enough for stevie cohen, it's good enough for me. >> pete. >> we were talking about biotech, something like amgen. >> that does it for us. i will see you in moments when "power lunch" begins. it begins right now. melissa, thank you very much. we will see you in just a second. welcome everybody to "power lunch." i'm tyler mathisen. here is what it is on the menu today. shares of mylan under pressure as to why the maker of the lifesaver epipen drug jacked up prices close to 500%. and under fire, a new trove of e-mails raising questions about hillary clinton and the state department's potentially close ties to the clinton foundation. and this labor day could be the deadliest in years on the highways, the reasons why in a special report from our phil lebeau. "power lunch" starts right now.

i'm brian sullivan. here's what else is happening at this hour. we are keeping a close eye on tesla shares. why? because elon musk tweeting, the company will make some kind of a big announcement within the next couple of hours. kwou will hear it the moment it happens. plus, the president just arriving in baton rouge. he will be touring flood-ravaged neighborhoods and is expected to make a statement later on this hour. and oil jumping on speculation that iran may be willing to overlook its feud with saudi arabia and actually back a production freeze from opec. crude oil now up more than 1%, michelle. brian, i am michelle caruso-cabrera. three hours left in the trading session. stocks are pulling off their session highs at this hour. dow was up 102 points earlier in the day, while the nasdaq managed to hit a new intraday high. s&p 500 came close too, still all three major averages are still in the green, 14, 19, five points roughly. let's get a pulse check from bob pisani on the floor of the new york stock exchange. why the pullback?

>> oil is really not doing as much as they wanted to but right now 3-to-1 advancing to declining stocks led by retail and home builders. why not for retail 52-week high on best buy comp store sales up 0.8%. wow. that was better than expected. look at that number up 18%. look at these numbers here, appliances sales up 8%. electronics up 4%. remember, walmart and target both had disappointing electronics numbers. best buy's actually gaining market share. it's sort of the last man standing hypothesis. elsewhere, the home builders up on stronger than expected new home sales numbers. and great report from toll brothers up 8%, others up 2, 3, 4, 5%. revenues up 25%, company is expanding in california, not just a northeast company. orders up 18% and deposits, those are not contracts just saying we'd like to do something maybe, they're up 23%. great numbers overall. another important point about toll brothers, they're a big buyback company. last quarter 2% of the shares

bought back, last nine months 7%. that's a lot. they're buyback monsters. look at home builder etf, new high for the year. >> thanks, bob. good way to highlight that in fact we're going to be minutes away from an interview with the toll brothers ceo doug yearley here on "power lunch" ncht mylan shares down over 6% since we reported the company jacked up the price of its life saving epipen allergy drug. now connecticut senator is among a number of lawmakers demanding answers writing a letter to the ceo saying, quote, i was both shocked and dismayed to discover that the price of your product, which has not been improved upon in any obvious or significant way has skyrocketed by 480% since 2009. joining us first on "power lunch" is senator blumenthal. senator, thanks so much for being here. we appreciate it. >> thank you for having me. great to be with you.

>> as you can imagine, wall street has weighed in on the scrutiny that mylan is now receiving, and it seems like the common conclusion is that you guys can jawbone, but based on regulatory -- the regulatory process, you really can't do much to force mylan to cut its drug. is this all part of just trying to jawbone them into saying, you know what, we'll cut the drug a little bit? >> moral pressure is important, and we're demanding that this company do the right thing. clearly this price gouging, there's no other term for it, is morally bankrupt. and it's driving families to fail to afford this drug and school board budgets to break. so there is an immediate need. not just for answers but for action. that's why i think the ftc should investigate and take appropriate action using all the tools that it has and the judiciary and particularly the antitrust subcommittee where i

sit should also be investigated. so i hope more than just jawboning,lis e lit sitting fac these prices now so high they've been raised 600, 700%. and that's an open invitation to competition. if it doesn't happen, more broadly speaking -- >> in terms of getting competition in the market, a lot of people will point out that it's the fda approval process that's actually slow and hampering other generic versions from the epipen from entering the market, teva pharmaceuticals for one has a competing version stuck in fda process. it's pushed out to 2017. are you also at the same time going down that path and saying, you know what, the fda approval process also needs to be fixed here because there are other factors involved with these booming drug prices.

>> these prices -- there's an opening for competition. and the fda has an obligation to find that these products are safe and effective. there is that oversight function, but it should be done more quickly and more speedily. and that's one of the objectivities of some of the legislation that i've introduced, a number of pieces of legislation over the years to expedite the approval of these kinds of essential medicines. for now and probably the next year, maybe two years, consumers and school boards will have no choice because this medicine is vital to dealing with allergic reactions that require preparation. you can't just look around for it when it's needed. you have to have it at the ready. >> sir, senator, to melissa's point, there's already two generics available. they've been on the market for a

long time. i see writing these very tough letters to the ceo of mylan, but i don't hear near the strident disapproval for the fda. yeah, you say you're working on it, but the fda has by default given mylan a monopoly at this point. you're right, a high price should draw a commodity to market. other suppliers should be there. but they've been stopped. shouldn't you be more indignant with the fda? >> the company had a near monopoly, 85% of the market, even before its nearest competitor was found to have safety problems. but those safety problems have to be addressed. products have to be safe and effective before they enter the market. and here's one more point that i think maybe you should consider, mylan is making, according to some reports i've seen, $1.2 billion from this product. that provides them with an opportunity, again, to do the

right thing on their own voluntarily. but in the meantime the ftc and the judiciary committee of the united states senate should begin investigations. >> senator blumenthal, listen, not many mylan off the hook, but according to reuters since 2011 four of the top ten drugs in america have seen more than a doubling in price since 2011. elijah cummings of the house basically laid out almost every major pharmaceutical company had had what he called a, quote, significant price increase on a drug over the past 12 months. the fda received an extra billion, one billion extra, in funding last year. and yet the approval time for generics went from 30 months to 48 months. they got a billion more, and approval times slowed by 50%. what the heck is going on at the fda? >> good question. and a number of my colleagues and i are asking that question. what can be done at the fda to make it work more effectively.

but recognize as well that the trend you've described is a price trend that maybe calls for stronger regulation, especially when patents are involved. >> what if this drug were taken as our jake novak points out on cnbc.com today take an off prescription status and made an over-the-counter drug. would that bring competitors to market quicker and lower the price significantly? >> any options and actions that enable more effective competition certainly would be welcome as they would be in any monopolistic situation. but the fda also has a responsibility for safety and effectiveness. and we don't want our pharmaceutical drug market to turn to the wild west in the kind of marketing and pitches that are done already, for example, in certain areas where

off label uses are involved. and i think that there is a long-term responsibility here that requires a major review of the fda, but also for regulatory practices. >> senator, i'm sure you're aware, of course, that americans pay more for drugs than nearly anywhere else in the world. that's due in large part because many advanced industrial nations insist on price controls in their countries. and so therefore we americans foot the r & d bill for the entire world. it's one thing for poor countries to get cheap drugs, but why are advanced economies in western europe, why do german citizens, why aren't they paying their fair share for r & d so that the whole world can have new and better drugs down the road? why aren't you guys using what you have to go to the wto and everything else instead of burdening americans with prices? >> well, that's a task for the next administration, i'm sure. and also consideration of

importing those lower priced drugs. >> senator, back to mylan and the drug industry here. how far do you -- how far do you and your senator colleagues go? if i'm a drug company and i've got in my portfolio drugs which i've increased the price on 400, 500, same sort of order of magnitude as mylan has, should i be concerned that you're going to be coming down to me writing me letters and shining the bright light of scrutiny on me and my drug portfolio? >> if you've increased your prices by 700%, and you have a monopoly and there is no apparent reason why there should be an increase in that price, this drug is off label, it's off patent, rather. and there is no improvement made in this product, there is a reason for the ftc to find more facts. and based on that fact finding

to use whatever tools it has to help lower prices, the same is true of the judiciary committee. we should be finding facts here and making sure that the american public knows those facts. >> senator, thank you so much for joining us. senator richard blumenthal of connecticut. >> thank you. >> by the way, mylan telling cnbc in part, with changing in the health care insurance landscape an increasing number of people and families are enrolled in high deductible health plans and deductible amounts continue to rise, this shift has presented new challenges for consumers and they are bearing more of the cost. got a news alert in the bond market right now. two-year notes up for auction. rick santelli checking the action at the cme. what's the demand like, rick? >> i'll tell you, michelle, i was surprised. i gave the auction a b, and i was probably conservative there. 26 billion kicks off 88 billion in supply this week with the aforementioned two-year note. the yield at the dutch auction

