellent governor of indiana, very well liked among conservatives and knows the legislative process in washington, d.c. but i don't want to suggest -- i don't know a thing more than you all know about this. i'm just speculating. newt gingrich is still in that game, though a good friend of mine, a pollster that you all very well know says there's enough excitement at the ticket already without newt. but newt is a terrific guy, he's a friend of mine. chris christie is still in the game. >> i think vice presidential choices that when they matter is when you have someone who is not -- >> who's a negative. >> in the negative. and when the head of the ticket is not highly experienced. and i would put into that category george w. bush. i think the choice of cheney made a difference because he was widely regarded as an experienced guy.

i think the choice of biden hit that same note. what my question -- >> sarah palin, was that a big difference? >> sarah palin was a problem because she was not experienced. >> exactly. >> and here i thought she was the solution. >> wait a minute, my question is we started talking about the platforms, do platforms matter? >> yes and no. not really. it's whatever the candidate wants to become the platform. >> not really. >> there will be some interesting press. i'm hoping to cover that for us. i don't think it really matters. the trump people will do very well in the platform discussions. his basic thing, i know he makes off the cuff comments he probably wish he didn't make, i get all of that. but, but, but, on the issues he wants to deal with the recession threat, cut taxes, lower regulations, restrain spending. he said thursday, i was with him at the republican meeting in washington, d.c. he said he is for trade. he understands the benefits of trade, but you got to play by the rules. most recent presidents would

have said exactly the same thing. border security. in other words, my point, there really isn't much daylight on the issues. >> they're playing the music. >> -- between mr. trump and the rest of the party. >> it's going to be exciting next week. >> you're going to be there next week? >> yes, we're both going. thank you, larry. "power" is back in two.

welcome back to "power lunch." rick santelli live here on the floor of the cme group. we had a real iffy auction today and yesterday. look at the intraday of 10s, they were the protagonist or antagonist. look at a two-day. before brexit you can clearly see the 1.57 yield on the left, same timeframe early june for the dollar index, what's interesting is it keeps stopping right around the same area 96.5. that's what you want to pay closest attention to. and if you want to hold on to the power, "power lunch" will return in two minutes. welcome to opportunity's knocking, where self-proclaimed financial superstars

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all right everybody. welcome back to "power lunch." almost 2:00 here in the east. if you're just joining us, the s&p 500 and the dow both hitting all-time highs. the dow is up 115 points right now. pretty good day overall.

however, not every stock and sector is back at highs. some aren't even close. dom, glass half empty, chu, is looking at those stocks. >> i'm not a glass half empty guy by nature, but i know what you're trying to say. take a look at this, there are some that are close but no gcigr yet. look at mid cap just about half a percent below. for the small cap stocks we still got about 7% to go before we get all-time highs back in june 23rd of 2015. then the dow transportation stocks, yes, a four-day winning streak for transports, however we're still about 16% below the record highs that we've seen. so we'll see if those stocks can get around to it. as for the s&p 500 sectors, there's still a long ways to go for some of these guys. check out what's happening here with telecommunications services stocks. back during the dot com bubble a lot of these guys were richly valued now 46 % below for that

sector. as for financials no explanation necessary there. we're still about 40% below record highs in '07 of february there. 31% below record highs for energy stocks. we know the story there as well falling oil prices. and then tech stocks during the dot com bubble, we hit some really big highs still 26% below from where we were there. as for some of the stocks interesting here. we kind of put a swath, i want to give you an idea of what's going on. net app, still 83% below all-time highs for that particular stock. on the energy side transocean drilling 92% below where we were back in may of 2008. and aig, as an indicative stock rather the financial crisis, guys, remember 97% below where they were back in december of 2008. remember, on a split adjusted basis, guys, aig shares were about $1450 per share back in december of 2006, tyler. >> and of course that company got the federal bailout years

ago, a special situation if ever there was one. dom, thank you very much. let's look at where the market stands right now at highs there 18,340 for the dow industrials. it is certainly higher. the s&p poking into record territo territory. and nasdaq squarely above 5,000. let's go to steve liesman. >> thank you very much. federal reserve released minutes and six fed banks want to raise by 0.25% in june. two new banks, boston and st. louis joined four who'd already been there. richmond, san francisco, cleveland and kansas city all wanted to raise by 0.25%. there's little parsing of this. boston, richmond and st. louis, they took their vote, their boards of directors voted to do this before that weak may jobs report. but three other banks, cleveland, kansas city, san francisco, they took their vote after. so they didn't care about the weak may jobs report. they still wanted to raise the

