>> okay. doc. >> i like the uso, judge. we talked energy for unuseful activity, that one also huge 240,000 calls today. u.s.o. >> joe, quick. >> cirrus logic, that's the real apple trade. >> sarepta, keeps giving. >> good stuff. thanks for watching. power starts now. all right. thanks everybody. i'm brian sullivan. thanks for joining us. while on this first day of fall, stocks are on the rise. welcome to "power lunch." your money on the move again today, but there's always more opportunity somewhere. we're going to find it for you. forget piece of italy, why san francisco is the new unfortunate home to a very expensive leaning tower. and you think our politics are a little too punchy here in america? wait until you see what is happening in one european country. the must-see video coming your way as "power lunch" starts right now.

and welcome to "power lunch." i'm melissa lee. here's what else is happening at this hour. stocks pushing higher with the dow and the s&p 500 erasing all of september's losses while the nasdaq on pace for a record close here. existing home sales falling 0.9% last month. economists were looking for a gain. and north carolina under a state of emergency following days of chaotic street protests after the fatal shooting of a black man by police. we've got a live report straight ahead. but first, we got to get to tyler mathisen live at the iconic conference in boston. high, ty. >> melissa, thank you very much. and it's great to be here in boston at the iconic conference where we bring together some of the biggest business icons like todd wagner whom you just heard from on scott's show just a few moments ago. and some budding entrepreneurs, people who've either made successes out of businesses or want to. and in just a few minutes i'm going to talk to one very inspiring guy, daniel lubetzky, founder and ceo of kind.

more than a billion snack bars later. he'll be with us about 1:15. in the 2:00 p.m. hour after you've had your kind bar and all energized, spend some energy with greg glassman, founder and ceo of crossfit. brian. >> that is a very healthy lineup you have there at iconic, tyler. pardon that. >> yes, indeed. stocks are in rally mode. we've got the dow up triple digits. let's get to bob pisani. bob, is this really just sort of all about the federal reserve once again? >> yes. i normally hate saying that because you want more fundamental reasons, but yes. 5-to-1 advancing to declining stocks. we've got a global rally going on 2% around much of the world. we've seen the markets move here. but, yes, the fed -- fear of the fed raising was a substantial concern despite 15% chances. take a look at what happened today. this is exactly what you would expect if you see people unwinding positions right now. so we saw stocks up, bond yields to the downside, the dollar down, gold is up, crude's up,

global commodities rallying about 2%. why are we getting a rally? it's not because the fed is divided. the fed is scaling down expectations of future rate hikes and that's helping the market. so in 2017 now expecting rates 1.6%. they were now 1.1, they were 1.6%. now for 1.9% for 2018, it was 2.4%, they're lowering expectations for rate hikes and that's helping the market here. stocks up, bond yield down, dollar up, crude and oil. look at sectors, reits and telecoms, two sectors that would gain on low rates. industrials doing well. and banks the sector that is lagging. they're the loser on low rates. so this is really all about going back to the idea of continued low rates. back to you. >> bob, thank you. bob pisani at the nyse. doubleline capital's jeffrey

gundlach joined me last night. i asked when he thinks the fed might finally raise rates. >> i think december is a huge who knows at this point. think of how many times and the magnitude at which the fed guessing for today's move -- non-move, changed over the past three months. and here we've got three months which includes three presidential debates, a presidential election. this is highly unknown what's going to happen in december. >> all right. let's get now reaction with our special guest today, jason cooking with us all hour, chief investment managing partner of strategic, also joining us casey clark with glenmede. jason, really, is it all about the fed? >> unfortunately i think so. >> why do you say unfortunately? >> because i don't think monetary policy is really designed to create economic growth. i think monetary policy is there to put guardrails in so you get price stability so that free people get to choose how they spend their money.

>> you know, friend, i agree with you, but i believe that horse was let out of the barn a few years ago. >> well, i would say at this point though monetary -- it's very true. monetary policy, i think, especially with the advent of negative interest rates in japan and the ecb has gone from really being ineffectual to being harmful. i believe that. doing more harm than helping. >> casey, if we look rather myopically, should we think about the fact it is going to be 0% interest rates basically for the foreseeable future and that will continue to be a glide path for most asset classes? >> look, i do think it's going to be lower for longer. i do agree with jason. if you saw about the negative interest rate policy, the markets really did not act well to that in january. but i think the communication out of the bank of japan yesterday morning helped kind of, you know, placate the markets. they signalled that by not intensifying negative interest rate policy, they're hearing what we're saying. they're trying to steepen the

yield curve in order to release some pressure from financial. i think we're in this lower for longer environment, but i think the communication out of both the fed and bank of japan are helping markets right now. >> i'm going to ask the question to you then, because i'm not really getting -- i mean, from a stock investor's perspective -- >> it's good. >> aren't we getting the signal that it's still safe to be in? >> well, people are going to hate this term, but it's the tina factor, right? the average public pension plan. >> there is no alternative, not somebody named tina. >> no, not tina fey or tina louise, but t.i.n.a., right? you have $12 trillion worth of sovereign debt that has a negative yield to maturity. so you really are left with very few options. so being very myopic about it, as you say, it still counts. financial assets go up, they're still going up. >> right. >> it's not maybe for the right reasons or the reasons that you want. but i still wouldn't -- it's hard to short them in an environment like this.

>> well, you know, casey, listen, let's flip the scrip. if the fed chickens, as i call them, suddenly turn into hawks and flip the script and say they get surprisingly aggressive, does that mean you automatically dump stock investments? >> no, not necessarily. look, we think they're going to raise rates in december. and we think the economy and markets can handle interest rate increases. you know, yes, we're seeing some kind of softening of economic data of late, but at the end of the day we think the fed should tighten. we think it's on the path to normal policy. as long as they keep signaling this low pace, we think it will be good for equities. >> all right. >> leave it there. casey clark, thank you very much. appreciate that. jason, you'll be with us riding shotgun all hour. >> you got it. >> thank you. let's get to the bond market. rick santelli tracking all the action at the cme. rick. >> i tell you it's one of these days where it's pretty easy to see coming. after all the central bank meetings are done, seems like revisiting ranges of august. we're heading back up towards

that 2190 in the s&p. look at 10-year. 10-year yields are down. they're about ready to get back in the august range which was already in the 1.50s. but it isn't only that, it's the whole risk-on trade. look at september 1st to a chart like the hyg or lqd, they look an awful lot like the s&p 500. they are also getting back towards the toppy action that we had in august. it's totally risk off. when you look at the dollar index today on a september 1st chart, it isn't horrible. but it is getting to the lower part of that range. and you really want to pay close attention to we breach 94.5. and the yield curve, 2s haven't moved much. there is something to be said for the fed's microphone. makes the short end a bit paralyzed. so while all the action is on the long end, look for it to continue. remember, in august every settlement but one was in the 1.50s. melissa lee and the gang back to

you. >> thank you, rick. rick santelli. we are following a developing story out of washington, d.c. a white house staffer's e-mail has apparently been hacked. let's get to john harwood with all the details. john. >> melissa, the organization -- hacking organization dcleaks.com has posted an image of michelle obama's passport, some travel details involving the vice president. now, these are believed to have been obtained from the g-mail account of a white house staffer which was hacked. the white house is not commenting on that hack, however, this is consistent with what we've seen in the past where what has believed to have been russian hackers have obtained information from various democratic party sources and organizations and posted them. this has triggered warnings from the united states to russia not to interfere in the u.s. election. russia has not acknowledged any participation in this, but it does appear, melissa, this is not going to be the last of those leaks that come out as we approach election day. >> john, why that staffer would have that information on a g-mail account and not an

official white house account, which might be one would think more secure. >> might be more secure. that's right. this was a younger staffer, somebody who had been an intern on the hill and then worked at the white house. so it's not clear exactly why the information was on that particular account. but of course we've seen various government accounts including the state department and the office of personnel management hacked as well. so there's no assurance that that wouldn't have gotten out if it was on a whitehouse.gov account. >> you live and work down there, talk to these people every day, is there a broader call? has anybody sort of sent out the message? you know, we all work for a big corporation, we get the topdown e-mail about being careful with your stuff. put everybody in a room and say like don't put anything in a personal e-mail? is anybody saying this? >> well, yes, but i don't think it makes all that much

difference necessarily, whether it's personal or government in terms of the ability of hackers to get to it. we've seen hackers do that. in fact, i got an e-mail the other day from a source on capitol hill new e-mail addresses from the house of representatives account. why? because russian hackers were believed to have hacked in to the official systems on the hill. and so people created new identities and new passwords, that sort of thing. so just because you keep it off of gmail and put it on house.gov or senate.gov or whitehouse.gov is no guarantee of protection. >> fair enough. maybe we just go back to the corner meeting. you know, you tell a guy who tells a guy -- >> carrier pigeons with scrolls of parchments. >> i'm thinking "god father ii," i said this. somebody call michael douglas because there's trouble on the streets of san francisco, specifically above the streets of san francisco.

