we're back to data dependency. if the data is there, they're going to do it. we go back to nonmanufacturing, services, that's what this economy is. look at manufacturing data. >> and rob kaplan said that on your show. >> good having you here. thanks so much. see you again soon. barbara dujoining us today. does it for us. >> here's what's on your power menu. the new war on drug. hillary clinton out with a plan to try to rain in drug prices. do we really need another government agency? the details of debate straight ahead. with a blah august job's report, is the fed on hold? maybe not as some still see a september rate hike coming. just heard those comments from l lacker. it's anything, but a payday. a stock sinking like a rock. power lunch begins right now.

lacqu lacquer. here's what else is happening this hour. stocks in the green as we get closer to the weekend. s&p 500 higher .25% along with the nasdaq and dow. led by big gains. mylan having lows after releetsing a report medicaid grossly overpaid for epipen drug. young brands seeing a $460 million stake in china unit in a unit of alibaba. very busy two hours ahead. including jobs report. some are calling a dud. >> it's great. loved it. >> the u.s. economy adding a weaker than expected, 151,000 new jobs last month. begin with comments from the federal reserve and sees the leaseman. >>. >> couple guys speaking next

week. a week from tuesday, blackout period. very much on the hawkish side of things. rates should be significantly higher given look at variety of rules out there. he points out the recent job growth has been about double the population growth. that's enough when you're at full employment. inflation he says is the likely to lift. benchmark rates for the federal reserve. the data is consistent with inflammation moving back. he points out there, quote, disturbing and gape at this comment right here. disturbing similarities now between the 1960s and 70s when bad fed policy led to inflation. cnbc rapid update. the only average on the street of not one model, but all of the models out there, we are running 2.9% given today's better trade data and other data we have this morning. not the payroll, but the track accident forecast of 0.1 with a range of 2.5 to 1. also up a tick to 1.3 and take a

look where your favorite economist might be as to that i recall gdp outlook. he's got the top of this number, 4 bnt 1%. the atlanta fed at 3.5. morgan stanley at 3.3. here's the numbers we're all tag about. was it a dud. was it not a dud. nonform at 151 now. you can still love a dud. that's possible. unemployment 4.9%. hourly wages not as high as expected. here's the debate on the street. these numbers have been moving around, folks. the fed funds futures adds gauge by reuters icon 24.9% for september. that is down a point and a half. december is up 4 points to 54.8%. september's lost is december's gain. i think this number is right on the cusp like my birthday may

21. you can all write in on that. depends what newspaper you read, i'm a gemini, tour res. cusp of going either way on this number. >> both crappy cards by the way. neither of them really sold. >> i was talking about the papers. so let's talk about this. steve stick around. we've got bill rogers with us as well. former labor department economist. he knows what he's talking about. here's the reason why i do not believe this number was not a dud. >> what's your theory. >> let's not forget july was revised up from 255 toll 275. that's a good number. >> awesome number. >> we expect revisions. this 151 as it is, yeah, but what if we find out next month it was 200 or down. either way it's still growth. i still think thele fed is going

to hike in september. nobody cares what i have to say. bill, what do you think. >> i don't think they're going to hike in september. >> thanks for coming on. >> yes. >> the reason why i don't think is this real employment rate, this is the u 6 or. >> let's explain the real unemployment rate. >> can i do it, please. >> it's basically the official unemployment rate so the people who actively have been searching so 6 million americans, but includes two more sets of americans. those who are working part-time, but or economic reasons that is there's not enough demand right in their communities to justify employers paying giving them full hour and a third group that is they've stopped actively searching, but if they're offered a job, they'd take it. when you include those two other groups you get a rate back to 10%. 9.7%. if you do that, if you compare that 9.7% to the late 1990s.

that was a real tight labor market. >> 3.9%. >> if you go 4. >> it was a fake economy in the late '90s. were. >> as fake economies go, it was pretty good. >> if you take 1997 when we were at 4.9% on jobless rate, the official rate, really unemployment rate today is 1 point higher today. that's 3.5 million more americans still looking for a job. working part-time or want to work full-time. i haven't even got to the labor force participation issue. that's lower. even if you adjust for people who age, it's still off. >> to bill's point, 5.5 million open jobs. a skills gap keeping people from entering those jobs that are nicely paid, high value added type jobs. it's a bifurcated economy. it makes september a coin toss. certain sectors doing well. the data that came out today with respect to jobs.

all showing a slow down while other parts of the economy are showing a acceleration. i don't think the fed has a clear shot at raising rates in september. again, when you look at to mr. lacker's point. when you look at the globe, this does not resemble the '60s, '70s in any way, shape, or form. the med monetized wages to lead to greater inflation. we're not in that environment. >> how much longer does the fed have to stay on the sidelines with coin toss data without ruining credibility and running into the point they might run out of tools. >> there are people on the street who feel the fed has run out of time. >> a year ago. >> that's one answer. i think that's a really good question. one of the reasons why the fed might raise. that's this. the federal reserve chair gets and you happen says the case for

raises rates have strengthened. they come up with a number. 151,000. jeff lacker is not alone thinking that's doubled the growth. that's enough to keep the unemployment rate steady or declining. stan fischer said it's a possibility in september. you have guys in the committee, interesting guys, eric rosen. he's a die yet in the dove that's worried about financial stability. and the negative consequences of rates staying low for too long. momentum on the committee. someone like loretta ready to raise rates. >> we've got -- i would go with you if we saw in september that we got a for more descenders. >> in is big what you just talked about. you wrote on it in jackson hole. the fed is coming to grips with it will concept that if they

don't do something soon, pension funds, annuities from insurance companies, grandma and grandpa aren't going to get paid because you're already seeing insurance companies stopping writing annuities because they can't guarantee a return. >> it's now at this point in time. oh, now is the time. we don't want to -- use that word, but. >> put them at a disadvantage. >> maybe you've got people from the city of chicago calling the fed and saying, guys, we're in big trouble here. we need return without risking money in the stock market. >> so the rational behind that argument we're punishing savers by having rates so low. instead let's punish everybody else. >> can i correct you on that. >> let me finish first. >> run the risk of creating a recession. go upnominally. it's not like you're going to

take home a big return. i'm not sure about that motivation. >> will i think it's a strange thing because it's one half of the other. at the same time, they're inflating other asset prices such as the stock market close to record highs so they benefit in other ways. you're punishing the saver specifically, but for pension funds, held by equity returns. >> ron is absolutely correct that has been the argument for a very long time. the difference is i think the fed is worried it's getting into or close to a place of systemic risk coming from this notion of the pension funds being incapable of making their numbers. >> correct. >> and coming through with promises. >> for me a months ago we were having the same conversation, i was very, very staunchly against seeing rates increase, but i'm sort of warming up to this notion we are getting clearly unstable. >> if you can take back a little bit of the easing and still be easy, i think there's opportunity for the fed to do that. i don't know if they avail

