>> 90's been a good level. >> been an interesti ining run the stock. you said in the past though, that until the noise of succession gets out of the way -- >> yeah, but i'm still in it because i look at the properties they own, that's the most important part. yes, you're right. >> thanks so much for being here. >> that does it for us. power starts now. trz . wells fargo ceo is out. you know that. retiring abruptly following the fake account scandal. exclusive reaction from the head of the sec, mary joe white, is here and why his pay package may be another black eye for a beaten up market. mark cuban is joining us as well and boy, is he fired up on efg from wells fargo to the election. even samsung's fiery phone mess. mr. maverick joins us as well as a big "power lunch" starts right u no.

>> welcome to "power lunch." i'm melissa lee. let's take a check on the markets. out of the gate pulling stocks lower, we hit three-month lows on the dow, as well as the s&p 500. we are off session lows now. the s&p higher by about 16 points from lows today. banks gets hit hard again. third day of lossesment this of course ased of a slew of bank easternings that start tomorrow. one bright spot in narcotics. utilities are holding up nicely. up by 1.8% at this hour. >> thank you very much. welcome, everybody. here's what else is happening right now. world's longest reigning king has died passing away today at the age of 88. he took power back in 1946. amazon hiring 120,000 holiday

workers this year. that's up 20,000 from just last year. and u.s. jobless claims now at a 43-year low. the 84th straight week that claims have come in below 300,000. got a big two hours ahead and we kick it off with this big move down in the market. though not as far down, bob pisani, as earlier today. >> we've come back. weaker export data, about 1%. affected our markets. the major sectors leer, banks to the doup side. some of the other issue, energy stock, tech and materials on the downside. materials down on the slowdown, so a lot of issues for the r market. not just china here. slower china growth, then higher rates an stronger dollar, then election jitters. that's been an issue the last several days. cautious start for earnings season. ericson warning, honeywell

warning. oil has been on a wild ride. down the last two days in the nrng stocks. oil stopped going up, but you see the drop there on a build of inventories have been a rally back. this is eog. went down to 94. now, it's at $96 here as it rallied back on not an awful lot here. a lot of people trying to fig that out here. fairly heavy volume in banks. four will be reporting. remember, these stocks have had big run ups. good news here, higher interest rates helping them out. a lot of reports about problems with commercial loan growth. take a look at some stocks here. regions, bank of america, suntrust, all up near double digits. what kind of loan growth and of course, guys, that whole regulatory environment, which no doubt is weighing on those stocks. back to you. >> thank you very much. want to zero in on some key parts of the markets breaking

key levels. dom? >> if we take a look at some of those pocket of strength bob just referred to, so did you early on at the top of the show, but there are some moving averages, some of these average price levels that traders watch to see whether or not the slowing momentum is hitting. this is the vector's semiconductor's etf. they've bb been a lot, a big upside trade oaf the course of 2016. as you can see, that momentum has been strong over the course of the past few months. now, it's dipped below the 50-day average price. it's not a tell all, but perhaps a sign that one of the leadership points of the market is showing some signs of weakness. also moving on here to a financial part of things, kbe. we referenced that one. some of these big financials like bob said have been real leerds over the course of the second half of this year. now, we're seeing signs of weakness there. they're touching their 50-day

average prices. see if they can bounce off or if there's more downside. one other place i want to point out, the small stocks. they've been showing sign of weakness over the past week and now, they are below their 50-day average price. one more thing about this market breath or sentiment independent kart. if you look at this, 371 members so far of the s&p 500 are now below the 50-day average price. nearly the 2-00 are below their 200-day or longer. more signs of longer term weakness there and one thing to watch, 32 stocks in the s&p. within 5% of their 52-week lows. doesn't seem like a lot, but melissa, just three months 'ago, there were no stocks in the s&p 500 that were within 5%. back the you. trz. >> 30-year bonds up for auction. rick santelli is tracking the action.