why that massive building has owners of its million-dollar condos very upset and a little bit afraid. but first, back to tyler mathisen at the iconic conference in boston. thank you very much, brian. how the son of a holocaust survivor, an immigrant from mexico, a stanford trained lawyer began the fastest growing snack company in america. meet daniel lubetzky of kind coming up. announcer: when they test you, stand firm and move only when you hear the seatbelt click that says they're buckled in for the drive.

never give up till they buckle up.

and there you see it. welcome back, everybody, to iconic. i'm tyler mathisen here in boston. at our event for, about and by entrepreneurs. i'm joined by one of them now, daniel lubetzky, the founder and ceo of kind. daniel, i love it when a guest sits down as you just did 25 seconds ago and said is this live? it is live, daniel. it is live. >> happy to be here. >> we're happy to have you here. your business has grown from really zero in 2004 to where it is today more than a billion of these wonderful little bars and other snack foods sold.

but you have a mission that goes with this business. why is the mission, the charity, the message of the business as important as the money of the business to you? >> it's important to me and to our team because it gives us meaning and because in this world we are very much capitalists. we want to make money, but it's just so much more fun when you can do well and do good and given the problems that exist in society when you can find ways to use market forces to make this a better world. but for the business impact i think the reason we've done well is not our social mission, unlike other social entrepreneurs, i feel that it tastes delicious, healthful ingredients and that's what drives our business. >> you have to have a good product to pursue any kind of social mission. >> exactly. >> your background is very interesting. born in mexico. you grew up in mexico city first 15 or so years of your life. you come to the united states, you go to college, you go to law school. you practice law, you become a

clerk. you then go to work for mcken e mckenzie. how do you go from that to this? >> first of all my background is more confusing because i'm a confused mexican jew that ended up immigrating and loving america. but my father was a holocaust survivor so that has informed a lot of my perspective and desire to build bridges between people. and then mckienzie and law were little stints. >> but how do you go from that to making healthy snacks? >> the first bridge was i was very passionate about using business as a force for connecting people, create piece works that uses market forces to get neighbors in conflict regions, israelis, palestinians, egyptians, turks, to work with one another. >> that's what you wrote your college thesis about. >> that's right. and food became the language. >> food? >> when they're creating food ventures and after ten years of a lot of mistakes because, again, i didn't know what i was doing as a lawyer with all the

background you described, after the mistakes, we learn the mistakes and launch kind. >> what was the biggest mistake you made on this journey to create kind, the fastest growing snack brand in the country? >> focus. i mean, i made a ton of mistakes. but one of the biggest ones was that i was just trying to be everything to everybody when i was doing peace works we went into ventures all over the world, being in every store regardless of the type of store, have products of all types, appeal to every consumer. and we were diluting our efforts and our energy and end up becoming nothing to nobody. >> what makes a great product? >> what kind does is that it really understands what it is and understands what the brand stands for. and every single time you interact with it our hope is that we're always proving that the brand stands for what you believe. that it's nutritionally rich product, keep our kind products, number one ingredient is always nutritious, always delicious, you can count on us to always have a commitment to excellence. >> i'm going to take you away

from food and sbep neuentrepren and deposit you in the middle of politics. >> okay. >> you were born in mexico, came here, immigrated, became a u.s. citizen a couple months before 9/11. >> yeah. >> immigration and mexican immigration is an issue. >> yeah. >> talk to me about it. >> well, i mean, i'm enormously proud of what america has afforded me. i was talking to somebody earlier how at least immigrants like i particularly appreciate what we have because we don't take it for granted. and entrepreneurial system, free market system, rule of law, free press, these are things we should not take for granted and we should really, really build on. and i think immigrants are how we build this nation. i'm very, very proud. i'm very honored and grateful for what america has provided me and i want to make sure we maintain that system that allows anybody those opportunities. >> do you think immigrants and immigration have gotten a fair

shake in the context of this campaign? >> i definitely think people doing politicking and thinking about how to get to a particular place rather than taking a stance on what's good is the wrong path. i definitely think that what i admire, i'm not republican, democrat, independent, but people need to think about the long term. >> the play hamilton which my colleagues know i'm obsessed with, one of my favorite lines is immigrants, we get the job done. of course hamilton was an immigrant. and lafayette was not an american guy. daniel lubetzky, thank you so much. appreciate you being with us. he's the ceo of kind snacks. cnbc and inc. magazine are presenting the iconic conference in boston today. it is the biggest of names and successes in start-ups. next hour we're going to go from nutritious snack foods to a guy, greg glassman, the ceo of

crossfit, who has a certain way and certain ideas about foods, sugars and fitness. coming up, your chance to participa participate as we go live on facebook. you can join the conversation two very interesting women at facebook.com/cnbc. melissa. see you shortly, ty. what do san francisco and pisa have in common? they now both have leaning towers, except the one in san francisco is actually occupied. that story's ahead. if you think politics in this country are ugly, take a look at this video coming from the country of georgia. one political candidate throws something at his opponent. what happens next, stick around to find out. sick of getting gouged for limited data? introducing t-mobile one. one price, all unlimited for everyone. get 4 lines for $35 per month each with unlimited 4g lte data.

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what's it worth to talk to your mom? what's the value of a walk in the woods? the value of capital is to create, not just wealth, but things that matter. morgan stanley has its own except people are actually living in this one and they're obviously concerned. josh lipton is live in san francisco with the latest drama around the millennium tower. josh. >> well, brian, right behind me here at san francisco city hall there's a public hearing taking place right now about the millennium tower. now, this is a luxury high-rise that's home to bay area elites. as you point out though it's now both sinking and tilting. city supervisors tell me they called this hearing because they

want answers about what went wrong and what exactly now is going to be done about it. so since this building was completed just eight years ago, brian, it's already sunk 16 inches. and it's tilting at least two inches to the northwest. and city supervisor who called this hearing today tells me he wants answers. >> what we are doing is discharging our duty as public officials to figure out what the city's responsibility was. and going forward how we can ensure that everything that we build in san francisco, a lot of it on landfill, is built to the highest standards. >> so who is to blame? well, the developer says the excessive settlement is due to the transit authority, which dug this big 60-foot hole near the building to make way for a new transit center for the city. and that, so the developer says, is leading to the successive sinking and tilting. the transit authority says, nope, it's the building's poor structural design. that's what's to blame here. the tower is really attracting a

lot of attention because of celebrities who did buy apartments here, that includes hall of famer quarterback joe montana, giants outfielder hunter pence and legendary late vc josh perkins. >> josh, thank you very much. you think our election is ugly? check this out from the country of georgia. two candidates for parliament began insulting each other on a talk show. okay. yeah, yeah, yeah. but words then turn into fists. and the argument turned into an actual fight. no one was proclaimed the winner of the fight. >> they all lost. >> that's just very -- >> brian and steve, right? >> deep thoughts. north carolina under state of emergency following days of chaotic street protests in the wake of a fatal police shooting. a live report from the ground straight ahead. and media magnate robert johnson stops by. we'll ask him about social unrest, the election and state of doing business in america.

