>> plus, two great alternatives. visa, mastercard. >> exactly. to lose a couple million affluent investors for american express was a disaster. >> good stuff. thanks. >> starts now. >> i'm melissa lee. here's what's on the menu. bracing for a big one. more than a million people urged to flee florida's coastline as hurricane matthew takes aim. we are tracking the storm's path straight ahead. twitter tanking as a cat and mouse game continues oaf a potential suitor and fehr noes throwing in the towel on its controversial blood testing facility. what's next for the company? elizabeth holmes. "power lunch" starts right now. >> twitter may be your big stock story, but there's more going on. the stock slightly in the red. s&p 500 now positive, gold

falling again. there you go. the biggest dow loser is the stock at the halftime crew just talked ant. american express, the negative call. hitting axp. oil throw making a big rebound. now trading about $50 a barrel. we will hit your oil close. >> thank you very much. here is the latest on the big hurricane matthew. at this hour. the category 4 storm currently centered about 180 miles off the coast of west palm beach, florida. maximum speed sustained winds, 140 miles per hour. gusts about 165. florida's governor, rick scott, declaring a state of emergency as the storm baears down and 250 members of the florida national guard have been deployed to assist in hurricane prep rations. now footage in from haiti showing the devastation hurricane matthew caused there. high winds, major flooding, knocking down houses.

setting off the worst humanitarian crisis since the 2010 earthquake. dozens reported fatalities in haiti at this hour. category 4 storm taking aim, moving through the bahamas. taking aim on the east coast of the u.s. florida especially. let's go to dr. greg postel with the storm's path. >> thank you very much. we're deal wg a dangerous category 4 that is now closing in on florida. here's the latest update from the national hurricane center. they're doing hour by hour updates. category 4, 140. you can see the whole circulation is headed that way. and the good news is that there's some silver lining, if you go to the radar, you can see how some of the outer bands are coming in now and the picture, show you that. we're starting to see degree reequatidocumentation there, bu real bad winds over 100 miles per hour are confined to a little, tight area here. that's where the hurricane force winds and winds over 100 miles

per are. fairly compactly organized. on the beaches in miami, north at 5, west palm, north at 125 21, those will be increasing today, but the real bad stuff, the koefr the hurricane, the eye wall, may very well come on shore across the central part of florida overnight tonight and that would bring the 100 plus winds. that eye wall may move up the beef. besides those destructive winds is the potential storm flooding that will come with this. the inundation levels will be high we think with this particular storm. as it moves up, as you get the onshore wind across parts of florida. 6 to 9 feet plus of storm surge. moving up the coast, this is going to be a significant threat. not just in florida, but in georgia and south carolina as well. we have a lot to sort through this, but a very life threatening situation is unfolding. back to you. zwl thank you very much. as florida braces for that, its

first major hurricane in more than a decade, rez debit of the eastern coast have really three priorities. get your windows kickoffed. get pa and morgan brennan joining us from daytona beach, florida with the latest. >> hey, brian. i couldn't have said that better. this category 4 storm, we're starting to see some of this weather come in to daytona beach. we've got at least 102 people in the caribbean have died from this storm and here in florida, governor rick scott saying bluntly earlier today, that more people will die from this. so in light of that, more than 1.5 million people here in florida have been urged to evacuate. more than 2 million yoef all for the region and as you can see, and hear behind me, we've got businesses here boarding up, they're sandbagging, getting ready and getting ready to get off of this strip and that of course as the bridges to the beach strip begin to close down to the general public. it's too soon to tell what the

economic impact or what the damages are going to be here, but plan littics are saying the costs are starting to rack up. >> it's difficult to be precise about these sorts of number, but keep in mind, when you have a million people evacuated, they're not going to work that day. they're going to their jobs, so the economic impact is in the basically close to 100 million per day. >> so, florida's tourism industry is an $89 billion a year industry. the largest in the state. it is poised to be one of those industries that takes the biggest hit because remember, we're going into columbus day weekend, so on that note, i will mention that disney theme parks is now saying it's closing at 2:00 p.m. today and will be closed through tomorrow. universal, cnbc's parent company, also closing at 2:00. wet and wild, sea world, also closing down through tomorrow. orlando's airport has been already shut down as of this morning. we've got more than 2700 flights

that have been canceled and many hotels here on this strip are shutting down and turning guests away. so, this is as this weather starts to come in, it's really starting to become more of a dire situation. guy, back the to you. >> everybody's focuseded on the damage and the costs from the damage, but you had this really interesting stat, just the cost, people not going to work. that's going to add on. >> that's right. so, they have estimated that with a million people alone evacuating, you're looking at a cost of $100 million a day. obviously when these businesses behind me close down as well, they're losing money. you have tourists that aren't coming in, whose flights are getting canceled. cruise ships that aren't coming in and a lot of freight move in through this area that's not coming in, so everything is getting impacted and given how severe the storm is supposed to be, the expectation is we're going to see millions of people and businesses without power and in some cases, sustained periods

of time, while these utilities have to rebuild the grids. >> what are you hearing about traffic as people leave? >> i will tell you, we've been driving around a lot for the last 24 hours. we actually started in west palm beach and came north. we haven't seen too much bad traffic. i think a lot of folks have been not playing around and trying to get ahead. even yesterday afternoon, you would go into a target and the shelves were really picked clean. a lot of these retailers are trying to restrok ahead of the storm, but folks have been stockeding up and getting out. tl a few cars here moving around, but really, the it's for the most part, becoming a ghost town. >> thank you. morgan brennan. switchinging gears now to wall street and the other big story at this hour. that would be twitter. the stock getting crushed, down nearly 20% now. on a report that google and disney will not be making bids for the company. let's get to kate kelly in our

san francisco news room with more. >> hey, good afternoon. i had an interesting talk yesterday about the san francisco conference with the founder. not one to mince r word, he dismissed the idea of a sales force twitter purchase, specifically as insane and wrong headed. he noted it would involve spending a huge hunk of market cap to acquire something worth only a small fraction of what sales force is and that's not growing at that. he also ran through some of the ways in which in his opinion, twitter is a broken business model. some of his ideas for reshaping included having a better growth framework. sounds sound basic. and also to look at how much money they're spending on infrastructure. all for a product that he calls sub scale in many respects. he thinks in fact that m and ark a, which he generally des pizs and had some funny lines on that, is probably the wrong approach for this name. >> i think it's probably best to be taken private.

i think that a class of investor maybe quausy activist -- i think you have a chance of rebuilding that company in a really interesting way. >> he spent an important part of his career at facebook and made a contrast between facebook and twitter here. he said at facebook, there's a focus on looking unemotionally at mistakes and instead of framing them as right and wrong, framing them as right and learning. i thought that was an interesting and powerful mind set. for that interview that i had with him yesterday, go to nz krbz.com/pro. >> thanks so much. let's bring in james, he's got a mutual rating on twitter. great to have you. i'm curious of what you think of that private equity investor's idea that maybe twitter's best route is to go private. >> sure. i think that makes sense. i think twitter has two options.