themss to the opportunity. >> you're going to trade roughly 6% return in the stock market for fixed income. >> yes. >> and that does -- that solves what. >> gets you out of the way to invest in stocks. a large percent of portfolio is mandated to fixed income. >> pensions. >> some. >> no. >> they write their own rules. >> if you can find me a pension fund, no. >> of course not. >> doesn't that start to move them back to the point what you're raising if we go into a recession, there are no otherle tools. >> all this points to september hike. >> you guys are having a spectacular discussion. i'm getting the heat over here. >> the rig counts are out. and we have one. look at the graphic we have. our team is the best in the business. if you'reradio, it's a

pretty graphic. that's going to go up by one: you can see the progression. we always talk oil. we rarely talk nat gas which is up seven rigs. you think we have too much oil. we have way too much natural gas, but one rig, that's 40 jobs. that should help the next job's report. >> after battling into florida, hurricane hermine down to a tropical storm, but still doing damage. >> hey, that's right. hermine is definitely picking up pace here. the wind is getting notably stronger and take a look at this. we're already starting to see damage from the stronger gust. tree basically broke apart just a short while ago, but the biggest worry here along the coast is flooding. we could see as much as 15 inches of rainfall in some isolated areas as the storm moves east and north.

georgia's governor has declared state of emergency in 56 counties. we're also seeing multiple counties under state of emergency in north carolina and florida. phil mickelson at least one storm related death so far. that's marron county and was confirmed. tens of thousands only epeople without power in that state. throughout the region we've got schools and businesses closed. even if port of savannah, which is the largest fourth largest port in the u.s. has been closed. seeing a similar situation two hours north of here. charleston, that port was closed a while ago as well. back over to you. >> still ahead, hillary clinton's plan to come back sky high drug prices. what impact could it have on the industry. one supporters joins us next. comfort food...

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unjustified increases on long available drugs by setting a consumer response team to monitor price hikes. make alternatives available and goes fines on the drug companies. senator amy joins us now. >> how would you go about for instance determining what is an egregious price hike and when the government should actually step in. >> i think what she's talking about is basically a swat team here when you've got all this alphabet soup of agencies. fda, what she is staying is let's get people together that actually are monitoring the drug prices so instead of the response of people like me going on, i'm outraged and getting a letter and asking questions. why don't we methodically go there drug prices and when you have a case like mylan with

epipen, out of sink from 100 to $600. and actually respond more methodically by either allowing in on an emergency room basis drugs from other countries, that's encouraging competition. something that senator mccain and i have put forth. it's a bi partisan proposal. we've talked about that and also as she said today some increased fines and penalties. we need incentives to stop them from doing this. >> i think there are a few people out there who will say drug prices should shoot to the sky as far as they should go. in theory such a swat team, but the devils in the detail senator. in terms of this group of people, how do they go about? how would you go about? how would you direct this team, for instance to find for what is egregious out there? a percent increase that's going to trigger action at this point. do you go through product portfolios of the major pharma

companies and say this is too high, this is high. this is oeng. how does it work? what you're doing here you would knee economists involved and experts in the area. looking at areas sure there's production and invasion changes that cause price increase. look at that. the value of the patient. the value to the customer, but we can't have the situation continue where we're just responding years later and suddenly realizing that it will prices have gone up or what we just discovered today after a few of us and i lead the way asking a letter in a letter to cms, what's happening with how much the government is paying mylan with medicaid and as chip and with the medicare program and out of the blue we find out, oh, they probably misclassified this so your state alone, senator, to me is this year alone 4 million is owed back from mylan. >> how would it work? drugs are not commodities.

when they're developed anyway. what are you going to do? have government workers go into a form suit cal company and say we need to know how much you spent to develop this product and tell you how much you're going to charge for it. how would it work? some drugs cost hundreds of millions of dollars to develop. some you spend $100 million on and you get nothing for it in the end. >> how this would work is looking at the trajectory of price increases. instead of having five different agencies. and i have seen this work in government when we've tackled a problem like tourism and looking at how we make it easier. i don't think it's bad instead of just having it come out of the news, to figure out what's happening with the markets prices and. >> it's not just coming out in the news. to be fair. nobody is trying to defend any side here. just trying to get some answers. it doesn't come out in the news.

the mylan epipen price increases happened over years. it wasn't major nigovernight. the state of minnesota has been paying increased prices every single year, but now saying you overcharged. what happened in your own state to go undetected and now it becomes some sort of rallying cry to regulate the drug industry. >> in my mind, your basically making the case for hillarys plan. what you're saying is all that data is out there, but no one is doing anything about it. let's get negotiation on medicare part d, which sh proposed over a year ago. let's stop the pay for delay deals that senator grassley and i have a bill to do. let's get suspicion in from other countries and then let's have better enforcement. all that is about her plan today. enforcement when we start seeing these outrageous prices. you have to look at the last year where she'sle actually been taking this on. put forward our not wild ideas.

ideas that are supported by a number of republicans like grassly and mccain and stop the basically let's be honest, your pharma has been stopping proposals from advancing in congress and i would love to have a president that is taking this on and getting it done. >> senator, again, here's an article in the wall street journal. drug prices rise despite calls for cuts. talks about how over five years prices went up eight percent thachlt was written in march of 2011. five and a half years ago. and yet now suddenly it's this crisis. my point is that in 2003 before your time in senate. we had hearings about housing and mortgages and fannie mae was out of control. guess what, nothing got done and the housing bubble collapsed. how do we know this m time congress is going to do something. congress has been complaining about this for years, but has done nothing for years. >> every time i try to get a vote or try to move one of these

bills, i'm stopped in my tracks. i'm sick of it. >> who is stopping you. >> you cannot get votes on these things because there's a lot of people rely beholden too far ma and don't want the bims to move forward. that is the fact. >> you're saying pharmaceutical lobbying efforts. >> let's be clear with what you're saying. >> pharmaceutical lobbying efforts may be delaying votes in congress. >> yes, the facts you have someone running for president who is talking about this in a bigger way than we've seen before with some specific proposals with penalties and fines and the fact we now have the american public's attention on this with a life saving product like epipen that so many kids care around in their back packs. that's making a different, yes. >> you look turned hood of one drug company, and believe me it's not just mylan and start seeing the stuff going on with

medicaid overcharging, it's going to change the directy of this issue. so as horrible as the experience has been, for me it's a silver lining. i'm all ready to go on this. a lot of people are too. we simply cannot afford to pay these prices. ask the insurance companies. they're screwed be this too. increased prices being paid by all taxpayers. >> blue cross of minnesota dropping out of the affordable care act because of price. lost what, $260 million. >> yes. >> is any bone in your body that concern overregulation of the drug industry will result in less research and development and fewer life saving drugs reaching the market. >> that's why we go the approach secretary clinton has suggested here. looking at and not taking on every increase in the country. of course not, but looking at