discount rate. that's the rate that banks go to the window, the fed's discount window for emergency lending if needed. the fed banks who wanted that hike they expected a stronger economy and higher inflation. but the federal reserve board they act on these requests from the bank's board of directors, they left the discount rate unchanged at 1%. and, tyler, that is a 45-second story about how much the world has changed in just a month because right now we don't know how those banks would vote. back to you. >> steve liesman, thank you very much. let's get back now to the markets and what they're doing. bob pisani now on what is helping to drive this market into record territory. bob. >> steady as she goes. i want to emphasize while we're at big cap new highs we're also the same way in the market as well, new highs on the s&p, intraday high on the dow industrials remember little over 18,300 is where we want to be. 18,312 would be the closing high for the dow. but we're approaching highs on broader swaths of the market. the s&p mid cap and s&p small cap just a few points away

although not the russell 2000. my point very broad rally we're seeing. meanwhile the fade trade going on here, utilities and telecom down again today telecom just got into positive territory but down most of the day. gold down four days in a row right now. s&p is at a new high but been there all year once you factor in dividend gains of roughly 2%. since 1988, if you just look at the price index of the s&p, it's up little over 700%. but if you factor in the dividends, put in those 2% roughly a year, dividends and reinvest them every year, the s&p total return what you'd actually have in the bank 1400, that's right, twice as much if you reinvest those dividends. and that's why we keep talking about the importance of dividends. by the way, the search for yield continues. we've seen corporate -- there's the lqd, that's the big corporate bond etf, investment grade corporate bond, took in over a billion dollar of new funds on thursday. that's the biggest flow ever

into that. so the search for yield continues that lqd about a 3% dividend yield right now. guys, back to you. >> bob pisani, so we've been talking about that 2100 level for the last two years grinding around around it, now finally we have a breakthrough move to the upside. can we get more? art hogan is chief market strategist with wunder lick communities, can we move higher from here? >> michelle, i think you can. i think you've made a very good point. this overnight success took about two years to get here. back in february we crossed that line 26 times. stocks are more attractive than bonds, full stop, i think some of the headwinds this market had are turning into tailwinds. so we've got the price per barrel of oil is up 30% on a year-to-date basis, doesn't look like that's going to zero. firmness in the dollar is settling down a bit. that's going to help multinationals. this is going to be the quarter

where we see an inflection point in earnings. so after four quarters of negative earnings growth, the s&p 500 is going to make money. that's going to continue. i think the biggest argument you make the s&p 500 yield 2.25 percent right now and u.s. 10-year yield is 1.5. >> you don't fear the message in the bond market? the bond market isn't telling you something bad this way comes? >> i don't think i'm smart enough to read the "new york times" or fear the bond market message. because the message the bond market's telling us is there's not enough bonds out there and central banks are easy around the globe. i think there's a liquidity issue. and i think we've got central banks that are keeping the entire yield curve lower than it should be. >> so it's intervention, not necessarily something wicked on the way. he's making reference to an article in the "new york times" this morning about the bond market. and mr. lucini, what do you think? do we have here that this market can advance materially? >> materially is what i want to

lever off of. i think the answer there is no. unless we're going to have earnings coming through. art was making reference and i think that's the necessary and so far missing ingredient to this rally. it's certainly encouraging for lack of better term, there is no alternative to equities have invited investors into the bond surrogate sectors on a year-to-date basis, but a key to sustained advanced materially higher prices has to come through earnings. last five years was about multiple expansion. we're at 17 times forward earnings at this juncture. if we see the fundamental economic underpinnings in the u.s. economy, which i think is quite sturdy, matched by other economies, important ones and particularly we'll get news on china this week with regard to their gdp -- >> here's what i don't understand, do you doubt the earnings are going to come through? or you want to wait and see the earnings do before you commit? >> i think the earnings will come to. we are lapping those declines in oil prices. i think we are again going to see the effects of the strength of the dollar.