one is either go private or two, make sense as operating at part of a large organization, because at the sail it's at right now, operating independently just don't make sense. unfortunately, we saw according to recode disney moving away from the table, google someone that i dismissed since the beginning, but this notion of sales force rs i have to agree with the reporting, it just doesn't make sense. yes, you can make the arguments for the marketing cloud and crm, but can they afford to pay for it? i just don't see it happening. they'll have to piss off a lot of shareholders there and assume a lot of stock because they just don't have the balance sheet to facilitate. >> who's got the capital to do it? they probably don't. >> well, mean, you can look at private equity firms like soft bank. and the end of f the day, what price is it going to come? the bidding war you know, reported bidding war, has been

driving up the price, but the fundamentals are, it's mismatched with the fundamentals of the business. right now, we're looking at a company that's at six times revenue. 20 times ebitda and each is worth about $50. that compares to $60 for what microsoft paid for linked in. there's a mismatch as far as what the fundamentals of company are worth. so, i think that the downside risk here is greater than the upside, so it's got to be about the great price. >> and that's why evidently, you would think a couple of the birds who were driving the price up have gotten out. just got away. from what they were willing to pay. and now, the price is going down. who among the public company bidders makes the most sense to you if any? >> i think two, disney made sense because they need to operate in a core cutting world and look at how they're going to distribute their content. the second would be microsoft because if they could leverage with linked in and leverage with

cory tan nato give a personalized hub of information for users personally as well as in the business world professionally. i think it could make sense. the companies that can affidavit it are moving away from the table, so i think they have to continue to operate independently until they're more reasonable at the board level on the price. >> you're making all the right points, james. as i put on twitter to a user today and jim cramer were kind of going back and forth agree ing with each other, you could make all the financial arguments you want. you could see the mettics, valuation, cash flow, whatever it is you could say made sense, however what are the odds no one picks it up because they can't control the product. the users are the problem. hate speech et set rachlt if you can't control that, it doesn't matter what the price is. >> i wouldn't agree with that sentiment. because the way i look at it is this is a -- >> disney wants to have that kind of stuff on there.

>> i don't think a social network because what you're buying is the interest graph. and i think that that is the only company right now, twitter, that can is able to be acquired to buy this kind of data, so i think there is value to it. you're not buying the social network. you're buying a data set, so i think it can make sense at the right price. it's discount from where we are today. so, in terms of the value -- >> in the 10 to $15 billion range versus the 20. >> in terms f valuation, if we are to look at twitter as a trove of data and the value is in the users and how much they're worth, if microsoft paid linkedin $60 per mau, what is a twitter user worth? you said 50. >> i think i've lost the feed. >> okay. you there, james? i guess we lost him. >> tweet the question to him. >> maybe i'll get a response. >> you know my point is i wonder

if it's just a product. twitter is a store that's emptty. we put the product in. if wrou can't control the product, i don't know why disney or anybody else you know, google's data feed is very rich. you can't lie to google. they know where your car is. they track your phone. twitter is just opinion and commentary. >> how do they track your phone? >> i shut it off. i don't want anybody tracking me. >> they're tracking. >> to dominic chu. i know where he is. >> right here on the main set next to you guys so you can track me all you want. we're watching what's happening with the insurance companies because they're still in focus as hurricane matthew heads towards florida. universal holdings, a provird of residential coverage in places like florida, the carolinas, georgia. it fell by as much as 20% today. again, the company has about maybe 7, $800 million in total market value for the firm. bigger naks like chubb, all-state, traveler, down less than 8%.

that he has companies extend the risk, a lot of lines of insurance. insurers will be a stock to watch as stock continues to strengthen. so keep an eye on those gips. some of the smaller cap players are moving as well, but again, the regional florida focused ones are ones moving the most. big guys just hit fractional gains here. back to you. >> still ahead, next with theranos and we're keeping an eye on hurricane matthew as it heads towards the u.s. the latest on the storm's path and potential destruction when "power lunch" returns.

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walmart just wrapping up its investor meeting in arkansas. the retailer isn't building as many new stores as it first planned. it's raching up e commerce instead. the new head of walmart e commerce spoke to investors the first time. the group fell short of its 20 to 30% goal first half of the year, but the retailer thinks it will get the on the back half and next two years. the world's largest retailer reiterated guidance for 2017, but now says earnings will be flat and fall 5% in 2019. both below the street's expectations. shares down more than 2%.

>> and walmart, i mean, listen. there's a storm angle here as well, too. i know you've been on the call. you're in contact with the company. has anybody said anything about what they're doing? don't want to put you on the spot. >> not during today's call. they didn't say anything about holiday, didn't give us an update on tests with uber. >> but they're willing to talk about 2018 and '19. >> that's the problem some analysts are handling. the ceo said clearly, this is our end goal, but we doebt want to give you too many particulars about how we're going to get there because it may change, so we need to reserve the right to be flexible. some have said okay, we're going to go back and rekrit our models. i think everyone needs to think through this. >> and get more detail from walmart. >> thank you very much. theranos laying off emplo e employees and closing facilities. elizabeth holmes claim it is

company will go on focusing efforts on its mini lab platform. but they're questioning if that's going to work for a company once valued at $9 billion. with us now, john, who first questioned their claims to be b able to run a broad range of lab tests from a tiny sample of blood from a bricked fringe finger. you might have a third because you broke the story and we've been following in your footst s footsteps. thank you for coming in. do you believe that -- >> thanks for having me. >> do you think they'll go on? what do you think is the longer term outlook for them? >> well, this is clearly a sign that the company's in survival mode. i'm told they still have money left in the bank and arguably, if they're careful about how they spend their money, more than a year. worth of cash b flow, but it

wasn't going to last long if they still employed as many people as they did and still had those labs up and running. this is being realistic with where they're at. regulators wanted to shut them dund they were fighting that. but this is now a basically say og kay, we're going to shut down the labs and we're going to pivot retrench to a model in which we try to sell our device to hospital ers and perhaps physician's offices and the thing is that's a completely different model than what the company went live with almost three years ago. they went live with a direct to consumer lab testing model in which they had blood draw sites in silicon valley and in the feen igs area. and the, they drew blood and then the blood samples were ship today labs in scottsdale and in palo alto and sorry, newark, california and then they gave the results back. this new model now is completely

different. from what they went live with three years ago. >> john, even if the f drda giv approval on this process, which is no sure thing certainly. who would want to do business with them? >> well, the fda approval process for device like this is lengthy and arduous. a year is probably not enough time experts would say to get through that process. you have to keep in mind this is an agency that now has no trust in this company. it's inspected it twice in the past year and both times found major problems. first time it went in about a year ago. it went look iing if for data. hoping that it could find data on site showing better accuracy for the tests that the company was trying get approved and didn't find those. then it deemed also the nano

taners, the little viles the company was collecting blood from pinpricks. >> my question really was about even if they get that, even if they get the arrival, given their history and how hard it will be and how long it may take, who's going to want to do business with a company who's name has been so tarnished? >> that's a, for sure. that's another challenge, but i think the company would cross that bridge if it were to ever reach it. i think the, the other bridge, the bridge that they'll have to try to cross sooner is getting the fda's approval and you can be sure that agency is going to be vetting their product and looking at the clinical, at the trials they run, the studies they run very, very closely. i was talking about that first inspection they did a year ago.