0.76, arguably closer to a basis point lower than yield higher price that's a good thing if you're on the sell side of the equation. so there's where the b comes in. 2.83 bid-to-cover, basically $2.83 chasing every dollar's worth of securities available. pretty much that's spot-on ten-auction average as is 45.8 for indirects. the one area outside of pricing that did better were directs, a whopping 25.2 but these numbers have been rather large for a two-year. of course tomorrow fives followed by sevens. we'll see if ninvestors stay ho on a market that's been rather sideways. back to you. >> rick, thank you very much. new home sales rising 12% last month. highest level there in nearly nine years. at the same time, luxury home builder toll brothers reporting earnings this morning that were in line. the stock surging about 9% at this hour. here now first on cnbc doug y r

yearley, ceo of toll brothers. mr. yearley, welcome. thank you for joining us. numbers outstanding with earnings rising significantly over a year ago to 61 cents a share from 36, a 23% rise in quarterly revenue i think is the number i'm seeing. so why did the market for new homes take off so markedly? what's behind it? >> i think it confirms what we've shown this quarter. we had 18% order growth. and remember we're in the luxury end of the business, which some believe out of favor we don't buy it, we haven't seen it, we've had a terrific brand, we've had great demand nationwide. every region for us was up. we have 23% increase in deposits for the first three weeks of august, which is the beginning of our fourth quarter. so while those numbers of 12% might have shocked the street, they didn't shock us.

our business is really, really good. >> what do you think it says about the state of the u.s. economy, the state of the american home buyer and consumer that they're out there buying brand new homes and buying at the luxury end, which you service? >> well, you know, i think what's clearly happened is the pent up demand is continuing to build. this country produced 1.5 million new homes a year for decades. and over the last ten years we've been producing 500,000, 600,000, 700,000. and there's so much pent up demand from people that have not bought. right now with interest rates being low, they have more equity in their existing homes. that's been proven out by statistics. and they're ready to move up. and when they move up, they think of us as we're the best luxury brand in the country. so we're very happy with our business. we love our locations. and, like i said, our business is good in all of our regions.

>> revenue from tolls city living division, which is the apartments in major cities, doug, that decreased 13%. and the average unit did jump. i'm just wondering what's your call on what's going on with apartments? have we reached peak apartment now? >> well, we have two businesses, one is rental apartments, which is not part of city living. we have about 8,000 apartments under development throughout the northeast, mid-atlantic and expanding nationwide. our city living business is a for sale condo business primarily in new york city. it's also in philadelphia and washington, d.c. and the new york market is certainly not what it was a few years ago, but we are happy with it. we are at about 2,000 to $2,500 per square foot. we're not in the uber expensive, uber rich buildings. and we have a number of buildings that will be delivering shortly as we get closer to delivery more and more people come out because of the certainty of their closing date.

and so right now, you know, new york city is only 4% of our revenue. it's a very small part of our revenue. it is the most profitable division for us, but we proved this quarter with the nationwide success we've had and the gross margin non-city living in the suburbs being higher than a year ago that our mix, our geographic mix, our diversity of product is proving to be very successful. >> doug, you're in a lot of so-called -- >> -- i'm happy with new york -- >> sorry about that. i was getting the hook. you're in a lot of so-called active adult communities, 55 and up. >> right. >> a lot of these places, some near my house, start at $600,000 and $700,000. how much has the stock market's run the last five years boosted your business as the boomers have more cash to retire? >> well, there's no question that we cater to the more affluent boomer who wants to move down. they want to chase the sun.

so we're now building active adult in las vegas, in reno, in denver, in addition to having a huge presence in the northeast and the mid atlantic. >> uh-huh. >> our average price in the active adult is the mid fours, up to probably 700, 750. so it's a luxury active adult. but for many older couples who have a lot of equity in their bigger home in the suburbs, it's a move down. they're paying all cash. and it's something they can certainly afford. we're very proud of those communities we built. >> final question, real quick answer, please, are houses going to get smaller? is that what you're seeing? >> no. houses are not going to get smaller. there's a mix issue whereas more and more boomers buy houses, they may be smaller. >> because they're downsizing. >> because they don't need all the square footage, but the move-up buyer in this country -- >> wants big. >> still wants all the bells and whistles and the big home. >> right. doug, thank you very much. doug yearley, toll brothers.

>> got repair and overhead and you want small again. >> big suvs, that's one. he coined the term 1%. he shed a light on income inequality, but now he's out with a new book on why the euro is a massive failure. that's not all we'll talk about with nobel peace prize winning economist joseph stiglitz. >> you got my attention. i didn't know he won a peace prize. >> and america's roads becoming more deadly. what's behind the surge in highway fatalities? that's next.

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is the euro currency and thus maybe the eurozone itself doomed for economic failure? nobel prize winner joseph stiglitz argues that in his new book. he joins us now. the euro, how a common currency threatens the future of europe. we're happy to have the columbia professor on with us. professor stiglitz, thank you very much for joining us. a lot to get through. let's talk about the book first though, what is the primary one or two reasons you believe the euro currency ultimately will not survive? >> well, it could survive, the problem is when they constructed the euro, they took away two of the most important mechanisms of ingestment when a country hits a shock or when there's a disparity between the growth and productivity. they took away the exchange rate

mechanism, they took away the interest rate, and then instead of putting something in the place they tied the hands of europe further by restricting the ability to use fiscal policy. and then they told the central bank only focus on or focus mainly on inflation. the combination of this structure to the eurozone doomed the euro, i think, to failure. so if they change those structure, if they put in place a common banking union, if they put in place a way of mutualization of debt, like the euro bond, if they change the mandate of the ecb, the european central bank, these are not big, i think, changes economically, but they are bigger than the politics seem to allow for today. >> yeah. >> and the result of that is

they don't make those changes. it's really hard to see how the single currency will survive. >> i've called in the past the jan brady economy, professor, because it feels like they're trying to live in the middle. they want sovereignty, but they don't want a common bond. they want a common currency, but they don't really want to get along on a lot of currency issues. are they trying to split the difference too much? >> precisely. they're trying to get a halfway house. that's one of the messages of the book. but it's a halfway house that i think is unsustainable. so they're either going to have to move towards, you know, more europe, which is putting in these additional institutions, nowhere near the kind of nation that we have in the united states where we have a common currency over 50 states. you don't have to go that far, but they have to go much farther than they have. or they have to go to the other way less integration, which

means some form of an amicable divorce, perhaps breaking up into two or three regions, some kind of flexible euro system that i talk about. but their current halfway house is not sustainable. and the consequence of these, you know, really high unemployment in some of the countries, depression, worse than the great depression, is that i think eventually voters are going to get fed up and as we saw in brexit when the voters get angry enough, there's a response and the elites don't always like the consequences. >> i don't want to get too much into the weeds, but something you mentioned earlier intrigued me. and if you could, bear with me and sort of talk freshman economics language if you wouldn't mind, you said that one of the problems with the euro is that it takes away individual countries' ability to use exchange rates in times of need or stress. how would you do that in the

context of a common currency? in other words, if italy doesn't have the lira and greece doesn't have the drachma and france doesn't have the franc to maneuver, how would you bring back that kind of ability? >> well, the point you make is that in countries where there is exchange rate freedom, when you had negative shock, something that really hurts your exports, you lower your exchange rate and that boosts exports. the single currency took that away. you have to have adjustment in one way or another. what the eurozone is trying to do is to have the adjustment through a decrease in the wages in prices in the poor countries, in the poorly performing countries.

that's really hard. they could also do it by increase in wages and prices in the well performing countries, germany, but germany says no. so that's why i think that unless they put in place the kinds of institutions we have in the united states that do allow a single currency to work, they're going to face the real threat of some form of a breakup. now, it's not going to be easy that kind of a breakup, but we've seen countries move off of a peg. we saw it in argentina. >> sure. no, the issues we have talked about quite a lot here, dr. stiglitz. we really appreciate it. we've been watching their failure to come together on so many issues for a long time. good luck with the book. thank you for seeing you again here on cnbc. >> thank you. >> dr. joseph stiglitz. tesla making big news within the next 90 minutes. what to watch for when "power lunch" returns.