the outrageous policies. putting people on notice that people are going to start looking at these in a more aggressive way. we don't want to save the life saving drug industry. it's one of the industries that has saved lives in our country. come up with invasions that employs people in america, but we all have to acknowledge it's getting out of hand. we have to take a targeted approach to increases and we also have to allow for more competition by passing some bills that we have out there for years. >> last question, in your own state, senator, is your state reviewing all that it has paid to various drug companies to make sure that it's not doing the same that it has done with mylan as you are alleging here. >> well, that's what i'm first of all asking on a national basis that cms and asked for a investigation look at this with all drugs. >> my own state attorney general today put out a request for documents from mylan. i will talk to her about looking at other ones as well. states when states get ripped off, it means taxpayers get

ripped off. other businesses get ripped off. if we can fix this so it's on a competitive direction like we want, a trajectory you have competitors into the market and get reduced prices when that happens, everyone will be better off and in the long-term, the drug companies will be better off because we'll be encouraging invasion and competition. >> i want to be clear what you just said. i can't keep track of everything, i do my best. your state's ag is asking for documents. >> yes. from mylan. >> they sent that out today. >> it just came out today. i got the e-mail while i was waiting on the commercial break. >> so do you get the sense other ags in other states are doing the same. >> i don't know that. i just know we're doing it here in minnesota. i put the figure out this morning the estimates we were getting from the state is 4 million owed on one drug because of medicaid rebates.

that's just medicaid. >> is the attack of the ag to sue. >> i don't know. i just know if this is true about minnesota with one drug that because it was miskpluas misclassified that means that minnesota paid 4 million extra. if that is true, can you imagine the numbers across the country. >> is it just mylan that your ag sent the letter to or anybody else. >> will i believe that is correct. as you have pointed out, this should be alaunching a broader information of how these drugs are being classified. >> senator klobuchar of minnesota. a lot to discuss. we appreciate you sticking around for it. thank you very much. >> you had a great discussion on the fed rates. i loved listening to. >> you enjoyed that. >> i actually did. >> senator thank you so much. >> see you, bye. >> thank you. mylan by the way taking back to session lows right now on what

we just discovered thachlt is the minnesota ag has sent a letter to mylan requesting information about possible overcharging from the epipen. she just got the e-mail in the commercial braeak during our excellent fed discussion. >> hopefully get us to the commercial break. top bio tech investment weighs in to see if we should still by buying stocks. coming up. [ ep but you'll be glad to see it re. fide -where smarte instors will always be. but you'll be glad to see it re. if only the signs we as obvio when yotrade. fidety's activtrader pro n lpd

biotech and pharma in the political cross hairs. michael, always good to see you. >> great to be here. thank s melissa. >> given what secretary is proposing and since mylan, it's down. how worried are you about this. >> it's great. there are two important points. obviously considering some of the stuff we talked about with the senator on before me, number one, i think that a lot of the political rhetoric and a lot of the talking points that were brought up, including this pricing oversight committee is a bit long in the tooth. a lot of people believed it would be pretty difficult to implement and i think that people expect a lot more continued political rhetoric going through debates coming up and the election in november, but i think what's most important, what's most important

as you see stocks reacting today, institution investors are trying to major lo trying to overlook this. stocks have been rallying the last two months. >> the stocks have been rallying over the past two months. okay. in terms of getting something done, something doesn't need to get done in order for the stocks to feel the pain. it could be the notion of jawboning that puts pressure on companies. take a look at mylan. nothing has been done. yes, they introduced the generic version of the epipen. before that the stock was done. now it's down 17%. there is not -- how big is that wall of worry at this point? >> look, i think there are a number of bat apples and a number of example that we're putting out. if you're looking at companies like biogen, this aren't companies that add 500% price increases. while stocks are reacting initially to symptom bad news,

overall, that the stocks are priced in a lot of the bad news. we are down 4% year for year. this year, the morning the xbi was up a bit on the open. >> they don't have the price increases, but do have drugs that come to markets that cost hundreds of thousands of dollars in some cases. for hep c treatment, it came out to market and it was very expensive. you don't have any concerns about now price increases, but a cap on pricing when a new drug hits the market? >> i think that while the absolute price may sound high for some of these drugs, i think it is a question of the farm cal economical value that is producing. the a cure in hepatitis c for net price of $45-50,000 for most people and, certainly, around the world where it is reimbursed is a positive economical value.

cancer drugs that are offering the survival, i think we would all argue is providing good value and that is why in europe where they are paid for. strong invasion will be rewarded. >> have to leave it there. rbc capital markets. did the jobs report deliver a much needed shot in the arm for donald trump? the jobs trump story coming up.

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introducing wifi pro, wifi that helps grow your business. comcast business. built for business. welcome back. major averages off of session high. looking at 32 point gain in the dow and s&p 500. that is a four point gain. tlt talking about the jobs data and how it indicated a coin toss for september rate hike. the bond market is telling that is firmly on the table. seeing the selloff and bond markets and yields moving higher. there you have it. take a look at tesla.

trading below $200 a share. this is the first time it's reached that level since around june. down 2% just off session lows. remember the space exrocket explosion yesterday as well as most recent filing indicated investors did not want to put money into solar city. that is pressuring tesla shares. >> u.s. job growth seeing a summer slow down. adding 151,000 jobs last month. not as high as expected. joining us is to talk about it. republican strategist joe watt kins joining us we'll. mayor more or lesales. good to see you. >> that's for nbc sports channel. let's talk about jobs. let's really get focused because we've talked about the skills gaps. i've argued that we have -- we may have a geography gap as

well. good workers that can't get to where they need to be. can't sell a house. maybe the mortgage is still under water. how is louisiana? >> we have been there. >> so louisiana of course is like a great bit of the country where wage stagnation, high pockets of unemployment and poverty are still too present. there are areas that have been highly successful. look at baton rouge, have a devastating flood. some parts of that city have seen a comeback. tremendous investment. other parts, no, not much in the last 15-20 years. so louisiana is like a lot. it's a tail of two communities. >> it's such a great unique state and new orleans is great new unique city. right when you're bouncing back from something, something else happens. >> we need a break.