they did another one a month or two ago. and found that the company hadn't properly hadn't gotten the approval of the institutional review board before doing some zika testing in the dominican republic and theranos in the wake of that inspection had to withdraw its emergency zika approval. so, the relationship between the fda and this company is in tatters and yet, this new strategy they're pivoting to hinges entirely on getting fda's approval for the product. >> yeah. john, i don't know if you know this, cream of green, our producer pointed out, the headquarters is a former "wall street journal" building. i don't know if you knew that. so, thank you. >> that's right. it's on page mill road, a former "wall street journal" printing plant. >> amazing. thank you so much. up next, we're talking pizza, peanuts and parts. the good, the bad and the ugly in today's trade when "power

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hi, everyone. i'm sue herera. hurricane matthew barrels towards florida packing winds of 140 miles p per hour. now a category 4 storm. disney parks will close at 5:00 p.m. eastern time and remain closed all day friday.

rick scott on the storm's severity. >> if you're watching and living in an evacuation zone, you need to leave now. so, if you're in an evacuation zone, get out. this is not something you should take a chance with. evacuate, evacuate, evacuate. >> 14 senators are asking the department of justice to investigate senior wells fargo executives for their alleged role in opening up unauthorized accounts. they've sent a formal request to lor ta lynch. john stumpf testified before a senate xae last month. stabbings at a minnesota mall last month were premedit e premeditated by a attacker. they say he became interested in islam in the last several months and nike is raffling 89 self-lacing 2016 limited edition mag shoes in an online lottery. customers can donate $10 with

the proceeds going to the michael j. fox foundation for pa parkinson's research. good luck. that's the news update. back to you, melissa. >> thank you so much. stocks are off their session lows, flat as we await the all important jobs report tomorrow and we're waiting to see the damage hurricane matthew could cause. the dow is down by about 16 points. s&p up 1.5 points. what's interesting in today's session is that the dollar index is making a sizable move. up about a half a per sebt, but we are seeing positive trades. wti crude trading about 50 bucks a barrel. gains in materials as well as energy stocks today. >> back now to your top national story. preparations underway for hurricane matthew, a category 4 storm and taking aim at the eastern coast of florida. two million people urged to evacuate. scott bern heart is president of a firm that helps companies deal

with the impact of weather. thank you for coming on the program. a tough situation down there. what would your number one and two pieces of advice be for people in southern florida? >> well, thank you, and you and morgan hit this at the top of the hour. listen to the authorities. this is a serious storm. not, this is not a passing thing. very serious, very aggressive storm. evacuations are critical. people boarding up their homes, businesses and most importantly, protect yourself and that is the number one thing. this is a significant storm. interest fact act about that. today, it's 4,000 days since a major hurricane has made landfall, major category 3 or higher and today is the 4,000 days since a major hurricane. this is serious. >> and do you feel like because of that, there is unfortunately, maybe a level of disbelief among some people? because we've had some storm calls the last few years thank

tli not turned out to be as severe as the early predictions and that you got a very skeptical people still. >> i'm afraid that's the case. yes. so, i'll tell you, media and social media have been very influential on this storm. the last one was will ma in 2005. a lot has changed since then. certainly, the awareness has gone up. the economic impact of matthew has begun. with people hitting the stores, going to the diys, getting their wood to board up oir thats. buying the bread. and the, we've seen the lines at the gas stations. that's begun and i take that as a good sign because people are taking the tomorrow seriously. they're getting out doing what you're supposed to do when a storm like this strikes. >> are the construction standards in the hurricane zones any better than they ever were in light of the fact we've had a couple of really devastating

storm, sandy and of course, katrina? have they imprufed? >> well, yes, they have, for anything that's been constructed recently. there's still things that have been there for quite some time not in path of any storm and haven't been damaged. they're still there and those standards are not up to a storm of this magnitude. >> in terms of damage, i realize it's way too early and you're reluctant to do any estimate, but is there a range? >> again, not a storm this size. we haven't seen one like this in quite some time. with that much population under threat. we have 2 million people. it's going from florida up to georgia up to south carolina. we've got a storm indentally, that's hit cuba, haiti and the bahamas. already. and it's been awfully lopg time. certainly not on the record where that has happened before. a storm of this magnitude, so it's on on unusual path, hitting a significant population center. and hitting it hard.

>> all right. scott, thank you very much for joining us. we appreciate it. >> thank you very much. >> switching gears to jobs. we are on the clock for tomorrow's big employment report. and for all the those out there complaining they're getting shafted when it comes to their paycheck, they may be right. may be manager to it. steve liesman joins us. >> only this one. only this gripe, there may be something to. folks a vast study of the u.s. labor market released today finds that wages of younger workers have declined compared to 1980. wages of older worker, they have soared. the study includes a survey of 5,000 americans, an sis of decades of government data. they used 2014, a survey found those aged 16 to 24 have seen incomes decline compared to the same age group in 1980. older workers have seen their wages increase by 37%. over the time period, it rose just 6%.

those with four-year degrees and women. they saw a 32% gain versus a 3% decline for men. closing the gender pay gap. all of that makes sense though. the young versus old data, it's more curious. researchers could only speculate about the reasons. here's some of that. older workers who don't retire could be better educated and therefore, higher paid. so, a selection process that better paid people come from more experience and more productive workers. younger workers, if they're not in college, may have lower skill and lower paid jobs. an enormous number of young people have gone to college. so, if the general pay gap wasn't bad enough, researchers also found the workweek has increased by 0.67 hours. so, folk, less pay, more work. where do i sign up? >> social security's rising benefitting figure in this at a

all? >> let me think that through. that would tend to keep people out of the workforce. if it's lower skilled people who are more likely to leave the workforce, for those social security benefits, yes, you would have a potential increase in that process. in other words, it's not a change in the same worker, but just the composition of the older workforce. we found out we knew back in 1970 and 1980 people were going to live longer. didn't know they were going to live better. didn't know they were going to be healthier, so this idea that the older workforce and i'm not saying this because of me, folk, just to be clear. being objective. that the older workforce was going to be product i and that experienc experiences, think b about four people on a workforce. all of whom were 65 and three retire. the person who remains, that person's benefit to the organization is potentially higher and therefore, that person may get higher wages because of that. >> because they're experienced. >> and remember, you have a large influx. >> doesn't that skew the whole

payroll data? because if the 65-year-old making x retires and he's replaced by a 25-year-old, that 25 will not make 65-year-old's bay due to longtivity, so automatically, the same job that paid -- >> i am in the middle of a research project on this, if you want to know. i'm trying to crunch day to show whether or not wage numbers are changed by the idea that you have a lot of folks who are retiring. >> hang around, steve. we're going to get reaction to this from joe. cnbc contributor and chief exist at deutsche bank. how do you explain what steve described? >> steve described what's accurate. i meep, part of it is the fact that the people who have been in the workforce longer may have more education. they've built up more human capital and then to brian's point, when these people leave the workforce, the ageing population which we're seeing, they're replaced by younger people who don't have that skill set. that's a good reason why they don't have the wage that is the older people leavinging have.