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hi everybody. welcome back to "power lunch." i'm sue herera. and here's your cnbc news update at this hour. vice president biden after meeting with three baltic heads of state in latvia reaffirmed america's commitment to nato nations saying one attack on one ally is an attack on them all. also in the news today --

>> make absolutely clear to all the people in the baltic states, we have pledged our sacred honor. we mean what we say. we have never reneged on any commitment we've ever made. also in the news today, syria releasing video showing attacks on positions held by rebel fighters in aleppo. plumes of smoke seen billowing out of college buildings in that city where the rebels were positioned. jerry sandusky arriving at court for the third and final day of his argument to overturn his 2012 conviction of child sex abuse charges. he is serving 30 to 60 years in prison. he hopes the judge will dismiss some of those charges and grant him a new trial. and former usc and los angeles raiders quarterback arrested on friday after being found naked with marijuana in a stranger's backyard in southern california. he had -- has had repeated run-ins with the law over drugs since being released from the raiders back in 1993.

that's the news update this hour. "power lunch" is back in two minutes.

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welcome back to "power lunch." i'm seema mody. check out the price action in the energy sector. oil stocks getting a lift after

crude's reversal earlier today on a headline that iran may help in stabilizing the oil market through coordinated action. top performing energy stocks today include chesapeake energy, marathon oil, southwestern energy, range resources, all up about 5% on the day. tyler. seema, thank you. to the bond market we go. and rick santelli tracking the action at the cme. hi, rick. >> hi, tyler. a two-day of twos tells you everything you need to know. rates were already down in a tight range and we moved it pretty well. solid auction. if you look at a two-day of 30s, you can see yields came down. last chart, chart of 2016 high yield for the year 103, low yield 155, average midpoint 78. back to you, melissa lee. thank you very much, rick santelli. let's get to politics now. thousands of newly uncovered e-mails from hillary clinton's time at the state the president shedding light on her

relationship with donors, also raising questions about the state department's close ties to the clinton foundation. eamon javers live in washington with the latest. eamon. >> hi, melissa. another day, another drip in this hillary clinton e-mail scandal. new news here just within the past hour and a half or so, but before we get to that bring you up to speed on hillary clinton's tough monday on this sprawling e-mail story starting with judicial watch which released 725 pages of state department documents just yesterday. citizens united another conservative group itself released 173 pages of cheryl mills, a key clinton aide, her call logs. those detail all the messages incoming and outgoing from her phone. also federal judge news breaking ordered state department to speed up the e-mail release before september. so in theory we should be getting a lot more e-mails from the state department before the election. and the fbi, news breaking that it's discovered 15,000 new e-mails that may not have been part of the tranche that hillary clinton herself turned over. all of this creating the

impression that hillary clinton land there's some questions about where the clinton foundation stopped and the clinton state department began. take a look at this e-mail that was released by judicial watch yesterday. it's from doug band of the clinton foundation to hum huma abedin. says crown prince of bahrain in tomorrow to friday asking to see her. good friend of ours. of course, he was a donor to the clinton charitable initiatives. and so the question there is at what point are these donors getting special consideration over at the state department. brian fallon, a clinton spokesperson, tweeting yesterday in defense of all this saying the clinton foundation is a charity that helps people around the world. it's already announced major steps it will take if clinton wins. and those include not taking foreign donations, and also not taking corporate donations. and i should say that just within the past hour and a half or so we saw new data now from citizens united. they released 378 pages of new clinton e-mails just within the

past hour and a half, guys. >> all right. eamon, thanks. every day drip, drip. >> yep. keeps coming. new warning from the state department on americans traveling to iran. just yesterday the state department said, quote, iranian authorities continue to unjustly detain and imprison u.s. citizens, particularly iranian americans on charges including espionage and posing a threat to national security. joining us is jay solomon, foreign affairs correspondent with "the wall street journal," also author of the the new book "the iran wars." thank you for being here. >> thanks for having me. appreciate it. >> not sure you can talk a lot about the state department yesterday in particular, but i think a lot of people wondering, wait a minute, we just did a deal with iran, didn't we? weren't relations supposed to be improving? are they not? >> i mean, that's the big concern about what's going on with iran right now. there've been -- there was a prisoner exchange back in january where the americans basically got five americans back from iran in exchange for

seven iranian nationals in u.s. prisons. and this was supposed to be sort of the beginning of this new relationship in the wake of the nuclear deal. and there was so much optimism at the time. but since then the iranians have arrested -- that we know of, at least three more iranian americans. one is a business executive and his 80-year-old father. they've also arrested a number of european canadian dual nationals. so there's a real fear. i think that's clear in the state department warning that, you know, more could be arrested if they go back there. >> uh-huh. so explain this to me, jay. you highlighted, you said there was so much optimism when this deal was done. that optimism turned out to be misplaced. were we naive on the part of the state department and the united states? what went wrong? >> in this book we get deeply into the negotiations. and the hope, you know.

on the one hand it was very much focused on the idea of a nuclear agreement that would restrain iran's nuclear program for 10 to 15 years in exchange for the lifting of sanctions and that this would give sort of a window of opportunity to establish better relations with this theocratic regime and maybe promote some sort of moderation in the regime. the problem is in the short-term at least iran doesn't seem interested. it's still a split government where you have a supreme leaderh which the united states engaged with during these negotiations and the supreme leader and his elite military force, there's no evidence to suggest -- >> should we have not done the deal? >> i mean, there are a lot of good reasons for the deal. i mean, there was concern that there could be a conflict. there was concerns of this nuclear program breaking out in

the short-term. i think the real fear is that these sanctions getting lifted, this kind of pullback from the obama administration a lot of ways in confronting iran in the region is fueling what you're seeing, which is this nasty conflict between sunni or shia whether it's in iraq or yemen. the u.s. has usually tried to balance that and that balance seemed to be really out of wac right now. >> how do you put into this broader context of multiple arrests of westerners, iranian canadians, iranian americans, how do you put that into context of the arrangement the non-ransom ransom arrangement struck some weeks ago under which $400 million that was a ostensibly iran's money that was in exchange for or simultaneous with the release of some prisoners. does that complicate stuff? >> well, i think the fear is, and if you go back throughout the history of the u.s./iran

conflict since the revolution, which i do in this book, there really is a cycle even going back to the 1979 revolution and the seizing of 52 american hostages back then. we eventually got them back, but part was the unfreezing of iranian assets that belonged to the shah in 1979. then the contra scandal, the three american hikers basically arrested on the iran/iraq border in 2009. they were returned and money exchanged hands. i think there's a fear you're just seeing a repetition of this cycle. >> right. any insurance company they have a special phrase for that, you actually induce the behavior that you're trying to get rid of. >> it was pretty quick these four americans got released, five in january. and they seem to be reupping what they can use for leverage against the united states. >> got it. jay, great to have you on. good luck with the book. looking forward to reading it. >> thanks. appreciate having me. this labor day weekend could

be the deadliest on u.s. roads since 2009. what is behind the rise in highway fatalities? that story's next.