>> matter of fact, this was the best. we just added 56 billion in total supply. had two mediocre auctions. this auction, 12 billion of 29-year, 10-month securities, reopened 30s. b as in boy the plus. maybe it was the fact we had a little rally. maybe some investors thought the sell off may be over a bit as this risk off day seems to have taken grip on investor's sie. that was an aggressive side. that was the offer side. quickly, 244, the best cover in one year. 6.1 was the only light part of this on the direct and 6.1 well, let's put this it this way. if you look last option, 4.6, you'd have to go back to march of 2014 to find a lower number. very solid.

we're seeing a one basis point drop as the auction buttoned up. back to you. trz. >> thank you very much. now, to your top story of the day. wells fargo's embattled ceo, john stumpf, retiring in the wake of the scandal. elate lit rally, the ins and outs of the story. >> we have a new ceo and board set up. for the most part, analysts have applauded that. so is the share price, it is down, but less than the bank sector as a whole, but more needs to be done. with that, we focus on earnings tomorrow morning. what to watch for in earnings. number one, customer retention rate. new account opening. secondly, any additional financial provisions taken, keep

in mind, the additional 185 million payout was taken in q 2 numbers and number three, compare tear on legal fallout. not just from wells, but also citigroup and jpmorgan. they report tomorrow as well. deutsche bank's analyst says he's low 2017 earnings by 4% because higher regulatory burden and 2 billion less in buybacks. one other thing. what about moral amongst the troops? last night, catching up with this new ceo, i asked him whether this last 24 hours, him taking over, had been a sad moment or proud moment. >> it's a sad moment because john stumpf is retiring in a situation that i think he would have never imagined and he has done sauch great job in managing this company, not with standing

things that i think he wished he would have done differently. having said that, i feel a great responsibility and i'm looking forward to to be ceo of this company. >> wells fargo report earnings tomorrow, 8:00 a.m. eastern time. >> vchl. so, is the ceo change at wells fargo good for the stock? let's bring in kevin barker and chris, the senior research analyst at oppenheimer. i'll start with you, kevin. what do you expect the earnings call to be like tomorrow? are we going to get increases in legal reserves, for instance, get a kitchen sink quarter because we got a new ceo? >> i think it's too early to say we're going to get a kitchen sink quarter. primarily because i think the quarter has set. this happened the last minute they know what earnings is is going to be this week. i think this happened in the last few days.

on the fallout of john stumpf. into this quarter, i think tim sloan look to start 2017 anew. so i don't think you're quoing to see that. >> chris, i'll ask you this question. what investors probably like about tim sloan is that he's a 29-year veteran of the bank. long seen as the air apparent. to mr. stumpf, but at the same time, he was still the president and coo of the past year or so, and in the hearings. >> allison: warren s senator from massachusetts, asked about the decision not to fire the head of the unit whose practices were under question. mr. stumpf at one point, said at the time, she was reporting to the president and coo. does this fully turn the page or how much, to what degree does this turn the page past the scandal? >> you know, what we had with wells fargo is you know, opening

all these accounts. it's obviously a terrible breach of customer confidence and trust. but it is a problem of a fail yaur to supervise. as oppose today a problem of policy, right? and any large ogs is going to have a problems with with supervision. i've been in management myself. i can guarantee you, employees do things you don't want them to all the time. sometimes, because they don't understand what you want. because they're not capable. >> sorry to cut you off, you're make iing a good point b, howev banking is ark, largely based on trust and brk, increasingly come come otttized. don't you think tlas risk to the business going forward when people have a choice of three or four banks? they say, wells fargo may do bad things with our money. let's go somewhere else. >> there's a failure to supervise and in terms f you know, kulpaablety, it's fair to

ask where tin the chain of command did that praech occur. if there's a breakdown in military discipline somewhere in the armed forces, our first instinlgt isn't to say the joint chiefs need to go. you try to do an analysis of where the breakdown occurred. i think on the outside, elizabeth warren included, do not have enough facts to know where that breach happened. as for the cust mes, i bet you they'll be much more forgiving than all the senators and congressmen. people will make their decision about where to bank based on con venus and it's a documented thipg that people hate banks, but love their local bank and their local banker and the people they deal with all the time. at their branch. i agree with the earlier tom tair that there's going to be months of bad news to surface there. possibly, all kinds of city

attorneys and state attorney generals initiating investigations. the news flow is going to be tough for a while, but i think ultimately, you know, a year from now, i think most people will have forgotten this. >> do you agree? do you think ths going to cost the customers? at what point do i start to reconsider wells fargo as investment? is there a point you'd be looking at? >> there's going to be some turnover within wells fargo. i think you're going to see some financial advisers have tough conversations with their clients. i think you're going to see some customers not walk into a branch of choose something else because of the reputation of wells fargo. you hear people are having issues choosing wells fargo as bank. not the say they're not a good