>> you're bouncing back and not only the flooding, but as we've reported on the oil flood. the price -- we've interviewed people that have 15,000 workers that may have to fire everybody. how important is oil and gas. >> oil and gas is important. that's why there's been a concerted effort to really diversify the economy with technology. now with the new oil and gas, if you will, the natural gas explosion that's taking place. it's really been an effort to diversify the economy of south eastern louisiana, but it's still an economy that's heavily, heavily dependent on what happens in the oil and gas industry, and the related impacts of that. >> joe, how are you interpretering the jinterprete interpreting. republicans are jumping saying this is evidence of slow growth in the economy. >> well, of course people would say that the number is lower

than what's expected. everybody expected about 180,000 new jobs. only have 151,000 new jobs. rchls will try to use it in the senate and house elections of course. on the presidential side, i don't know that it moves the needle at all for donald trump. i still see hillary clinton with a much clearer pass of 270 electoral college votes. unless there are specifics how he can bring back jobs, especially in the different sectors, how he can impact that by lowering regulation specifically or lowering corporate taxes, as well as individual taxes. i don't know how it moves the needle for donald trump. >> let me say this about the jobs report. the positive is that it's the 75th straight month of positive jobs growth. the other side of the coin is that this -- the overall economic growth and jobs growth is not strong enough. to completely lift those who are

not working and the many large numbers of part-time employees that want to work full-time in the economy. >> mark, in all honesty, as well. august traditionally since 2013 been a slow growth month so it's not surprising to see low numbers during the month of august. so i'm not completely that you know thrown off bank account the fact we saw 151,000 jobs created in august. not a huge surprise. >> what this points to is the economy needs some more charging. needs more push. needs nor stimulus. it needs increased investment where should it come? it should be in infrastructure. water infrastructure, transportation infrastructure, that's certainly would be spending by the government, investments by the government and carried out be private sec to sector firms. >> first off, you're sounding like a democratic, but that's

all right. of no, no, i'm very republican. >> he's making good sense. >> he's the only one in america left. >> here's the problem, our viewers know i've supported infrastructure forever. we all want better roads. whenever we seem to spend on infrastructure it goes to other things besides infrastructure. if both candidates agree we need to spend more money. how do we guarantee if we create some kind of infrastructure bank or say we're going to spend it at the money actually goes to roads and bridges and not to other pet projects elsewhere? that's what happens. >> really, you're making a great point. that's a big fear that everybody has. of course so much depends on what happens in these house and senate elections this coming cycle. republicans as you know control the house. i'm guessing that we'll retain control of the house.

i'm not sure that we'll retain control of the u.s. senate. so from that standpoint, you may not have two republican houses, two republican chambers going forward no matter who the president is in the next cycle. that's a real challenge. if you have a democratic president and the republican house republican senate, you have a good checks and balances to make sure that the money is not being spent. >> we need more than transportation infrastructure. we need water systems. look at flint, michigan. it's another example of the fact that infrastructure nowadays has to go beyond building roads and bridges. yes, roads and bridges, but water systems, community facilities, other things that are closer to home, closer to communities and would have an impact. >> we have to wrap it there. thank you so much. appreciate it. >> cash crime and exploding rockets. been a rough week for elon musk. does he have too much on his plate? we'll debate that.

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time now for the power picks. 60 seconds to convince a company what it has to take to be the next big thing. i'm cj wilson. founder of my health. we launched to save lives. providing patients with a secure easy way to manage all of their health care information and get faster better medical care. over 400,000 people die from medical errors. doctors need accurate information and first responders need to know who you are. you want fast medical care that's great, my health does that. use codes on wristbands, wallet cards and id tags to link your million information, sensor data and diary online and local care providers. the best that we can niend. just $10 a year and we sell to employers, insurers, and chronic

care groups with more information, better medical service, faster. my health saves lives. >> welcome to today's power pitch. you just saw cj's pitch. now let's meet the panel. joining us onset is start up adviser. she has more than 40 companies in her personal portfolio and serves on the board of the new york angels. an angel investor and startup mentor. president of corum group. tech mergers and acquisitions. from the bay area, david wu. he's a general partner at maveron. a firm with more than $1 billion of asset with a focus on consumer tech. invested in 50 startups as both an angel investor. you're in the hot seat. >> i liked how you talked about pricing and how you're reaching

the customers, but i would have liked to hear a bit about competitive advantage. maybe a milestone since launch and your background. have to give you a c. why should consumers trust you with medical records and continue to input information into the system when they have no real ainsurance. we feel we have both the supporters internally and external by and our first large insurance company as a milestone putting us on their membership cards for all of their members. in terms of security of your data, we are hipaa dplient compliant. on the same network the hospitals and networks use. added additional players to go only where you want it to be. >> the pitch to me needs to be clear, concise, capture my attention and this felt jumbled frankly. felt like reading every third slide in a power point. give the pitch a c. in a field dozens of companies providing similar services and a lot died along the way.

how are you different. >> cost. ten dollar as year or less based upon your employer. not just your employer, your doctors, hospitals i care providers all want that data available. so we focused on that side of it. >> david, your question. >> there's not a better cause than actually preventing medical death and error. i didn't see anything in the pitch in terms of the team or approach that's differentiating. i also give your pitch a c. when you look at the dozens of companies that have fried to create patient/health records or lockers and why they've failed, there's a lot of friction points and a lot of friction on the end customer to upload records. are you doing anything to make it years. >> we provide a service with your signature we pull records in, even ones that aren't digitized. join with prescriptions and digitized records from largerer health careless providers to us. >> so what can you share with us in terms of metrics to date or

users who have joined. >> with the new insurance company we believe we'll quickly reach 100,000 users by the end of the year. 50 to 100 dollars per user of revenue listen generated not from if users, but the medical care company. >> no offense do the designers of your wearable, in my small focus group there's maybe an objection to wearing something that's screams emergency. for the patient who doesn't want to wear anything, do you have a solution for that. >> whether it's a shoe tag or wallet card, we understand. as long as you know my health, your e-mail address will get you what you need. >> now we want to know if the panel is in or out. >> i'm all about empowering consumers with own health care data and give lg them the ability to share as they like to. however at this point, i really need to see more information around their kpecompetitive advantage and i need to see the million professionals will change their behaviors to really

use the qr code. so unfortunately for now, i'm out. >> you hit the nail on the head. this idea of empowering people and giving back control of medical records is necessary because the system is broken, but i don't see that happening here. i see a different business model. for that reason, i'm out. >> david, everything from end customer, behavior changes and uploading a managing their own data to integration with the million side, just makes it more and more difficult. even companies like google have shut down their services like google health in the past. i just can't felt excited about what you're trying to do here. i'm out. >> cj, what is your reaction. >> i appreciate the consideration and feedback, but this is about saving lives. getting your data and was ises together we can make sure you have the best health possible. >> thanks so much to cj wilson of my health. and the panelists and that's today's power pitch.

>> you heard what the panel had to say. are you in or out. my health, follow the conversation. for more on power pitch, visit cnbc.com. >> shares of this company taking a deep dive today. sheer here is a hint on what company is it. you can say the losses are registering with investors. are registering with investors. our disaster news stock, next. ♪ using 60,000 points fr my cha i card i bought a the framerk... using 60,000 points fr my cha iwire.. and plants needed to ve mshop.. a face. see wh the per of pointscan d.