>> i get that. what perplexes me more though is why younger people today are making less than younger people did 36 years ago. >> i mean, tyler, in general, we had a very brief period of accelerated productivity growth, which determines wages back in the, back half of the '90s, but the slowdown that we could explain for a few decades, which looked like it reversed in the '90s, now has hit us with a vengeance. that's another reason why they aren't getting the wages increase or the broader pomlation. they don't have there the productivity. >> breaking news. quick thought on tomorrow's report. >> below consensus, 130. with flat unploim rate of 4.9. breaking news on hurricane matthew. with sue. >> sbed, this is what's happening now.

president obama has signed a declaration of emergency for florida. he has signed the florida emergency declaration, which will allow fema to identify, mobilize and provide at its discretion, equipment and resources necessary to alleviate the impact of hurricane matthew. in addition to that, and of course, the governor, governor scott this morning, was hopeful that the president would do that by this afternoon. and the white house just releasing the k fact that he has signed that declaration of emergency. separately, governor scott says that over half of the state of florida's national guard has been activated to help with the emergency down there caused by the arrival of hurricane matthew. and also, they have just changed governor scott's anticipated briefing time. it was set for 3:00. they've moved that up to 2:30 p.m.

so, given the most recent update from the national hurricane center on hurricane matthew, governor scott has act visited additional national guard members about 1,000 additional. that brings it to 3,500 members that have been activated that's equivalent to half of the state's national guard and we're awaiting his briefing at 2:30 p.m. eastern time. all right. back to you guys. gl thank you very much. as we look at images there in ft. lauderdale of a lone surfer out. trying to catch a wave there. i guess there are thrill seekers who will do that. some people on the beaches as well. >> strolling around even though the governor said today frk you go to the beach, in the water, you will be killed. >> you're at risk of death. >> to the bond market we go. rick santelli tack tracking the action. >> hi,ty leer. the short end seems to have run into a bit of a wall. you know, in mid '80s, two-year might be all you get if notion of a fed tightening is in

december, but the rest of the curve not only moving higher as of late, look at one-week charts. you want to pay attention to these 173, 175 areas. technically significant. tr boon, same look for the one week chart. zero is their technical level of importance. guilt. 90 basis points. you could see how each of these is really hovering in these critical zones. dollar index. now, the dollar index moving higher made sense, but what doesn't make as much sense is the crb index seems to be climbing along with it. so, of course, you want to pay attention to all these variables, especially if closing yields today are above 174, 175 in the u.s. ten hf year treasury. >> today, and the analyst calls, espionage. stolen state secrets prompting an upgrade. got ta ahead on "power lunch."

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met life, a spin off its u.s. life insurance business under life house financials. shares are squlumping on this news. young brands falling after the company reported a miss on both the top and the bottom line. and a very ugly day for board warner. the to 35 from $37 a share. we've got the other two names, goldman downgraded as part of the call ahead. meantime, out to michelle caruso-cabrera who joins us at the new york stock exchange. >> hey, there. thanks so much. brazil's economy has been through dire times these last few years, but is it now officially reached rock bottom?

our next guest has big plans to bring brazil back and to cut inflation by half of what it is now. let's bring in elon goldfine. good to have you here sir. you have an old fashioned problem, mr. president. you have inflation. it's almost charming in this day and age. i assume the bank of japan governor is quite jealous. how do you plan to cut inflation, which is now at t% to 4.5%? >> well, the economy has bottomed. as you mentioned. there's a lot of slack in economy, so, with credit kred b bability and reforms and adjustment the government is planning and sent to congress, it's convert. we have 4.5%, which is our target in 2018, '19 and in 2017, we are a little above the target around 5%. in terms of expeck tases. it's an old problem, but it is a

problem. >> yes, it is. and as you fight inflation at the same time, you're also dealing with this issue of potential austerity. you hinted at this. about the reforms, but already, there are complaints about austerity measures. our viewers are familiar with how unhappy the european population has been, now, there's going to be a lot of pressu measures in brazil. are you going to be able to implement them do you think? >> i think the secret is that you have to look at the long run. the reforms that are being arooufed or being sent to congress, are reforms for the next ten years. so, not all the effort is in the short run. the effort is is taking to account that you need to solve the debt damage over the next ten years and not only the next two years. so, that helps expectations now,

but doesn't affect the economy completely in the short run. >> what about the currency, got hammered last year. this year, it's been on a tremendous rally. up more than 20% year to date. what's your philosophy on currency interventions? are you an intervener? you going to let the market do the work? >> we believe that the currency floating gives us the right cig that wills. when things are trot good, the currency depreciated and this year when confidence is back, we are seeing the currency appreciating. i think this is the right way to deal with the currency. of course, any emerging market, when we feel there's a successful community or when we feel there is bubbles or things like that, we will intervene. as in general, we will lag the currency to float freely. >> 14.25% is the benchmark interest rate right now. there's lots of hopes down there in order to improve the economy that you might do a cut. is that coming anytime soon. what's your framework for thinking about that?

>> we are looking at inflation. we are looking at expectations of the market. we are looking at our own proyexs and we look at some other factors like the fiscal policies in order. the inflation services are going down. if the current inflation is going down, all of this, we need to see to feel confidence that our inflation is underway. if it is, then monetary policy will react. >> president, thanks for joining us. much appreciated. >> thank you. brian, over to you. >> thank you. new coverage in the bio tech sector, positive clinical trials roging this one stock up 40% in moont and an analyst sees another big gain. the name of that stock is coming up on "power lunch." wild-caught alaskan salmon.

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recommend dayses on the stocks you need to know. tesla, goldman sachs downgraded from a neutral to buy. six months of 185 goldman added tesla to the buy list in may. the shares have understood

performed. risk to the business because of the solarcity deal and any model in the model 3 will be de detrimental to shares. also downgraded as part of the call. >> i don't know how you value a company that's half cars, half solar panels. >> it's not half and half because solarcity would be a small part of the tesla story. at a time when it's burping up cash. >> it's kind of like walmart buying like a i don't know, i have no idea. second stock, walmart buying mg measuring. second stock, mgm. a buy to a hold. two big reasons. one, las vegas continue to get better. two, sign of a continued recovery in mccow. gaining views frevenue frs ever. mgm just closed on buying a bigger stake at its mgm china

holdin holdings subsidiary. it's about 20%. >> for a long time, when they were in the dumps, a lot of people liked mgm because of less exposure and now, if you think the trade is mccow, you can go to names more leveraged to that, such as. las vegas. that way. third stock. hamilt hamilton. this is the day after the nsa contractor was charged with stealing code and other data. raymond james comes out upgrades to outperform $36 price target. the analyst's fundamentals are accelerating. revisions are bias and the sell off yesterday creates an attractive entry point. he points out nsa is about 5% total revenue. snowden caused an 8% decline in the stock and 12 months later, the stock was up 20%. >> a huge company. couple of bad actors in this. does the whole company get

finished? almost said -- punished and penalized, which maybe is a new word, pummelized. you're welcome, america. another day, another big bio tech call from jefferies. different analyst from yesterday. starting coverage of vanda pharmaceuticals, a washington, d.c. based brk io tech with a buy and $23 target. the stock is up 40% on positive test results in august, but better sales for its drug and exta help from a jet lag drug. i didn't know there was a jet lag drug. >> you wish you had it. >> every day. this analyst calls the latter drug a marathon, not a sprint. >> quite a move, too, considering the downdraft we're seeing in bio tech. >> coming up, on a more serious note, we are awaiting a a news conference by florida governor, rick scott. hurricane matthew, look at that

thing. approaching the east coast of florida. it is a bad storm. category 4, very, very dangerous. the latest on "power lunch." the pursuit of healthier. it begins from the second we're born. because, healthier doesn't happen all by itself. it needs to be earned every day. using wellness to keep away illness. and believing a single life can be made better by millions of others. as a health services and innovation company optum powers modern healthcare by connecting every part of it. so while the world keeps searching for healthier we're here to make healthier happen.

