you've been listening. >> ends up running in place though. now maybe there's more clarity on what people think the fed's going to do. banks have been up 10 out of 11 days. >> finally we're starting to recognize it. banks are saying a rate hike is coming. >> reits coming out financial sector on september 1st. here's what's on the menu, european union's pot o gold, why apple suddenly owes ireland $14.5 billion in taxes and why ireland is saying no thanks to the eu. a house call from america's top doctor, the u.s. surgeon general joins us to talk about drug prices, zika to america's growing ogro growing opioid epidemic. and an exclusive look inside the day of the life of hillary clinton. what eamon javers found as he pores through her daily calendar.

thanks for joining us. "power lunch" starts right now. welcome to "power lunch." i'm melissa lee. three hours to go in the trading stegs and stocks headed lower right now. s&p 500 stuck in a fractional range. in fact, this could be the 37th straight session where the s&p is scaled to move 1% or more in either direction. take a look across the board just down about a quarter of a percent with the russell the only one moving to the upside right now. few standouts to tell you about, lkq, omnicom, stanley black & decker, what's continued to move financials up 3% in the past month, michelle. >> something we'll definitely be watching. i'm michelle caruso-cabrera. here's what else is happening at this hour. fertilizer giant is in discussions with potash, no agreements have been reached. french economy minister has resigned from the government. and a tropical depression is gaining strength in the gulf of mexico. forecasters say the storm could be upgraded to a tropical storm

by later today. busy two hours coming your way. we begin with the big story of the day, apple being ordered by the eu to, quote, repay $14.5 billion and what the eu says is owed back taxes to the irish government. irish government says it never owed the taxes in the first place. let's get right to josh lipton for the latest on this story. josh. >> well, michelle, the european commission might have decided that ireland gave apple a legal tax benefits, but it now has a big fight on its hands. ireland's finance minister telling cnbc that apple does not owe his country taxes. >> we think the commission is getting involved in what is the competence of sovereign governments in europe. the european treaties say that individual countries are responsible for taxation policy. and this is an approach through the back door to try and influence tax policy through

competition law. and we don't agree with that. >> for his part, apple's tim cook also is not taken this decision lying down saying the european commission has launched an effort to rewrite apple's history in europe, ignore ireland's tax laws and upend the international tax system in the process. the white house also weighing in. >> if there are concerns the europeans have about some of these international mechanisms, then we should continue to make progress by working through those issues jointly as opposed to a more unilateral approach like a state investigation. >> investors aren't too concerned, at least not yet as drexel's brian white points out apple can generate $14.5 billion in cash every 76 days. piper's gene munster tells me one concern here could be whether this fight now impacts the relationship between the eu and apple. it is never a good thing, he

says, to be at odds with regulators. the eu can pressure a company in a lot of different ways from taxation to business practices. having said that munster does not think this decision poses a material risk for investors. guys, back to you. >> thanks, josh. let's bring in carlos gutierrez, former commerce secretary and cnbc contributor larry kudlow. larry, your initial thoughts by the eu? >> this is an eu tax grab. this is an eu power grab. this by the way is like brexit number two. this is one of the things the brits were rebelling about. hats off to the irish finance minister and the rest of the irish government. they have a good thing going there. they have a 12.5% corporate tax rate. the phenomenal economic success for that country, okay. even in recent years they're outperforming everybody with their low business tax rates. and this would be a great time for the united states to get involved in some tax reform, lower business taxes make everything simpler. but the eu cannot run around breaking international tax

treaty law. okay. even our own treasury is saying that. so eu, i don't know, up yours. >> secretary gutierrez, this was a tax ruling granted by ireland in 1991. and now it is 2016 where the european commission -- i mean, that's slow even for government work, isn't it? >> yeah, i think this is amazing coming off brexit where, you know, you have countries who feel like they're getting suffocated by all these regulations coming out of brussels. all of a sudden a clawback on an agreement that a sovereign nation made with a company. i think that's going to scare away investors. i think the big problem here is not what it's going to do to apple. apple will survive this. it's what it does to the investment climate in the eu at a time when they desperately need investment. >> absolutely. carlos, dead right. i mean, they're waging war against a whole lot of companies. i mean, i was just looking down some of the reports today.

fiat, starbucks, amazon, mcdonald's, et cetera. look, let's just go back here. we had this discussion a few months ago on brexit. european union is basically a bunch of unelected, unaccountable left wing socialist bureaucrats. this is a war on business. this is a war on money. this is a war on profits. and all they want to do is collect more money to spend more money and forget about the individual sovereignty of these nations. that's one of the key issues here. you know what, i hope we have more brexits. i'm rooting for more brexits. i want ireland go brexit. seriously. >> this is the kind of thing that creates the trend of more brexits. >> yes. yes. >> an overreach by brussels. >> i want the u.s. to go brexit. >> let's highlight what he means by the finance minister of ireland what he means by the back door. the competition exists in part to ensure there's competition, two, to make sure there are not too many subsidies. they don't want any state aid. this is understandable when you

say this is you don't want the chinese government funding steel businesses that are unprofitable simply to keep people in business, right? we think that's a bad idea. that's what state aid rules in europe are about, to prevent bailouts, to prevent taxpayer money being used for bailouts. that's the reasoning they use for this, this was an illegal state aid to apple. so that's what he means by a back door trying to get at ireland's tax policy through a -- >> it's a tax grab. the subsidy thing is all very interesting. >> that's their cloak. >> a tax grab, for heaven sake. look, the european union has utter disregard, a, for free market capitalism in business, and b, for national sovereignties. again, these are unelected left wing unaccountable bureaucrats. >> isn't this a great moment though? i'll tell you, mr. gutierrez, i'll tell you why. because now if the united states can get its act together and do

something about having the highest or second highest corporate tax rate in the world because we're seeing what's happening in ireland and europe, and maybe they're not the havens, and america could be the haven if we get smart. >> yes. >> couldn't this move be a long-term positive for the united states? >> yes! >> secretary gutierrez? >> the european union has always been seen as a very, very safe place to invest, like the u.s. but i think this is going to scare the heck out of investors. a clawback on taxes. in tim cook's letter he's saying i didn't know i was receiving anything special. >> isn't there sort of -- i mean, it's sort of ironic because it's saying it's going to deter investment yet analysts on wall street saying it's going to have very little impact on apple's business simply because money will be held in escrow, apple will appeal, people will forget about this, apple will go on producing iphones and be fine. and yet we're saying this -- why would this be the moment? why should it be the moment if there is no visible impact on

the stock of apple? >> because what it says about the european union. this is so much bigger than apple. you mentioned this is cash flow every 76 days. they'll get through this. apple's fine. it's just other corporations that are looking at this and saying what's going on in europe. >> larry, brian wants this to be -- i think he's right, this would be a great thing. >> yes. >> but remember how this started. it started with a republican senator who ran for president, john mccain, who sat there next to carl levine and screamed and yelled apple wasn't paying enough taxes in ireland. >> you don't want me to defend this, do you? >> no, i don't. but how are we going to get tax reform here if john mccain himself was upset about tim cook. >> john mccain who's one of my heroes even though he and i never agree on economics. he's going to win his primary. let's just put senator mccain aside for a minute. the key point is the one sully was raising. this is a great time for

american tax reform. really. you've got one candidate, mr. trump, i'm not going to do politics, just lay out the facts, trump is arguing for a 15% business tax rate. that's it. with a very low repatriation fee one time. that's exactly right. unfortunately, his opponent, mrs. clinton, has no tax reform plan. look, barack obama has a corporate tax reform plan 28%. bad repatriation, but basically there's a bipartisan consensus in washington, d.c. to have business tax reform and reduction to make america stronger country and bring investment home for a change. that's the key. if we're at 40, federal and state, right? we're at 40, and ireland's at 12.5, the smaller countries in europe are close to 18 or 19, what does that tell you? that's the issue here. it's a tax issue. >> secretary gutierrez, can you explain how there's supposedly bipartisan support for tax reform and yet it doesn't happen? >> well, i think it will happen because, you know, all these

inversions that people have criticized. i mean, these inversions are happening because corporations are paying too high taxes in the u.s. and they're going elsewhere where they're paying lower taxes. and, you know, we cannot legislate and write a law against inversions. so i think this is definitely going to happen. the other two things we need to do, larry, and i'm sure you would agree, yes, we need lower taxes, but the two things that have driven this economy are immigration and free trade. and it looks like we've declared a war on both. at least somehow. >> i don't know. i'm going to leave that aside. that's a different segment. be happy to talk to you another time, but this is about tax reform. >> well, all right, but tax reform is just one element. >> the european union here, i'm very pleased to see the obama administration take on -- by the way they put out a good paper in august saying, you know, international law cannot supersede individual countries. that's very important. good for them. all right. bipartisan today.