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card and technology surrounding the chip card is going to be slower because of the economic problems down there. >> this was an automatic win or so people thought when the chip technology was released because everyone has to change the register. >> slower than expected. hillary clinton's new drug task force, good idea or government gone wild. we will debate that next.

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welcome back to "power lunch." >> reporter: the fbi just released the summary with redactions of hillary clinton's three-hour interview that she conducted a couple of months ago before james comey came out and announced decision not to prosecute. it is mostly a repetition of things we already heard from hillary clinton publicly, but what she says in this interview, according to the agent's summary, is that she was not especially technically sophisticated. she left decisions about the server to others. she specifically told the fbi she did not set it up to avoid

the federal records act, but she did it for convenience. she specifically said she did not direct any aides later to delete e-mails to avoid federal records inquiries. she indicated that she relied on the judgment of her colleagues at the state department. again, this is something she aide over and over publicly because the information that was transmitted to her that has now been deemed to have classified information, she says that she counted on the judgment of those colleagues of hers. that it was not classified at the time. there are two systems they use. classified system at state that hillary clinton did use. there's a second system for unclassified e-mail. that's the one she evaded by having her own server. and she said that based on her information, she didn't knowingly e-mail anything that was classified. there was some discussion about drone strikes and under what circumstances she thought those

should or should not be mentioned. she thought it depended on the context. she followed the understanding, which she had was anything that could potentially harm national security, she considered clat classified and would not be sending on her e-mail system. >> thank you. less than two hours left. the dow is up 30 points. s&p 500 with a 4 point gain. seeing oil move higher in today's session. wti higher by 3%. seeing a gain in energy stocks. the best performing sector today is utilities. that is up almost 1%. the clinton campaign unveiling a plan to combat rising drug prices. >> hi, this new plan to combat increases in the prices of drugs comes when they're actually citing the increases. this same day we're seeing mylan

stock fall on news that senators are starting to investigate whether mylan has mischaracterized the epipen under rules overseeing the size of the rebates that mylan needs to give to medicaid. amy klobuchar you just had on participating in this as well as senator ron widen and congress man frank have a loan writing a letter to cms to try to figure out whether mylan has characterized epipen correctly. essentially characterized as a generic drug. therefore it would have to pay a lower rebate to medicate than an innovator drug. they say they are in compliancest compliance and applying for the new designation as a noninnovator product. this is a story they use today. in hillary clinton's newly unveiled plan to try to combat the rises price of drugs, spooking investors. weren't seeing that reflected across the industry.

target unjustified prices on long available drugs. create a consumer response team to have the ability to intervene to make alternatives available. importing them from canada or speed up competition to market. also to impose fines. the biotech not reacting too much. maybe people are going on vacation. they think this may be a bigger deal than people are making out of it. >> working hard as usual. we'll see you soon. thank you very much. >> let's talk about the government's vomit in drug prices and bring in chair of million ethics and policy along with james, fellow on ethics and public policy. james, i'm going to begin with you on this. does the government have the -- we brought this up with the senator earlier. which is drug development costs very wildly, do you think the

government would be able to go in and figure out how to limit drug price increases because it would have to be a deep dive, almost like an audit? >> right. so many questions that would come up with something like this. the government hasn't shown a very strong capacity to get into the pricing business and establish prices as well. markets are much better at doing that than the government. that's why we have the government do certain things. on the other hand, if there is a problem, i think the problem lies more in the government prohibiting generics getting on the market faster. if there's a solution here, it probably lies in allowing when there's a long standing drug on the market, a faster more facilitated way for generics to get out there. frankly a lot of commentary the fda is impeding that to some degree and slowing it down and making the margins of the business for those kind of products so low that no one will

invest in it. part of this lies in the question of how can you get generic subs tutitutes on the market long past patent expiration. >> a lot of people pointing to that as one root cause of this problem. do you see a task force part of a solution that could include taking a harder look at the fda? could regulating reasonable pricing actually be a possibility? >> well, remember, one of the problems we do have is that this isn't a market because the government does give monopoly rights to drug companies through patents. through market exclusivity to brand name drugs and there a long process for regulatory approval, even of generics to make sure the drug line is safe in what they're producing will give you the drug they want. that had to be halted because of some discrepancy. we don't know the exact details.

neither will release them. i do agree with james in this sense. we do need to speed up the fda approval process. i don't think the fda is intentionally holding up approvals. they are understaffed and underfunded in this process. we need to get rid of that backlog and make it a very short turn around. i would think a three month turn around is the kind of month we need. if we have a situation and we are going to have situations where there's just one producer, even of a generic, we do have to prevent them. we can all recall touring. that's not the only example. we do have to prevent generic drug makers from raising prices when they have a monopoly situation. there i do think a task force with rights to importation and other rights for excessive wi windfall profits does begin to make sense. it's not a free market. the way we would like. >> i don't know if you heard our

interview with senator klobuchar, but one of the things she said that got melissa and my eyes raised pretty good. she said i can't get a vote in congress. she said my colleagues just talk and don't want to bring a vote. i asked her directly are you not getting a vote because the pharma lobby is so strong that ultimately all the congress people tied to it and they aren't going to do anything anyway and she said yes. >> look, i mean, i can't comment on that. i don't know what is influencing senators. i don't know that much about really how the pharma lobby is working in congress and so on. if that's the case, shame on them. everybody should be voting on their conscious and what they think is right rather than just being influenced by industries of course. on the other hand, my sense here is that there's a larger struggle underway, which is how do we think about and look at pharmaceutical pricing in the united states. we have a very large robust big -- the best in the world bio sciences industry. it's generally been that way

because we have a patent system for protecting their intellectual property. allows them to make good margins when they bring something worth wile to the marketplace. that's fantastic for consumers and improving people's health. we don't want to lose that. the question is in the cases where a patent and already expired and we should have more generic competition. how do we make sure that happens? i agree the fda is the place to look. i have a bit of a difference of opinion. it's not just funding problems. also just approval process and how they go about it. we need to know if a generic product isn't going to make enough of a margin, then generic booster won't get into the marketplace. you need a system that makes it clear, yes it will be a free market and decedent return if you invest in the manufacturing side which is quite expensive. >> to be fair in sort of defense of tef have a, tried to get

through the product, but it was rejected by the fda for safety concerns. perhaps that could have been sped up in terms of rejection happening earlier, but it has its own problems in terms offing generic to the market. i'm curious. we have this patent system. you and james have talked about this. should we prohibit companies from jacking up the price when they're under patent? how far does this go. >> we have tried to put forward ideas about how to get reasonable pricing. part of what james says is just not accurate description of the kind of marketplace we have for drugs. yes we have a healthy bio science system. we have kpowe have a lot of can drugs that are selling for over $100,000 a treatment that add a few weeks or months to life and don't cure anyone. what we need is more value based pricing. you do get a higher price if

you're drug really does improve health. saves your life and really improves the quality of your life. we shouldn't be paying outrageous sums for drugs not doing that much. that's not the pricing system we have now. its totally irrational and there is no actual link between how much a drug cost to develop and research and testing and the price. there's no link to how important in terms of how the drug is. >> i'm just curious, you mentioned you're a cancer doctor and drugs out there that cost $100,000 for not much improvement of prolonging of lifer. can you give me an example. >> some people paying $100,000 for 100 days of life is worth that money or whatever the cost is. >> for some people if they were paying it. we as a society are paying it. let's be honest. we are all paying it. that is the bottom line.