welcome back. thanks for joining us thr this second hour of "power lunch" and here's what's on the menu.

a monocenter hurricane barrels towards the east coast. a million and a half people in florida have been aurnlged to evacuate. battered bio techs. not by a storm, but a number of name as getting hit now. one stock losing almost half its value. we'll tell you which one it is and why and what a difference a year makes, a bullish tone from walmart, but will investors buy into its growth plan? the second hour of power begins right now. >> i'm melissa lee, let's get a check on the markets. pret it much quiet on the stock front here. the dow is down by 21 points. nasdaq by ten. we're awaiting the big jobs report tomorrow morning. some interesting moves within the indices here. seeing some gains in materials as well as energy stocks even though we're seeing the dollar strengthen, we are seeing oil move higher and telecom and

health care, biggest laggers in the session. >> here's what we know about this hour. the big storm set to slam florida. matthew strengthening. now, a category 4 storm with wind speed up to 140 miles per hour. the monster storm expected to hit land fall tonight. president obama signing a declaration of emergency for the state of florida and governor rick scott set to speak this about 30 minutes time when the governor does come on the podium, we'll take that live. let aes get gown to morgan brennan b. she was in palm beach today and is headed north. earl yes, we asked you about the evacuation north. we were looking on live traffic maps. it appears everybody is starting to move west. i could see the conditions there. seem okay. what's the timing where you are? >> yeah, so, as you can see, before when we spoke, it was

raining here, now, it's cleared up, sunny again. the winds are picking up an as you can see here, we've got this really strong rip tide coming in. the boardwalk, really not too many people here, so it's quieting down, but this is expected to hit here and hit hard overnight. now, in terms of what's going on here, we had president obama signing that emergency declaration for the state of florida. what that means is that the department of homeland security and fema is koord k noord nate and mobilize on a graert scale to respond to this coming, natural disaster. and really with their own discretion in terms of funding, so that's notable right now. as you mentioned, we've got rick scott getting ready to speak and get an update in just a lit while. but we're starting to see theme park closures and i think it's notable that disney is closing at 2:00 p.m. today and will be closed through tomorrow. the reason being, there have

been only four times in the history of the theme park they have closed down due to a hurricane and the last time was 2004. not even wilma, which is a cat at 3, the last hurricane to do serious dang along the florida coast. really speaks to the size of the storm. the other thing is power. we had florida power and light here. the third largest electric utility. they're estimating that 2.5 million and their 10 million customer network will be without power and they are basically telling everybody to brace yourselves because there are going to be areas where we see prolonged power outages as they rebuild parts of the grid. that utility telling me they've got their command center emotionalized. they've got what are essentially mini cities ready to be deployed and some workers here at some hotels that are basically on stand by in from out of state.

to get to work. so, everybody is really here at daytona is starting to get ready for this thing. >> thank you very much. reporting from daytona beach. regardless of whether florida does get a direct hit from matthew as seems probability now, florida's governor is warning that the impact will be catastrophic. paul walsh is a business analyst a meteorologist with the weather company. how do you rank this storm from what you can tell right now, against the ones that so many of us remember? andrew, katrina and sandy. >> yeah, tyler, the folks that i work with, my colleagues back at the weather channel headquarters, fully expect this is going to be a top five storm. so, it ranks right up there with sandy and with katrina and andrew. in terms of what we pex ekt. the current path it's taking, the intensity, all sort of point to a worse case scenario for florida. in florida, there's 4 million

people living in those areas now that didn't live there the last time they had big storms in 2005. so, the area is much more built up. much more populated, so the poe sures are that much higher. >> are you ready to hazard a guess on the kind of o dollar amount damage we might face? >> many billions of dollars, but i'm not ready to hazard a gisz gesz because it's too soon. there's a slight chance, slight chance still that this storm could jog a little bit to the right. i think a very slight chance and that would, might sort of help a little bit, but for the most part right now, the way the path to have the storm is going, it is absolutely a worst case scenario for florida. >> from what you're saying here, sandy when it hit in the on the east coast, new jersey, long island, the recovery time, the initial recovery time was measured in weeks. people were without power for two weeks. in early november when they needed heat.

how long would you say the initial recovery would take and sandy, people are still recovering from. >> i don't know what the exact lead time or the exact recovery time will be. but i think it could very well will in terms of weeks. and in terms of the overall recovery from an economic perspective, generally, after a storm like this, there is an economic rebound, but in some case, it can take years to get back to where they were before. >> is it late in the hurricane season for a storm of this size to appear or am i wrong about that? >> no, we're pretty much in the heart of the hurricane season. the frequencies start to drop off now, but we're pretty much right there where we would see storms of this nature. >> what is the certainty of the storm, paul in i say that because you think about hurricane hermine, where you have a lot of dire projections, but then it did make that veer to the right and rapidly denigrated once it got over

colder waters. i know this is a bigger and intense storm, what's the chance it does the same thing and maybe pulls to the right into the colder water. >> i think there's always that probability. obviously, we don't know exactly where the storm is going to go. if it makes a slight jump to the right, that could lessen the impact of the damage, but from what my colleagues are telling me, it looks like the models are starting to trend a little bit the other direction, so now, from a governor is doing what the president has done in terms of put forth an emergency order, all of that is exactly what you need to be doing and for the people that live there, they need to take precautions. a colleague of mine who is weather forecaster told his family that lives in orlando they should probably head up to atlanta to wait the storm out. >> thank you so much. paul walsh. appreciate your time. >> thanks. as much $200 billion of

properties in the path of this storm. diana olick joins us from washington with that angle. >> that's just from storm surmg flooding alone. core logic ran the numbers and they are staggering. for a category 4 hurricane, which is this is expected to be. in florida alone, 954,000 homes are at risk of damage with a reconstruction value over $189 billion. in daytona beach, which could get the worst, there are 97,000 homes with rekruk value of -- 138 coastal homes in georgia lie in its path. there, 30 billion. by the time it gets to south carolina, forecasters expect it will have weakened to a category 2 storm, but 124,000 homes are at risk of damage. now, the numbers are considerably higher today than they were when hurricane andrew hit in 1992. florida, as you know, was the

epicenter for the historic housing boom and bust and construction there is strong again. more than 200,000 new homes have been built in the decade along the florida eastern coast according to john bushes real estate consulting and that does not koubt the many, many, many new residential towers which are still sprouting up in miami. now, by the way, little has been done in terms of construction engineering to mitigate the damage from these storm surges. they say it's just too expensive and the storms, too few and far between. i guess you don't think that way today though, do you, brian? >> no, you do not. we heard paul say there's another 4 million people now. than a decade ago. speaking to insurance executives about this, the amount of reinsurance that has been mandated on some of these insurance company, hopefully will mitigate some of the financial impact for the insurers, which will enable them

to rebuild. >> thank you. all right, another well-known city bracing for hurricane matthew is cape canaveral, florida. bob joining us now on the cnbc news line. mayor, we just saw morgan brennan in daytona, north of where you are. it looked clear. what is timing that you are hearing about your city? >> well, we are expecting this thing to come in here this evening, sometime late. we are under a evacuation order since yesterday afternoon and we have declared a state of emergency for the city. yesterday. we have just had staff on stand by and they have done all their preparations necessary to do what we can possibly do to make this thing happen and go away. it's a very catastrophic storm.