bank or well run bank. i think one of the best managed banks in the country, it's just this this issue in particular has hurt their reputation and it will cause turnover. >> you had an underp performed rating on the stock since april. that's this most recent scandal erupted in the format today, so, you had questions about bank's fundamental business and perhaps valuations. jpmorgan is above one. bank of america, .7 or so. it is trading roughly one times turned. cheaper on earnings share on 2017 compared to large cap regional banks. our fundamental call from when we downgraded the stock in april is we didn't think wells fargo was going to reach street

estimates. the revenue was struggle to go. in this low interest rate chirmt, i thought wells fargo is going to have difficulty continues to grow or hit street estimates. that was the bis is for our underperformed rating. the it's all about fundamentals as opposed to core issues. >> thank you very much. don't go anywhere. up next, wall street's top watchdog will put, is hit putting new rules in place on mutual funds. what they are and how they could impact your investments. mary jo white will join us exclusively when "power lunch" returns.

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approving new fund rules today, which could have major imp cases on the way funds operate. the rules require much yul funds so though they have enough liquidity. the latest in the series of erats by the sec to intensify its regulation of asset manageme managers. joining us now for a "power lunch" exclusive is mary jo white, the chair of the securities and change commission. good to have you with us. without wading too deeply into these rues, let's start with the liquidity ones. what do investors, shareholders, of which roughly half f of us

are, what do we need the know and what aere you trying to add something that caused you fear or some perceived weakness in the way funds are operating. >> sure, liquidity risk management we did today really sweeping formative for the mutual fund industry. investors in the funds as you say. there's nothing more important to investors that they get their money and assets when they want to have them. so, managing that risk when shareholders want to redeem is is obviously essential to the asset management industry. what this does, transformtive and sweeping, it really for the first time imposes regulatory controls over those risks. i mean, obviously, we saw for example, we were working hard on these rules bf that, in december. the example of a fund that was unable to meet its redemption obligations because of what was

not optimal to say the least liquidity managements. >> as i read quickly through the release, it indicates that the funds would be capped at something like 15% of their assets are liquid. is it done by the funds themselves. this is sort of liquid -- >> there's various guidance around making that determination, but yes, the funds make that determination. we've enhanced the controls around that. 15%. limit for liquid investments. the rule requires the categorizing or you know, bucketing of highly liquid investments and imposes the funds with board approval. basically, a minimum requirement for highly liquid and then two other categories of more liquid and less, so they can both

better monitor and the board can better monitor the liquidity risks as can the sec. the second of those rules is really our reporting rules enhancing the reports of information. new and different and more and more frequent information. >> that's the second part of it. without going deeply into that, let's pivot if we might to a couple of things that are very topical. starting with wells fargo. as you may or may not know, senator warren said last night that stumpf is leaving with all of his ill gotten millions. he should return every nickel he made while this quote scam was going on, and face an investigation by the justice department and sec. are you looking at anything with respect to wells fargo or to mr. stumpf personally and is this an area that the sec ought to be,

has business going into? >> well, i can't really comment on all specifically on wells fargo. we're obviously aware of the calls for investigation. we don't as a a matter of policy, i think for probably pretty obvious reasons, say whether and what and whom we're investigating. obviously, we have a major enforcement division. just announced his impressive results for 2016, so, you know, we pay a lot of attention really across market par tis papts. obviously, wells fargo or any other bank as a bank, you know, you have banking regulators as the primary there, but i really can't go beyond that. >> thank you again very much for joining us here. i want to talk about insider trading because there's a very, very important case in the supreme court. i don't want to get too much in the legal weeds, but basically, the supreme court has the b possibility, the option, of not blowing up what used to be one of the major standings, but

wouldn't be far off according to many speak i spoke with, if the supreme court changes the rules regarding personal benefit. >> you're right. optimistic. reaffirms the law in that area, which will be enormously important to the continuation of you know, what is an extraordinarily strong insider trading program at the sec. >> has the neuman ruling, which is another case, made it harder for you to bring action sns. >> it's a significant case. i think some folks that have analyzed this don't realize it impacted us less at the sec than it is the criminal authorities, that was a criminal case in my old office. our burden of proof is not as high.