even john mccain. i'm okay with that. but the point is there's an economic miracle that's gone on in a lot of these low tax countries. ireland is one of them. by the way, britain is another. they've done very well. canada, at least until the oil meltdown was doing extremely well. the united states needs to join that club. the problem is the european union wants to harmonize taxes at a higher and higher level whereas the individual countries want lower tax rates. that's the fundamental battle besides the sovereign overreach. they are tax grabbers. >> i think the french would refer to this as -- >> i think this is precisely the problem with the eu. had they stayed at a commercial relationship, everything's fine. but this has become a political monetary union, which inevitably will reach too far into sovereign nations. >> and mr. gutierrez, you know things whatever you do timing is almost everything, correct? and that's why i think this is a really stupid move because

forget about even the tax rates. you've got a fragile europe, which has political infighting, you've got the rise of the right in many of these countries. you've got brexit, you've got all these things. and when europe is trying to hang on, now you've got the eu coming to my people, little island nation with really fun friendly folks and hitting them over the head with a hammer saying this is what you're going to do. if they want more split and divisiveness in europe, they're going to get it now. >> yes, i love this. >> it's a bad idea and it's the wrong timing and you're absolutely right. >> carlos, i told you, carlos, come on. >> he agreed. carlos agreed. >> brexit was a good idea. this was a fight against the european union power grab. i like sully's point, or i like his inference. >> about irish being nice? >> because irish are good folk, so are po lish and germans. the fact is the eu is not. and the battle here is the european union is hanging itself. and that's why i kind of like this story.

it will not affect apple, it will not go through. that's why the market's not worried about it. but i love it. let the eu left wing bureaucrats run wild, okay, because the whole damn continent is going down. it's going down because of its own policy developed by this crazy european union idea, which we never should have had in the first place. >> last word to you secretary gutierrez. >> the problem is that i agree, brexit is the european union's fault. it's brussels' fault. it's all those 900 legislators that do nothing but legislate. >> there you go. >> but the uk is going to suffer. >> no it's not. >> nobody wins here. >> no it's not. uk is going to do great. uk is going to do great. in fact, take a look at consumer spending, it's already picking up. tourism, it's already picking up. >> and that, gentlemen -- >> independence in a year. independence and freedom are always good for growth. >> a discussion for the future. >> you can coin that. >> i hope you're right. >> i thought that was going to be the last word, but -- >> they had free access to the largest market in the world.

and that's going to be a big deal. >> all right. thank you, gentlemen. >> i love you, carlos. i love you. >> secretary carlos gutierrez and larry kudlow, thank you, gentlemen. >> thank you. appreciate it. all right, still ahead, we paged america's doctor and he answered. the u.s. surgeon general vivek murthy will weigh in on the rising cost of drugs, zika and a whole lot more. but first, you're looking at the ten s&p 500 sectors. they have been the same ten since 1999. however, tomorrow they give birth, an 11th sector will be announced. >> that's not going to fit on the wall. >> it's not going to be symmetrical. >> it's called wall stimulus. we're back to tell you who's being added coming up next.

got a news alert on herbalife. cnbc doiblgt's jeff cox just spoke exclusively with billionaire carl icahn joining us with all the details. >> yes, i spoke to mr. icahn and i asked him whether he felt trapped in his investment in herbalife, which we know he just k increased his stake in significantly. basically, does he have to keep buying shares to keep the company afloat. he actually told me no, he does not feel trapped. he says if anybody feels trapped it's actually bill ackman. he told me, mr. icahn says, no responsible short seller would ever hold such a large position in a company unless he thought

it was going bankrupt, which mr. icahn insists herbalife is nowhere near going bankrupt, in fact expanding in countries like china. he also said he believes in the investment. and he kind of threw a jab in at the end said only fools rush in where angels fear to tread. mr. icahn still feels very confident in the company. guys, we thought we had this feud settled in 2014 at the delivering alpha conference. it does not appear that way. these guys are still at each other over the herbalife investment. >> wow, jeff cox, good stuff there. getting him on the phone. i'm shocked that icahn would throw a jab. >> yes, he made a couple very interesting points. he said that there's a lot of closely held shares in herbalife, a lot of conviction from those shares. and he believes that ackman is playing a game here, he tried to flush carl out. he wasn't able to do it and now it's ackman going to be left holding the bag. >> jeff, jeff cox, appreciate that, thank you very much.

>> you bet. all right, so, you are looking, or if you're on the radio, picture this, a big wall with ten s&p 500 sectors. you probably have them memorized because it's been the same group of sectors for 17 years. but nothing lasts forever. even the big ten had to add maryland and rutgers for some reason, so like college football the market is adapting as well. bob pisani live at the nyse with the details on the new baby 11th sector, bob. >> and, brian, they're finally getting a sector of their own. right now reits are part of the financials, the problem is they're not exactly financials. they're interest rate sensitive, but real estate is really a separate sector. now they're getting their own. so here's the story of august 31st at the end reits will be carved out of the s&p 500 financial sector. the important thing is they'll be a separate reits sector trading in the middle of september here. reits are currently 20% of the financial sector and about 3% of the s&p 500. look here you might say 3% who cares about that but utilities

and materials and telecom, they're all about 3% and we talk about them all the time. my point is this is going to be a fairly important sector. financials will still be out there. they're 16% now but take out 3% from reits, they'll be 13%. those will be mostly banks as well as insurance companies. so helping reits, well, it's a big thing what's going on recently. important thing long-term interest rates remain low. that's been a big help to reits. we've seen high dividend payers out there they pay about 4% overall. and that reclassification into the 11th sector, that's causing a lot of people to look at them and say, hey, maybe we should be getting in as well. so take a look at the big reits etf, vnq, the white line for the year versus s&p 500. up about 11% versus 6% for the s&p 500. ever since that announcement's been made you see a lot more interest and a lot more volume in that stock. by the way, the xlf, which is the financial etf that includes reits right now, that's going to have a special 20% dividend in the middle of september because

essentially 20% of it is going to go away into the -- into a separate reits sector. that's the important thing you'll see that will happen on september 19th. guys, back to you. >> hey, bob, is there a thinking that the money that needs to go into reits has gone into reits already? >> yes, i think that there's been substantial interest. this has been telegraphed for a while. they first started talking about it two years ago. so they have had ample time, people who want to get into it, to already move some money around. >> i think the criticism also is kind of interesting out there. i mean, you hear s&p say why they're doing it because there's increased investor interest. but lazzo said yesterday to the benefit of the vendor and not the customer, ie the etf business, which can now say it's a sector on the s&p 500, hey, put some money into the etf. >> yeah, that falls in the category of statements that are true but not interesting. reits really are a separate category than bank and insurance companies. they do trade under different characteristics even though they're interest rate sensitive. i agree, it does benefit the

indexers, but it really should be a separate category. >> bob, thank you. bob pisani. to the bond market now. rick santelli tracking the action at the cme. rickster. >> hi, melissa lee, if i look at securities, twos, threes, fives, tens, 30s, all basically within one basis point of unchanged. but friday was a very important day for number reasons. we popped friday, stan fisher, the whole jackson hole scenario. look at a chart starting 8-1, it's the only day for the entire month we had a yield close that didn't have a 1-5, in the 150s, but the interesting thing is what does it really mean and what can we learn from it? tens minus bunds. okay, when we popped, the bunds didn't. on this one-week chart you can see, boom, they popped up to 170, the fact the bund didn't move gives us a lot of information. if this was really a policy shift where we're going in the tightening situation mario