that combination with steady and somewhat predictable growth is going to help all sectors somewhat uniformly. we're expecting maybe modest 5% to 6% gains, not the double digits pencilled in right now by analysts, but that's enough to support equity prices with a similar kind of gain. >> so the s&p 500 in your opinion would go where? it's at 2153 right now. >> on our order something 2200, 2250 not unreasonable. take it higher than that in the chase for performance occurs in the result so many investment managements underperform. dangerous rally if it wasn't supported by earnings and consequence we'd be more decline to fade it than buy it. >> all right. mixed market. thank you. art hogan, mark luschini. melissa. all right. sage therapeutics up 38% on the news company released positive mid danger e stage trial data.

if approved this would be the first drug released to treat this condition which impacts around a 10% to 15% of new mothers. joining us is our own meg tirrell and jeff nunes. thank you both for being here. according to results of most analysts results are stunning. in laypersons terms, what does that mean? >> first, thanks for having me. we're very excited by these data. i think as you point out they're remarkable. probably the largest we've seen in this population ever with intervention or potential therapy. so what we saw in these patients, in these women, was decline in rating scale for depression went to normal within 24 hours, basically depression remitted, went away. >> wow. >> so a question that a lot of folks have especially in depression studies is can this be replicated in a larger phase three study. you did have a placebo group and

the difference was pretty astonishing, but ten patients. >> thismarket? >> what we know today from this study we saw this 70% response rate, remission rate. and that we believe accounts for about 20% of the overall population of women who have post partum depression.

another 50% have moderate depression. and we're about to begin a larger study looking at both of these populations both the moderate and the severe forms of depression. >> and so that's with this drug which is i.v. formulation so women are treated for 60 hours with an intravenous infusion. also developing a oil molecule. how do you anticipate these side by side programs playing out? will they target different patient populations in terms of severity. >> what we've seen from data is we believe these women have acute deficiency a brain hormone lowered normally around birth and some women appear to be vulnerable to the imbalance that causes. our drug targets what we would say normalized brain function. we believe that the molecule sage 217 which will be entering the clinic this year as well has the same faeffect. >> are there applications for other forms of depression or

specifically postpartum? >> we don't know. we believe based on the data we've seen today with the dramatic effects that we've seen that it has potential in oh other forms of depression such as bipolar disorder or panic disorder. >> what would be the timeline in testing those other potential depression or psychiatric indications? >> our focus is still on post partum depression. we'll be meeting hopefully with the fda and other regulatory authorities to understand the time course for post partum depression and from there we can prioritize the rest of our portfolio. >> all right, guys, thanks so much. you have an event coming up. >> that's right. want to continue this conversation with jeff, join us, tune into periscope at my twitter feed. we'll be taking questions from the audience. >> guys, thank you. >> thanks so much. >> jeff jonas, ceo of sage therapeutics. coming up, latest numbers and warnings about the pokemon go craze. plus, with money coming into stocks out of gold and bonds, take a look at this. big drawdown in gold today down

by 1.7%. this is the fourth straight session of losses for the yellow metal. look at the 10-year note creeping to 1.25%. you both have a perfect driving record. until one of you clips a food truck. then your rates go through the roof. perfect. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. and if you do have an accident, our claims centers are available to assist you twenty-four seven. call for a free quote today. liberty stands with you™.

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keeping the power lines clear,my job to protect public safety, while also protecting the environment. the natural world is a beautiful thing, the work that we do helps us protect it. public education is definitely a big part of our job, to teach our customers about the best type of trees to plant around the power lines. we want to keep the power on for our customers. we want to keep our community safe. this is our community, this is where we live. we need to make sure that we have a beautiful place for our children to live. together, we're building a better california. welcome back to "power lunch." largest internet retailer has big prime day today. you can see in mid afternoon trading did take a rather steep intraday drop. not big on relative basis, but still chart tells the tale here. happened after headlines came out e-commerce company called

channel advisor. this is a company that does a lot of cloud based computing tracking cloud traffic, that sort of thing. they have said in a statement that they believe 2016 amazon prime day sales are in line with prime day from last year in the united states. make note prime day launched at 3:00 a.m. eastern time. deals are scheduled for this afternoon. however, the actual headline did appear to move the stock to the sdo downside. we're talking about a stock hit record high earlier in trading today as well. and our own team here at cnbc, our retail team, courtney reagan, do say perhaps this is maybe a little too early to give a definitive answer on what prime day is supposed to be given these forecasts. still moved the stock. wanted to call it to your attention. back to you guys. >> what they're saying is may be in line with last year? >> in line with u.s. for last year. >> okay. courtney was reporting earlier it was almost double. but we also don't know.