but to bring really multiple insider trading cases within the confines of newman. we've also made the arguments to various courts at the limitations and so far, quite successfully, but we're watching carefully. >> what your -- that leon cooper mann is in talks with you guys. he's fighting the charge, but at the same time, you guys are looking at perhaps suspended him from the industry for however long a time. >> it's a major case we brought. in litigation. i don't want this to be taken one way or the other, we don't talk about when we're in talks with charged respondents, defendants, but it's a major, important case. >> how important is is t to you that whoever is charged with insider trading, admits wrong

doing sm. >> i think it's case by case. as you know, when i first became chair in to 20 13, i changed the sec's sort of uniform policy of allowing settling defendants. never to ad mitt or deny. we require those admissions of wrong doing. but we have certain criteria we apply. that we've announced. the potential harm to the markets. >> since you've been cracking down on insider trading, hedge fund returns have gone down drainful some i've spoken with on wall street have said have you noticed, since the sec got tougher, hedge funds have had a tougher time making money. do you think there's a connection? how much hedge funds in the past do you believe were connected to having a wee bit too much information? >> i don't think anyone would argue some of those returns at some hedge funds can be

attributable to trading on the inside information when it's not allowed to trade on. there are insider trading program within our enforcement division, historically and current ly, is a very, very hig priority. you want those markets fair and having a level playing field for all participants, so we've maintained a r very impressive program and the sec has maintained that even in the face of newman. >> question question. in the cooper mann case, is there a timeline you have in mind for resolve lg it? how quickly might it move because obviously, it takes up a lot of your resources? mr. cooperman's business operating under a a cloud so long as the investigation is own. >> once you do a case, you bring a case that's being litigated. you know, it really is obviously, we're very village lent in pursuing it, but really is not up to us what the the timetable is, so we can't

predict that. >> we have some video of chair white here not long ago, the washington nationals brought out the petite right-hander. there she goes. to bring in the heat. we're calling it. here's your pitch. and it's hard to do that. and to to get the ball, watch this. you got it there. >> i did get it there. i did. most pressure i've ever been under in my life. just so you know. >> you're a nats fan. >> or royal. she's from kansas city originally. >> i'm a yankees fan and a nats fan and i'm rooting hard for them tonight. >> are r you going to go to the game? >> not going, but watching. >> absolutely. >> chair white, thank you very much. >> stack of o cooperman papers on her lap and bushen perhaps. still ahead, mark cuban is ahead. not the biggest fan of the sec. we'll get his thoughts on our interview we just heard with

mary white, maybe his take on samsung, the election, maverick of the markets coming up on "power lunch." one of millions of orders on this company's servers. accessible by thousands of suppliers and employees globally. but with cyber threats on the rise, mary's data could be under attack. with the help of at&t, and security that senses and mitigates cyber threats, their critical data is safer than ever. giving them the agility to be open & secure. because no one knows & like at&t. i've got a nice long life ahead. big plans. so when i found out medicare doesn't pay all my medical expenses, i looked at my options. then i got a medicare supplement insurance plan. [ male announcer ] if you're eligible for medicare, you may know it only covers about 80% of your part b medical expenses. the rest is up to you.

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sea coast. it's in retaliation for two incidents earlier in the week in which missiles were fired at us navy ships. it is the first shots fired by the u.s. in yemen's long running civil war. pope francis meeting with nato secretary general at the vatican today. he was in rome to sell wrat the 65th anniversary of the founding of the nato defense college. a private autopsy on a north carolina man shot and killed by charlotte police last month shows he suffered four gun shot wounds, two of which killed him immediately. that's according to the forensic pathologist who conducted the autopsy. and the university of pittsburgh researchers have been able to restore the sense of touch to a 28-year-old man who lost functions of his arms and legs after a spinal cord injury. the team implanted electrodes into his brain that control touch. he was able to sense touch when using a mind controlled robotic

arm. fascinating stuff. that's the news update this hour. back to you, melissa. >> thank you, sue herera. 25 days to go until the election. we'll get the latest from the trail, plus he's been running a controversial campaign. has it helped or hurt trump's businesses? straight ahead. any data hog. i do the sales, the marketing. i have to do that from my phone. 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. [phone buzzing] some things are simply impossible to ignore. the strikingly designed lexus nx turbo and hybrid. the suv that dares to go beyond utility.