so when a drug cost $125,000. there's nobody writing that check out. it's a society-wide payment. as a society, we need to ask, is that the kind of thing -- i don't -- i wouldn't want to deny someone 100 days, but do we really want to pay $125,000 for that 100 days. that's something where it seems to be more reasonable price would be lowered. >> do we also then not approve or limit the use or approval of medications that for example the most expensive drug in the world is solar ris. it's outrageously expensive. we have to make the money back because we don't have a market. that sounds cold. should we limit those drugs as well. >> i don't think this is the area to talk about individual drugs. let's talk about the industry as a whole for a second.

we've often had this justification. we need the high prices for research. we all know that the research budgets of the largest pharmaceutical companies are less than 20% of revenues and for all of them, right, the marketing budget exceeds the research budget, except for one, and in some cases the marketing budget is twice the research budget. so the justification we need this money for research doesn't seem to be borne out. i would actually go to the fundamental question. are we actually paying for the value we're getting? and that i think is a very -- that's what we should actually demand from the companies. value-based pricing. if you're really making a big difference, saving lives, curing people of serious illness. we should pay for it. if you're not giving that big of benefit, we probably shouldn't pay high of price. the price shouldn't be that high. >> great points by both of you guys. >> thank you so much for joining

us. really appreciate it. on tuesday, we'll be joined by senator chuck grassly. that's the day he set as deadline to get more information about the epipen price increase. up next, talking housing. home prices higher now than before the bubble burst. are we in another bubble. plus college kids are not living like they did in the old days. wait until you see these dorm rooms. that's next on power. is back

for more college students that is living large in luxury sfunt apartments. competition heats up, so do the amenities. joining us from college park maryland just steps from the university of maryland campus, diana. >> reporter: well, forgive me if i'm a little distracted. i'm trying to decide what flavor apology lat toe. the latest in what are now being called super dorms increasingly over the top very close to campus housing. now a hot bid for investors. >> the interest really started two or three years ago. a lot of the capital investors needed to be educated on the space itself and what it meant toe be student housing. we had to do a lot of convincing it wasn't all animal house

structures, but actually really stable cash flow properties. >> so not animal house at all. we watched upper class man jordan james and her mom unload groceries of her two bedroom unit. comes standard with large screen, on scene washer and drier. wood floors. amenities. outdoor kitchens, media rooms. game rooms. ca ventures is putting a ski and snowboard simulator in one of the newest properties at colorado state university. now close to 48,000 new beds are expected to come to market in privately owned student housing properties this fall. universities in the southeast are seeing the most according to apartment research firm. cash frats, state university are activelily recruiting out of state students who pay higher tuition and presents a need for

more housing. the bigger, the better, the fancier. >> just got my virginia tech monthly magazine, got a new t n townhome community being built. literally eleme lly almost sing homes for college students. >> why not. why wouldn't you. if they're willing to pay for it. the parents i spoke to here said fine. we wonder why college costs are going up. >> are these students renting these apartments or are the parents buying them for their son or daughter? >> these are rentals so the parents are writing the check and actually have to do full year leases and a lot of them aren't paying for a whole year not here in the summer. the parents i spoke to are willing to pay for it. they like having their kids here. >> diane that, thank you. get the chocolate.

>> what about the overall residential. i feel like a generation of renters is being born. people are getting spoiled. >> they prefer the flexibility. that's the difference before and after, right. we preferred stability. they prefer flexibility. >> companies have no loyalty. why should i be tied to a town when my company may give me if boot any moment. >> right. if i buy, i may not be able to sell when i need to. so if i rent, boom. i take the new job. >> clearly. we just jump right into it. >> i think i just shared a room with my brother until i was in my 20s. >> sacrifices people. >> more grapes, do my homework for me as well. >> do you know calculous. the crisis on the college campuses today. >> we see the headlines home

prices reaching prebubble levels. makes you think is there another bubble. >> what to you think. >> ron is absolutely right. there is no bubble. however there are pockets of distress. san francisco, new york, miami big time is seeing people really reluctant to go to contract. they're saying i don't know between the election and god forbid somebody wins and all the other issues out there, why should i rush to buy something unless i really need to. other than pockets. there are pockets in, new york, the west village, upper adam rosales side. brooklyn, these are pockets of strength. otherwise it's a tough market. >> national bubbles are events. those require heavy public participation. they require a lot of elements that don't exist in this real estate market. regional pockets of strength where there are structural issues driving up prices.

huge influx in san francisco. you see the types of things spiking prices in specific metropolitan areas. not everyone is in on the game. my uncle is not flipping condos in florida at this point in time. >> aoversupply in pockets of ne york. >> billionaire row. talking earlier, perfect example. way oversupplied. way similar supply. everything looks like everything else. if i were to walk into park, they all look alike. buyers are saying to me, what am i doing here. didn't i just come here. no, it's a different building, but it's all very different finishes and very nice. 10,000 a foot. 8,000 a foot. its way to expensive. who can afford that. >> somebody apparently. >> there was a huge influx of foreign money that did a lot of this in seattle, vancouver, san francisco, la, new york and

miami. some of that is beginning to dry up. it's harder to get overseas chinese and russian buyers in particular. >> chinese money is coming and especially to build buildings. they're now becoming the lender of choice for the equity partner of choice. they've decided we're going big. we're not going little. i don't want an apartment. i want half a building. >> remember what japan did in 1989 having purchased every trophy available and we bought it back at the bottom. >> anybody read that article last night? i can't remember. on bang buying up the waldorf. now based in some like two-story nothing retail building under 17 holding companies. no one knows who ownings it, but they're buying properties for billions of dollars. >> and the treasury is cracking down. >> got to leave it there. >> four bedroom townhouse for

college makes a ton of sense. >> exactly. the all-time high club chicken tools. it's all about the come. more stuff coming up.