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>> announcer: today, cnbc is in boston for the iconic conference. one-on-one with america's top entrepreneurs, ideas, inspiration, strategy, all from the best in business. all-day coverage continues on cnbc. >> announcer: cnbc news update brought to you by comcast, built

for business. hi everybody. i'm sue herera and here's your cnbc news update for this hour. afghanistan's government signing its first peace deal with a local warlord today. it could pave the way for a similar accord with the taliban, which has been waging war on kabul for 15 years. tesla motors filed suit in michigan over that state's refusal to allow its to sell vehicles directly to consumers. tesla does not sell through franchise to dealers. after sitting anchored at sea for more than two weeks because of money owed by its operator, the hanjin miami arrived at the port of newark this morning. the terminal agreed to unload the ship after discussions with officials that resulted in the ship paying up front costs. and the dress that marilyn monroe wore when singing "happy birthday" to john kennedy in 1962, will be auctioned off in los angeles this november. the dress was designed exclusively for monroe at the cost of $12,000. think of what it might cost now.

well, it sold for about $1.26 million in 1999. it is expected to fetch between $2 million and $3 million this time around. that's the news update this hour. i'll send it back to you, brian. so i just quickly went to the bls inflation calculator, sue, $12,000 in '62 according to the government is $95,000 today. >> holy cow. >> that's right. she had to be sewn into that dress, that's how tight it was. no, i'm not kidding. really. >> is that true? >> yes, she had to be sewn into the dress. >> go to times square, there are people that just have paint on. >> yes, that's true. only in new york. >> $95,000. >> i know. can you imagine? it will be interesting to see -- >> no, i can't, it's not my style. >> well, plunging necklines don't work for you, brian. >> you don't know that. don't judge. i got a dad bod. it's all good. sue, thank you very much. >> you're welcome. >> i'm going to leave it right there. >> yep. we got a bit of a federally

in the stock market going on right now. the dow jones industrial average is up triple digits here. where are we? up 115 points. we sort of accelerated at the open. haven't really gained, but still not a bad day. jason trennert's been with us all hour, traditionally historically september is bad for the -- you can't use the f word in the whole segment, fed. >> no, seasonally this is a weak period. obviously we have the debates starting on monday that will set off in many ways, i know it feels like it's been going on forever, which it has -- >> wait, so how do you interpret the debate? if it's perceived she won the debate, then the markets do what? if it's perceived he wins the debate, the markets do what? >> conventional wisdom i think is correct if he wins the market will initially probably sell off on that. my own view is i would probably be a buyer of the market on weakness. >> uh-huh. >> associated with a trump win. that would be my own personal opinion. that's largely because if i look at the four horsemen of policy,

fiscal regulatory trade, for donald trump trade is a big question mark. but the other three would actually be more stimulative for stocks in the economy in my opinion than you would have under a hillary -- or mrs. clinton presidency. having said that, she represents status quo, right? >> sure. >> so you know a little bit more. you don't have the big question mark per se you might have with mr. trump. >> should be an interesting monday here. >> you bet. >> meantime here we are following developing story out of north carolina. a state of emergency has been declared following days of protests in the wake of the fatal shooting of a black man by police earlier this week. nbc's sarah rosario is live in charlotte with the latest. sarah. >> yeah, melissa, the local leaders here in charlotte are asking for a sense of calm, for calm protests coming up this afternoon and into the evening after two nights of violence. local leaders are saying that is not characteristic of the city of charlotte, even though they have had officer-involved

shootings in the past. they've had some protests, but none that ever have been this violent. well, today north carolina's chief prosecutor is asking the state bureau of investigations to look into the shooting death of 43-year-old keith scott, this as the police chief says he does not have any plans of releasing video of that shooting to the public, which is very concerning to protesters. that's one of the main things that people took issues with overnight and over the last two nights they were protesting and marching in the streets and getting very violent. we saw a lot of clashes between police in riot gear, using tear gas and rubber bullets to try to disburse these protesters. we also saw one of those protesters get shot. it was as they were marching through the center part of the city. the police chief says that the protesters was not shot by one of his officers. he says that he was shot by a civilian. and now that protester is fighting for his life on life support. melissa. >> thank you very much, sarah rosario in charlotte for us. well, your next guest has

deep ties to charlotte both as a long-time businessman in the city and former majority owner of the then-charlotte bobcats nba team. he also owned stakes in many other companies and businesses and is on the board of the charlotte-based lowe's. here now is billionaire entrepreneur robert johnson. mr. johnson, we have a lot to talk about, but obviously this is sort of leading everything right now nationally, so i do want to get your opinion. as a respected businessman, not only in north carolina but around the country, where we've also seen other flare-ups, how do we start to begin to not only heal but to solve some of these problems? and what role could business play in fixing some of this? >> well, brian, good to be with you. i spent a lot of time in charlotte as owner of the team. and i have an apartment in downtown charlotte still. and i think to answer your question is that there's a lack of trust on the part of many

african-americans about the policing policy when it relates to african-american men in situations where fear takes over and in some cases overreaction results in death. and unless we can figure out a way to give greater confidence to the community that the police are well trained, that they are not acting out of fear of a black male. and if something happens, there's an immediate transparency, not the delay on the basis of we need to have an investigation and we need to pursue this in a timely fashion. i think we're going to have these problems again whether they're accidental or whether they are justifiable. the public is losing its trust. and charlotte's a great town. and i had a wonderful time when i was there.

but opportunities for this kind of violence to happen sort of tends to happen when the african-american community feels that they're a little bit marginalized. >> certainly, bob, you know, the next president whoever it may be, will have their hands full when it comes to the state of race relations as well as so many other things going on in our economy. you've already endorsed hillary clinton for president. do you think that she will be the best person for your businesses? especially given that we've just had this tone out of washington, that is anti big business, sort of more pro regulations. you hear it with the hearings on mylan and the hearings on wells fargo. is this at all a concern of yours? >> not from hillary at all. i've known hillary for over 30 years. she's got a strong foundation. and what this country must do from an economic standpoint to provide jobs, to create new small businesses, to support

equal opportunity for women and minorities, and i also believe that she understands where regulation is necessary but where regulation is overbearing. so i have a lot of confidence in her ability to communicate with the business community so inspire confidence and to listen, most of all. i've told the campaign particularly this, i've said it's time for hillary to stop doing the point-counterpoint insults with donald trump and focus on her vision of what's going to move this country ahead not only nationally but globally. and i'm confident that in the debate that she will pivot towards talking about her vision and her leadership for the country not only in foreign affairs but also in domestic policy in jobs. and i particularly know that she's committed to increasing minority employment for

minorities and women. and also reducing the inequality gap that this country faces. >> mr. johnson, there is jason trennert, i was wondering as an entrepreneur, if you could talk a little bit about -- i'm a small businessman myself, a little bit of the idea -- used to say problem with free government is it generally tends to benefit big business to the exclusion of small businesses. small businesses don't tend to have the lobbyists or the political influence that the large businesses have. we've seen that actually play out in the stock market as well by and large. what do you think about that just generally speaking regardless of who becomes president? how do we equal the playing field? all these regulations are good. obviously they're necessary, but in many cases, again, they put an undo burden on small businessmen. >> jason, i have to agree with you on that. one of the things this country needs to do is to figure out a

way to get more capital flowing in the hands of small business owners, entrepreneurs, particularly minorities. that to me is probably the one stain on the leadership in washington that nobody seems willing to address. so you're right, it's a critical problem. and regulations intimidate small business. i have a saying that at any given time every small business as a start-up is probably in violation of about 30 regulations. and that's because you can't comply with all of them and still run a business. >> right. >> so there has to be some sensitivity to the growth of small businesses in this country. and that's one thing i hope the secretary will address. >> i want to pivot just a little bit, robert, get your take on what's going on with viacom. you've sold your business b.e.t. to viacom in 2000. i understand you haven't necessarily been involved with it, but one of the criticisms of viacom is they had these marquee

brands and i'm sure b.e.t. was one of them, a stable of premiere brands, premiere networks, and they got run to the ground. i'm wondering what your opinion is, especially as you look back and look on where b.e.t. is today versus where it was when you sold it to them. >> well, i think when you look at an iconic business like viacom with all of its premiere assets, the brands, b.e.t., mtv, vh1, paramount, all of those things and you start asking in a growing media world where content as sumner is famous for saying, content is king. and they had content. and something goes wrong, to me my description is there's pilot error. you know, in the process at viacom. you know, it's somewhere in the leadership things broke apart. and there's enough blame to go around for why viacom is dealing with the problems it's

confronting. but there's nothing wrong with the creative people at viacom. there's nothing wrong with the demand for these brands both in the cable world and digital world and even in a foreign world. but you've got a problem at viacom that has to be addressed by somebody who's got to take the reigns of that company and run it like it's a business that is trying to increase its value to shareholders and at the same time be innovative in a digital world. >> right. robert, thanks so much for joining us. great to see you. robert johnson. >> thank you guys. >> chairman and founder of rlj companies. "power lunch" back in two.