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let's get a check on the stock market. it's been a lousy two-day run. dow industrials down about 84 points contributing maybe to this. but i don't know because the headlines crossed are some comments out of federal reserve president and i don't know where he said these, but he said he favors two rate hikes next year. he is not a voting member this year. but he will be a voting member next year, so again, park e of the philadelphia fed, he may have said these in past, but he's saying i favor two rate hikes. at least we know we have one incoming hawk. incoming hawk. >> zbl three of the hawk rs moving off. >> donald trump making headlines now in west palm beach, florida. john harwood live in washington. john? >> donald trump is responding to

the growing number of women alleging he made unwanted sexual advances against him. he told the crowd that was part of a conspiracy by the clinton campaign, media and political establishment. to keep him from wiping the white house. take a listen. >> these vicious claims about me of inappropriate conduct with women are totally and absolutely false. and the clintons know it and know it very well. >> this followed a powerful speech given by michelle obama in which she called out donald trump's behavior has recorded on the videotape and linked that to these alsos of unwanted contact. >> but new hampshire, be clear.

this is not normal. this is not politics as usual. this is disgraceful. it is intop rabble. it doesn't matter what party you belong to. democrat, republican, independent, no woman deserves to be treated this way. none of us deserves this. >> now, this in is the context for the battle of the two parties to turn out their vote. leets look at the breakdown of the electorate. donald trump, his base is among white men. 43% of the vote. white women, 38%. african-americans, 13. latinos 11%. now, look at election interest, which is in some ways, a proxy for likelihood to vote. you see the highest interest is

among white men and women. but u close behind are african-americans, latinos lower down. 60% of latinos express is highest interest in voting and younger voters from 18 to 34, express the lowest interest. just 50% say they're following the lech closely, now, that was true also in 2012. they still turned out at pretty high rate, so part of the battle again for both parties is donald trump hoping to turn out his base and depress support on the other side and michelle obama and hillary clinton, barack obama and the democrat, trying to begin up support, especially among women, college educated votes and those young people. >> thank you very much. >> for more on the elections and economy and whatever else we want to talk about, let's bring in a former cabinet member of the clinton administration. good to see you. >> thank you for having me.

>> anything to talk about these day sns. >> no, nothing. >> how do you see it playing out? don't get into why clinton's better. we know that's how you feel. what's your prediction for the election? >> i was worried a a few weeks ago. i thought it was going tb a very close election. it did narrow. >> polls i believe understate him. >> i think it's slipped away from him. there's 25 days left and a lot of things can can happen. this litany of e-mails will make this a close election yet. potentially. but it's hard to see people coming back around the trump. the truth is people are now paying attention as they would in the last 25 days, and it's time to really focus on what we're going to do for the country. on both sides. >> you think the trats take the senate? >> i think it's a close call. >> the house. it's harder. >> probably not. probably not. that would take a major kind of landslide proportion to make that happen.

so, but the senate i think is very much in play. democrats might win the senate. >> talk about a couple of the things in these wikileaks. one, the speeches mrs. clinton gave to banks. goldman sachs. how damaging is the apparent revelation that town hall questions were leaked to clinton staffers who passed it up the chain and that that calls into question obviously fairness and how the clinton campaign interact wd the dnc. with respect to their campaign and senator sanders. >> my honest assessment is that these are inside baseball. they matter to folks kind of in the system. but i don't think they're registering out in the country. and the speeches. you know, i expected that we might hear something much worse out of all that's been said.

about the speeches. in fact, she was talking to business people and try to relate her policies to business people and they don't make the best play when you're out in the country at large. you know, populous time. but i found nothing there. >> did you find her answer in the debate on those speeches particularly convincing? she went off on a tangent trying to explain the context of the speech where once you have a public position and private position. >> people understand it's a very complex world, you have a view about how you might like to see something. that's what political people do. the it's not mortal sin and the final analysis, there's a lot that goes into the calculation of a decision that meets the public. so, i think people understand that. now, the trump stuff is dichbt

in the sense that it's more venal and personal and people do understand that. that's something everybody relate to at the level of their family and personal relationships, so that's why people take an interest in that just as they did in bill clinton's problems. they resognated in different level and they have a character kind of impact. that's my sense. honest reaction. >> regardless of who wins though, you believe that infrastructure is going to be a major focus for either candidate. >> i do. >> for a variety of reason, one, it's the right thing to do. we've had a relatively lackluster economic recovery. need the boost and stimulus from a lot of construction. good jobs. you know, bernie sanders whole effort and part of donald trump's appeal is people who are feeling left out by the economy. it's time to bring people back in, then we have this gap of $1.5 trillion. in infrastructure improvements that are needed. the american civil engineering association says we have a d grade for things like this