i've never seen one in my days. >> do you have a sense, mayor, of how many residents have evacuated and what are you going to try and encourage them to do so? >> we put out all kinds of information yesterday. morning. to evacuate the city by 3:00. and we have several people, i know that have stayed and i have made a last minute plea to them this morning to leave the area because of floodinging and the storm surge, wind is going to be the most bad part of this storm. it's just gotten to where it's getting worse as reports come in. >> do you have people going house to house? >> bingo. >> there was nobody at that state at the time that i know of that was going house to house because of the energy that we had very few people we left behind that would be the ones

that were essentially needed to stay there. >> what are you going to do? >> i have evacuated. written and order for evacuation yesterday morning. from demands of the governor, so i left. >> where are you now? >> i am over in area approximately 15 to 18 miles from the beach side. >> are there any law enforcement officials or anybody else like that fire department, people in your town do people understand there's not going to be the help they may need? >> we have put that word out. the best we can. and told people. we have black board connect in the city that we make back phone calls. we've put it on the website. announced it all we can and there's still people that were going to just as they say hunker down. they're going to be having a

problem. there's very skeletal crew as far as fire department on stand by. >> right. >> there's, they have mooued the congresswomen to safer ground and gotten the necessary needs. >> thank you for joining us. good luck to you. the mayor calling in. dom? >> we're watching shares of nxp semiconductors, up about 1 and a quarter p percesent. now, according to this report, qualcomm is lookinging at a deal structure of about 75% cash, 25% stock while nxp wants an all stock transaction. this is acory cording to people familiar. 10% away on price. you may recall this morning, david "faber reporfaber reporte sources. they continue, although a deal

is not imminent, so the latest chapter here is pushing hire. back you. >> qualcomm shares are hire today by about 1%. getting crushed again. we'll tell you what happened with that stock and why it's drive i driving down the entire bi ork tech sector. that's next on "power lunch." have to do that from my phone.ti we use tons of data. i really don't have to worry about it 'cause everything is unlimited. i need data and i need it now. it's the end of data limits for your business. get unlimited 4g lte data as low as $30 bucks per line. switch your business to t-mobile @work.

a big move for shares -- did i get it rilgt? i like the leave the complicated words to you. losing half its value, it could be bad news for other bio tech stocks as well. meg, who can pronunes any medical word on earth is here. >> that's a tall order o. don't test me. well, the name of this decide that they're working into is -- cardiomy op thi-- late yesterda company announced it was discontinuing development of its second most advanced drug for the disease. it's a rare inherited disease that affected the heart. essentially sayinging after they looked into a stud oi thf, the it showed a mortality imbalance. essentially that more patients taking the drug died than patients taking the placebo. this doesn't affect other programs. they said on a conference call last night, it doesn't appear

these were drug related deaths, however, the benefit risk profile no longer spored the trial. just wasn't working well enough. analysts point to these safety risks. the bio tech index is down more than 2% today. really is this quintessential bio tech company. working a hot new technology called interference. very well respected company, respected science, so when you see something like this happen, just makes everybody really nervous. and of course, as melissa pointed out last night, we were talking about this on "fast money," this is one of a number of bio tech blow ups this year. those are every investors worst nightmare. intercellar with its schizophrenia tile and therapeutics, working in micro b boim. >> because it's an rna platform company, there are a lot of other companies working on the

same technology and being hit hard in today session. >> haven't gotten them on the market yet. haven't seen a lot of success. people wondering what the mysteries are here, with delivery and safety. you're seeing medco getting some effect today. analysts coming out defending, saying this doesn't affect these other companies and they're saying it doesn't affect the other drugs. >> when is the next big meeting you'll go to? we always have as ko in these meetings, jpmorgan, that move stocks. anything on the near term calendar? a lot of companies at once. i know investors love these meetings. >> it's this weekend. the european society of medical oncology. we should see updates from them at a heart meeting, american

heart association meeting in november. so that will be important to watch for them. we hope we'll have some good a has there. >> great danish band. only one hit. zblncht you're going to stick around, but we want to bring in a senior analyst, top pharmaceutical analyst. all american research team. great to have you. congratulations on the ranking. meg was talk about some of the other companies working on therapeutics and medco is one of them. you've got a boy rating on it. can what has happened be extrapola extrapolated? >> that's an excellent question. exactly the question everyone's wondering about. there's three important differences. without theorys, the first is is if you look at the program that failed phase three, they had 200 patients on the trial and 1 deaths in the trail. press released their data from

500 patients from phase two trial, no deaths, no liver toxicity. before we get into theoretical stuff, those are hard end points. the company gave us the data, which they're going to present at the meeting. 500 patients, no tox is thety. very important. two, this is very important. when you look at drugs, when any drug is given at a very, very high dose, it causes toxicity. meaning the amount of dose is extremely important. so, if you compared the amount of drug being given in the program haves the program that failed, the company is 2%. only 2% of the dose that it's getting. then keep in mind, the indication was cardio -- those patients are predisposed towards worse outcomes to begin with. even if you look at the phase two trial, they had fours in b about 22 patients, so those are three important difference. >> hey, it's meg. i could ask you questions about

this all day, but i want to ask you about something weighed on especially your sector, this focus on drug pricing this year. you see brent saunders, his social contact. do you think that's the kind of thing we should every drug company embracing unless they do, are we going to see politicians forcing it upon them? sfwl sure, back in the early '90s, there's a couple of big companies that had a pledge like that. i think given the environment right now, whether or not companies do it on paper the wayaler began did, they're having to agree by something along those lines. i think double digit price increases, it's very, very hard to do them or get away with them is what it seems. to the extent what is being done to solve it, for now, there's two or three mechanisms. one is something just gets so much attention in the media as well as in the congress that the company has to go back and fix it. the other is some form of policy

action. >> along the lines, just about a minute left. for mylan, shares are down 3.5%. certainly a weight. it's a top hold ng the ivb. your analysis seems to indicate there's a push pull when it comes to assessing the impact from this letter about classifying the epipen incorrectly as a generic or branded. so, what's the net impact? is it that there's more liability that analysts haven't taken account for? >> i think you're right. the number one thing was the medicaid exposure of epipen was higher, fwhurnl. mylan was paying some rebates, but what happens is if you take a drug which is a brand pd drug and it takes a lot of price increases, well north of the consumer inflection, you have to pay a penalty back, so ultimately, the rebates to medicate and effectively

approaching 99% of the drug price if you go through a hyper inflation phase, however, if you have a generic drug, you're not subject to the 99% rebate. point being, if epipen was classified as a generic, which it has been, pays the rebate as it has been. where as if it was a brand, mylan shouldn't have sales to medicaid. that's the direction the conversation is headed. >> one last question. is there any concern here that the fallout could be greater ethan yus fines being paid for some misclassification of drug? could management be in trouble here? we've seen the government before target ceos. forest labs years ago. could we see something nor serious? >> there's two layer to that. from an investor perspective, they're focused on the numbers and wondering is there, what's the risk to numbers, say perhaps beyond that. that's the investor focus. from a management perspective, i think the one thing in this specific company, remember teva