draghi keeps drilling a hole to put more negative rates in, why wouldn't it stick? a chart on the 22nd you can see the bund pop. my point is that by that relationship coming back to normal along with investors trading at fixed income market, nobody's buying into this. and the markets are back to the way they were pretty much before friday. melissa lee, back to you. >> thank you, rick. all right. let's get to dom chu who has a news alert. >> what we have right now we learned earlier today through a regulatory filing that target's jeff jones, their chief marketing officer, is stepping down from the company. but now we know where he may be going. according to reports citing sources from fortune and "the wall street journal," jones will take up the president role at ride sharing app and company uber. so uber tapping a seasoned marketing executive for a brick and mortar retailer to kind of head its operations, take it to the next level in terms of marketing schemes. overall, michelle, a very interesting move for a company that at one point in the summer had a $60 billion valuation,

this time around tapping a senior target executive to head up its operations on the at least marketing and president side of things, guys, back to you. interesting stuff. dom, thank you. coming up, why mr. good bar's having a good day. the good, the bad and the ugly on deck when "power lunch" returns. welcome to opportunity's knocking, where self-proclaimed financial superstars pitch you investment opportunities. i've got a fantastic deal for you- gold! with the right pool of investors, there's a lot of money to be made. but first, investors must ask the right questions and use the smartcheck challenge to make the right decisions. you're not even registered; i'm done with you! i can...i can... savvy investors check their financial pro's background by visiting smartcheck.gov

time now for the good, the bad and the ugly in today's trade. first to the good. united continental airlines that stock is up 8%, this after they hired a former american airlines executive to become their new president. obviously the street likes that move. by the way, we'll have more in street talk ahead. on to the bad, h & r block stock moving lower off 1% ahead of its earnings release tonight. the street is looking for a net loss from hrb of 53 cents per share. and, it is an ugly day for hershey investors after mondlez scrapped, that my friends worst day in nearly 14 years. michelle. >> very tough day. thanks. new insight into hillary clinton's time at the state department. thousands of e-mails documenting her daily schedule from early 2009 until mid 2011. eamon javers has combed through all the 3,721 pages. and he joins us now with what he has learned.

>> it sounds exhausting when you say it like that. and it was exhausting for hillary clinton when you look at these schedules. we're looking at a time period from january of 2009 all the way through the middle of 2011. so two and a half years of her tenure at the state department. and what you see is hillary clinton is routinely flying all the way around the world meeting with heads of state and foreign ministers. a whole raft of details here in these documents. all of which are posted now at cnbc.com. but among them are her meetings with various billionaires including george soros and some of the intriguing detail you see is just who sat in the meetings with george soros and hillary clinton. one of the meetings june 2, 2010, we see michael mcfaul white house special assistant later became a to russia. michael hall and jeff goldstein, also listed on the calendar as attending that meeting. and they are both listed on the open society foundation's website as people who are

specialist in eurasia. so whatever it was they were talking about, we don't know. we don't have the topic for that meeting but we have a lot of euasia and. glimpse into what hillary clinton's life was like for those couple of years. >> is there any connection between george soros and the clinton foundation, about whether or not donors were able to get access to her? >> sure. when you look at all of this there were a lot of donors who attend meetings with hillary clinton. we didn't tally up a full list of those, but there were also a lot of people who weren't donors, government officials, foreign ministers, foreign heads of state and that sort of thing. so the clintons will push back on that reporting and say, look, ultimately she met with a lot of people including some donors and including a lot of people who didn't give money. but, yeah, a lot of donors got access to hillary clinton and got into the state department for meetings. those are the questions being raised now on the political campaign trail. >> thanks, eamon. >> you bet. still ahead, he is america's doctor, so what does he think

about the high cost of drugs in this country? we'll talk about that, zika and america's addiction to painkillers with u.s. surgeon general vivek murthy. that's next.

i'm courtney reagan, here's your cnbc news update for this hour. germany's economic minister saying trade talks between the u.s. and eu have essentially failed echoing what france said earlier today. the white house responded by saying it will continue to negotiate with the goal of completing the trade deal by year's end. at least two explosions close to turkey's border with syria this morning, this as turkey continued its first major ground assault into the country since syria's civil war began. and a new york city sinkhole swallowed an suv overnight on the upper west side. emergency crews on the scene say the vehicle began to sink when the hole was created by a broken water main break. and vladimir putin was arrested in florida the other day, no, not the russian president but this guy. police say they responded to a public supermarket in downtown west palm beach following a report of a man screaming at employees. managers tried to get vladimir

putin to leave, but he refused. he told police he missed his ride. putin appeared in court monday morning facing charges of resisting arrest. that's your cnbc news update for this hour. back to you, melissa. thank you, courtney reagan. america's addiction to opioids is spiraling out of control. now the leading cause of death out of automobile sdeaccidents even guns, we're talking about legal pills, painkillers prescribed by doctors. in an unprecedented move the u.s. surgeon general sent a letter to all u.s. doctors. a "power lunch" exclusive now with u.s. surgeon general now dr. vivek murthy. thank you very much for joining "power lunch." >> glad to be with you, melissa. >> what is the root? is it overprescribing on the part of doctors? is that why you sent the letter to physicians? >> well, the opioid crisis we're facing in america is one of our most urgent public health threats and there are several causes to this. one is prescribing that we have not trained our trs and our

nurse practitioners and dentists how to treat pain safely and efbtively. but we have urged them to be more aggressive about treating pain. we've also seen over the years aggressive marketing of pain medications to clinicians. and we've had a problem over the years with regard to treatment, which is that we have over a million people who need access to treatment right now but can't get it because we haven't invested sufficiently in creating building treatment centers. all of those factors together have led us to where we are now where we've seen a quadrupling of overdose deaths since 1999. we have nearly 2 million people addicted to prescription opioids. and every day we have over 40 people who die from a prescription drug overdose. that's far too many. >> dr. murthy, i think it's very interesting you mention the very aggressive marketing on the part of private companies. we're now in a time when a lot of people in congress are going after big drug companies for aggressive tactics and for alleged price gouging. would you characterize this as also sort of calling on the

pharmaceuticals industry to police themselves to say, you know what, you play a role in this as well? >> well, this is one of these epidemics where many people have had a role to play. and that's why to solve it we're going to need the partnership of clinicians, of pharmaceutical companies, of policymakers and of families because everyone has a role to play in addressing this epidemic. and what i would love to see is for clinicians to focus more on sharpening their prescribing practices. that's why i took this step of sending a letter to 2.3 million health care practitioners all across the country. this has never been done before by the surgeon general's office to call the profession to action around an issue. but i did it because i know that this epidemic warrants it. and what we're asking every clinician to do in addition to sharpening prescribing practices is connect patients who need treatment to the help that they often don't have but urgently need. we're also asking clinicians to help change the way our country thinks of addiction. we have a problem where too many people think that addiction is a

bad choice, that it's a moral failing. what they don't realize this is a chronic illness. this is a medical condition that requires treatment. we need to make sure people who need it can get it. >> doctor, that's part of the problem. coming up in the next hour we have the author of a book about a pill mill, but yet we're still seeing millions and millions of oxy tablets and pills created every year even as most doctors will tell you they understand it's one of the most addictive substances on earth. in many ways it is heroin. how do we now back off this? how do we tell the million-plus people that suffer out there or are addicted, sorry, we're going to pull you back off this? >> so you bring up a very good point which is the pendulum swung to one extreme about 20 years ago or so when we asked people to be more aggressive about treating pain but didn't give them the tools and skills to do so. what we have to make sure is that in this effort to address

the epidemic we don't allow the pendulum to swing to the other extreme where we deny people who need opiate medication, that treatment. that's why in order to find the right balance we have to ensure we are training our medical professionals adequately. we've made progress on this front with medical schools and residency programs increasingly stepping up to the plate. but we have more work that we have to do. when i was in medical school and in training, i was actually taught like many doctors that opioids were only addictive if they were prescribed for legitimate pain. i later learned that was not the case. but i still meet doctors all around the country who haven't realized that because -- and haven't made the connection between their prescribing practices and the epidemic that's out there. there are pill mills, there are small number of clinicians out there who are prescribing a large number of medications like opioids without proper indication. but that's a small percentage of doctors. and we have to make sure we focus on improving practices

across the entire profession. >> doctor, excuse my ignorance. there's something i don't understand. you said you were instructed when you were in school that they were only addictive if they were prescribed for pain? did i understand that correctly? and i don't understand that at all if that's the case. >> well, yes. many clinicians were taught that if somebody has legitimate pain and you give them opioid medications that they won't get addicted to those medications. and we now know that's not the case. we know that these are highly addictive medicines, which is why we have to make sure both clinicians and the public recognize that. that's not to say we should never use opioids. sometimes they are the right medicines to use, but we have to use them cautiously. and in the letter that i sent to clinicians, i also included a pocket card which guides them in how to approach pain. and some of the things that we tell clinicians are number one to think about non-opioid medications first. second, if they have to go to opioids, use the lowest possible dose for the shortest possible time. and third, to make sure that their patients understand that these are addictive medicines

and they should store them safely where other people can't find them. i tell patients often the worst place to keep your pain medications is in the medicine cabinet because that's where it's easy for other people to find. >> dr. murthy, if we can switch gears right now. i want to go to mylan and the epipen controversy. where do you stand on a 600 something dollar list price for the epipen and mylan offering a generic version for $300? >> well, i was deeply disturbed when i heard about the price increase for epipens. i've cared for many patients over the years who required epipens and whose children require epipens. and my concern more broadly about drug pricing is that we have millions of people in america struggling to afford the medications that they require to stay healthy. and if we really want to focus on keeping people healthy, on reducing the incidence of disease complications, then we've got to make sure that people can get medication at affordable prices. and the recent price increase we saw runs counter to that effort.