66,000 bridges that are dangerous in this country. so, i've heard both sides say things that lead me to believe this is a very high priority for them. hillary clinton has said $125 billion infrastructure u initiative including an infrastructure bank for example. right out of the box. first thing and donald trump, i've heard him say how he defines making america great is in part, buildinging. he's a builder. so, which ever way this goes, i think we're going to see a golden age. >> i love your state. texas. >> texas is doing very well. >> i don't remember the number of it, but i was in austin. driving to san antonio. the speed limit was 85. >> that's highway 130. >> speed limit was 85. i was in like chevy cruise rental r car. top speed is like 72. but i tried. the idea is basically pay to speed. >> yep.

that's true. >> kind of the way things are going. >> and pay for lack of congestion. keep an eye on the texas trooi angle as the next great american megalopolis. >> got to go. we'll get you pack back on to talk about it. thank you very much. all right, donald trump has run a controversial campaign. the question is, has it helped or hurt his businesses? robert frank is here with a closer look at trump inc. what's the verdict? >> it's a little too early to tell how these latest troubles will affect his company, but even before last week, there were signs that trump, the candidate, was not helping trump the business man. accord tog data from foursquare, the share of foot traffic fell 17% in june. 14% in july over the latest period compare today a year ago. now, the travel site hip monk saying that bookings are down 12% since the start of his campaign. the effect on his residential

real estate build, less clear, since real estate has longer lead time, but an angel alysis d trump's 16 branded buildings in manhattan saw prices increase 5.5% over the previous year. while the broader manhattan market saw prices at 1.7. there have been some high profile defegss from his buildings, including keith ole berman who sold his apartment for 3.9 million. the market at nyc for trump apartments is in a free fall. the trump organization did not return my calls for comment. according to the sec filings in may, revenues that he's increases, almost 190 million. we'll have those gains coming from his golf course, branded merchandise and book royalties. of course, we have the opening of a new trump hotel in d.c., which could be another big windfall for him. >> down 27% since the start of

the campaign. >> yeah. that's right. and again, these are outside estimates, so it's private. we only know what he chooses to tell us. for now. >> yes. robert, thank you. still ahead, the four stocks on our radar today. your daily chose de la osa of street talk is still ahead. who do you work fo your boss? yourself? your family? our financial advisors are free to realize a plan to fit your family's unique needs. we'll listen. we'll talk. we'll plan. baird.

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can help prepare you for growth at open.com. for donald trump to threaten a potential lawsuit in response to the "new york times'" story from a number of women that donald trump had groped them at some point in the past. this letter from "the new york times" attorneys two attorneys for donald trump. just released within the past couple of minutes and i want to quote you a couple of key sections that "the new york times" is is saying it has been asked to remove this story from its website and issue a full and

immediate retraction and apology. "the new york times" saying we decline to do so going on here, the lawyers for the "new york times" write the essence of a liable claim of course is the production of one's reputation. mr. trump has bragged about his nonconsentual touching of women. he has brag ged about intruding on beauty pageant contests in their dressing room, a radio host's request to discuss his own daughter as a piece of, and expletive in the will thor. "the new york times" also going on to say we gid did what the law allow, published news worthy information b about a subject of deep public concern. and guy, this reaction from "the new york times" here is really no surprise. it will come as no surprise in journali journal israel. the trump campaign is in middle of a rally. donald trump himself is speaking as we are talking now. down in florida. where he has denied all of the allegations against him in terms

of groping or inappropriate sexual touching. he said he's got evidence that the clints knows that this is false and he says he will release that evidence at an appropriate time in the future, so all of this unspooling right before our eyes here in real time. back to you. >> thanks. keep us posted. >time for street talk. we start with apple. more bullishness on apple, this time, from pacific crest. overweight rating. current expectations are reasonable and there is potential for upside. checks indicated apple will meet -- 45 million iphones in the fourth quarter. no mention of any boost from samsung's galaxy note 7. >> you know apple's done well lately. do you know how well? in the past threes, apple is up