with bid for mylan didn't go through. the most important reason because mylan has a defense structure. they can hand over the company to a company in the netherlands and as a result of that, management shake up is not easy. >> what is that? >> this was a widely discussed idea, so their takeover protection. i want to put together this montage of every saying shikting. i'm more interested in going after management here. i don't know about a criminal basis, but essentially, there was this instance with forest labs where they tried to target the ceo over some issues i. seemed interesting. i don't know if that's happening here, but i was curious to know. >> got a hold rating on mylan? >> that's correct. we need to get clarity on the medicaid situation as well as impact of the portfolio beyond

epipen. >> thanks so much for joining us. to dom chu with a news alert. >> ththis time on a privately h company. snap chat parent company. according to dow jones, the company snap is working on a possible initial public offering value it at $25 billion or more. this again according the dow jones citing sources. also saying that this ipo could take place as early as late march of 2017. and that the company snap is on pace to exceed the top end of its 2016 sales forecast of anywhere between 250 to $350 million. you may recall that snap's last raised new funding back in may, put it as a valuation of around $17.8 billion, so interesting news for one of these massive unicorns. back over to you. >> that is a good price. >> snap chat is what twitter was

supposed to be. >> this is happening just at a time when the ipo window seems to be open oing up and seems to be opening up particularly for tech companies. you have to wonder would a large company, decides to go public that could be to the debtry m of other companies going to market. the funds will be soaked up here are high flying texts which could be liquidated to buy shares. >> you're talking about the whole crowding out effect. where one particular magnet attracts all of the capital to it. this could be a case for a snap chat, but remember, we had some of these other high profile pos that have done really well. even for the likes of a value voe lean. >> the window has opened up. appetizers have come out. the question is whether you could see a snap inc really test the market and bring that kind of valuation. everybody everyone's waiting for

the whole arks bnb. certainly, this could be that flood gate opening up. >> you said 250 to 350 million in sales. and valuation of possibly 25 billion. man, that, obviously, their sales are going to go up, but still. >> we've kind of gotten used to this idea that for some of these privately held companies, these unicorns out there, that they are going to command these massive sales multiples. forget about a profit to earnings side of things. it is big, but just snap inc. >> * we see the ipo window is opening up. i was about ready to go to san francisco a few weeks ago. that's been the hi, this has been a worst ipo market in years. so in fact was the only tech ipo that we had in nine months before this last one that koim out last week. so market was horrific and more to the valuation. 30 million, snap chat has a reported 300 employees.

that's it. 30 billion. you're talking 100 million in value per employee. tyler, only you are worth that. >> on the valuation point -- to me, which is maybe meaningless to the vast majority of people and certainly to you, brian. but in the interest of valuation, is how this throws into question what twirt is worth in terms of its users or that it bolsters the valuation of instagram. when there's a valuation set, the most recent valuation can be extrapolated to other similar companies will throw it in doubt it will reaffirm and perhaps give it a leg higher. should be valued more. >> you look at -- exactly. eve p though they're ready, could that be some of the parts wise. >> but those valuations guys, when you talk about the active users out there, you're talking about a certain type and growth pattern for users. you have hundreds of millions

for twitter. even for more facebook, but if snap chat can prove there are target user, monthly actives, daily active users are at a certain dem o, does that command more of a valuation because twitter is maybe not growing tat same rate. or same dem os dl. >> it's huge new frs a number of investors. looking through the, there's a lot of investors in snap chat, but can we sit back for a moment, america. just get together, snap chat doesn't cost anything. doesn't, you know, so where's the revenue coming from? when we look at snap chat, twitter. i know everybody says it's user data. twitter, you've got all these feeds. snap chat, which a lot of the teenagers love. i've talked to somebody that knows people that invest in it. where's the user data coming from when it's largely a

photographic media. where's the revenue, the data feed that everyone talks about the twitter, you can scan electronically. snap chat is picture based. >> it is -- i want you to think about that. >> but also user based. there's a way to communicate using texts and you could send direct messages on snap chat via text and user video and picture, if you want to. but this is also about the content that gets posted on there. every cable channel out there, whether or not they can sell in a native advertising type situation. when i go on to my feed, i can go on to any magazine and say look at these ones and they're going to provide me a free 30-second feed. >> how much do you pay? >> nothing. adderertizers might pay something for that. >> might pay for the data.

get to get to oil. >> thanks, dom. oil hitting $50 a barrel today. jackie deangeles. >> we were three b cents shy yesterday, but crossed over that level. it's the highest we've seen oil prices since june. the inventories numbers yesterday and the opec deal supporting oil prices here, but the majority that i've spoken to say they don't think that prices can hold. they question whether opec will actually execute this deal and they also worry that nonopec producers at these level rs going to pump more. back to you. >> thank you. hurricane matthew headed for florida. the property damage some are saying could be historic. billions dollar at risk. the florida signing a declaration of emergency. we're dwoipg to carry that live. don't go anywhere.

president obama declare iin state of emergency for florida ahead of hurricane matthew. florida residents leaving the coastal areas and heading west as they try to avoid the storm's path. disney closing its theme parks at 5:00 p.m. and will remain closed on friday. we're awaiting governor scott.

haiti especially hard hit. the death toll from the storm is now more than 100. it ripped through the island nation on tuesday causing heavy flooding and knocking down homes. people were cooking and sleeping outside. 350,000 people are in need of immediate stance. a new study shows west virginia has the highest prevalence of cigarette smoking. utah, the lowest at under 10%. more men than women smoke in every state. and on a lighter note, president obama greeting the 2016 nhl champion pittsburgh penguins at the white house this afternoon. it was the team's first title since 2009. which was president obama's first year in the white house incidentally. we're awaiting the governor's statements. and we will see that on "power lunch." which is back in two minutes time. s us from doing right by our customers. who's with me? i'm in. i'm in. i'm in. i'm in. ♪ ♪

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rick scott set to speak any moment about the category 4 hurricane in florida. america has not seen a storm as strong as matthew in almost a decade and one likely to produce a devastating impact on coastal florida, georgia. having run fema's southeast

operations for years, our next guest knows how destructive a category 4 storm can be. john joibs us from atlanta. welcome. you know, we've focused a lot on moving residents out of the danger zones in south florida and elsewhere. what advice would you give to small business owners or larger business owners about what they should be telling their employees right now? >> they should be telling them to first of all, make certain that they comply with all of the existing evacuation notices or orders. they must listen to what government officials tell them to do and they must comply. and in this situation, where the government saying get away from the coast, they need to close their businesses and close them in as orderly a fashion as they can, not take all the time that they can to make sure that the business is waterproofed or wind

proofed. but take necessary precautions. as possible and then leave. and stay away. until such time as the government says the it's okay to back in because businesses don't want to come back too early because they might become part of the problem rather than the solution. >> what typically happens to employees of small businesses when those businesses have to shut down? maybe for an extended period. beyond the physical damage to the businesses, there's damage to people's pocketbooks because they may not have wages coming in. >> there will likely be substantial damage to people's pocketbooks. and hopefully, they will have a little bit of money to get by on. hopefully, companies will have thought in advance to provide their employees with some level of events because they don't know how long they're going to be closed for. not all small businesses can afford that, so, my advice to

small business employees and owners is just to understand that they might be away for several days, potentially even longer than that. and do the best they can to take care of their families. and to get out of harm's way. so that they will at least be safe and can come back again. >> what did you learn from witnessing or being on the front lines of other major storms? i don't know if you were there during andrew in 1992, or other subsequent ones that you would apply here. >> hurricane floid in 1999 was similar in the track it took and in being fairly intense, but not as large or intense a storm as matthew is. what you learn is that it's people first. it's safety first. people have to ensure that their own safety and the safety of their families and then

prioritize reentry and getting their businesses back up. please don't interfere with the government response. that's the one thing i would have to say is the government is doing their best to respond and don't interfere with their response because they're trying to get everybody back up and running. >> thank you very much. appreciate your time today. we're all over this massive hurricane, so stay with us. we'll be right back.