and that was deeply concerned by it. >> where do you stand on the issue the accusations that the fda is too slow in general when it comes to generics? >> well, the fda certainly recognizes that access to medications that are affordable is incredibly important. and they've been working very hard to improve their processes to ensure studies are rigorous but made available as quickly as possible. it's a tough balance to strike. but this is a priority for the fda. and i know they're working very hard on it. >> there are multiple drugs, doctor, that cost more than $100,000 per year, gilead's savaldi is $1,000 per pill. how did we get here in the first place? >> well, i think we've sometimes asked ourself a question, how much will the market bear in terms of cost and we've charted price medications on that basis. but to me as a doctor thinking about the patients i've cared for over the years, think about

my role as surgeon general the millions of people in america whose health i'm thinking about, my greatest concern is about whether patients can afford those medications. and that has to factor more into our decision making as we price drugs. at the end of the day, if we are not doing everything possible to support the health of our people, then we're not doing our job. and as a country we have had a problem over the last many decades where we have not focused enough on prevention, on addressing problems early enough. we've waited until they blossom into crises. we can't afford to do that anymore. we see that with opioids where we recognize we have a major gap in treatment, we have to invest in treatment. we haven't done that. president has asked over $1.1 billion in additional funds largely to expand treatment. we haven't gotten that money yet. that's important. >> but doctor, when you point out that we've asked in the past how much will the market bear, that speaks to the profit motive of the pharmaceutical sector. do you think it's bad for the pharmaceutical sector to have a

profit motive? >> well, i don't think it's bad for us to have businesses that prosper in america. i ran a technology company before i was surgeon general. i've practiced medicine. i've operated in different settings and i understand that healthy business is a part of our country, it's a part of our economy and it's important. but i think what we have to strike is the appropriate balance. when we see massive price increases that put life saving medicines out of the reach of people who need it the most, to me that's a clear sign that we have not struck that balance. >> dr. murthy, how bad is zika? certainly there's a lot of media attention to zika. i'm sure in florida there's a lot of attention to zika. are other parts of the country underestimating the spread of this virus? >> well, i worry that as a country we are underestimating the impact of zika. as i travel around the country i often ask people how many of you have heard about zika, how many people are worried about zika, what i find is most people don't think that they need to worry too much about the zika virus. but here's what i say.

you know, we have seen an explosive spread of zika in the americas since 2015, starting in brazil but also in other countries in latin america and the caribbean. and now we have seen the local spread of zika here in the continental united states and two areas in particular in miami-dade county. and so if we want to prevent some of the adverse outcomes related to zika, particularly the birth defects that occur sometimes when pregnant women are impacted by zika, when we've got to focus on prevention. we have to focus on developing a vaccine. we have to focus on mosquito control. now, right now the -- we've invested a lot of time, money and effort in those areas. the federal government in close partnership with states and local communities. but we have to make sure that we have the resources to continue doing that in the months ahead because the mosquitos aren't going anywhere. and we've got to make sure that we're prepared. >> dr. murthy, thanks so much for joining us. >> glad to be with you, melissa. >> u.s. surgeon general vivek

murthy. up next, why the great city of boston is springing forward with a fallback plan. hmm, we're going to explain. but first, we're talking hard time, hot chickens and a story of second chances. we'll explain. and you don't want to miss this later on today, hip hop artist and entrepreneur sean combs live on "closing bell" today. we are back in two minutes. i'm just a guy who wants to buy that truck. and i'm just a guy who wants to sell him that truck. so i used truecar. it told me what other people in the area paid for the truck i want. and because we're a truecar certified dealership, i already know the truck he wants. so we're on the same page before he even gets here. -it's fair. -and it's fast. look good? looks great.

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welcome back. kate rogers live in ohio with a look at one company giving a second chance to its workers. kate. >> reporter: hey there, michelle. hot chicken takeover may be known here in columbus for wildly popular nashville style hot chicken, but the restaurant has a social mission more important to the owner than the long lines outside of his stores. that's because he's employing a

workforce that's largely been impacted by incarceration, meaning workers might have criminal arrests in their past or might have even served time for everything from misdemeanors to felonies. >> what we found is if somebody is accepting that fair chance back to employment, their determination, will power and motivation is significantly higher. so at this point it's not a nice to-do for the community. it's a must-do for our business. >> reporter: hiring workers like kevin snow who just got out of prison in january after serving 11 years. snow says he's thankful to the restaurant for giving him the opportunity to have a career and rebuild. >> i don't want to be judged on my past. i want to be judged on the present, the here and now and my future. you know, my mind, my intelligence, my work ethic. that's what i want to be judged upon. so hot chicken really allows you to grow into that mode. >> reporter: the business also offers its workers benefits including financial literacy, education and even a savings

match for big milestones in life. actually a former banking analyst says he'd love to take this model of employment elsewhere across the country but also told us there's no place in the world he could imagine building this kind of a business outside of columbus, ohio. back over to you. >> that's very interesting. so economists would look at this, kate, and say these guys aren't doing charity by hiring somebody with a record. instead, they see it as a competitive advantage because those workers are more loyal? >> reporter: absolutely, michelle. he says this is absolutely not a charity. he made that point to us several times during the interview. he says his workforce is very loyal. and guess what, this is hard work. you're on your feet all days, you're in the service industry, it's certainly not a charity. he says his employees are more loyal and more motivated than anyone else, any competitors in the area. which was just so great to hear. >> terrific. kate in columbus, ohio. >> always finding -- and bring back some of that hot chicken because we can't get to nashville any time soon. still ahead, massachusetts apparently is tired of being

left in the dark. and they are doing something about it. is whale oil coming back to massachuset massachusetts? we're going to find out. and this is unbelievable. a soccer play from colorado, a high-jump to avoid the goalie and then -- you got to stick around to find out. we'll show you how this incredible video ends. >> what? >> called a tease. >> that is a tease. >> that's some hot chicken. back after this.

welcome back. we got to show you the end of this insane crazy soccer play from colorado. >> wow. >> look at that. >> oh, goal! >> i want to explain this for people on the radio. basically he gets hit by the goalie. he does a front flip with a half twist, but he lands on his feet. then he puts the ball in the goal. it's insane. >> it's simone biles like it's so good. >> did not count because he was offside. >> outrage. >> but i don't think it takes anything away from the athleticism, skill, and just overall daring. >> he could be on the gymnastic

team with that move. >> he might be. massachusetts is considering a megxit from the state time zone. asked from switching the state from atlantic standard time all year instead of springing forward in march and falling back in november because it gets really, really dark really, really early in the winter. like 3:00 in the afternoon sometimes. more sunlight could be beneficial to the economy and to massachusetts residents, keep them happier. the hope is that it will also help retain more college graduates. graduate huge college city, people leave after graduation because -- >> it's too dark? >> it's too depressing and dark. i couldn't wait to get out of there. >> i stayed there. >> you did? you're here now. findings july 2017. >> i like it. i mean, i know you're from that region and went to college in that region. >> yes. >> forget about that region, daylight savings time, america doesn't agree on anything, we can all agree it's stupid, it's

a relic and also invented in canada which therefore then automatically makes it great. you thought i was going somewhere else with that, canada, all you canadians. thunder bay canada, early 1900s, first use of it? why. it's for farming, it's for kids. it's dumb. there's no reason to get dark at 4:30. we don't live in lapland. we're not up in the danish peninsula. forget it. >> agreed. agreed. >> good job. >> it is what it is. >> massachusetts has a chance to be a real leader in something other than tom brady's -- >> taking a stand. >> by the way, here's a little trivia. it's daylight saving time. >> that is so melissa. >> no, kevin flynn told me in my ear. >> no haiku. >> it's all about the benjamin. >> next up, more on apple's massive tax bill. what is next for the company and all u.s. companies in europe. and chipotle's latest move to get customers back, free food on

sundays, good idea or recipe for disaster? that straight ahead. hey gary, what are you doing? oh hey john, i'm connecting our brains so we can share our 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