>> right. >> dom, thank you. tesla failing to disclose fatal crash in may involving an autopilot car. shares of tesla pretty flat today down about 6% so far this year. should you own shares of tesla? let's bring in tesla shareholder president and cio with cabot wealth management. we should be clear you've own tesla stock for quite some time and seen massive gain on those shares which you bought around 2012. so your perspective may be different than those approaching tesla today. in terms of this possible breach

of securities laws, the issue here is they didn't disclose this perhaps that big secondary offering. why don't you think this is material? the fact that a car using one of their newest technologies, which they're using in order to entice people to buy the cars may have failed and caused this fatal accident. >> in this accident it's really just an accident. it's an accident funfortunate, doesn't change the outlook and not material financially to the company. didn't change the valuation a great deal when that news came out. most of the legal team, i think, at tesla looked and said it

wasn't material. so i think that's not the key thing for investors today. i think investors really need to look at the goal the company set out for 2018 and say is that achievable, is that a realistic goal. and what is amazing to me today is most analysts have not budged numbers. in fact, some have dropped their numbers. and i don't believe -- >> well, that's primarily because of their missed delivery guidance, which is a whole other issue. but in terms of whether or not this is material, does it not matter if this was the first accident or the seventh accident? i mean, the fact of the matter is this happened. this is using a new technology which the company is spearheading. >> right. >> and it is up to the company to disclose to shareholders whether or not wall street keeps their estimates or however the stock reacts, that's not material to deciding whether something's material. >> right. right. no, i was referring to what investors need to look at today. and i think that's really what

we need to focus on. but regarding this issue, all the facts aren't out yet. >> sure. >> i read that the truck driver said the guy was watching a movie. now, if you think you can watch a movie with the autonomous and drive down a highway, that's not what's available today. you know, what's available today is an assist to the technology. so this is still one of the most exciting companies i think on the planet today. and we are just as optimistic today as we were four years ago when we first bought it. and i think the reason is 80 million cars globally are sold. that's a $2 trillion market. and this could be the platform for the new energy -- >> it could be, rob, it's brian. let me jump in for a second. >> sure. >> i hear what you're aisaying about the wreck. it's tragic. when we look at the viability of tesla as massive going forward, two things stick out. number one, lack of lithium. you need lithium to power these batteries.

lithium is hard to find, it's expensive and in limited supply. i know they've locked up a bunch of supply. that's a huge concern. talk about that. and also to your point 80 million cars, gm, ford, they haven't done electric well yet, but tesla has a lot of well-funded, well-capitalized and very experienced competitors. >> the lithium my understanding is that's not going to be an issue. they're going to have to work to get the material, but that's not an issue. on your second point and regarding the company's overall strategy on how they're going to produce these cars and those kinds of things, they've actually done pretty well and hit probably 80% of their goals that they've hit. now, this goal of 500,000 is fairly audacious. i think it's very bold. i'm not expecting to hit 500. i think they could hit 400,000 potentially. and at that level the company could actually produce $28 billion in revenue.

this company has a $33 billion market cap today. so i think the stock has tremendous upside from here. >> right. >> and i'm not too concerned. another factor, and i've never heard anybody say it on any of your programs is the efficiency of the electric motor versus the combustion engine. the combustion engine loses 80% of the energy when it's producing its movement for the car. the electric engine only loses 20%, so it's four times more efficient. i think that's the reason this is going to be a success. and i think tesla has a three-year lead on most of the competitors. most of the other viable vehicles out there today aren't anywhere near tesla. >> right. okay. >> so we continue to be very optimistic on the company. >> rob, thanks for your time. >> great, thank you. >> cabot wealth management. speaking of hysteria, the hysteria over the pokemon go app is continuing, but there are also some warnings. julia boorstin joins us now from los angeles with a little friend.