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confirmed, daniel you need to cool your brakes. understood, brake bias back 2 clicks. giving them the agility to have speed & precision. because no one knows & like at&t. welcome back everybody. this labor day weekend could be the deadliest on the roads since 2009. phil lebeau is live in chicago with a look at what is behind the surge in highway fatalities. phil. >> brian, i'm going to show you something that a lot of people are going to look at and they're going to say, wow, that is a huge spike in highway fatalities. look at what we've seen in the united states for the first half of the year for the last four years. this data comes to us from the national safety council. and what you're going to see is an increase in fatalities in the first half of the year of 9%, more than 19,000 people are expected to pass away in highway or traffic accidents over -- or that's how many passed away in the first half of this year. so you might be saying to

yourself, well, what's behind this? part of this is because you have an improving economy. so there are more people who are driving. whether they're going to work or whether they are just doing more driving because it's a better economy, they've got a little bit more money to spend, and you have lower gas prices. so that induces people to do a bit more driving. and finally, this is the most troubling part about all this, social media behind the wheel it is increasing especially with teen drivers. the national safety council surveyed more than 1,000 teen drivers. they found that 43% would text and drive. and 21%, one out of five teen drivers have said, you know what, i'm good with video chatting while i'm behind the wheel. stunning statistics. and i've seen it myself. i think we've all seen it where people are using their phones. it's the social media component of this, guys, that is particularly troubling. any distraction behind the wheel is not good. we're not saying that some is better than others, but the social media aspect of this that's the new part of the

equation that worries the people at the national safety council as well as regulators around the country. >> all right, phil, stick around as we bring in debra hershman. happy to have you here. as phil points out, driving is up because the economy is better, 3.3% increase in miles driven, but a 9% increase in fatalities. do you agree with phil that the really key contributing factor here is all of the distractions that people have in the cockpit of their car, whether it's their cell phone or the technology systems that are in the cars themselves? >> well, we certainly know that's a big part of it. but one of the things that we always are tracking is three big killers. distraction's one of them, but alcohol and speed are two of the other areas. we see about 30% of crashes being attributed to those two areas, alcohol and speed. when we look at alcohol, 10,000 people dying every year in

alcohol-involved crashes. and speed, we've seen a lot of states raising speed limits across the country. it's starting to catch up with us now that the economy's improving those deaths are really showing up. >> are alcohol-related deaths higher as well? or -- i mean, i'm trying to isolate the controls here. in other words, if speed is going up, that could explain it. are alcohol deaths going up as well? >> we'll have to take a look at those data that are coming in this year, but alcohol impaired crashes have stayed pretty steady at about 30% of crashes for decades. and so we're not doing better when it comes to solving this problem. but we have seen spikes in the last year and a half in most vulnerable users being effected, pedestrians, bicyclists, motorcyclists, we're seeing those numbers go up a lot. and so that's also concerning. and phil mentions teens and social media, we saw a 10% increase last year in teen deaths year over year.

>> according to distracted driver.gov, drivers in their 20s are 23% of all fatal crashes but 38% of all fatal crashes that involve distracted driving like texting. in other words, the younger you are, the more likely you are to text or something else and drive. and the more likely you are to get into a fatal wreck. but you know better than anyone that you're not going to be able to sell a car that blocks people from doing anything. how do they combat this on the auto manufacturing side? >> well, that's part of the problem, brian. because we've seen a number of manufacturers, and technology firms that have come up with either software or programs that will allow either you yourself so have your phone disengaged so it doesn't do social media or texting, or the parents can do that as they watch their child go off and drive when they're 16, 17, 18. and they can say, well, look, i know that johnny is not going to get text messages when they're behind the wheel. i think the problem becomes the technology is there.

but if you're not forced to use it, there's not a whole lot of inclination to use it. and i know that firsthand from talking with teenagers. the number of them that i talk with, whether they're friends with my kids or other people in the neighborhood, whoever it might be, the number of times i say you're not texting behind the wheel are you, oh, no, not at all. and then i see them driving around and they are texting. so i'm not sure that technology is the answer here. and i hate to say that i don't know if there is an answer, but clearly the message is not getting through to the teenagers. >> we got to go, but i tell you what, if you get pulled over for drunk driving you could lose your license or go to jail as you should. you get pulled over for texting and driving it's a $100 fine. but studies have shown it's about the same risk. >> absolutely. a death on the roadways is a death on the roadways. and we are -- complacency is killing us when it comes to these issues. we have to do better with distraction and helping people stay focused behind the wheel. >> it was a good discussion. not sure we provided any answers

but a long way to go in this conversation. guys, you know i've got a long commute home, i have a jacked up jeep, sit higher than most people, 100% of people are texting and driving. every single car that blows by me. >> disturbing. >> people almost hit the jersey barrier and you're thinking it's not 3:00 in the morning, you're not tired, you're watching -- you see people watching shows. >> rear end fender benders. >> every day. three or four of them every single day. >> texters. a new season of "the profit" kicks off tonight here on cnbc. what's it like to get the treatment to bring your business back to life? we'll talk to one business owner who knows firsthand. ♪ mapping the oceans. where we explore. protecting biodiversity. everywhere we work. defeating malaria. improving energy efficiency.

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we are -- there is the president in baton rouge where he's arriving to address some of the concerns of the people who've been victims of the massive flooding there, some 60,000 homes either destroyed or badly damaged as a result of the worst flooding in this country in many years. some would say certainly since hurricane sandy. and there is the president. when he makes a statement, we will take it. and we are waiting that.

all right, offered bentleys $1.3 million cnbc's "the profit," there's some new big deals coming up tonight when the show returns for season four premiere. joining us now, giovanni, co-founder of bentley's pet stuff. >> hello. >> how did it go? people sob and sob, he's so mean to them. how did you do? >> i think we did fantastic. it's definitely real. it's unscripted and i'm proud of every minute of it. >> tell me about your business and what he did for you. >> so we are like a whole foods for pets. my wife started it. and we hand pick every product. and when we contacted marcus, we were at seven stores. i'm proud to say we're at 30 stores right now. and should be close to 100 to 110 stores opened by the end of the year. >> and you couldn't have done that without marcus lemonis?

>> he was definitely an integral part for us. hire people, get central warehousing and all the good stuff that goes with a big business. >> how much money did he put in? are you allowed to tell me? >> the number's growing by the day. that's all i'll say. it's definitely more than what the show showed. and every single second the ticker goes up. >> well, congratulations. fantastic. we love heroes of capitalism here on cnbc. and we hope you and your wife become very, very rich. >> thank you so much. thank you. >> great. and please, you got to see season four of "the profit" with marcus lemonis tonight here on cnbc. mylan labs under fire over the price of epipen. we've heard from lawmakers, next we're hearing from families, some work in this very newsroom, they will join us next. michelle said, we are awaiting president obama's comments after touring flood-ravaged louisiana,

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-- to begin with, i just want to say thank you to the outstanding officials behind me who have been on the ground working 24/7 from the beginning. it begins with outstanding leadership at the top with governor john bell edwards and we appreciate all the outstanding work he's done. his better half, the first lady of louisiana i know has been by his side every step of the way. we are grateful for her.

i know they've got their own cleaning up to do because the governor's mansion was flooded as well. in addition, i want to acknowledge senator bill cassidy, senator david vitert, senator, mayor baton rouge kip holden, and somebody who i can't brag enough about, one of the best hires i made as president, the administrator of fema, craig fugate who has done such an outstanding job not just in dealing with this particular incident, but has really rebuilt fema so there's a change of culture. and everybody knows that when a disaster happens, fema's going to be there on the ground cooperating with state and local officials rapidly and with attention to detail.