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so, call now, request your free guide, and explore the range of aarp medicare supplement plans. sixty-five may get all the attention, but now is a good time to start thinking about how you want things to be. go long™. i'm melissa lee. here's what's on the "power lunch" menu this hour. apple slapped with a massive tax bill in europe. what's next for the tech giant

and for the future of u.s. companies in europe? food fight, chipotle now giving away free food on sundays. good idea or maybe a desperate move. and america's opioid crisis, is government policy to blame? second hour of "power lunch" begins right now. i'm michelle caruso-cabrera. here's a check on the markets with two hours to go until the closing bell. stocks headed toward session lows, the session low on the dow 75 points right now it's lower by 66 points. the s&p lower by 6, nasdaq lower by 17 points. brian. all right, and i am brian sullivan. in your headlines this hour six u.s. senators are urging the president to prioritize cyber crime at this weekend's g20 summit in china, this according to reuters. and it follows the theft of $81 million from bangladesh's central bank. home prices continue to rise. portland, seattle and denver are among the leaders. and google pushing deeper into video. youtube lives video views

reportedly soaring 80% from just one year ago. wow. but first, back to your top corporate story and that is apple. shares of apple down about a percent this on the news the eu saying that ireland has given apple illegal tax benefits and is ordering apple to pay $14.5 billion in unpaid taxes. let's bring in andy hargraves, senior research analyst. even if apple pays, and we don't know how this ultimately will pay out, it shouldn't have any kind of a dent in their business from this amount. do you though have a bigger concern about where tax rates could go in the future because of this? >> well, the commission suggested that sort of since 2015 and some of the changes put into place since then they don't have any issues. so it doesn't seem like there would be significant implications. you do have to wonder about, i guess the rules changing again at some point in the future, but that would be sort of an existential threat nobody would

know how to quantify. >> the apple changed -- according to when i read the eu decision, apple changed its corporate structure so this is no longer applicable, right? this is going to be only retro active is my understanding. >> correct. that's how it reads right now. >> so no implication for what its future effective tax rate would be. >> yeah, you would think so. but who knows. >> this will take years to resolve, correct? i mean, the appeals process is very lengthy. we won't know not that $14.5 billion on a balance sheet of $231 billion in cash is going to make that much of a difference. >> it's like you dropping a fiver on the sidewalk. >> more like a dollar, but andy. >> yeah, yeah, i don't think we'll get resolution -- real resolution for quite a while especially given the entities involved. this is going to take awhile to play out. >> when you take a look at your own coverage do you see other companies that might be similar to other tax callbacks? >> well, theoretically, yes.

although i would say this does seem to be, you know, targeted fairly specifically at apple because of their size and because of their prominence. so i'm not overly concerned about it. we'll see if we start to see a lot more of these things filed. but as of now i'm not anticipating a huge broad sort of bleed into other industries and other companies. >> what about the phone? you excited -- we don't know what's coming, right? >> yeah. >> but we know it's a phone, is it a phone, it's a phone. >> it's a computer in your pocket. something like that. >> i mean, is this the next big catalyst for the stock? >> you know, i think investors have pretty much anticipated it at this point. not expecting the release to be a big catalyst, quite honestly i think a lot of people are already looking into the phone next year when we're more likely to get a change the next big catalyst. >> i'm going to either ask greatest question of all time or

maybe the stupidest. apple like the change thing and chargers and everybody moans and groans and then they go out and buy a new $39 charger and you have hundreds of them in desk drawers. if they actually get rid of the headphone jack after buying beats and having millions of people spend $300, $400, $500, $600 on fancy headphones that plug in still, would that go too far for apple? would they tick off finally a loyal base that might look elsewhere? i know it seems like a small thing, but when you think about all the money people have invested, you're like why would they just throw it away? >> yeah, it's a big thing. especially because that's something that everybody actually uses. history would suggest that people will get over it. that there's a lot of griping and there's going to be a lot of complaining about it. but there will be presumably an adapter allowing you to use headphones and over time wireless is the future. so they're just being forward looking and helping push you along. >> andy hargreavs, pacific crest

securities. we appreciate it, buddy. >> thanks for having me. turning now to the massive apple tax bill, eu commissioner asked about the criticism that this decision was enforced retroactively and that she was changing the rules of the game after it started. >> no change, no retro activity, just unpaid taxes to be paid. that's the important point here. and second, as you use the word they felt, i would have the feeling if my effective tax rate would be 0.05% falling to 0.005%, i would have felt that maybe i should have a second look at my tax bill. >> being snarky there. let's bring in cnbc contributor from politico and jimmy of the

american enterprise institute. tara, what do you make of this? the decision on apple's tax structure was made by the irish tax authority back in 1991. >> correct. because at the time it was more important to the irish people to have more jobs than taxes. and that's the deal that they still honor and want to this day. i spoke to an irish diplomat in the finance ministry and they're going to appeal the ruling because they want ireland -- they want apple to stay in ireland. it brought 5,000 jobs to a city that has 500,000 people in cork and they're about to open another facility in ireland. for a country of 4.5 million people, that's a lot of jobs. so they're more interested in keeping apple happy than collecting this tax deal they set up with them in full agreement. >> jimmy p., what do you make of this? >> first of all, you know, that opinion is not sort of universally held in ireland. there are certainly plenty of people along the irish political spectrum who would like to get

that $13 billion. this is a country that's gone through a lot of austerity, has a big debt and there are politicians certainly who think they should maybe try to get that money from apple and use it in ireland. but what i find interesting here is, you know, there seems to be a pattern here whether it's taxation, regulation, privacy rules, antitrust, of europe going after america's big tech firms. i think maybe it's also time for europe to figure out why they can't build big tech firms, why they don't have all those great fast growing unicorns, those high-tech high impact start-ups. if you take all the european put them together the whole value is about half of facebook. so there's a huge problem that they are not going to solve by going after america's successful big technology companies. >> why would you start a company there when all they do is punish you, jimmy p.? >> there's something wrong there, whether it's regulation, whether it's european culture, i don't know. but they are unable -- i mean, are we going to go after the big european tech companies?

which ones are they? >> tara. >> exactly. and ireland is really trying to be one of those countries that's business friendly to america, especially post-brexit. you're going to see a lot of american companies who still want access to the european single market, the largest market in the world. 500 million consumers. and if the uk ends up not having access to the single market, they're going to need another entry point and that point is ireland. it could be because of the fact they speak english, they have a pretty low corporate tax rate compared to other countries in the eu at 12.5%. so this isn't really good for ireland's marketing as, you know, the new city. they already have linkedin there. >> it's an island nation. you can't drive a tractor-trailer truck from border to border. ireland literally is an island that needs to have its own rules and regulations because they are geographically uncompetitive. and now you've got the eu coming

down with this hammer. what do you think is going to be the ultimate outcome? do you think ireland could pull the irish exit? >> people are talking about that already. it's just going to grow skepticism in europe. if they see a heavy handed commission weakened by brexit trying to build up its force again showing that they are regulators, that they have teeth and that they're willing to cut through the arrangements that individual countries make with corporations because frankly they want the jobs. and apple pays the most taxes to ireland out of any other corporation. they want apple to stay even if they have a sweetheart deal. it's better than anything else they have. >> but what does it say though -- what does it say about washington and america's political system that it's being outfoxed and is moving slower than the european bureaucratic state? that's the problem. we are so slow to reform our own tax code that we have allowed this other entity to move much quicker, be more nimble --