julia. >> hello, tyler. players are hooked on the fact that pokemon go makes them feel like these characters are in the world around them. in fact, they are so distracted by playing this game that the new york dmv today issued a warning reminding people not to play pokemon go and drive. and the holocaust museum in washington, d.c. just had to ask visitors to stop playing pokemon go. plus, there are reports of pokemon injuries as players are distracted by the game. plus, pokemon robberies of people lured to isolated locations while playing the game. now, nintendo shares continue to gain on this news of 55% in tokyo trading over the last week adding $9.8 billion to nintendo's market cap. pokemon go has been downloaded more than 8 million times to u.s., ios and android devices, that's according to data firm sensor tower. $1.6 million daily revenue from

ios devices in the u.s. alone. nintendo is sharing that revenue with developer niantic with pokemon company of which nintendo owns a third, as well as with the google play and apple app store. both take 30% of their revenue. this app's surprise popularity could help grow mobile gaming. right now mobile gaming is estimated to bring in $37 billion in global revenue according to a company called nuzu. while the game is coming to europe and asia, chinese audiences are stuck playing the copy cats to play pokemon go you need a google account which is inaccessible without circumventing china's great fire wall. there was an outcry about that google law, again, ios users were told they were givering the game full access to all of their information. niantic says it's fixing that and it was just ann error. >> i have no idea what you said because i've been so distracted

by that thing. >> little floppy green thing. >> were people playing pokemon go in the holocaust museum? >> they were. seems like people are playing pokemon go everywhere. central park crowds of people staring at their phones. go pretty much anywhere. >> rude. >> in the last four or five days people have become obsessed. >> i've been gone for a week, a week ago friday, we've never mentioned -- i've never mentioned pokemon in ten years. >> no, i haven't either. >> i come back, it's all -- what the hell happened last week? what were you guys doing? what did you do, tyler? >> i did nothing. >> what is pokemon go? >> i remember pokemon -- >> did you listen to julia? >> i did. that's not a real turtle, is it? >> no. >> that was a joke. >> it's in the game. >> good stuff, julia. >> there we go. >> i know you love the fact that the dmv helpfully reminds us don't play video games while driving. thanks, dmv. >> thanks, julia. back to reality. back to the lab again.

the dow and the s&p 500 hitting all-time highs, but there are still stocks analysts think have more upside. it is called street talk, it's real, it's not virtual. we're going to do it coming up after the break.

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highs for the dow and s&p, let's show you what's leading the dow higher. goldman sachs, dupont, nike, materials, industrials, metals, energy doing well. financials, the defensive stocks are underperforming throughout the day here. little change in the leadership. the bulls would like that. we will be right back. "power lunch" is back in two. you both have a

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i'm sharon epperson and here's your cnbc news update at this hour. defense secretary ash carter holding a joint news conference with afghan president afghani. >> we discuss president obama's recent decision to create additional flexibility to the u.s. commander here in afghanistan. flexibility that will maximize the use and effectiveness of our forces that are already here in afghanistan to support afghan forces. >> theresa may left her final cabinet meeting as interior minister a day before moving into 10 downing street as brita britain's next prime minister. she waved before getting into an awaiting car. and she will become britain's second female prime minister

after margaret thatcher. general mills recalling cake mix because they used flour that was recalled earlier due to potential e. coli contamination. no illnesses have been reported-to-date in connection with the cake mix. and a moment of silence called at a house hearing on capitol hill. house judiciary committee chairman bob good lat called for an end saying we must all come together as americans. that's the cnbc news update at this hour. back to you, michelle. >> thank you, sharon. energy stocks are higher because oil is higher. it's closing for the day. it's up big. let's get to jackie deangelis at the nymex. >> good afternoon, michelle, that's right. about a $2 pop in oil prices today. roughly a 5% move. four reasons here oil moved higher today, the first would be the slightly weaker dollar we were watching. and also this strong equity session that we're seeing in stocks in record territories. meantime, opec was out with its

monthly report forecasting tighter supplies in the back half of the year. and finally, we had a two-month low yesterday. if you're trading the range it was certainly time to buy the dip. back to you. >> got it. thank you, jackie. all right. as we head into the final 90 minutes of trading let's get to bob pisani on the floor of the new york stock exchange. bob. >> steady as she goes. take a look at our two major indexes at new highs. remember dow 18,312 is what we need for the closing high. s&p also at new highs as well. number of sector indices essentially near that, let's not quibble about a few points. s&p mid cap and small cap. this is a very broad rally, small, mid, large caps all moving close to new highs right now. meantime what i'm calling the fade trade goipg on. consumer names down today along with the gold names. reynolds, kraft, walmart, smuckers, all big leadership groups just a few days ago now moving to the downside.

same with the other group, utilities and telecom, so your con ed and southerns that were market leaders and verizon and at&t, 52-week highs, they're on the negative list right now. so dow higher, crude up, gold down. the dollar's behaving, the 10-year is just up fractionally. just about goldilocks for stocks, at least for today. back to you. bob pisani, thank you very much. time for our daily segment trading nation, traders do trade better together. let's keep it very macro. since the s&p 500 and the dow are at record highs, mkm partners, eddie, i'm not going to discourage or dissuade our coverage, but i do need to remind our viewers that 5100 or whatever on the nasdaq back in 2000 is 7,000 today adjusted for inflation. that said, do you think we'll make a nominal new high on the nasdaq any time soon?