20%. more than double the next highest stock, which is caterpillar, which is up 8%. second stock, hca. the hospital chain upgrades to overweight. four-point call. election catalysts with the greater chance of win. strong urban market, moderate leverage. their $94 target implies about 20% upside. >> it's worth watching the whole sector. third stock we're watching, pfizer. it's getting a downgrade from jeffrey to a hold rating. to 36 because of a lack of catalyst. catalyst have drone jefferies to upgrade. and the flu vaccine, prevnar, or the catalyst failed to materialize such as inversion of splitting the business. also, the risk of f.i.r.e. doing a deal in the next 12 months as increases. >> and you wonder what would be out there they would want to buy. probably have to spaend lot of

money. final lewly, a company called new relic. california based software analytics company. pacific crest boosted the target from 44 to 38. strong momentum in big companies and they say they noticed a 51 sers increase in detection rates of new software at fortune 500 companies and they add revenue per customer should benefit and new relic likely to beat on earnings. the target is about 20% upside. i like the name. new relic. like jumbo shrimp. >> tyler? >> thanks, guys. still ahead, mark cuban will join us live. we'll his take oon wells fargo, the election, samsung's image crisis and a whole lot more.

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you've got to look at ulta salons. not only the best performer in the s&p 500 today, it is up 11.5% raising guidance. actually one o f the best p performing stocks in the s&p 500 over the past seven our eight years. this has created millionaires

and tonight on "mad money", jim is going to speak with the ceo. it's a company, sure you talk about it at 5 a:0 p.m. always time, it's just printed money for investors the last nine or ten years. >> small lux kis. it's done well even if the individual cosmetic companies have had rough patches, so this is one that's found that magic sort of combination of the product and the retail experience. >> leets take a look at what you know one that has gone the other way. wells fargo. there is an intraday, the stock down about 1.5% at 44.61. on the news of turnover there at the top. there's three months. there you can see it's down about 8%. there is the story of wells. around the first of september when the news of the hacking scandal, it's really the accounts scandal.

there's a new guy in charge of wells fargo. we'll talk about what needs toos to turn the bank image around and what really goes on behind the doors of the trump campaign. a former trump insider will join us live.

i'm melissa lee. here's what's on the "power lunch" menu. wells fargo has a new guy at the top, but its scandal far from over. what he needs to do in the next 100 days. show me the money. the anatomy of a high-end house flip, plus, a unique look inside donald trump's war room. you cannot mitsz this. the second hour of "power lunch" begins right now. >> hi, everybody. welcome. i'm tyler mathisen. let's get a check on the markets with hours until the closing bell. stocks well off the session lows. really closinging in on basically the flattish line. industrials off about 40 points, nasdaq down 21. s&p 500 off about a quarter of a percent. or five points.

financials, materials and tech, they're the laggards today. utilities and real estate, the bright spot. bio tech on track for its workweek in four months. brian? >> thank you. topping your headlines at this hour, xerox's biggest individual share hoholder suing to block t company from flit spliting in two. they want to split sbroo separate copier and business services companies. a billionaire claims the split violates a tooin 2009 deal he made. meanwhile, asking the wto to establish a dispute panel that could better examine claims about unfair export practices from china and get to know nicole. the now category 3 hurricanes barrelling down on bermuda. packing winds of 120 miles an hour. let's start your money. ti if you're vesting in stock, they're worth less today than they were yesterday.

let's find out why and what else is going on with bob pisani. >> take a look at the s&p 500, we were at the lows of the day, 1030, but then we turned around, largely on oil. you can see we're getting close to positive right now. take a look at the xle, the energy index, we were at the lows there. around 11:00, we had a sell off on oil and turned into a rally. when traders realize that had the inventory build was not as bad as we had fear and you can see the energy sector, almost positive here. bank stocks still sitting near lows of the day. big earnings tomorrow from citigroup, wells fargo, concerns here about particular things about loan growth and regular laces weigh on those for the last couple of days. strange day for transports. airlines are up big. delta, the first one to talk about earnings. they topped, nice gains here, but look at the truckers on the other end. all to the downside. covenant trading warn on weak truckload volumes.