>> you're talking about ireland, correct? >> all that infrastructure money, guess what, it's staying over there. >> jimmy, is this the moment that will light the fire in the belly of people who want to reform corporate taxes here in the united states? or would it have been more effective if there was a really negative ruling against apple, the stock tanked and they said we're going to pull out of the country? >> yeah, i think the fact that the stock seems to be shaking this off and obviously this is a small amount if you look at its current profits and future profits. i'm just so skeptical about the odds of corporate tax reform any time soon, even something like this where there's a big headline news. i'm not sure really moves the ball. >> tara, i was interested in and brian was bringing up the issue of ireland and the eu. speaking to irish politicians and executives, they are so committed to the eu, even though the central bank of europe punished the people and said they had to do a bank bailout. and the poor irish people sucked it up to use no better phrase

and faced higher taxes, all kinds of things to do a massive financial bailout that was forced on them. the government didn't want to do it, but the ecb said they were going to cut them off and bring their banks to their knees if they didn't. so they deal with that. and then they constantly harp on them about their tax rate, their very low tax rate and tax competition. i mean, why are the irish so committed to the eu in the first place? >> well, the truth is that ireland has gotten a lot of money in regional funds from the eu. that's aid, eu aid, to go to some of the poor areas. and they've really seen their country flourish. it's become a hub like i said earlier for american companies and it's become a hub of industry. they've really seen a lot of growth. yes, they hit some hard times, hay they had to deal with austerity imposed by the commission, but three out of four irish people believe brexit was a bad idea. so even though this may fuel soft euro skepticism, it will get people worried about investing in europe, they'll have this feeling europe isn't open for business, irish people

have seen a lot of success with the eu so they're not really ready to close the door just yet. i think if you continue to see these patterns, you see the commission going after companies that they benefit from, then yeah, you're going to see growing euro skepticism. >> got it. thank you. jimmy p, it's easier. chipotle shares down more than 40% in the past year since food safety problems. will its latest effort to win back customers actually work? "power lunch" will be right back. we're drowning in informa. where, in all of this, is the stuff that matters? the stakes are so high, your finances, your future. how do you solve this? you don't. you partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. morgan stanley.

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take a check on the markets. right now we are close to session lows, just a point off on the s&p 500, 2172 is the level there. worth noting there are a couple areas in the market flashing green right now, one is financials extending their gains. and transports are also strong being led by airlines. the airline index is higher by 1.4% in today's session. now let's get to dom chu with a market flash. >> melissa, another flash of green we want to call your attention to is what's happening with cypress semiconductor. those shares up by about between 5% and 6%, off of their best levels today when they were up by about 10% on heavier volume. now, this is due to, again, deal speculation, we'll call it. there are some unconfirmed reports coming out of street insider, that's the people who are making this particular report right now saying that there could be a possible, possible bit of interest in taking this company over. that's what led to the spike

intraday. although we have backed off that level quite a bit. again, we'll call it deal speculation, that's what we'll say this is, but anyway it has moved the shares higher. we want to call it to your attention. we'll monitor for any new developments here, but there's nothing yet we've heard on the record from anybody with regard to whether or not this could even happen. so just, again, a little skepticism however that's the way the stock is moving, that's why, brian, we're bringing it to your attention. back to you guys. >> we appreciate it as always, dom. thank you very much. chipotle making another plea to customers to please come back. this after the food safety problem. susan lee live at the nasdaq with more on the chipotle story, susan. >> who doesn't love free food? well, in september chipotle is offering free stuff for the kids and the students. this morning chipotle targeting the family announcing they will give away a free kids meal for every adult entree bought on sundays in the month. that follows yesterday's announcements giving high school and college kids who present a valid id, free drink with the

purchase of any entree, no beer, marg aritas or alcohol, but all transactions count towards chipotle's loyalty program which gets you free entrees after a set number of purchases. it does end at the end of september but they will introduce another loyalty program they say very soon. so we wrote to chipotle about these new promotions. they wrote back to me saying high school and also college students they've been such loyal customers, so we thought a promotion would be a great way to ring in the new year. and regarding the free kids meals chipotle points out that sundays are a day when families often spend time together. a few analysts that we spoke to said that americans they like bargains, it does tend to bring in more business. but even with free giveaways in the past burr rburritos, gauk g still saw same-store sales plummet in the first quarter and falling over 26% in the second quarter. the stock down over 40% in the past year.

melissa, seems like all the give aways aren't bringing investors back to the stock. back to you. >> susan li, thank you. despite chipotle's attempts to rebound from recent health scares, shares of the stock as susan mentioned are down 40% in the last year. are promotions like this enough to win back consumer confidence? let's bring in senior restaurant analyst from morningstar. >> thanks for having me. >> chipotle is getting aggressive at a time most categories in the restaurant space is experiencing slow growth. you have food deflation but at the same time higher labor cost. will this be enough to turn things around there? >> yeah, i have my questions whether or not it's going to be enough. i think this is obviously trying to stabilize same-store sales trends after last year's food safety issues. but doing so you might be trading off some short term benefit with traffic. and even that i don't think they're going to get much. but i think you're also training your customers to be more dependent on discounts or promotions going forward. what that means is this company's going to look like a regular restaurant company going forward, doesn't have quite the same pricing power it once had.

if you're going to rely on discounts, obviously doesn't set the stage for a lot of margin expansion longer term. >> how many promotional campaigns has chipotle had since the start of the food scares, you know, last year? i'm just curious. it seems like they have rolled out a lot and there hasn't been much evidence of traction on the back of any of those. >> yeah, we started with a free burrito giveaway we saw in the first and second quarter of the year. then transitioned into the chiptopia promotion this summer and now we're seeing some of these targeted promotions focus on some of the maybe last consumers that had gone away and hadn't come back since the food safety issue such as students and families. that's where we stand. i think this is going to start to set a new trend for this company. a lot more promotional effort you're used to seeing from quick service restaurants and not so much a player like chipotle which for a long time just gotten by with great traffic, great throughput and a lot of pricing power. >> what's the risk, rj, these customers never come back? look at shares of jack in the

box, dell taco, more of a regional change, they're up 17% and 18% this quarter. chipotle is down 6%. do you think these customers may just be gone forever? >> there's a real risk of that. i think what separates this from previous cases of food safety is chipotle never got to the root of the issue. we never really did figure out what happened that led to the e. coli and noravirus situations. the integrity mantra you sacrifice a lot of that with having the food safety issue. i think what happened is the company outgrew its supply chain and when doing so left itself to, you know, exposed to situations like this. and i think that's the thing that i think consumers are less forgiving when you've made so much of your brand and so much of your business model dependent on this healthy and better for you product and you can't back that up anymore. you have to really give away food to get people back in that changes business model quite a bit. >> how much farther down does it have to go in your view, the stock that is? when i'm taking a look right here the current p/e is 61

still. >> yeah. obviously that's under depressed earnings. the company is in a bit different situation both this year and next year in terms of recovery plans and reinvesting in a lot of technology efforts. we have a $425 fair value estimate, and that is obviously contingent on the company recovering. but i think the company when it recovers is going to look like a normal restaurant company 3% or 4% comps, restaurant margins in the low 20s as opposed to high 20s before the food safety issues and operating margins kind of nid teens. something more akin to what you see in quick service restaurant and not this darling of the fast casual space. so i think you have to assume that going forward. potentially you could see more downside because i don't think you're going to see a lot of recovery in the third quarter comps or maybe not what the market's looking for. obviously a lot of people looking at fourth quarter when you start to lap the food safety issues that will be key to see what you get off those. >> r.j., thanks. >> absolutely. coming up, rough day for retail. we'll tell you about two stocks getting hit hard today.

here's a hint, we have them on the board. plus, another big name added to the lineup for delivering alpha. former treasury secretary tim geithner. that's on september 13th, which is exactly two weeks from today. for more information visit deliveringalpha.com. "power lunch" will be right back.

as the french might say, we have two disaster du jour today. first, holster parent company abercrombie & fitch posted a loss in the latest quarter and bigger one than expected. sales also missed, that stock down. also sagging today, g-iii apparel, maker of other brands you do know, g-iii also posted a loss most analysts expecting a profit. that stock is down 21.5%. well, in the last hour of power you heard the surgeon general of the united states with a big warning about the opioid addiction in america. coming up, we're going to speak with a man who literally just wrote the book on this terrifying and fascinating about a florida pill mill and how the government may be helping broaden the crisis. that's coming up next.