>> i think there's a very good chance that we'll get that pretty soon. the nasdaq has really done well lately. we're up -- this will be the ninth time in ten sessions that the nasdaq closes higher. as you've mentioned other indexes have gotten new highs and the nasdaq is still trailing. but remember at one point this year the nasdaq was down 15% for the year. it's made all that up and it's green now. the thing is even all these years later still the nasdaq is overwhelmingly a large cap tech index. the tech weighting in the nasdaq composite is about 40%, that's double the s&p 500. so really what we're going to see is as earnings season rolls out for the next few weeks, if those names like google and microsoft and apple, if they have good earnings, i don't think there will be any problem of the nasdaq bursting through to a new high. >> great point, eddie,

microsoft, amazon and google in the nasdaq 100 are 30% of the 100 stocks. so you're really almost betting on just four names in that index. jonathan, let's strip the emotion out of it. let's look at the technicals here. do you see a new nasdaq high-techically any time soon? >> i think that's a pretty good bet as we head in towards the back half of this year. if we look at friday's action, we had the best breadth on the nasdaq composite that we've seen since august 2011. so there's pretty good odds that nasdaq will follow the s&p and the dow to those new highs. that's kind of looking at the rest of the year. very short term it's probably not the best entry point to jump in here. as eddie said we've been up nine of the last ten days. it's the best ten-day return for the nasdaq since the 2011 lows. that really puts the nasdaq at this down trend or resistance line from the 2015 highs. so big rally into resistance. let's let it consolidate here a little bit, let it kind of

settle down from all of the hype of the new highs and then look for a better entry point. longer term look at going back to the highs we mentioned from 2000, really the last two years have been a consolidation under those highs. it's coming to terms with that 5100 area. ultimately if we were to take out those 2000 highs that would be a structural breakout similar to what the s&p saw in 2013. and that would be very bullish. we think it probably follows. >> pretty good bet technically eddie feels the same well. although all those acronym companies, tyler, eddie and jonathan, thank you very much. for more trading nation, you can head to our website tradingnation.cnbc.com. the dow industrials as we noted hitting a new high today for the first time since last may, but which dow stock has performed the worst since the last new high? going to bring you a higher love when we come back.

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all right, folks, welcome back. the dow and s&p 500 have hit all-time highs today. the nasdaq not quite there, not just yet. bertha coombs live at the nasdaq. hi, ber tha. >> yeah, that said we are seeing some outperformance here at the nasdaq. the nasdaq composite on pace to close above 5,000 for the first time this year. still about 4% away from its all-time high a year ago. and as you take a look at a round trip here, the leadership has shifted a bit. on the way back to this level facebook and amazon are the only two of the stocks up and amazon is the only one at new highs, although it has come off of that here intraday. microsoft, which had also rallied early in the year and provided some upside, still down about 4% year-to-date, although it is strong today.

and let's not even talk about apple. as far as the standouts today, sage pharma, biotech pretty strong today. sage on positive data for a postpartum depression drug. still in bear territory, beaten down biotechs best gainer so far this month, sector up more than 6%. and nasdaq biggest driver hardware maker seagate surging after announcing job cuts and upping forecast. giving a boost to hardware and storage players. the philadelphia semiconductor index though, the real standout, it's at a new 52-week high today with a number of chip names like nvidia continuing to be at historic levels. but look who's sneaking in that 52-week high list, cisco. so we're starting to see a little bit more, brian, a little more variety. >> all right, bertha at the nasdaq. bertha coombs, thank you. it is time for street talk, our daily dive into key wall street calls of the day. >> we haven't done this in so long. >> i'll see if i can remember. >> i'll see if i can remember how to roll my eyes.