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shares hit a record high. so the competitive landscape certainly a focus for some traders out there today especially given what's happening with amazon as they increase some of their market share, guys. watch for that competitive landscape to hit some of these other bricks and mortars retailers. >> thank you, dom. pokemon boom, julia boorstin is in l.a. with the story. julia. >> thanks so much, melissa. i'm joined now by chris wolf was ceo of a company now known as jam city. and just today you announced 400 million plus in annual revenue you're expecting this year. huge number. where's all this revenue coming from? >> so it's coming from a lot of our different games. we have our traditional franchises like cookie jam and panda pop which have done great over the last three or four years. as well as new games based on hollywood i.p. >> now that you've hit this $400 million mark and you're changing the name, is this all about setting yourself up for an ipo?

>> i think we're always setting ourselves up for an ipo, but as we know the markets are very volatile up there, so setting ourselves up means having lots of games in the top grossing charts. one to have over five games in top grossing charts, which means there's a lot of consistency in revenue and ebitda growth. >> another big mobile game coming, king was of course bought by activision blizzard video game giant. would you consider selling to one of the video game makers? >> i don't know. right now we're running our own race but planning towards an ipo. again, we just had our second ipo yesterday in the united states. it's a little bit difficult to plan on something when there's only been two ipos this year. >> now, the mobile game business is very much a hit-driven business. how do you make sure that you're not too reliant on just one franchise and avoid what happened to zinga, very much reliant on the farmville franchises. >> number one, you have to make

sure your franchises last for not one year or two years but 10, 20, 30 years. so our top games have been in the top grossing charts and making a lot of money and continuing to grow for three-plus years for as long as they've been out. so that's important. and in addition to that you need multiple more franchises to have the predictable revenue i talked about. >> any a.r. games in the works like pokemon go? >> we don't. but pokemon go is very interesting, probably the biggest mobile gaming story of the year and i think everyone's really excited about it. >> chris dewolfe, ceo of jam city, thank you so much for joining us, back to you. julia, thank you. we often do proviles -- profil people who have cool or wacky jobs, but this might be the most unusual of all. i want you to meet jennifer glance, she is a professional bridesmaid. >> my name is jen glance, and i

am the founder of bridesmaids for hire. the first wedding i ever worked was for a bride named ashley from minnesota. she hired me to be her maid of honor because she had just fired her actual maid of honor. i found a personal assistant, on-call therapist, social director and of course the peace keeper. in the end i am there for the bride, the bridal party and all of the people in the wedding. my services start anywhere from $500 to over $2,000. everything from virtual services. and i have a package where i actually put on the polyester dress and walk down the aisle for you. >> you should see the comments we had here onset. jen glance worked with over 40 brides and maids of honor last year. get this, she also offers so-called undercover packages. this is from maids of honor where she does all the work including writing their speeches. >> what? >> yes. brides generally have no idea

she was hired unless of course she's the bridesmaid. to hear more about this bizarre job going to powerlunch.cnbc.com. your thoughts. >> i don't understand why anybody would hire a maid of honor. >> if you have two equal -- >> why don't you ask somebody else? >> if you have two equal friends and don't want to tick anybody off, bring her in. >> this is a great country, isn't it? only in america could this happen. >> apparently she's like overbooked. it's not like once in a while. >> maybe, brian, you can offer up your services. >> as the worst man? no thanks. >> some people seem to be not paid enough money to be a bridesmaid. >> our producer extraordinaire produced the segment, christine, i'm going to talk to you directly. do we have any idea what she makes? okay. she just told me in my ear it's between up to $2,000. for a couple hours of work. >> that's pretty good. >> not bad. >> open bar. >> right. you get food. >> it's pretty good. >> you get fed, probably a free dress. >> weekends. >> live music. >> lots of love, you meet new

people. >> right. >> uncle joe. >> win, win, win all around. there are the dresses. so there you go, professional bridesmaids. going to be hard to top that one. well, wells fargo's fake account scandal not over yet. ceo john stumpf will be grilled again next week on capitol hill. senator hencerling will be leading the grilling. he joins us next. today i am helping people everywhere do what they do... better. i work with startups like alpha modus to predict markets five times more accurately. i am helping tv networks use social data to predict what people want to watch. and i worked with marchesa to turn fan feeds into a dress that thinks. hello, my name is watson. working together, we can outthink anything.

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one week from today the house gets its turn to grill ceo john stumpf. he was blasted by senators earlier this week for his handling of the scandal. joining us from capitol hill house financial services chairman jeb hensarling who is holding that hearing. it's great to have you with us. we got to ask what you want to hear from john stumpf that we haven't heard yet. >> well, there are two bodies in congress. we represent the house. we have to get to the bottom of this. i mean, what appears to be obvious is that 2 million americans just got ripped off by their bank and they got let down by their government. and so i'm not sure that mr. stumpf had all the answers. we are giving him now he's got over a full week to prepare to go back to do his homework. we have launched a full

investigation in the house financial services committee that i chair. we will be interviewing witnesses ahead of time. we have demanded documents from wells fargo, from the office of controller of the currency, from the consumer for national protection bureau, so hopefully we can have a more thorough in-depth hearing and start getting some answers to the american people. because, you know, theft is theft. fraud is fraud. and i think a lot of people want to know why was the story broken by an "los angeles times" reporter years and years ago and only now, only now have our regulators seemingly caught it? and so i hope that the regulators will cooperate in the investigation as well because as of today i don't know if they need a pat on the back or a swift kick on the backside. >> congressman, do you hold the regulators as accountable for this as mr. stumpf? because they were effectively as you point out sleeping on the job as well. >> well, that's what it appears to be. but unfortunately the consumer financial protection bureau is

impeding our investigation. they are very quick to write press releases. i just don't know how competent they were on the job. the bottom line is you had two primary regulators, the cfpb and the occ, and they had various teams to examine wells fargo. they had agents that were embedded at wells fargo. and so the question is why did it take a newspaper to break the story and the l.a. city attorney to really investigate it? i want to get the information, but so far the cfpb in particular has been stonewalling our investigation and we don't know why. so that suggests more questions than answers. and counterintuitively and shockingly we're getting more answers from wells fargo than we are from the government agency. >> okay. congressman hensarling, i've got news on wells fargo that is just breaking right now actually. forgive my for the audience im

be looking down. a letter we just got from the united states senate. they're asking the labor department to open an investigation into whether wells fargo has violated the fair labor standards act with regard to a number of employees. they're talking about the aggressive sales quotas, that's their iive incentives, again, their term, and quote staggering neglect of management of the obvious confidence of the consumers and quotas. i believe we're getting this from the office of senator elizabeth warren asking the labor department to open an investigation into wells fargo. again, just crossing your reaction to that. would you support that kind of investigation? >> well, we're launching an investigation already. my committee doesn't have jurisdiction over the department of labor. and so we know there are investigations with the occ, with the cfpb. the bottom line is in all probability there are going to be both civil and criminal penalties assessed here somewhere. i mean, we have two dozen major