here's your cnbc news update for the hour. donald trump receiving second intelligence briefing in new york city. arrived at the federal building this morning. got his first briefing two weeks ago and it lasted two hours. government and parliament have said the president is dead. funeral will be held tomorrow. the 78-year-old hadn't been seen in public since mid august. the government admitted only last weekend that he was ill. the japanese government raiding mitsubishi motors for a third time over fraudulent mileage reporting. extremely regrettable they had to further question measures to deal with the scandal.

back home, nascar sprint car driver deal earn heart junior will not return to competition this season. announcing he is still suffering from a kun cushion concussion hn a crash earlier this year. >> thank you very much. oil markets closing for the day. let's get to bertha. a day for oil. vladimir putin providing a bit of a spark. eventually as the dollar has come back on the session. vladimir putin saying it would be prudent and would be good for energy economy for there to be some sort of deal made in all jers later this month when opec members will be meeting. that is coming 24 hours after his oil minister had said that he was not going to sign on to a deal, but obviously the boss calls the shots on this. folks are hoping this might help push the saudis to say, hey,

let's go ahead and cut now that you've got a non-opec member. still, when you look at oil prices for the week, it's the worst week since the week after the 4th of july. as we continue to struggle here in the u.s. with record levels of storage. witness that historic report yesterday from it will eia much bigger than expected bill. nat gas down for the week as well too. hermine now overle phil mickelson, a florida. >> let's get back to john harwood for nor breaking news. >> reporter: we've got more detail from the fbi investigatory report that was released this afternoon. one of the issues that's come up has to do with colin powell. the fib has detail there about an exchange between powell via

clinton and e-mail on january 23, just three days after the obama administration began. i'm going to read from the report. clinton contacted former powell to inquire about use of blackberry. warned clinton if it became public she had a blackberry and used it to do business her records could become public. i got around it all by not saying much and not using systems that captured the data. clinton indicated she was trying to keep work-related e-mails off the official government systems because of search, but that was not the reason why she made the decision to use the private server. her aide told the fbi in a subsequent interview they assumed any e-mail that was work-related would be a public record subject to four year's search whether it was on a private e-mail server or not. we also got a statement out now just from donald trump's

campaign. the statement from communications adviser steven -- excuse me. jason miller said clinton's secret e-mail server was an end run around government transparency laws wound up jeopardizing our national security and diplomatic efforts. shows she cannot be trusted with presidency and chief obligation as commander in chief of u.s. armed forces. now, it's important to note that the fbi also says in this report that it did not find any evidence that clinton's server was compromise. although it did find evidence some people she was in e-mail communication with were their e-mail accounts were kom were c. >> john harwood. a lot more there. i imagine we'll hear more coming today. could be a long friday for you john. thank you very much. a very diverse group of stocks hitting all-time highs.

not just 52 week highs. all-time highs. amazon.com highest level since 1997. two things you might need this week as well. tyson, molson coors. predates and goes all the way back to coors ipo in 1975. beer, chicken, beef. online ordering. >> >> what kind of tools do chickens use. >> i don't know. still ahead. lululemon rough day. what does yoga wear maker need to do to turn things around. founder, joins us straight ahead.

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what they claim to be competitive against under armour and nike. chip great to have you back with us. >> thank you. >> you said the culture is insulated. you want the board members to stand for re-election to declass if i the board. the stock is up 33% year to date. a lot of the analysts even with the downdraft in the shares today, this is your buying opportunity ahead of what is historically a very strong fourth quarter in terms of comp store sales. i'm wondering if you feel like what you're agitating for is being accomplished already. >> yes it is interesting that i, you know, for the first time in a long time i started talking about nine weeks ago and definitely, almost everything that i put out to the board and to it will management, they've come back askand responded. i think it was a good quarter. maybe the analysts went a little

overboard on it, but again i look at this from a very long-term point of view. a ten-year treasury point of view. i'm not concerned with the quarterly numbers. >> you standby all the things you want to accomplish. as i understand, just across vancouver you put up a billboard, elevate lulu. >> will yeah, i did. of course i came out of the surf skate snowboarding industry and went into yoga and the natural evolution of that was mindfulness about five years ago. i tried to bring lululemon into that. the company wasn't in the mode to move anymore. so when i heard the ceo mention mindfulness in the last couple of weeks, i decided that i would offer what's a company that i've invested in and that's will.com. it speaks to mindfulness.

>> very few things melissa lee does not know. she does not know on the commercial break and i don't know it either, what's your exact financial stake still in lululemon. how much do you currently still own? >> it's an interesting question because very few -- there's kind of a misconception that i sold out of lululemon and i never did. i'm the largest shareholder by far. individual sharp hoeholder so i 15%. it's 15% of decreasing number as of yesterday at noon, but again, i'm a long-term sha shareholder >> good. thank you for putting on. we were going back and forth. did he sell out. you are the single largest individual shareholder. you've got agitating power, but you're getting wealthier as the stock continued to climb this year. is there a level if the stock price continued to go up, would

you say maybe my agitation as worked and you'll back off? >> it has a long as way to go. really the only quarter in the first five years i've not be squared for lululemon. they're on the right track. if you look back to 2012, there was lululemon and blackberry and two competitors passing blackberry by. lack of reinvestment in the company. lululemon is past that. makes me very excited, but, again, as melissa pointed out when we started out here, lululemon is worth twice as much as under armour three years ago. now is worth half. so even rate now and today it should be worth 10 billion more and i'm expecting big things ynd that. >> chip, you're saying today it should be worth $10 billion more in market cap.

>> easily. i think lululemon has done a very good job of talking a lot about mens and international and digital over five, six year period, but just as talk never equated to action. and i can see the action starting to happen now. i think everyone should be excited about it. actually, i think it is a good buy. it's just i have a very different context from management on the board and that my view is always long-term. >> chip, great to have you with us, thanks for joining us. >> my pleasure. chip wilson. grounder of lululemon. turning to tech. samsung pulling 2.5 million galaxy note seven phones out of circulation because of battery issues. i believe, correct me if i'm wrong, this is the biggest sort of tech recall of all-time or one of. >> certainly one of. biggest one i can recall. in the smartphone era it's a big deal.

samsung said 35 phones have had this issue. it's a certain sub lot of these batteries that have the issue. and the way they phrased it, they decided to take overall action. sounds like to make sure the customer feels taken care of. not only do they halt sales all together. if you already bought a galaxy note seven, we're going to allow you to turn that in for a new phone. it's going to take a few weeks to get those new phones ready. some how much of a big deal is it would be the question at this point. i would say remember the iphone four back in 2010, steve jo cbs flu back from a hawaii location to address issues on the design. when they held it a certain way, the calls would drop. they would give out cases for free to people who had the concern: then the iphone six when you put it in your pocket, did it bend. alleged that upfront. rumors tend to swirl around.

i would point out the iphone four and iphone six are also two of apples biggest ever product cycle. if they handle this the right way, not necessarily a huge problem for them. >> is this a problem for the carrier at all? they are going to be the interface between the customer and getting a new phone. >> i don't think the galaxy note 7 is such a big deal that it's going to cause them overall a huge problem. a lot of people know the new iphones are coming out. we're going to see next week what that is going to look like. you'll get a big rush of traffic to the counter. just to get a look at those. and what other phones are in stock. you also have other samsung galaxy phones in stock, the s-7. s-7 edge. it's not just the note out there. the ss tend to be bigger seller than the note. >> what's the s-10. >> i don't know.