it's hard by the way for craig to be here because he's a florida gator. and he's been seeing a lot of lsu t-shirts as we've been passing by. i just had a chance to see some of the damage from the historic floods here in louisiana. i come here first and foremost to say that the prayers of the entire nation are with everybody who lost loved ones. we are heartbroken by the loss of life. there are also people who are still desperately trying to track down friends and family. we're going to keep on helping them every way that we can. as i think anybody who can see just the streets much less the inside of the homes here people's lives have been upended by this flood. local businesses have suffered some terrible damage. families have in some cases lost homes.

they certainly lost possessions, priceless keepsakes. i was just speaking to a young woman whose husband died shortly after the birth of her second child, and she was talking about how her daughter was trying to gather all the keepsakes that she had in her bedroom that reminded her of her father. and that gives you some sense that this is not just about property damage, this is about people's roots. you also have a situation where there are a lot of kids who are supposed to start a new school year, and they're going to need some special help and support for a while. sometimes when these kinds of things happen it can seem a little bit too much to bear, but i want the people of louisiana to know is you're not alone on this. even after the tv cameras leave, the whole country is going to continue to support you and help

you until we get folks back in their holmes and lives are rebuilt. and the reason i can say that with confidence is because that's what americans do in times like this. i saw it when i visited displaced louisianans when i came down here as a senator after katrina. i saw it when i visited norl ee orleans for the tenth anniversary last year. i know how resilient the people of louisiana are, and i know that you will rebuild again. and what i've seen today proves it. i want to thank all the first responders, the national guard, all the good neighbors who were in a boat going around and making sure people were safe, showing extraordinary heroism and in some cases risking their own lives. governor edwards, the state of louisiana, the city, the parish governments, they've all stepped up under incredibly difficult

circumstances. you know, i just want to thank the people on this block. as i was walking down, one woman at the end, elderly, she was on her own. she had just lost her daughter. yet a young man next door who was helping out his father, but also offered to help out that neighbor so that she could salvage as much as she could and start the process of rebuilding. with respect to the federal response, over a week ago i directed the federal government to mobilize and do everything we could to help. fema administrator craig fugate arrived here a week ago to help lead that effort. secretary of homeland security jeh johnson visited last week to make sure state and local officials are getting what they need. to give you a sense of the magnitude here, more than 100,000 people have applied for federal assistance so far. as of today federal support has reached $127 million.

that's for help like temporary rental assistance, essential home repairs and flood insurance payments. fema's also working with louisiana around the clock to help people who are displaced by floods find temporary housing. and any louisiana family that needs help, you can find your nearest disaster recovery center by visiting fema.gov or calling 1-800-621-fema. i'm going to repeat that. fema.gov or 1-800-621-fema. now, federal assistance alone is not going to be enough to make people's lives whole again. so i'm asking every american to do what you can to help get families and local businesses back on their feet. if you want help -- if you want to help, governor edwards has put together some ways to start at volunteerlouisiana.gov. that's volunteerlouisiana.gov. and the reason this is important is because even though federal

money's moving out, volunteer help actually helps the state because it can offset some of its costs. obviously private donations are going to be extremely important as well. we want to thank the red cross for everything they're doing, but there are a lot of private philanthropic organizations, churches, parishes around the state and around the country who want to help as well. that's how we're going to make sure everybody is able to get back on their feet. so let me just remind folks, sometimes once the flood waters pass people's attention spans pass. this is not a one-off. this is not a photo op issue. this is how do you make sure that a month from now, three months from now, six months from now people still are getting the help that they need. i need all americans to stay

focused on this. if you're watching this today, make sure that you find out how you can help. you can go to volunteerlouisiana.gov. or you can go to fema.gov. we'll tell you, we'll direct you, you can go to whitehouse.gov, and we'll direct you, but we're going to need to stay on this because these are some good people down here. we're glad that the families i had a chance to meet are safe, but they got a lot of work to do. they shouldn't have to do it alone. all right. thank you very much, everybody. god bless. >> the president speaking in za zachary, louisiana. says more than 100,000 people have already applied for federal help. i guess he's continuing here a little bit. >> -- a lot of the homes have flood insurance, but a lot of homes don't.

and what craig fugate is doing what i instructed him to do from the start is get money out as fast as we can because we know there's going to be a certain amount of assistance that's going to be forthcoming. there's no point in waiting. we kind of make initial estimates, and we start pushing stuff out. that helps us and helps the governor and all these officials here do their jobs. and then what we have to do is as we fine tune exactly what's needed, when we know for example how much permanent housing's going to have to be built, when we have a better sense of how much infrastructure's been damaged, what more we need to do in terms of mitigation strategies, that's when congress, i think, may be called upon to do some more. now, the good news is that you got four members of congress right here. and a number of them happen to be in the majority. so i suspect that, you know, they may be able to talk to the speaker and talk to mitch

mcconnell. but the -- in part because of the fine stewardship at fema and frankly because we've been a little lucky so far and i'm going to knock on some wood in the terms of the amount of money that's gone out there year, fema has enough money for now to cover the costs that can be absorbed. the issue's going to be less what we need to do in terms of paying for the short-term. it's going to be the medium term and long term rebuilding. congress should be in -- back in session right after labor day. by that time we'll probably have a better assessment. and in the meantime lawyers of fema will be examining what statutory flexibility we've got. and i know the governor's been on to have of making sure louisiana can get everything it can in order to help. [ inaudible question ] >> no, i don't. first of all, one of the benefits of being five months short of leaving here is i don't

worry too much about politics. the second thing i have seen, historically, is that, you know, when disasters strike, that's probably one of the few times where washington tends not to get political. i guarantee you nobody on this block, none of those first responders, nobody gives a hoot whether you're a democrat or republican. what they care about is making sure they're getting the drywall out and the carpet out and there's not any mold building and they can get some contractors in here and start rebuilding as quick as possible. that's what they care about. that's what i care about. so, you know, we want to make sure we do it right. we want to make sure we do it systematical systematically. but the one thing i want to repeat is how proud i am of fema because if you think about the number of significant natural

disasters that occurred since my presidency began, you'd be hard pressed to find a local official anywhere in the country including those in the other party who wouldn't say that craig fugate and his team have been anything less than exemplary and professional and one of the things i did when i walked through these homes is have you contacted fema, have you filed, and uniformly they had said they'd been in touch with fema, they had acted professionally. some of them had already been out here for inspections. and i think that does indicate why it's important for us to take the federal government seriously, federal workers seriously. there's a tendency sometimes for us to bash them and to think they're these faceless bureaucrats. but when you get into trouble, you want somebody that knows what they're doing who's on the

ground working with outstanding officials and that's true with whatever party. i could not be prouder the work that fema's done. that doesn't mean there aren't going to still be folks who need more help and that we're not going to have some constraints statutorily and congress isn't going to have to step up. but it does mean that the basic backbone, the basic infrastructure and architecture that we have in terms of disaster response i think has been high quality. and i'm very proud of them for that. i want to publicly acknowledge that at the moment. all right. thank you, guys. >> all right. the president wrapping up his remarks in louisiana where he's been meeting with victims of the flooding and lauding the efforts of fema as part of the recovery efforts down there. we're going to take a look at mylan, whose stock is off 4% on the day or thereabouts. when we come back we will talk more about mylan and the controversy swirling around it with respect to the pricing of

its epipen product. back after this. ♪ [announcer] is it a force of nature? or a sales event? the summer of audi sales event is here. get up to a $5,000 bonus on select audi models.

ly a hug. this toy is a reminder that someone cares. these are a chance to be part of a team. and this is the chance to succeed. female announcer: with your support, everyone at sleep train proudly dedicates their time, hearts, and resources to giving local foster children one important thing: - hope... - hope... hope... not everyone can be a foster parent... ...but anyone can help a foster child. ♪ sleep train ♪ your ticket to a better night's sleep ♪ welcome back to "power lunch." i'm melissa lee along with michelle caruso-cabrera. a developing story we first brought to you on friday, shares of mylan down 4% this hour down almost 7% in the past three days. >> the pharma giant hiking the price of its popular anti-allergy epipen product about 500%. now lawmakers in washington want to know why.