consumer protection laws that are on the books. and again, fraud is fraud, theft is theft. we want to make sure they're enforced. whether dol has any jurisdiction here, i don't know. it's not an agency that, again, my committee has jurisdiction over, but we have to get to the bottom of this. i mean, my lord, opening false accounts is fraud. we don't know how consumers were harmed. they got their credit scores may have been dinged. it could have been moneys robbed from one account to pay another account, that's basic theft. and how this could happen over so many years with so many different employees without somebody up the food chain not knowing it or doing a nod-nod, wink-wink. just absolutely shreds credibility. >> yes, i think most people would agree with you, congressman. at the same time senator warren has been very explicit and very taken a hard stance when it comes to the ceo's role saying he should fay criminal prosecution. you mentioned criminal prosecution as well. we're saying that in conjunction

with the ceo. you mentioned the regulators though. not only did they not figure this out until an "los angeles times" reporter broke the story a few years ago, but they also didn't do anything in the few years until today. do we have -- will we see commen commensurate -- and will they face similar outcomes. if we can say the ceo should be criminally prosecuted, what happens with the regulators completely asleep on the job for years? >> well, it's an excellent point. and regrettably there are two standards. there are standards for we the people and there are standards for washington elites. i mean, this is not the first time we've seen incompetence. >> so nothing can be done about these regulators except maybe a tap on the hand? >> well, i hope so. we have to launch our full investigation. we have to get the facts first, but they need to be held accountable. again, it just begs credibility. >> will heads roll in washington, congressman? will heads roll in washington over this?

>> i'm trying to make them roll right now. i have to get the data. i'm not going to convict anybody. >> sure. >> by headlines including the heads of our regulatory agencies. but what i do know is in particular the consumer financial protection bureau right now as we speak as we do this interview has not given the documents that we have demanded. but unfortunately they are insulated. they have been insulated from congressional oversight, which is one of the reasons our committee has passed something called the financial choice act to make sure that they are held accountable, that they don't make laws, they enforce laws, that they're put on budgets so they have to be accountable to the people's elected representatives. and also in our law we increase fines and penalties for fraud and deception. so that's part of the answer in dealing with wells fargo. and last but not least, in our legislation we ensure that they never qualify, they or any other wall street like bank for a taxpayer bailout. >> congressman, again, i'd like you to comment on this breaking

news about this letter, by the way. you'll forgive me, i've been looking down reading it. it's a five-page letter. it comes from eight senators, warren, sanders, jack reed, another number of senators in there. here's another passage from this letter again, congressman, asking the department of labor to open up a fair labor standards act investigation into wells fargo. any such investigation should include a comprehensive inquiry into whether wells fargo aggressively overskirted overtime laws, failing to pay overtime to bank tellers and associated who stayed later, came in on weekends or misclassified as overtime exempt, it also talks about this consumer financial protection bureau settlement and knocks it, congressman, and knocks it by saying ilt does not even include an admission of guilt. so there's part of the letter. and my question to you, i guess, is how does a, quote, outraged cfpb, the government, right, which has crowed to your point

about this investigation despite it being an "los angeles times" thing, not even get an admission of guilt by wells fargo in their settlement. how does that happen? >> i don't know. that's one of the reasons we're going to have hearings. it's one of the reasons we've launched a full investigation. and frankly the story's even worse than that. and what the cfpb did in their settlement is they essentially waived all these other consumer protection laws that otherwise wells could have been held accountable on. and, again, we have to get all the facts, but there are potential violations, for example in the truth and lending act, the truth and savings act, the electronic transfers act. and instead they concentrate on only one violation and the cfpb waives everything else, as you put they don't have an admission of guilt except tas idly by firing 5,000 people and making a public apology. it almost seems like wells has already admitted guilt in the first place. so, again, we have to make sure that the laws are fairly and vigorously enforced.

and it appears that the federal government, the occ and the cfpb have been asleep at the switch. i invite them to cooperate with our investigation and let us know. if they have bragging rights, we'll acknowledge them, but the american people just can't believe if the story was broken three or four years ago and the conduct's been known for four or five years ago, why is action only now happening? and they are not -- they haven't lost their ability to be outraged. i haven't lost mie ability to be outraged. >> congressman, last question and we'll let you go, what's your sense of where we are in this whole wells fargo investigation. what inning do you think this is? >> well, yes, baseball season is still going on although i'm more of a football fan. but my guess is using the baseball analogy we're probably only in the third inning. there's lots more to go here. >> right. >> we're only starting our investigation now. and having the first hearing with mr. stumpf next week on thursday. >> got it. congressman, we appreciate your time. >> sure. >> congressman jeb hensarling of

texas. >> jason, before we let you go, i want to get as an investor, okay, everything seems to be against wells fargo. and i know there's a lot of negative headlines. would you look at investing in a company like this just because everything seems to be going against it? >> that would be my inclination. >> it is warren buffett's single biggest holding. >> i feel that way about a lot of large financial institutions. i mean, you're looking at companies that are trading at below book -- tangible book value. >> but let's say we have one that doesn't have the cloud of being only in a third inning of congressional investigations versus a bank of america or citi group or jp, i mean, lists all of the rest in the sector. >> too early is wrong. >> my own view is that the valuations of the financial sector in general probably account for a lot of bad news. a lot of bad news is priced in. if the fed actually does tighten later this year, i have a feeling the yield curve will steepen and some of this stuff will be not forgotten about completely.

and i'm not -- i'm outraged just like everyone else what's happened, but i it has to be kept in perspective. you're easing aggressively and regulating the banking system. that's why it's not working. >> of course you've also got the wells -- what you call it the buffett call maybe on wells fargo where we saw during the financial crisis warren buffett come out and not rescue but help out some of these companies. this is warren buffett's single biggest position, melissa. one does wonder and i sense a potential topic for "fast money" tonight whether or not buffett comes out and says i'm buying more. >> or you hear him come out and say i'm selling. i mean, that's the flip side of it, too. so we don't really know. >> jason, it was a pleasure to have you for the hour. >> pleasure. moving on here, massachusetts senator elizabeth warren really took aim at wells fargo's ceo. >> you haven't returned a single nickel of your personal earnings. you haven't fired a single senior executive. instead, evidently your definition of accountable is to push the blame to your low-level

employees who don't have the money for a fancy pr firm to defend themselves. it's gutless leadership. >> what does it mean for a business to get called before congress? let's ask michael gordon, ceo of group gordon strategic communications and sydney, professor of management of the tuck school of business at dartmouth college. professor, i will start with you. this is really an opportunity whether it be wells fargo's ceo or the mylan ceo to make the case for their companies. how do you think they handled it, if you were to grade them? >> well, i think the one thing that came out of both of these performances is more outrage, more anger and more calls for additional regulation. even prison sentences. so, you know, based on the outcomes i don't think they've done really well. unfortunately, you know, they usually play a little rope-a-dope and one thing they don't want to do is say something that could end up making the lawyers go crazy and cause more damage.

sometimes that doesn't necessarily convey the best sense of who you are as an organization to your customers and other stake holders. >> michael, that seemed to be the case when it came to ceo john stumpf's appearance on capitol hill. it really did seem like he was being fed some lines by a very guarded we should say in terms of his statements. we just heard congressman jeb hensarling of the house financial services committee say he believes this investigation, at least from his perspective, is really just in the third inning. what can you do if you're a ceo? you got to listen to your lawyers, but you've got a long road to go down and you also have that great opportunity to really regain some of your own reputation, your company's reputation in the public eye. >> yeah. when you asked the congressman that question, in my mind it's the third inning also. by definition congressional investigations are not one-day stories. you can't just say one thing and it goes away quickly. there's a lot he can do. and certainly he can work with his attorneys to do them. but, you know, first and foremost heads have to roll in

the c suite. it's clear this was a systemic problem in the company. this was not just several bad actors. and this was a culture in the company that took place. and so heads have to roll. he looks very wimpy frankly by picking on the little guys and not picking on anyone he works with on a daily basis. another thing he needs to do is announce as a company how they're going to do that but what more are they going to do ethically? what new policy are they going to reannounce so they can reassure their customers that they are doing things differently? sure, give your employeesin centiv centivcen -- incentives, so employees hold very high standards. >> michael, it's interesting because stumpf and bresch are this week. it's franklin of fannie mae and many more in between called in front of congress. many know how it's going to go,

they use four minutes as a statement to show support for their constituents and then throw in a half-hearted question at the end of it. i understand certainly why they do that. it's free air time. what advice would you give to a ceo client? you know you're going to get massacred when you go, right? because if you're called in, it's for something bad. what's the best advice you can give anybody? >> right you have to show real contrition. that's the problem. you have to show sensitivity to the problem, show that you get it. but that's just the first piece of it. the other piece is that you have to follow it up with actions. so let's say in mylan's case show sensitivity to the fact this drug has increased dramatically. you know, stop shifting blames to others in the industry and take responsibility. you did it. you did it for sound business reasons possibly. but stop shifting blame. >> but, sydney -- sorry to jump in here, but time is tight. sydney, they trap you though. are you going to do x, y or z, maybe offer some money back, i don't care what company it is.