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all right, welcome back to "power lunch." big storm forcing evacuations on florida's east coast. look at this highway. all the cars headed in the same direction. chuck watson is a hurricane modeler who looks at financial impact of big storms like matthew and joins us now. i know it's early. any idea of any kind of a projection right now? >> well, this storm is really miserable to try to predict. normally, when we're b about 24 hours out from landfall, we can give you an estimate within about 20% of the loss or damage that will come out, but this storm is really tough. both from an emergency management forecaster standpoint and from a standpoint of trying

to figure out what the economic impacts are going to be. it's cruising along the coast and just to give you an idea, the pinner core of the storm where you'd expect most of the damage to be is 60 to 100 miles across. it's going to be passing you know, roughly 30, 40 miles away from west palm up to jacksonville. at one point, if it follows the forecast track, it's only going to be 50 miles from orlando, so you've got a trillion with a t dollars worth of prosecutor within the damage swath of this, so you can rack up huge losses if it follows the current track. a little bit of a wobble one way or the other could change that by a factor of ten. normally, at this point, we'd be able to give you an estimate of about 20%. right now, our models are sh showing everything from 10 or 15 a billion to an eye watering 120 billion. so, it's at this point, it just

depends on the wobbles and again, if you think about it, there's say you've got a million homes. and if you look at that and if they each had $5,000 worth of roof damage, that's 5 billion. >> when we look at it now and you, we haven't thankfully in florida, a major storm in a decade, so we have o to inflation adjust the numbers. i know it's early and you noted it's difficult to predict or project, is it problem bable of likely that this could be the most expensive storm even inflation adjusting? >> first off, i don't think there's too much doubt that we're going to end wup a storm that's in the tom ten. of both losses. there's just so much property in the way. this storm is so intense. unless it does something that none of the forecasters are expecting and stays at least 100 miles offshore, there's just so

much property from way. going to see 10, $20 billion worth of damage. we're going to be in the top ten on this one, unfortunately. i'd give it a 20% chance of breaking into that rarefied katrina sandy you know, above $50 billion limit. it wouldn't surprise me if this set the record, to be honest. >> you mentioned within 24 hour, you'd normally have a much bert sense of the damage. what is the window that will be the most critical for this particular storm? >> you know, the next well, 24, 36 hours. that's the other piece of this. normally, storm goes in, makes landfall. causes its damage. but we're going to be talking about this and looking at this for a day, almost two days because in savannah, georgia and it's going to be saturday morning before it passes us and the current model projections are for it to be causing tens of

millions, if not hundreds of millions on the georgia south carolina coast. so, we're looking at a again, normally, the damage swath of a hurricane is 100 miles lookingf shore line that this will potentially impact. >> thank you. >> you're welcome. >> chuck watson. >> let's take a short break. power lunch will be back with the markets, the storm and everything else when we return.

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florida bracing for a category 4 storm. joining us now is ken censor to discuss what wal-mart is expecting from the storm. you have 300 stores in the hurricane's projected impact zone. what is your first reaction when you hear this size storm is going to hit? >> thanks for having me, melissa. obviously, we are paying attention to what the national hurricane center is saying and they have described this as an extremely dangerous hurricane. so we are taking it at face

value. we spent this week preparing and we are getting ready to see what happens when matthew arrives. >> so you will see what happens. is there anything you are doing in preparation to make sure that when they give the all clear that wal-mart is there to be up and running and selling what people need to get their lives back in order? >> absolutely. we have a very defined preparation, response and recovery program. so as i said we spent this entire week preparing which involves the movement of generators, flow of merchandise into the stores both prestorm and as post storm comes we will have the resources and people ready to go. >> we have to leave it there. we want to go to the governor of florida, rick scott who is holding a news conference. >> if you are in a barrier island and know you are prone to flooding and evacuation zone, get out now.

based on continued storm track 3,500 members of national guard are activated over half of the available troops have been activated. that is how serious this is. protecting lives remains number one priority that is why continue to activate more troops for important life saving missions. think about this. we should not be putting people's lives at risk because you make a foolish decision fought to evacuate. i directed national guard to focus on preposition resources and assist with helping people evacuate safely. in the immediate after math they will be involved in recovery efforts. the florida fish and wildlife conservation commission has high water vehicles to help with these efforts. around 1.5 million people are under evacuation orders, 1.5

million people. areas are being mandated to evacuate right now. please check with local government if you are unsure. last sunday i suspended all tolls including entire florida turnpike, alligator alley, central florida expressway and miami dade expressway authority. there is no reason not to evacuate based on worried on whether you have to pay a toll or problem with evacuation zone. we will do everything we can to keep the roads clear. if you are on the east coast you are going to lose power. millions will lose power. go to a shelter, find an accommodation. companies like air bnb are making rooms available for free.

hotels are filling up quickly all over the state. as the storm approaches you need to go to a shelter. safety, not comfort is most important thing. shelter might not be the most desirable place to be, but it is safer than many homes. if you live on the west coast, call friends in the impacted areas and offer them a place to stay. more than 3,000 people are already in shelters across florida. as of last night there were 58 shelters open. today there are more than 80 open and the number will continue to increase as needed. it might be the safest place and the difference between life and death. i-10 westbound out of jacksonville experiencing congestion. highway safety are working

together for alternate westbound routes including u.s. 90. we are doing everything we can to make sure it is cleared up as possible. we are monitoring all evacuation routes. everyone is being monitored right now. as of now all flights cancelled from orlando and fort lauderdale hollywood airport. flights cancelled after 8:00 p.m. tonight at orlando international. if you're concerned about safe routes please visit fl511.com. you can see traffic patterns and accidents. anything you need to pick the best route you can find on fl511.com. no excuses. get out. floridians can go to florida evacuates or download the app.

i have director of department of transportation to send to gas stations on alligator alley. we will start seeing fuel shortages but we have plenty fuel in the state and will get fuel around the state as quickly as we can. on the alligator alley issue we have resolved that issue. individual gas stations will start having shortages. >> we will dip away from governor rick scott of florida. the basic headline there, no excuses, get out. millions will be without power. 1.5 million people under evacuation order and says there will be enough gasoline but the question is whether there is electricity to pump if gasoline. that was main problem as a result of hurricane sandy when it came ashore. there was gas but you couldn't get it out of the pumps because there was no electricity. we are watching the storm.

it looks like it will be a mammoth one when it hits the eastern coast of florida sometime overnight. stay tuned. if you are in that storm zone get out. >> thank you for watching power lunch. "closing bell" picking up coverage right now. and welcome to "closing bell." >> hurricane matthew is a cat 4 storm heading for florida. dire warnings from governor rick scott telling residents in evacuation zones this storm will kill you. we are live in daytona beach with the latest details. >> thousands of flights have been cancelled. we have institutional investors to tell us the impact this storm could have on some of the big carriers. in other news, facebook's mark zuckerburg doubling down on the