i'm courtney reagan. and here's your cnbc news update at this hour. nasa keeping a close eye on some major storms. this is the view from the international space station of hurricane lester. currently churning in the pacific ocean. then there's hurricane madeleine prompting a hurricane watch for

hawaii's big island and hurricane gaston growing stronger over the atlantic ocean though it's not expected to impact the u.s. several balconies collapsed at a new york city apartment complex this morning. a large emergency presence remain near the complex after the incident occurred. there were no reports of injuries. and senator john mccain and wife cindy cast their ballots this morning in the arizona primary. this is mccain's fifth and closest re-election campaign. he said he's optimistic about his chances. >> voted, we're looking for a good turnout on the vote today. worked hard. we're very confident about the outcome today. and then we look forward to moving for the election in november. taylor swift is swiftly dismissed from jury duty. posed with potential other jurors. the judge dismissed when they heard her advocating.

i've been waiting a long time to do a taylor swift story. that was it. >> i thought she might have had too busy a touring schedule or something. but okay. let's get to eamon javers with breaking news. >> hi, michelle. nbc news is reporting the de facto number two man at isis is dead according to isis official media challenge. this is a source from isis itself. he's been the de facto number two official, he's also been the prolific spokesperson for isis. they are saying that he is dead but it is not clear exactly how he was killed. so we'll have to wait and see for more information on whether or not this was a u.s. strike or some other incident that caused the death of the de facto number two at isis abu muhammad. >> got it. thanks. oil prices settling for the day falling to a new two-week low in the session. 36.34 is where we closed out.

bri. here's a sobering fact. every year more americans die of drug overdoses than in car wrecks. thousands of those overdose deaths are because of prescription painkillers like x fentan fentanyl. earlier on "power lunch" u.s. surgeon general vivek murthy commented on the epidemic spiraling out of control. >> we've seen a quadrupling of overdose deaths since 1999. we have over 2 million people addicted to prescription opioids and every day we have people die from prescription drug overdose. >> let's get more from john walters. which tracks the rise of prescription pill mills. and how the u.s. government and the pharma industry turned a blind eye to the painkiller epidemic for years. john, i appreciate you coming on. both of you really, john temple and john walters. i read your book, i listened to

it audible.com -- okay, he can't hear us apparently. we'll wait until john temple gets kicked in. john walters, having finished john temple's book, i knew that pill mills were a problem. what i did not know was that literally while thousands of people are dying, many big pharmaceutical companies just continue to churn out oxycontin, fentanyl, morphine, without seemingly any oversight. what is going on? >> well, we've had a problem with the selling to the american people there should be no pain back in the '90s and in early 2000s. and we just had very powerful opioid medicines prescribed without proper oversight. there were studies done suggested they were safe when administered in hospitals, but when people took them home they got addicted. when they became addicted they needed much larger quantities and pill mills started. and there was a delay in slowing them down partly because of an allegation that if you go after doctors and medicine, you're making people suffer. we've now seen the consequences.

and we've had to go back and close those down. >> john temple, i believe you are there now, sir, can you hear me? >> yes. hi. >> fantastic. good, again, like i said, amazing new book. i urge everybody to read it or to listen to it or whatever because it really details a story which we know of people that get injured. and pain is a severe problem in america, real pain. people that have disabling injuries. but what you lay out are literally thousands of people a day driving 15, 17 hours from tennessee and kentucky and west virginia down to these florida pill mills, many thankfully do not exist anymore, every 28 days to fill up on oxy and then take it back home. how pervasive do you believe the problem still is? >> oh, it's pervasive as it's ever been. the florida pill mill seen has been largely shut down. that's what i wrote about, but

once you create an addiction, it's very, very difficult to, you know, get rid of it. >> and let's highlight that, john temple. because i think what you just said is key. when you create an addiction, because based on your book -- and we all know that oxy and other things are addictive. what i did not realize is that these are not only addictive, they are probably the most addictive substances in the world and they're being dolled out by doctors with prescriptions. that's the subject of your books. they're like how do we get away with this, this is legal, they knew they were legal drug dealers. >> absolutely. pharmaceutically speaking there's no difference between heroin and oxycodone. they come from the same plant, lead to the same high and the same addiction. >> we're going to let you get your ifb fixed because we see you're struggling. going to go to mr. walters. when he talks about, sir, all

the pill mills in florida getting shut down. when we saw an increase in heroin overdoses in the united states, people pointed to a lot more regulation around the opioid market. so all these people became addicted when they were much more available, suddenly it's tougher to get them and so people turn to what is the equivalent, just pointed out, to heroin, which isn't nearly as regulated and therefore we saw a lot of deaths as a result of that. is that your understanding of it, mr. walters? >> i think that is part of the problem, the other part of the problem is the supply of heroin from mexico has exploded. and they have also mixed the heroin with fentanyl, which is even more powerful as you may know. >> and legal. and legal. and legal. >> well, it's legal here, but the stuff they're making isn't. so the combination has been the rise in overdose deaths. it is true that there's still the majority of the opioid overdose deaths are from prescription pharmaceuticals as

the cdc measures it. but on the other hand the big increase that's been running downward, the big increase is heroin, which has exploded 60% increase in heroin production by the government's estimate in mexico. so there's two epidemics that have come together to form an enormously deadly -- this is the deadliest epidemic from drug overdoses and addiction in american history. and the administration isn't on top of it. it's not controlling distribution. and it's not controlling the overdose deaths. >> john walters, dr. murthy was talking about this and saying essentially that more deaths are caused by this compared to guns or even automobile accidents. at this point, what can be done to prevent people -- i mean, people are addicted. what do you do now? he was talking about for instance telling doctors not to prescribe as much. that's all fine and good, but how about the addicts already created out there? >> well, again, i think the combination is well established. you have to treat people. you have to get people into treatment through drug courts and criminal justice programs when their lives get out of control and they come in for

supervised treatment. you have to do it in the health care system. >> but would tougher sentences be a deterrence? >> well, tougher sentences are not the treatment measure. tougher sentences are to stop the transit of this. this is all retail marketed in our country to kill 50,000 people. we are not doing a good job of mobilizing the d.e.a., of mobilizing our border security, of mobilizing our help with the mexican government to shut down the heroin. on the prescription side you see we can begin to push back and control this legal market. we need to push back and control the illegal market, which is now the driver of these deaths. >> and that's, john temp, that's the thing that struck me in your book. as you're laying out this pill mill started by 20-year-old dudes who end up buying lamborghinis and all this money, they had real m.d.s and some you felt for. you felt she was trying to help because here's the thing, if you're the doctor, john temple, and i come in and say i'm in a lot of pain, i need help.

there's no way you can disprove that. >> i mean it's very difficult to tell whether someone is in actual pain or not. so you have to more sort of in some ways take the patient's word for it. but that's not what was happening in these pill mills. i mean, i think people -- i think the doctors had a pretty good sense that they were dealing with drug addicts. the bigger problem right now to me is over prescribing for small temporary pain. and, you know, i hear all the time about people getting large quantities of prescriptions from well meaning doctors that they take one and then they go to advil. and then they have like 89 oxycodone sitting in their closet. that's basically a big cache sitting in your closet. >> 47,000 people dying of drug

overdoses. everybody's freaking out about zika, maybe they should be, we got a crisis and not that many people seem to be talking about it except for those guys. thank you very much. now the story we're following developing story out of venezuela ahead of a large protest called for thursday. reports out of the country indicate a leader of the opposition has been imprisoned, who was featured here on cnbc when he was awarded the cato institute freedom prize back in 2008 for organizing protests against the government, prize came with a half a million dollar prize and he founded an organization to help train young people in leadership skills. member of the government's leadership team saying explosives were found in his car and that he was, quote, trained by the empire of the united states for years. his supporters say there's no chance that there were actually explosives in his car. ongoing tough situation in venezuela. you don't need to be a giant defense contractor to profit off the space race. coming up we're going to tell you about some mom and pop shops that are helping nasa to blast off. s me, using a wrench to build a jet engine.

well we thought ge programmed machines to talk. ge is an industrial company that actually builds world-changing machines. machines that can talk to each other digitally. hello? they don't talk to each other like that, ricky. shhhh, you'll anger it. he looks a little ticked off now.