the ceos often can't make those decisions sort of unilaterally especially not in congressional hearing. you have boards and all this other stuff. how do you make sure a ceo does not put the company in a position where they can't live up to something that their ceo has just promised congress? >> right. well, they have to work -- >> go ahead, sydney. >> i'm sorry. >> when you go to a congressional testimony, you know what's happening. you know exactly what the playbook is going to look like, therefore show up and be ready with stuff you thought about, maybe you talked to the board about, do an entire analysis and report from a third party about the culture of the organization at wells fargo in particular. think about some things you actually do. i like the ethics policy. and most important thing is you got to be genuine and authentic. firing 5,000 low level people, i mean, that is as bad as it gets. >> sydney, michael, gentlemen, we appreciate your time today. thank you. >> thank you. let's get a quick check on your markets. aside from everything else that's going on, by the way, i mean, the dow is not doing too bad, melissa.

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despite the headlines and congressional hearing yesterday, shares of mylan are higher today and positive on the week, again, despite the ceo getting grilled on capitol hill yesterday. eliot wilbur has a market fm perform rating. there's a lot going on with the company, we get that, the hearings, et cetera. let's talk about the investigationment as mylan, eps, earnings, et cetera. they're offering this rebate and discount on the epipen, their biggest product. how much of a hit to earnings will this be? >> well, it's certainly clear that there will be a negative impact going forward. the company indicated that it will reduce its net price on epipen by approximately 30%. if that flows through to the bottom line in terms of the earnings impact, we think it

could be 35 to 40 cents in 2017, 2018. but even adjusting for that relative to street expectations, the equity continues to trade near the low end of its 20-year range roughly eight times forward earnings, which you know historically has been a valuation level from which shares have outperformed the s&p. >> yeah, the stock down 10% over the last 30 days. do you believe that eps cut, that expected hit, is already now priced into the stock? >> i believe it's certainly not reflected in published numbers. and we will continue to see downward pressure on estimates over the course of the next couple of weeks, but i would say that at this point i believe it is largely priced into the equity. >> i'm just curious, elliot, when and if teva ever comes out with its generic version, what price do you think that could be? i'm trying to get what the long-term impact could be in addition to what it's seeing

now. >> sure. mylan's generic priced around $200 for a pack of two pens that essentially entire market will convert to the generic version. if and when teva is able to get approval for their product and introduce it, we would expect them to introduce their generic version at approximately a 15% to 20% discount. i think it's reasonable to assume that they can probably capture 25% to 30% of the epipen market. >> elliot wilbur, we appreciate your time today on mylan. thank you very much. >> thank you. let's get to dom chu for a market flash. >> hold out creditors have accepted a new bankruptcy proposal that the casino operator proposed late yesterday for bankrupt operating unit. that stock has already traded more than three times its average daily volume with more than 3.2 million shares crossing the tape so far. caesar proposed adding more than $5 billion to that operating unstructuring. so we're watching those shares trade actively, melissa, back to

you. >> big pop. thanks, dom. shares of amazon today passing $800 for the first time ever. coming up we'll talk to an analyst who recently raised his price target to over $1,000 a share. but first, let's get back to tyler mathisen at the iconic conference in boston. ty. you know, melissa, jeff bezos began as the head of a small company. he was a classic entrepreneurial story. and look at him today. that's what the folks here at iconic are after. and we'll be joined by a guy who's really the great bad boy of fitness. he leads the most successful fitness business in the world, greg glassman of crossfit will join us after this short break.

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welcome back. taking a check on the markets. off session highs here. we've got the dow higher by just about half a percent right now, s&p 500 also higher by just about half a percent. it looks like we are seeing some weakness in industrials higher by about 1% earlier in the session. ty, over to you. melissa, thanks very much. coming to you live from the iconic conference in boston where we've got a lot of entrepreneurs and want-to-be entrepreneurs here together for a day to learn from some of the guys and women who have done it. one of whom joins me now, greg glassman, founder and ceo of crossfit. greg, always great to have you with us. >> thank you, tyler, for having me. >> i know you're a guy who speaks his mind on lots of things. you run your business in an

unconventional way. some people call it a brand, some people call it a religion, others call it a cult. whatever it is you've got incredible brand loyalty. your people come and stay. why? >> we've come to market with service that makes an unprecedented impact on someone's life. it effects their well-being and their health in a dramatic way in an era when people's health is in freefall. the nation's health is in freefall. we launched our foundation pieces of it to the net 17 years ago now, and in that same period of time america's health has taken a precipitous turn for the worse. and i think that the people that are coming into our boxes have a pretty deep understanding of that. >> yeah, we are less healthy, i think we are a lot fatter than

we used to be. we're a lot more sedentary than we used to be. one of the things that you're known for is running an extraordinarily decentralized franchise business. >> yeah. >> when you think of a classic franchise business, you think of a business that says, okay, napkins are four by four inches, hamburger patties this, straws that and you're going to buy it all from us. >> yeah. >> you don't do it that way. how do you maintain quality control when you let your franchisees basically run their business the way they want to? >> the essence of the brand lies in the profound metabolic truth that is the crossfit stimulus, meats, vegetables, little starch, no sugar, leveraging high functional movement, the adaptation, the response to that stimulus is so profound and the adaptation so powerful that the branding lies in the method and

in the results and gives a very natural leeway for all those things that ultimately don't matter. what color shirt you wear, you know, those things we traditionally think about as being critical to brand identity. for us kind of on an intellectual plain rather than strictly vish lly visual plain. >> i got to say we showed one of your boxes in my hometown. i didn't go. we'll fix that. you're an interesting cat. you're a libertarian. >> i am. >> basically libertarians say government stay out of my soup. >> yep. >> okay. you have made it a real point of pride to work against sugar, the sugar business, the the per vaers of sugar, i would like to see government get active about that. how do you square your libertarianism with your activism and the need for government to move in ways you

see fit? >> i think i can justify. look, i don't wish soda or big food harm. it's not about that at all. and i have an unprecedentedly effective consumptive reduction plan in that i got 4 million crossfitters that don't consume sugar at all. and so getting people to stay off the product, it's not our issue. but the corruption of the basic health sciences by these same people, these products we need to avoid, their impact on the health sciences and their invasion into the health sciences with money is alarming. >> so it's corrupted the science. >> unbelievably. just go to recent media, put sugar in corruption and look what's come down. whether it was the sugar research foundation paying harvard to -- pay harvard scientists to look at fat as

dietary fat is the culprit in heart disease, take the heat off of sugar. >> quickly, does the libertarian in you say let the market regulate this? >> well, i'm a market force. and as a market force i'm asking our government, i asked congress the other day to ask the nih and cdc to follow their own standards. as a libertarian, i don't have a problem with warning labels. and i do have a problem with corruption of government agency by industry. >> got to leave it there, greg. thank you very much. >> thank you so much. >> lot more to talk about. >> yes, sir. >> we'll do it again. greg glassman of crossfit. melissa. ty, thanks. the bulls building on yesterday's federally. the dow is up. the bulls are in charge on wall street but the bears are running in alaska. we'll have that story when "power lunch" returns. look at that bear. sick of getting gouged for limited data? introducing t-mobile one.