>> stock one, cognizant technology solutions, ticker ctsh. suntrust cutting the stock from buy to neutral. a poll they looked at showed weaker pricing especially in the mid to high end segment of i.t. services, also concerns about currency impact and potentially lower uk europe spend ie brexit fears and analyst adding headline risk on immigration ahead of the election, cuts estimates says stock upside is limited. by the way it's been limited for a year and a half. the stock has been stuck in the mid to high 50s for about 18 months. >> second stock we're watching, oracle, bmo upgrading. >> how's this? is that a good eye roll? >> you're terrible at it. i'm very, very practiced at it. bmo's upgrading oracle to outperform from market perform with $2 increase to the price target bmo thinks will beat estimates and generate growth in operating income which had been on the decline. also bmo thinks oracle will

continue to be aggressive with total shareholder capital allocation. and won't do any big deals. >> again, another stock that, you know, is at $41, had a nice run off lows a year and a half ago, but it's been at 41 for most of this year. so oracle, and go back to two years. >> it's true. >> maybe we do a segment, stuck stocks. you're welcome. stock number three, bb & t capital markets love bungy. a $75 target. notes how the soybean producer, that's their primary producer, hurting demand especially in brazil, but she believes the cycle has bottom ed earlier this year. says shares don't accurately discount the earnings improvement she sees later this year into next year. that $75 target is about 23% upside. >> we don't often talk about that. it's a good one.

this is one you like to talk about polaris and drive stuff. raymond james downgrading from market perform to strong buy retail sales in the second quarter appear to be softer than expected with disappointing trends in the company's primary offroad vehicle segment. polaris did provide update in june and cited challenging business conditions but raymond james points out the company has faced several transitory headwinds recently including weak demand in the oil and ag markets, adverse weather and product recalls. >> scott wein, he's the ceo, a friend of the show. next time he's on i'm going to ask him do you see price caps. they're getting to be $25,000. >> that's expensive. >> i'm not kidding for an offroad buggy. they're cool and fast, but i wonder if there's a price point and people going in saying that's a car. >> basically, absolutely. >> some of the four-seaters you can go $25,000 on it easy. there you go. so we'll ask scott next time

he's on. all right, under the radar stock of the day, pinnacle financial partners, nashville based regional bank with market cap just over $2 billion. piper jaffray upgrading overweight says the company has been doing a lot of aggressive hiring particularly of veteran bankers and thinks that could drive growth. but they've been hiring a lot of mid market investment bankers away from companies like suntrust robinson humphrey, they specifically named that. they believe pinnacle should gain share from that and like the integration of recent deal. target is $60 which implies about 15% upside. the stock has a big move probably on that upgrade today. >> and also just general lift in the financial sector across the board. speaking of general electric, let's look at where the markets stand as we are just about up record highs. dow up 138 points, good for a gain of 0.75% hitting all-time highs i mentioned today. dupont, goldman sachs, nike leading the way. but which of these 30 stocks is the worst performer since the dow last made record highs in may of 2015?

>> i.t.t. >> i rolled my eyes. we'll have that answer next on "power lunch."

welcome back to "power lunch." well, the dow and s&p are hitting record highs today. apple is the worst performing

stock on the dow since the last all-time high on the dow on may 19th of last year. so where does apple go from here? colin gillis, jason ware apple shareholder. guys, great to have you with us. colin, the stock hasn't done anything, but it does have levers and does have the 7 coming out. shouldn't those be catalysts? >> actually, if you go back and look at peak tim cook, which was in february of 2015, we're down 25%. this is a company that's lost over $250 billion of market cap. and if you have to ask yourself are they positioned to gain that $250 billion back or to keep sliding, right now it looks like they're positioning to keep sliding. >> seems that the iphone 7 is going to be a bust, that it's not going to have any new products coming down in the pipeline. and that it won't have more capital allocation for shareholders. >> so, you know, if you think about what's happening in the

dynamics for apple, you've had the ipad revenue decline nine consecutive quarters. you've had the iphone revenue now likely to decline three consecutive quarters. the smartphone dynamics are slowing dynamics are slowing down. they haven't done anything except for incremental improvements, and that's finally call up to them. >> you're near-term cautious, but long-term bullish i think a lot of investors are in your camp at this point, but in terms of long-term bullish, is that predicated on the notion or belief that apple will have a game-changing product that will essentially replace decline in revenues we're seeing right now in the iphone? >> it's predicated on the fact that apple is a good company with good products, and apple has continued to innovate over the past many years. they have a lot of brand equity, a new iphone lineup coming out at the end of this year.