>> the iphone 7 s. what does it stand nor. >> various elusions. speed of one of them. >> sullivan. >> yes, whatever you want to think is okay by us. do you want to be a secret service agtdent. seems like a cool job. kate rogers went through the training. she's been shooting guns. >> reporter: that's right. i did go through the training. it was intense. we'll show you if i have what it takes after the break on power lunch. who are you? i'verne angeoneytiment rabbit o. vern from voya? yep, vern om voya. are you orange? that's little wed. really? 's the weird parinthis ? look, orange m rreses money yot awayor tirement.

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time now to take you where the jobs are. the secret service is lihiring. our very own kate rogers went through the training. i love you kate. i mean this in a nice way. i hope you didn't pass because we want you here. >> don't worry. you're not in any danger of losing me. they put me through the ringer here. this training regiment is not for the faint of heart. if you have the right stuff, they're looking to hire about 1200 new employees through the end of 2017.

that includes uniform division officers and special agents. now in 2016, more than 22,000 people applied for those two discriminati divisions. only 10% made it to the background portion of the application process. once i got here, i found out why. >> what goes into secret service agent training. >> police. >> you'll learn how to handle emergencies, secret service trainees are put there amir i had of challenges. including aboctive shooter dril. there's extensive firearms on the range. how do you think i did? we're going to work on site picture a little bit. >> reporter: also go through intense hands-on training shutting. there i am pretending to be president obama working the rope line. there's also controlled breaking and evasive driving training.

>> get off here. get back on. minimize input. doing well. doing very well. >> among the most important qualities for agents, being physically fit. it's not for the faint of heart. i want to stay with nbc. >> now if you make the cut, salaries can be lucrative. 45,000 on the low end. up to $100,000 a year on the high end. as you can see, i gave it my all, but i don't think i have the right stuff. >> well, we're happy because we want you here, we just sit behind desks all day. no sit up part of our test to get hired here that i know of. >> did you have to take one? >> i wouldn't be sitting here if i did. >> kate, thank you. up next, trading nation. be right back. 's aerform mai with this degreefintelle. it's a supercomper. withhis g's fortress.ection...

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raymond james with coverage of outperforming. $82 price target. the recent uncertainty is giving investor it is opportunity to buy the stock on the cheap. says a couple of rapidly deverse if iing and makes it a buy.

>> not bad. a stock we just talked about. lululemon. defending the stock, reiterating a buy, especially on the weakness. stock's down 9% said and says a minor comp sales miss. sticks with the $80 target, 15% upside after today. >> next stock is broadcom an wired revenue missed. price target hiked to 20 bucks. buy $20 to $200. an iphone launch will make profits. it made gained, more content going into more components. pullback people are saying because it's run up a lot in the last year, 40%. >> down today. the final stock, tends to be a smaller cap name and almost every analyst off and this is the best i could do. >> scraping the bottom of the barrel. >> no offense to the analyst or the company. cornerstone on demand, piper

jaffray is a buy rating. $53 target. called the only pure talent management vendor. they called the valuation compelling and the target on csod imploys 17% upside. there's insiders selling stock recently. with that we wrap up a long weekend "street talk." let's talk about the -- here's a new topic. never before broached on cnbc. what is the fed likely to do in september? joining us now we have boris slausberg and david seeburg. david, it's a new discussion. the federal reserve. i don't know if you've heard about it. they have a meeting in september. what do you think they're going to do? >> i wasn't sure. look. i don't think there's a chance they move. goldman sachs came out making the point the numbers are just good enough for a hike in

september. absurd. if you say this fed is not going to make a decision and say things are just good for a move, considering globally and the risk of an election coming up, so i look at it and say zero chance in september. >> zero? i think they will raise. i'm absurd. >> they'll fly an airplane in the sky and make sure that the back banner says we're raising rates to make sure there's absolute clarity, no shock to the market. there needs to be at least i think in my opinion close to 80% probability of a rate move for them to move. again, shocking the market is something the fed doesn't want to do given the work they've done to keep things balanced. >> i hope it's an old plane like the jersey shore that ruin your experience on the beach. boris, any chance the federal reserve, you may have heard about, raises rates in september which you may have heard about it. >> i'll take the opposite side of the trade. i used to be on david's side and

arguing, yes, because of the election, never going to move in september and i rethought the ideas. the currency market today was very interesting. at first, sold and then bought the dollar vie lntly on what's a tepid number. why? i think the number is good enough for the market to be convinced the fed moves in september because they near a stronger position. moving in september, they take away the whole political argument and they buy themselves tremendous amount of time. they don't have to move in december. so the whole idea here is sit tight and buy back the credibility which they have lost and i think it points to a possibility of september much more than people thought. >> the headline is david will have to buy us a beer when they raise in september. fair bet, right, david? >> what do i win, brian? >> a hearty hand shake. >> a dinner? >> two beers, david.

we'll get one each. it's fair. bet is on. >> perfect. >> make it interesting. for more "trading nation" go to tradi tradingnation.cnbc.com.

check please. >> all right. for all the hand wringing of the jobs report means and how much of a coin toss it will be in september, the markets are telling us a message. don't look at the overall averages because they're not really moving too much. utilities are trading sharply higher in today's session. up by 1.1% right now and that basically indicates bond proxies are still the trade. rates stay lower for longer. right now, the equities are saying that september's off the table. >> my check please is a lot more base. college football! >> very important weekend for college football. >> it is. >> a lot of people. >> college football, okay, virginia tech plays university of tennessee at the battle of bristol here. we opened up as a 11-point underdog and a trendy pick of a top ten team and they were coming for you.

that's a rich line. we at least cover. >> i understand the individual words but i don't really understand what you just said. have a great long weekend, everybody! >> go have some chowder, everyone. >> thank you for watching "power lunch." >> "closing bell" starts right now. ♪ hello friday hello, everybody. and welcome to the "closing bell." i'm kelly evans at the new york stock exchange. >> happy friday, kelly. i'm bill griffeth. >> happy friday. >> weaker than expected jobs report. stocks are generally higher today. here are the 30 components to make up the dow jones industrial average and i'll get out of the way. nobody's really standing out today. the best performer is apple, up three quarters of a point. worst performer today is nike. it's down half a percent. it's that kind of a day. the dow us up with about 100 points on the open this mni