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well, there's bands on the run and there's bears on the loose. on the streets of anchorage, alaska, this video comes from police dash cams because they tracked a wild bear through the city. police were eventually able to

catch the bear. they released him back into the wild. they gave him a ticket for jaywalking. the last part of that story is untrue, but you can see that he was running speedily toward a pizza hut where apparently the stuffed crust pizza is just unbearable to ignore. >> where is he going? cute bear. >> all bears are cute until they bite your face off. >> on that note, let's get to sue herera with your news headlines. sue. >> oh, now you're coming to me. okay. thank you so much. after a cute cuddly little bear. here's the news update at this hour everybody. u.s. attorney general loretta lynch calling for a peaceful way forward after violent protests in charlotte, north carolina, following the shooting of a black man by police. >> i know that these are difficult times. and i know that the events of recent days are painfully unclear. and they call out for answers. but i also know that the answer will not be found in the violence of recent days. let us all seek a peaceful way

forward. >> u.s. attorney pete barra charging top new york aide to governor cuomo and others with extensive bribery and fraud schemes. cuomo put out a statement saying he would be saddened if the allegations were true. severe flooding across parts of iowa. dozens of roads and schools are closed as water from the shell rock river begins to spill over its banks. there have been some evacuations. and on a lighter note, the national retail federation's annual halloween survey says spending for the holiday will hit a record $8.4 billion this year. consumers are expected to spend an average of nearly $83, $9 more than last year. all right. that's the news update this hour. back to you guys. melissa sdpl thank you very much, sue herera. oil market is closing for the day so let's get to jackie deangelis at the nymex.

>> good afternoon to you, melissa. oil getting a bid and strength into the upside here into the close. going to close over $46 a barrel. but really still hugging that range, that pivotal mark of $45. now, the drop in the dollar post the fed yesterday certainly supportive of this trade, but also it's not unexpected to see a runup like this in the days ahead of a meeting like algeria next week. now, i want to mention rbob gasoline moving in the other direction today. back in negative territory as the operation of that bypass for the colonial pipeline is underway. it is going to take little time for that to translate into prices at the pump especially in those affected areas but certainly a step in the right direction. back to you guys. thank you, jackie deangelis. the city of new york owns more than 10 million shares of wells fargo in pension funds coming up. the comptroller who runs those funds just releasing a list of demands for the company including clawbacks. he joins us next. >> announcer: the cnbc trend tracker live data board is brought to you by the cme group. opportunities aren't always obvious.

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♪jake reese, "day to feel alive"♪ ♪jake reese, "day to feel alive"♪ >> announcer: today, cnbc in boston for the iconic conference. one-on-one with america's top entrepreneurs, ideas, inspiration, strategy from the inspiration, strategy from the best in business.

hey how's it going, hotcakes? hotcakes. this place has hotcakes. so why aren't they selling like hotcakes? with comcast business internet and wifi pro, they could be. just add a customized message to your wifi pro splash page and you'll reach your customers where their eyes are already - on their devices. order up. it's more than just wifi, it can help grow your business. you don't see that every day. introducing wifi pro, wifi that helps grow your business. comcast business. built for business. hi everybody. i'm sue herera. welcome back to "power lunch." yahoo putting out a statement about a security breach that they have been investigating since august. yahoo is now saying it is

confirming a copy of certain user account information was stolen from the company's network in late 2014 by what it believes is a state-sponsored actor. yahoo believes that information associated with at least 500 million user accounts was stolen. and the investigation is found no evidence that the state-sponsored actor is currently in yahoo's network at this point. yahoo is working closely with law enforcement on this matter. they are urging users to review their online accounts for suspicious activity. they are saying they are notifying potentially affected users, which once again is about 500 million, yahoo's recent investigation confirmed a copy of user account info was stolen in late 2014. and they are asking potentially affected users to change their passwords. if you have not changed it since late 2014. all right. you are up-to-date. melissa, back to you. thank you very much, sue

herera. yahoo stock not really moving on this. cyber security will be in focus at our upcoming cambridge cyber summit. we'll be speaking to the top names in government, academia and the private sector, so ticket, speaker information and other details available at cnbc.com/cybersummit. the wells fargo story continuing to develop. a number of senators including elizabeth warren asking the labor department to investigate the bank. and after being grilled in the senate, ceo john stumpf is being called now to testify before the house financial services committee. your next guest, however, has added to that. just firing off a letter to wells fargo's board urging them to clawback substantial incentive pay from senior executives responsible for the misconduct. scott stringer joining us now, the city of new york's pension fund owns nearly 10.5 million shares of wells fargo. comptroller, thank you for joining us. how much do you want to see clawed back? all of it, some, what do you want to do? >> well, if you didn't earn it,

you should return it. the bottom line is these senior executives at wells fargo were part of this scam because they didn't do the proper oversight. they didn't think about what was happening here. and as a result 5,300 employees have been fired, the company has suffered reputational harm and the pension fund that i'm the e fiduciary of has invested in wells fargo and absolutely outrageous what they've done. i think we should institute the clawback provision. this was actually a policy that my office supported or put forth at wells fargo many years ago. and this is an appropriate time to clawback the pay and the bonuses from the senior executives that actually benefitted from this scam. >> you point out in your letter, mr. comptroller, that the shares are already down about 7% since news of the settlement hit. what would you -- what do you think is the best outcome for your investment? do you think the ceo has to go at this point?

>> i think the ceo has some real issues and some real problems. the fact that he's been hauled to one and now a second congressional committee, this is very serious. he has harmed this company, his senior executives have created reputational harm. and think about what consumers are thinking about wells fargo. they hurt consumers. and i believe strongly that we should not tolerate this in the banking industry. we -- >> so is that a yes or no? some people say it's a decision of the board and yet you are writing a letter to the board saying they should clawback incentives. >> i shed no tear if the board lets this ceo go. but at the end of the day we need to see real institutional reforms at wells fargo. we share owners have a stake in this company. we own this company. we have pensioneers in my portfolio 17,000 people who rely on this company for their retirement security.

and i'm outraged for many years this was allowed to be perpetuated on the people -- >> mr. stringer, isn't that kind of the difficult conflict that your position, not just you, but your position and other states may have? your job is to shepherd part of the pension fund. you want it to do well. you need it to do well. you also want to use that power to go after corporations that have done wrong like wells fargo. but how do you balance that out? because going after corporations may mean their stock goes down, which hurts your investments. where's the balance there? >> i think you raise a very good point. we are not anti-wells fargo. we're rooting for wells fargo to do well because at the end of the day we have a $500 million investment. we are share owners of this company. but i think we have to strike a balance. and we can't be shy and say, well, we're going to throw up our hands and we're not going to hold the company executives accountable. of course we are. that's why i supported and our office supported the clawback

provision. it's a policy that allows us to clawback the salary and the profit that these senior executives made. >> uh-huh. >> because this scam was benefitting them. >> sure. >> i think once we create a clawback policy and we act on it, i think it does create a sense of trust in getting wells fargo back to where it should be. >> has the city been invested in wells fargo for longer than three or four years, mr. stringer? >> yes. >> i'm going to ask this respectfully because you clearly are outraged by this whole situation, but this situation actually came to light a few years ago with an "los angeles times" report. you are an investor. you are the head of the funds for the city of new york. do you bear any responsibility or regret for not speaking up earlier for not sending this letter to the board that you are sending today, a few years ago when it first came to light? >> i've only been the controller for a few years.