cnbc reporter meg tirrell is here with more. >> it's interesting to look at the dynamics. say 500% price increase, it sounds martin skrelli-esque. now as of the last price increase in may two injectors of the epipen cost more than $600. obviously this is drawing a lot of consternation. we took a look into why the epipen is really the option for parents and folks concerned about allergies, and it has to do with the competitive dynamics. different competitors have tried to come out here and compete. go back to sanofi's auvi-q, a product looked like a credit card and had really interesting sort of injection instructions trying to teach people how to use it and was making headway against epipen, but it got recalled in october 2015 because there were some issues with the injection of the epinephrine and sanofi abandoned that

partnership earlier this year. teva has run into roadblocks with the fda, so they're probably going to keep trying but that one would have been potentially substituted directly for the epipen and could have been a big competitor to epipen, but it was rejected. and finally, a lot of folks probably heard of this product called adrenaclick, they're running into supply limitations and looked back at first quarter conference call their ceo saying we've been growing our share of epinephrine auto injector slowly and steadily. they're saying our rate limiting step is supply, and we've sold essentially everything that we make. >> supply of the drug, supply of the injector, do we know what the supply issue is? >> i don't know that. i can look into it. but they're trying to ramp up supply as fast as they can. this is not something that would be directly substituted for the epipen by your pharmacist. it's a different product, adrenaclick and epipen are different. so applying for the substitution

ability when a doctor substitutes a generic and right now there's nothing that can be substituted for epipen. >> we should highlight this product is so old that it's not like it's on patent and therefore they've got this monopoly because they did all the r & d, et cetera, and therefore they have a right, so to speak, to price it at the cost to help them recover r & d. other competitors in theory should come in. >> what it seems like mylan does have patents going out a few years. and it seems like the issue on the patenting and the fda is around how the device works. it needs to be almost exactly the same, is what i'm learning, so that people who are reaching in an emergency situation can inject this exactly the same way an epipen would be injected. and that according to what analysts are telling me is the problem that teva is running into at the fda. >> and it is an fda roadblock. it is perceived to be an fda slowdown in the process. >> right. fda has rejected this product. >> all right. meg, stay right here. let's bring in managing director at btig with a buy rating on mylan stock with a $60 price

target. tim, why are you sticking by this buy rating? we've seen what regulatory scrutiny has done to past drug stocks before. and then if you add on top of the increases we've seen in epipen, your colleague at wells fargo points out there are numerous mylan drugs that were increased by almost the same order of magnitude as the epipen. and then add to that the fact the ceo's compensation between 2007 and 2015 was increased by 671%. optically this does not look good. >> hi, melissa. so, you know, mylan actually is predominantly a generic drug company, about 90% of their revenues come from generic products. they're one of the largest companies in the united states and globally in that field. epipen, while it's getting a lot of scrutiny on the pricing is actually only about 10% of their total revenues. i'm sticking with my buy on the stock also largely because the valuation is already pretty heavily discounted.

this is a stock already beaten up pretty badly in the marketplace. you know, my take with the situation here is that mylan may be a victim of its own success. they have a 90% share in the epipen market, but some of that share actually was really due to sanofi's recall, as was mentioned. and a lot of the other barriers with epipen are largely tied to the fact this is not just a drug but also a device. >> so, i'm sorry, have you done the back of the envelope analysis though? if they had to roll back the price increases we've seen across their portfolio, so for instance in the first six months of the year up 425% for the generic gallstone drug, up 444% for the generic gastroe soft jeel reflux drug, the list goes on and on. if you roll some of that back, what happens to earnings? >> the company's earnings around $5 a share right now. i'm basically at that figure. you know, it's hard to pinpoint

what the earnings impact would be if you took all of the price increases that mylan's benefitted from and brought that back. but if you look at epipen specifically, epipen actually isn't the highest margin product at the company partly because they don't actually make the product. i actually think pfizer makes the product for mylan. so, you know, if you look at mylan from a stand alone basis, they still have earnings power, i think -- >> tim, it sounds like you're very much a financial analyst, you look at the balance sheet, et cetera, but feels like with this sector you've also got to be a political analyst. and you're not worried about -- remember hillary clinton's tweet and what that did to the biotech sector for nearly a year? i mean, all of the things you say could very well be true. and yet the stock can still get hammered due to politics. >> well, certainly politics plays a major role for the

pharmaceutical industry. i think a key difference between a mylan and some of the other companies that have been identified as price gougers is that mylan actually started out as a generic drug company. they don't rely mostly on branded products. they're actually been known as a manufacturer with a very clean track record with the fda. i think that's actually one of the reasons why they are the only major supplier of epipens in the united states. you know, unfortunately, look, like i said, i think they're a victim of their own success. and it's hard to be in mylan's camp. there's a lot of companies right now that are getting a lot of scrutiny. i don't think that scrutiny goes away. but if i look at mylan in totality it's really a generic drug company. >> all right. tim, we got to leave it there, we're out of time. thanks so much for joining us. we appreciate it.

tim chaing of btig and thanks to our biotech pharma reporter meg tirrell. all right, beyond the impact of the stock price, let's look at the impact on families, parents, children who need these products to guard against an attack. let's bring in kate kelly and sue herera, both with family members who have food allergies, basically. you have your epipen there. >> i have my epipens. i'm never without them. >> what do you pay out of pocket for these? >> i just got the three -- all three of my children have food allergies, daniel has multiple food allergies. he's egg, milk, all dairy, all nuts, sesame, my girls are just nuts. so i have to have -- >> that's not a comment on their personalities. >> no, it's not a comment on their personalities although there are times. so i just bought three to take to school in september. and i paid out of pocket $475. and then i bought three for home because you have to have

duplicates, right? kate, how about you? >> absolutely. the last time i bought these was last november. and at the time actually i documented this because i was struck by how expensive it was. it was $370 for a pack of epipen juniors, i believe that's a slightly lower dosage of the epinephrine because my child is smaller, she's almost 5 years old at the time she was 4. so it was $370. there was a $100 coupon involved, but when i looked into it at least under my plan my out of pocket was going to be $270. it was a discount. it wasn't like the whole thing costs $100. >> this is what i was driving at. the company says that using their payment card, which i believe is branded, it's called my epipen savings card. >> right. >> nearly 80%, says mylan, of commercially insured patients got their epipen auto injector for zero. >> i've had epipens for my kids since daniel was 4. he's -- and my girls were 2.

they're now 11 1/2 and 13, i've never gotten it for zero. and i have coupons and -- >> is it a subsidized program? i don't know enough about it. >> i'm reading from the statement they sent to our team. and it says in 2015 nearly 80% of commercially ensured patients, i'm not sure commercially insured necessarily means, received an epipen auto injector for zero, using the epipen savings card. >> we have good health insurance here with nbc universal. >> right. >> so one would assume if that was the commercial insurance plan, you'd get yours for free. >> now, i ultimately got mine for zero. here's what happened though, was going to be 370 then 270 with this discount. long story short, a lot of triangulation between the pharmacist, the insurer and the allergist. >> that's key. >> we had has this alternative that meg was talking about, it had been recalled. it wasn't until we could prove that we had had the cartridge really that was recalled and had a number of exceptions requested by the doctor taking up a lot of my time, a lot of the doctor's time, which you don't want to

do. >> there was a way, it was a pain in the you know -- >> i got a feeling i was being given the discount because i was such a pain in the neck, not because that's the policy. but that's a very anecdotal example. >> here's the thing, if you have an adult in the house or child in the house with allergies, and daniel has severe allergies, whenever we have to do this and we've had to do it three times because he goes into full an fl -- >> so two pack for you is basically one treatment. >> one treatment for one location. >> does the school have them there? >> the school does have -- >> do you provide them in case? >> i have to supply them for him in case something happens, although our school, not all schools do this or are able to do this, they keep what they call stock epipens on file in case there's a child in the school that comes in contact with something that they don't know they're allergic to. >> i raise that question at my school as well. they think that they would be

able to give someone a pen that wasn't their prescription under an emergency circumstance before an ambulance arrived under good samaritan sort of protections. however, that's not the norm at my children's school. if anything i got a phone call saying your avi-q is recalled. another point i was warned about an expiration date. >> and these expire in 12 months time. we got to leave it there. appreciate it. >> you got it. we'll be right back. more "power lunch." so we can amazing trading knowledge. that's a great idea, but why don't you just go to thinkorswim's chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders? i know. your brain told my brain before you told my face. mmm, blueberry? tap into the knowledge of other traders on thinkorswim. only at td ameritrade.