we'll probably see another relaunch in a more revolutionary relaunch next year, and the stock is extremely cheap, and everybody is bearish on it. when you base it on those fundamental factors, we don't they think need to reinvented wheel or have a big hot category that something is thinking about in order for this stock to have good returns. over the shorter run, we've been cautious. we've been talking about near-term realistic after fantastic 2015 on the back of iphone 6. we'll have a doughnut hole here, it continues for a while. this quarter will not be great, but we're looking at it further as owners of the business and we like what we see. the call mentioned, you know, started the segment by talking about how it's been the worst-performing dow stock, but context matters. for mid 2013 until mid 2015, the stock went from 55 to 132. so there was a big price run-up on the back of what was a big change with the largest screen

iphone 6. now we're having some giveback. that's to be expected until we get to the next launching pad for the company. >> we have to leave it there. thanks for your thoughts. to see right in our core territory, dow and s&p 500 hiding new intraday all-time highs. let's bring in two nyse traders. a peerer, i would rather talk about the prospects of the tennessee volunteers this fall, but i'll ask about stocks in that. tell me whether the market is vulnerable. that feels to me like the next stem bling point for stocks, if there is one. >> i do think there's a potential for that. what i'm going to say is i don't think we're going to see it. i think that, you know, most companies last quarter, you know, reached out, basically

said this quarter is going to be nothing to really write home about, and i think that that's going to be an understatement. i do think the earnings will start to get better. to me i don't think it's going to happen. i think it potentially could happen. there could be any sort of thing, like brexit, for example. >> sure. >> you're at a very, very high level, the pes are very high. ing in that's significant could definitely affect the market, but i don't see any major company coming in with lighter than expected earnings and really knock anything out of the market. it might be a small move. >> let me get jonathan to react to that. it feels lie the fed is out of the game. brek able has been dealt with. what's the next potential stumbling block the expectations of outlook.

some of the conference calls t. was the oil bouncing off the lows that we sawics months ago. we do have brexit. we do have conversationses and issues with china. all these put together are still on our radar screen. it seems we're in a bit of a vacuum where no one is focusing on the issues that were actually here a few months ago and are still here. >> when i said the fed is out of the game, i meant for this july meeting. i don't think anybody will do anything in july. peter, great to see you, jonathan, same with you. the sizzling stocks to get you through this hot summer, next.

if for some reason you are just joining us, shake on you, but if you are, you should know this. the dow and s&p hitting all-time highs, nasdaq closing in, but not quite at that 5132. a big part of the story may be oil, closing up 4.6%. that, my friends, it's best one-day gain since all the way back in april. as the bigger martz hit report highs, what sectors should you be looking at that may get hot in the summertime? larneden dowdy is counting down the top five. yesterday was telecom, what is number four? >> we're surfing the sizzlers, and continue our list, looking

at the top five sectors in the s&p 500 during the summer over the past six over. yesterday we revealed telecom as the fifth, so what is number four? you guessed it. tech has dominated with the mast three summers. andrew from open haimer says that's thanks to a lot of fall launches. and this fall apple is expected to release the iphone 7 in september. act vision blizzard also settling up. with positive trades 83% of the sale and salesforce.com has an average return of about 6% in the past six summers. up about 280%. >> that's a lot of sizzlers. thank you, landon. jeff bezos is on the cover of "news week."

>> $40 a quarter. >> remember, "newsweek" used to be owned by the -- no longer owned by bezos. >> there was a time that kind of cover would be bad for stocks, but if a magazine cover falls in the woods, do they really hear it? i want was it really printed? >> i don't think it's the printing. the idea that a mainstream publication is call for a top. >> death of equities back in the '70s was the one on "businessweek." >> he was called man of the year back in 2000. that was close to a top. >> very close. >> if you would have bought amazon during that market top, you would be sitting pretty right now. >> you would be good. >> on its prime day. >> as far as the market --

>> up a bit today. >> what did you get me for prime day? >> we haves materials and energy the gainers. thanks good to have you with us, michelle. >> "closing bell" starts right now. >> happy prime day. hi, everybody. welcome to "closing bell." aisle kelly evans at the new york stock exchange. >> welcome back. i'm bill griffeth. the dow on track for its highest close of all time. we're going to talk about whether there are still buys opportunities at these levels. >> and we've gotten steven roach joining us to discuss that and whether it could be a red flag, plus roger altman on whether the uk vote could pose risks down the road. >> let's get to the market at all-time highs. let's get to thesi