>> okay. >> you're holding the let thaer we sent and i have spoken out on this. we're not being shy. we're being very direct. as a fiduciary we try to monitor all our funds. i want to tell you something, i invest in 3,500 different funds. and we rely on boards to watch our investments. that's how this works. and that's why when the board doesn't watch what's going on and the senior executives are able to be held -- are not being held accountable, that's a very serious issue. we support strong boards because that's the way share owners in my case $160 billion pension fund, fourth largest in america, 14th largest in the world, we do support strong boards but they have to be accountable. >> mr. comptroller, we appreciate your time. scott stringer of the city of new york. >> all right. let's get to a news alert with dominic chu. >> what we have right now is a huge private investment in airbnb which now values the

company at $30 billion. this according to sources familiar with dow jones saying they have raised $850 million valuing the total company at $30 billion. the previous valuation we saw was about $25.5 billion from a summer fund raising round last year. you may recall, guys, back in probably late june is when we first caught air from multiple reports saying they were looking to raise money at a valuation in this range. but now we have at least some sources at dow jones saying $30 billion the new valuation, guys, back to you. dominic, thank you very much. we're going to take a short break on "power lunch." a lot more to do. you know, to show the importance of saving for the future. so you're sort of like a spokes person? more of a spokes metaphor. get organized at voya.com. narrator:kubo: est place come on, this way.e... narrator: ...is in the forest. kubo: wow. narrator: so grab your loved ones monkey: don't even. narrator: and explore a world of possibilities. kubo: it's beautiful. narrator: visit discovertheforest.org to find the closest forest or park to you.

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all right. welcome back. look at that. amazon stock hitting another record high today and crossing $800 per share for the first time ever. stock's at $801.46. your next guest says the stock has even more room to grow. managing director with evercore isi with a buy rating on amazon and recently slapped it with a $1,015 price target. ken, listen, it looks like if this continues -- >> thank you. >> -- you are certainly going to be right. but what is going to be the driver? is this just a momentum stock? or is there a fundamental reason, i guess besides amazon web services, that the stock is doing so well? >> well, we looked at amazon web

services, but i think we're trying to broaden the discussion about cloud and the opportunity there. when you look at amazon's retail business, i think what we're trying to argue is that very much is a cloud business. the way amazon is moving into audience platforms, the way they stand to leverage automation into supply chain, the way they can use machine learning for the sake of recommending to you what you want. we see this as having top line drivers, we see it as having driving cost efficiencies, even capital efficiency in terms of helping amazon to better predict demand as way of matching up with supply. >> can we in the media like to refer to amazon as an online retailer. at least i do. >> right. >> should we stop referring to it like that? >> you know, i think when amazon looks at itself, it would view itself as a tech platform. i think it's a data infrastructure stack. and it shows how the advances within data infrastructure can be applied to its own challenges of driving efficiency for buyers and sellers, but ultimately i

think amazon is showing how those same capabilities can be in turn offered to businesses themselves and the enterprise. so i think it's more of the same conversation. it's not just amazon retail and then if you go over here it's aws. you have to think about the advances that we're seeing in data infrastructure, how it's being applied across the board to everything amazon is doing. >> then how should i think about its retail business or the side of the business that sells things? whether uses conventional online ways or other ways. >> sure. >> are all these things, the automation, helping amazon to get greater margin for the things it already sells so it can sell more volume because margins are already thin? how am i going to think about this? >> i think it's both margins and volumes. amazon delivers efficiency into let's say the supply chain from the standpoint of, you know, automation within warehouses, or better optimizing routes for delivery. what it's doing is it's delivering efficiency. i think as you deliver that efficiency, it opens up

addressable markets in terms of maybe the food category, or, you know, difficult -- other challenging markets. let's say india. very large addressable market. this will drive top line too, but it also, i think, drives a wider differential in terms of efficiency between amazon and everyone else. and that's kind of the important point here. what is driving that efficiency differential has a lot to do with what amazon is building in the cloud. >> right. >> and i think as amazon moves into audience and captures more information or they move up the let's say cloud stack into software services and other, i think it gives amazon an even greater opportunity to apply machine learning towards automation and efficiency, which again continues to move us in this direction. >> all right. ken, thanks for your time. one of the biggest bulls on amazon on the street. ken sena of evercore. >> my pleasure. mylan ceo heather bresch grilled on capitol hill yesterday. we'll talk to the congresswoman who went after bresch for using

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did you fly here today? >> earlier in the week, not today, yes. i flew but just not today. >> you flew on a private jet? >> i did. >> were you accompanied by anybody? >> other employees. >> is that a yes? >> other employees accompanied me. >> do you have any idea how much that cost? >> look, i know that it's fortunate and it's for efficiency and safety. >> that was mylan ceo heather bresh. joining us from capitol hill is congress woman bonnie watson coleman who did that grilling. thank you for joining us on "power lunch." >> thank you for having me. >> what was your point that they are being driven by corporate

greed? were you satisfied with her answer? >> we weren't satisfied with the majority of her answers. we are trying to understand why there was such a cost driver in the epipen cost. so we were trying to figure out how is this money spent. she wasn't able to answer those questions adequately as she was trying to talk to us about the stream or the flow of the revenue. so i asked her about you all seem to be living a pretty favored life here. you have a private jet. you know how much that costs? you moved your company out of the country so that you can avoid paying taxes. working families and families of children who need these epipens don't have those luxuries. you seem to be living pretty high off the hog while you're limiting the access to a life-saving drug for working class families. and so that was sort of the line of questioning i pursued with

her. >> i understand the spirit of that line of questioning but you realize these are practices that are common in corporate america, not just at mylan. i'm not trying to defend mylan but trying to show the other side of this. >> we certainly understand these are actions that are taken on by other companies and public trading companies and whoever else, but the question is this company works in a space that is supposed to be about health care and saving lives. this company didn't invest in the research associated with bringing this drug to the market, but it benefitted from purchasing it at a time when it had already had established its viability. and this company lobbied us and lobbied state legislatures to

use this particular product so it may be corporate practice, but it also represented corporate greed. >> so you conceive that congress helped create the monopoly in which mylan was able to raise these prices. part of that monopoly was created by the school programs where all these schools across the u.s. would buy epipens. was it not thought that this is the only company that makes this drug and we are effectively handing them a monopoly so they can do whatever they want with it? >> you know, i was in the state legislature when epipen lobbied us to make sure that children had access to this in case they had allergic reaction. i know as a legislator we were concerned with that being available to them. we weren't looking more globally at the kind of competition this could possibly shut down, but obviously, we need to re-think

that kind of thing because competition apparently is very important here otherwise you wouldn't have a drug for which you have invested no additional money or cost associated with providing it. you have increased that cost at a rate that people are not going to have access to that drug. that represents a level of corporate greed that we in this country need to pay attention to. >> congress woman, you represent the very fine 12th congressional district of new jersey with which is my district. you're my congress woman. i happen to know that there are a lot of pharmaceutical companies within your district and there has been a lot of talk about real fundamental changes coming to the entire industry. what have you heard from them? are you willing to make sweeping changes to the health care distribution model given you have bristol-myers and johnson & johnson and about 100 bio techs in your district? >> i have a glut of companies

that invest heavily in research and development. it takes them years to get a drug into the market. that is not what mylan did here. mylan benefitted from all the work and all the investment that was done in the kind of company that principally house themselves in the 12th congressional district and then making an exceeding profit. and as far as pharmaceuticals i want to have conversations because they have ideas as to how we can improve the system, as well. we are not talking about those companies that invest so much in research and development. we are talking about the people who are at the end of the food chain who get the benefit of it and just are about making profit. >> congress woman, we have to leave it there. we appreciate your time. when a moment turns romantic, why pause to take a pill?

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we didn't have time to do street talk. mine was going to be intralink. $13 target. about 27 whatever percent upside. >> i am watching glen core. this was a poster child for the commodity down turn. it is up 130% this year.

we have seen the dramatic turn around from near collapse to huge gains to the upside. thank you so much for watching "power lunch." "closing bell" continues coverage of this market rally right now. > . hi everybody. welcome to "closing bell." i'm kelly evans. >> and i'm willfred frost. we will look at what the moves are being driven by. >> with the nasdaq on pace for another record-breaking session investor dan niles says there is one big tech stock he is loving right now and hasn't liked it since 2015. he will tell us what it is. >> breaking in the last hour, the senate wants the labor department to investigate