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call today and ask how to get these savings plus a $250 prepaid card. comcast business. built for business. take a look at the major market avrmgs. they're off their highs but still trading higher. investors are analyzing the housing data. we have the s&p 500 up by about 0.3%. the dow up by -- was up 34, is up about right now 36 points here. we should note that the nasdaq did an all-time intraday high earlier in the session. we've since pulled back. the russell 2000 also hitting a new 52-week high in today's session. take a look at the oil trades closing right now. we had a massive reversal about mid session around 11:00 eastern time or so. and this after reports that iran is sending positive signals it may join action to prop up the oil market. we have wti now looking to close out around 1.5% on the gain. brent crude higher by about 1.7% right now. michelle. donald trump delaying a speech on his immigration policy

amid reports the republican nominee's adjusting his position on deportations. john harwood is live in washington with the latest. john. >> michelle, all politicians adjust their positions. that's why they're politicians. but the scale of what donald trump is attempting to do right now is pretty extraordinary. remember, throughout his campaign the defining issue has been that the existing policy, which he calls open borders, has been a disaster. he's going to stop it by building a wall and sending the 11 million people here illegally back to their countries of origin. here's donald trump saying that a few months ago to chuck todd on "meet the press". >> we're going to keep the families together. we have to keep the families together. >> but you're going to push everybody out? >> they have to go. >> what if they have no place to go? >> we will work with them. they have to go. >> now, here's what donald trump said last night now that he is trailing hillary clinton by a substantial margin in the polls nationally and in battleground states and doing very poorly

with latino voters. here's his new position to bill o' reilly. >> what people don't know is obama got tremendous numbers of people out of the country. bush, the same thing. lots of people were brought out of the country with the existing laws. i'm going to do the same things. we're going to go through the process like they are now, perhaps with a lot more energy. >> doing the same things that we are now with a lot more energy. that is not what his supporters have been hearing throughout the campaign so far. now, this is exactly the kind of reversal that i anticipated when i talked to him for our speak easy a few months ago. here's how he addressed it. let's assume you get elected and you get in and you discover that all of these problems you're talking about are much more difficult? what do you say to those people who vote for you -- >> i'm a problem solver. i will not disappoint those people. i will not find that. i know how to solve problems. i will make even you be proud to be an american again.

>> now the question is are those people going to feel good about donald trump after this policy statement? this may be why, michelle, he delayed that immigration speech. he hasn't rescheduled it yet, but we're going to be watching how he continues to evolve on this issue. >> yeah, john, absolutely. let's bring in jacob monti, member of the national hispanic advisory council for donald trump and met with the presidential nominee this past weekend to discuss immigration. made a lot of headlines and perhaps one of the reasons why maybe there's been a change in position. jacob, good to have you here. >> happy to be here, michelle. >> has donald trump changed his position on deportations and building a wall? >> look, i think he's always been about law and order, but when we met with him this saturday he also expressed a real desire to try to resolve the 11 million people who are

here, we obviously have to find out who they are, the bad people have to go back, but he showed up prepared and he showed up genuinely concerned about solving the problem that's more than what a lot of politicians do -- donald trump, obviously he's prepared. it's a tough problem. we're dealing with human beings. we have faith his plan will be something that secures the border and comes up with a way of dealing with the people that are here. >> explain something to me earlier as john said he didn't like the existing policy of open borders, now he says the policy is actually lots of deportations. what explains the difference? did he not know what the policy was in the united states before? was there -- i mean, you said he came prepared. was he not prepared when he initially came up with this position? >> i don't know. i think he was very prepared when he spoke with us.

he knew the difficult problem what to do with the people already here. that's the trouble for all the politicians have had for years. >> i want to come back if i might to michelle's initial question and that is is it your sense that mr. trump's position on, one, deportations, and two, the building of a wall along the mexican border, is changing, evolving, what? i'm not sure i heard you answer. >> on the wall hispanics want the wall. the wall protects us. the wall isn't controversial among hispanics. we want security. on the issue of the people that are here, we do need to find a way to deal with them. and he suggested he's studying that and will shortly announce a

plan on immigration which will come up with a way to deal humanely with the people that are here. that's encouraging. that's more than what we're getting from the democrats. >> so the sound bite where we see him telling chuck todd send them back is that your sense of having spent time with him you think he may still say that? where do you think it will go? >> but, michelle, we do need to send the bad ones back. right now we have de facto amnesty. if he can come up with a plan that identifies the bad one, sends those back and allows the non-criminals to stay, that's what we need. it's a false choice to say those who want immigration reform want open borders. >> to me that sounds like an evolution in his position -- >> deals with the people -- >> in the todd interview he said they have to leave, they have to leave. i don't think he was making any distinction between people at that particular moment between people who had criminal records or -- >> it was simply people who were here illegally. at least the spirit of the

message. >> we were very encouraged by the meeting. we're looking forward to the plan that will be announced. and hispanics are -- we're not a monolithic group. we are in favor of law and order. but we do want a way of dealing with the people that are here that aren't criminals. >> let me ask you one final question, and that is this, i believe you wrote or in one of the pre-interview notes you said just as president nixon was the person who opened the doors to china and to a different kind of relationship with the soviet union, you see mr. trump as the possibility of -- as holding out the possibility of being the person who can really bring immigration reform and bring it across the finish line. talk to me about that. >> absolutely. the american public has lost faith with politicians and their ability to solve the immigration issue. they're afraid this will be just

another amnesty. and then we'll need another one. they worry about criminals. donald trump has the credibility with the american people that if he's allowed to deal with the issue, he can bring congress along. and that's a lot better than hillary. because if hillary were to win, she's still going to have to deal with a republican house. they're not going -- she's not going to be able to craft any kind of plan. so for those that want immigration reform, the only route is donald trump because he has credibility on the security front. and i have a lot of faith that he can get a deal. >> jacob, there's accusations we all live in a bubble here on the east and west coast, and i think some of our audience may be surprised to listen i understand you're third generation mexican-american, right? talking about you do believe in a wall. explain that a little bit more because what we hear is that donald trump polls very poorly with hispanics because of this

issue. >> well, i think the media wants to say that any hispanic is in favor of open borders and amnesty. and that's not the case. a wall would protect us. we need to send the criminals back. but at the same time people that aren't criminals that are working hard, they deserve a way to stay here. now, they shouldn't step in line or cut in line. and they need to be vetted. but that's what we need. i think donald trump is the only one that can bring that about. >> jacob monty, the advisory council, the hispanic advisory council for donald trump joining us from houston. thanks so much for joining us. >> thank you, michelle. all right. we want to take a check on shares of clovis, they are spiking. essentially good news for clovis, fda accepting clovis' new drug application for a class of cancer treatment for the treatment of ovarian cancer, but essentially good news for clovis

and treatment for ovarian cancer. shares are spiking up 33% on that. >> and melissa, speaking of spiking, so are tesla shares as investors gear up for a big product announcement in a few minutes from the ceo elon musk. what does mr. musk have up his sleeve now? and where does the stock go from here? we got it covered for you next.