you might think only large companies can make the equipment that sends people to space, but

several smaller mom and pop companies are in the space race as well. phil lebeau is live in watkins, california. phil. >> reporter: actually, we're in colorado, michelle. and we're here outside of denver because colorado has a number of small mom and pop companies, truly what you would consider a small business that are in the space business. here's an example. oakman aerospace in littleton, colorado, just a few years ago they had seven employees, they design and build small satellites. they're up to 12 employees and looking to add more. why? look at the growth in the launching of small satellites. there are more companies, more agencies, government organizations looking for the data, looking for the uses that come from a small satellite that's orbiting the u.s. and as a result oakman aerospace is expanding its operations. >> there's a greater availability for smaller satellites to make it into space than even five years ago. so it's a great time for small

satellites. and the capability of a small satellite is such that, you know, the return on investment for building a smaller architecture is greatly realized. >> reporter: the growth in demand of small satellite launches is good news for sierra nevada corporation space systems based here in colorado. they are planning to build spaceships that will go up, launch some of these small satellites and then come back and land on earth, like a regular airplane, like the space shuttle. they're in the process of hiring 300 workers. the community leaders here in the denver area believe this is just the beginning of what they expect to be wider growth when it comes to the space industry. >> we rank second in total private aerospace employment, so 7% of the nation's private aerospace workers are actually working here in colorado now. >> reporter: bottom line is this, we hear so much about the rocket launches and the spectacular video that goes with that, guys. but at the end of the day, when

you look at the small companies that are in the space race right now, they are the one who is are profiting just as much as the large companies we are also familiar with. >> cool. >> not just spacex and bezos. >> i know, so focused on the big guys. >> thank you. very cool story. all right, the s&p 500 is about to welcome a new sector, reits, so is now the time for you to invest in real estate stocks? plus, how much difference can one person make in a huge company? we'll tell you what one analyst thinks of united's big hire. street talk and trading nation are next. can a toothpaste do everything well?

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time now for "street talk" daily dive into the analyst calls you need to know about. micron technology getting its price target up by $2 to $20 at morgan stanley. the analyst citing tight d ram supply and likelihood it will remain tight. micron has been on a big run up 23% in just the past month. and yesterday deutsche and steeple boosted their own price target. >> i feel when you buy micron or short micron, you basically gamble on dram prices. >> it's a commodity business. >> it's a true commodity.

no different than any other commodity. second stock, usg, rbc's well known to our viewers rating a buy on usg but raises his target to $34 from $31 comes off company retired $600 million in debt and investing $300 million in what they call margin enhancing advanced manufacturing initiatives, end quote. they also note the stock is trading at a discount to its peers, $34 target's about we'll call it 14% to 15% of upside. stock is down today, so that price target jump ain't helping. >> the year-to-date run has been spectacular. remember when we did the segment about the home building suppliers basically. >> yeah, the wall, ceiling. >> exactly. and all of those stocks have done very nicely this year with the home builders and the housing trade. third stock here united continental, credit suisse very bullish on ual snagging scott kirby as president from american calling the hire a quote/unquote meaningful positive for ual shares. analyst says well regarded by the street as one of the best revenue managers in the industry and will improve ual bench

strength. >> market has a short memory. yesterday story about united was two pilots being reportedly drunk in scotland right before getting on a plane, today stock up 8% on a new hire. go figure. finally -- this is why we have the best team in the business. a two for upgrade call and the first stock is barricuda networks. oh. there's no song about the second. >> i wonder why. >> oh, doesn't have the rhyme. upgrading both cyber security names and makers of fireball. for barracuda, the challenges and likes the product alignment and says a fast-growing recruiting revenue part of the company is becoming a bigger mix of the company. he likes that. for fortanet, all about the margins and likes the fact that the company is focusing on, you know, actually making money. his price target on barracuda is

$30 and 30% upside on fortinet and a big shout out to the team for rocking the heart. >> a good match. >> double upgrade. it is time now for "trading nation." let's look at real estate stocks. the 11th s&p sector. containing them. ari wald rejoins us and eddie efinbind. do you have a position? >> it's interesting. it's never for an underperforming sector. you know, real estate is a huge winner over the last 7 1/2 years. total return is up something like 400%. but now it's facing stretch valuations and more importantly it's probably fighting an unfriendly reserve. i'd thank reits for the great return and time to move out. >> eddie, you're out of reits? >> out of reits.

>> ari wald says he's out of reits. when's the chart say about the sector? >> well, as it becomes the 11th sector, we recommend a market weight position here. no more, no less. let's chart it, brian. chart the etf. on an absolute basis, looks pretty good. it's correcting into support. that starts at $87. extends down to $84. pre-brexit levels here. we think this is where it finds a floor. the market weight recommendation, however, on a relative basis. we think this group is going to be handcuffed by ebbs and flows and interest rates. there's a tight negative correlation so in the near term if rates back up a little bit and we think they can, we think this is going to underperform. >> ari, is it that sensitive, honesty? if the fed raises 25 basis points, a quarter percent, in september, december, whenever, you think literally people start

to dump reits because of one fourth of 1%? >> well, the charts speak for themselves, brian. i overlaid reits versus s&p 500 with that of the 10-year treasury yield and they pretty much lined up almost exactly over the past couple of years. i think the correlation is something around negative 60% so it's a very tight correlation there. so if treasuries are moving higher, brian, yes, i think the group underperforms. >> there you go. the charts do not lie. thank you very much. eddie says he is done with the reits. thank you very much. for more market insights, go to tradingnations.cnbc.com. ♪ coming up next. we're going to go crazy on you.

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♪ using 60,000 points from my chase ink card i bought all the fruit... veggies... and herbs needed to create a pop-up pick-your-own juice bar in the middle of the city, so now everyone knows... we have some of the freshest juice in town. see what the power of points can do for your business. learn more at chase.com/ink things caught our eye. we talked about the apple tax decision in europe. little known fact we probably haven't talked about today. the eu thinks apple owes them

more money than they charged them. it is just based on their rules, they can only get ten year's worth proceeding the inquiry. but this decision goes back to 1991. i mean, if they had their druthers, they would take more money from apple. i think this is up there with brexit because if you're so unk uncertain you can go back to a 1991 decision? the commissioner said there's no certainty until the competition commission decides. 20 years later? i mean, you have to be kidding me. right? >> statue of limitations. >> so uncertain of the tax structure in europe. >> they can do what they want but telling a sovereign nation what to do with their taxes. >> that's another issue. right. that raises the issue of brexit, as well. >> in the '90s there was a push to go to ireland specifically and created a tech incubator in that country. dell went over there.

they operated up big operations. this would not just be apple but all this investment that's gone into ireland as a tech hub in europe to potentially go. >> anti-business and anti-ireland, for sure. >> if you're anti-irish -- >> god help you! how can you not like the irish? >> what's not to like? >> what you said. >> look at airlines. we were talking about ual and analyst call for ual's hire of scott kirby from american as a good thing and they said this would be a loss or american airlines loss and that stock is higher, too. you see across the board very, very strong gains across the airline sector and helping to boost the transports which is good for the overall markets here and this is an outlier of strength here. capacity comes out of the sector and perhaps helping and for today these are stellar gains in a sector not getting too much attention. >> i mean, everyone's fighting over the airlines.

you know, they look at jet fuel prices. i don't know about you. you both travel a lot, as well. every airline, every airplane i get on, a lot, packed. >> packed. >> packed. >> capacity is coming out of the system. >> flying out of newark or jfk. >> reducing capacity. that's what investors like. right? >> i know. i hate it. >> it's bad for us. good for them. by the way, united's president and ceo oscar munoz on -- consumer, tomorrow at 6:00 p.m. eastern time on "mad money." >> this soccer goal. nothing serious. you have to see this. if you're just joining us, watch this high school play. boom, flip, kick, score. runs into a goalie. a full flip and lands, kicks, scores. columbine high school. did not count. he was offsides. still that's pretty spectacular.

>> the judges would have given it a 17 in rio, i think. >> not the east german. >> thanks so much for watching "power lunch." >> "closing bell" starts right now. we pay all the taxes we owe every single dollar. we not only comply with the laws, but we comply with the spirit of the laws. we don't depend on tax gimmicks. we don't move sintellectual products offshore. we don't stash money on a caribbean island. we don't move our money from our foreign subsidiaries to fund the u.s. business to skirt the repatriation tax. >> that was apple ceo tim cook back in 2013 testifying before congress about the company's tax practices.