a developing story we're watching this hour, just minutes away now from elon musk's tesla announcement. let's bring in phil lebeau. mr. musk's announcement have the anticipation of the steve jobs announcement of years past. what do we expect this time? >> we don't have a whole lot of information, tyler. we know it's a product related announcement related to tesla. he didn't say a solarcity announcement, a tesla product announcement. i've seen a few people on tw twitter saying it's a new product announcement. that gives suggestion we're going to see a new model or something like that. my sense is and this is pure conjecture, we're likely to see something that is important if you are a tesla owner or shareholder, but maybe not something that's going to move the needle a whole lot. in other words, we could see something about battery range, we could see something about

autopilot perhaps changing the name as that system is under investigation by the federal government. and, again, that's pure conjecture at this point. but historically when elon musk does these type of announcements in the middle of the day, the news is important but tends not to be a huge market mover. >> thanks very much, we'll all be watching with you. and street talk is on deck next. ♪ there's no one road out there. no one surface... no one speed... no one way of driving on each and every road. but there is one car that can conquer them all. the mercedes-benz c-class. five driving modes let you customize the steering, shift points, and suspension

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hi everybody. time for street talk, daily dive into the key wall street calls of the day. you start. >> i will today. panera is our first stock, buy rating overall firm is cautious because of elevated labor costs but there are top line restaurants that can attract millennial. >> i use panera a lot. they just issued these self-serve kiosks, a lot of talk about technology and jobs, i'm sure using local panera as a litmus test. hope they're not watching. second stock, square, stifel upgrading from buy to hold, they've been, quote, more comfortable with the three key

debates around the growth, core business growth, think it's sustainable. other nonpayment businesses have room to grow and square should be able to move up market, in other words bigger vendors. about 27% upside. >> nice pob fp for square. a lot of unusual call activity here jon najarian calling this one maybe playing options side. third stock johnson controls, credit suisse adds to focus list just ahead of the deal going to happen in the next few days. credit suisse expects double digit earnings growth for several years. jci one of the cheapest in the group. >> auto parts, look at that move $34 to $45 in less than a year. a lot of these under the radar sort of auto names have done well in the last six months. today's truly under the radar name, all scrips health care, chicago based software health care company. sell software to doctors, et

cetera. leerink go from 17 to 16, that's about 30% upside on the stock. they say the core fundamentals of the company are improving. high rankings for software called touch sun rise and also believe this company could become a buyout target so $17. pretty fat price target. >> yep. and that's it. "street talk" over a tuesday and time for "trading nation." let's try out housing. new home sales rising maybe on pace for the best month of nearly ten years. does this make the biggest homebuilder etf a screaming buy? today the team, erin, talk about this hba and i'll caution the viewers this is an etf despite the name that the biggest holding in the etf is the mattress company temper saley. what is your take?

>> that's actually a really big consumer discretionary component in the etf. all of those guys but we really like this etf for a few reasons. one, the average upside according to wall street analysts 9.5% and still looking at good target prices above where it's trading now. valuation is 16 times forward earnings versus 18 for the s&p. and we're looking at an average earnings growth of 26%. again, a lot of that not just coming from the typical holdbuilders but also from the expected rise in the consumer discretionary and one of the strongest sectors for that specialty retail. so across the board, we think that this is still a good place to get in and a good value right now. >> okay. a good value right now. max wolf, so says e rib gibbs. do you agree? >> i tryeth. this is pretty reasonable tradeoff. if you want to buy basic

consumer resiliency. not sure you want those things but if you do this is a good risk adjusted way to do it. you're betting that the consumer kind of stays robust into the fall. and that the risk-on trade continues into the fall. truth is i have thought that trade wasn't a good idea and stone cold wrong and so the folks that didn't think what i thought did better. that's making me cautious. if you want to be macro sensitive and interest rate sensitive, this is a very good way to do it. i'm not sure you want to be those things and if you do, this is the right cool kids to hang out with to do this. >> this is an etf that is a good lesson, know what you own. we have said it a lot. despite the name, for some reason, a mattress company is 5.5%, the biggest single weighting in this. that aside, what about housing, new, existing, whatever? >> yeah. so the short term we think housing is pretty good and not enough stock and houses for sale and the existing home stock and seeing some of the weakness in

june come forward as big strength in july. as long as interest rates stay longer, that's longer and house prices have been weak despite the short supply. for three or four months, it is a bright spot. >> okay. max wolf and erin gibbs, they like the hbe and housing. for more, go to tradingnations.cnbc.com. coming up, "check please." moved and motivated us in the past two hours or so. stick around for it.

the first stock index ♪ (musicwas createdughout)

over 100 years ago as a benchmark for average. yet many people still build portfolios with strategies that just track the benchmarks. but investing isn't about achieving average. it's about achieving goals. and invesco believes doing that today requires the art and expertise of high-conviction investing. translation? it's time to bench the benchmarks. check please. >> time for the check, please. here on "power lunch." my takeaway today, the mexican-american third generation, not only a supporter of donald trump, he says build the wall. believes in building the wall. a counterintuitive to what people think. >> that was interesting. interesting comment. i'm watching clovis. we saw that big price hike. i shouldn't say that. that's on my mind. the stock pop on the news from

the fda. positive news of the fda on the ovarian cancer drug accepting basically fast track approval application for its ovarian cancer drug and see that stock higher by almost 30% and of course mylan. >> that is a price hike. if you wanted the buy it -- >> but on a day of mylan maybe not the best phrase. >> attempting to find the glass half full, i'll say that maybe all of this price hike stuff will be a positive for consumers down the road. in short term, painful. price hikes. but because they're getting attention now, the industry is getting more attention, one wonders if this may finally force the fda to act. so you hope maybe -- >> to move quicker. >> all this bad news to higher costs not just mylan but all the drugs we pointed out may get the fda off its bottom to do something an pointed out the approval time for generics has gone up to 48 months from 30 months despite an extra billion

in fees to the fda. >> two alternatives to epipen. not that we should do everything that europe does. of course like senator blumenthal told us, we have to be safe but i find it very hard to believe that the reason this drug is basically a monopoly of mylan doesn't have a lot to do with the fda process. >> lobbying the fda to keep out other drugs. not sure they do that. it wouldn't shock me. >> what's going on at the fda, so slow? 30 to 48 months despite an extra billion in fears just to their generic approvals program. >> why aren't the senators to your point earlier in the interview going after the fda to get at the root of the problem? >> the government's been come police sit. i fin initialled "american pain" and want the authors on about the oxy addiction in the united states. the dea approving more to be manufactured every year. you have to look at the government and say, hey, they

have to do something. if they care. >> i'm looking at decembtesla. what they come out in the next hour or so in terms of a new product announcement. does it have to do with autopilot or longer battery life? is it a new model? everybody likes to take a look at tesla. there's the stock up 2%. >> what has it been historically? software download. >> over the air software update. increased range. >> that's been a product announcement. >> i think if it's a capital product people may be first excited about it, to take on another product working on model x production, model 3 yet, exactly. and they can't hit the targets now. that would be a bearish thing. >> musk says i would have a statement and talking about it for hours. >> that's why he's a marketing -- >> we buy in. probably on "fast money" 5:00 p.m. >> we will have coverage.

>> how amazing. >> which stock by the way held up even with all these news of the auto pilot accidents and et cetera. held up strong. we'll trade that. >> thank you for watching "power lunch." >> "closing bell" starts right now. hi, everybody. welcome to the "closing bell." i'm kelly evans at the new york stock exchange. >> i'm mike santoli in for bill griffeth. we might have some news this hour. we'll see. tesla ceo elon musk set to make a announn announcement this hou. >> up nearly 2%. who says brick and mortar stores are dead? best buy getting a boost on the earnings this morning. up nearly 19%. we'll dig deeper and why it's such a shock to shareholders in a moment. mylan shares falling again today as