bottom line, very top choppy trading ahead of earnings. back to you. sxwl zbl for more, let's bring in bob dahl good to see you. bob? hello, bob. hello, bob. >> call me bob. >> bob, bob, bob. bob, bob, bob. >> apparently, he's not there. he's not there. >> despite best efforts. >> not like beetle juice. meantime, beetle juice. beetle juice. beetle juice. didn't work. your top story is the abrupt requirement of john stumpf. lives in the middle of a fraudulent account scandal. normally, i'd shy away from commentary, howevecnbc.com, thi not a bad thing for wells fargo, but may be a bad thing for the stock market and for capitalism

in general because capitalism in confidence and there's a lot of people that have been burned by the stock market in the past few years. they feel it's rigged. they see this happen, they get disgusted. another instance where they may get disgusted rightfully, choose not to invest in the stock market w. the baby boomers ageing out, if all these 22, 27, 36-year-olds thinking about invesing, see this, they may feel the market is rigged against them, that corporate america is not what it should be. that's my op-ed. get some insight from hall scott, author of connectedness and contagion. protecting the financial system from panics and management in crisis. author of winning and the mba. susie, what did you make of the op-ed? >> i think the horse is already out of the barn to tell you u truth. i don't think the people are looking at the market and looking at this wells fargo

thing and say, i'm so shocked. i had trust in the system and now i don't anymore. >> isn't this a chance to restore some trust by doipg the right thing. >> well, what would be the right thing? him leaving with less man? >> i think anyone who abruptly resigns in the middle o f a scandal, rank and file employees lost their jobs, maybe shouldn't walk away with $140. >> nobody's going to disagree on that. when the board signed him up, they gave him a contract. i think it's ugly, but i don't think it's going to change anybody's view of how the market works. i think analysts are cynical and investors know what they're facing into. nobody's view. now, look, a a crisis shows how good a company was. if wells fargo had all these wonderful results, but this crisis is revealing they were poorly managed. that's going to remind people

that managers are not that they're showing. >> so, professor scott does the board go and claw back men that mr. stumpf earned? was given to him by the board? >> well, i really don't have a big opinion on that, but i think you need to focus on another aspect, which is less and investors and more about the reputation of wall street, generally. my concern about is this it's another black mark on wall street. it really affects the ability of the federal government. particularly, the fed. that's the the issue i raise in my book. the more unpopular wall street becomes, the less possible it is for the fed to support it in a crisis are wr the fed should support it. >> i like your view, professor scott, not only because it

agrees with with mine in a way, but the banks rightfully so in many cases are probably the most bruised and battered sector of the mark. you've got all these americans struggling to get by and you see somebody that's forced out. i have never seen company, s&p 500 company, krrk eo retire this abruptly. so kay, and who's walking away with by some reports, $140 million. forget about wells fargo. dig a little more into why this may harm the market generally. >> i guess my question to both would be when you felt ha the market was doing well and didn't have a black eye. >> you've got to rebuild it though. >> it's not like it had this wonderful period where everybody said, oh, yeah, we trust the market. i think still 2008. people are not saying banks are great. >> of course not, but that's a new amount of time for most of human his or since the 1972 buttonwood agreement, people probably thought it was a fair place to invest.

>> i feel like that's far gone. maybe i'm missing smog. >> what does wells fargo have to do now? they're trying to turn the page with this new guy, he's not a new guy because he's been at the bank for 29 years. elizabeth warren has brought up the point, why didn't you fire this woman who was the hedo f the retail banking unit where the accounts were falsified and john stumpf on capitol hill said at the time, she reported in to our coo and president, who is now the ce ork. what can they do to sort of distance themselves and convince customers we're different now. >> i'm in no position to give advice to wells fargo. we need to look at the bigger picture here. how come wall street, wells fargo included, reestablish a legitimacy with the american people so that it's not

vulnerable to these continuing pop list attacks. that's the big issue facing not just wells fargo, but wall street in general. >> it's very hard in the his riff of banks over the past eight or nine years. there was the libor rigging scandal. all kind of examples of bad behavior here. trz that has eroded confidence. >> i think the wells fargo board has b to be held to task here rmt when this crisis broke, there have been public firings of very high level people. they did way too little way too late, so if we want to, wall street is just businesses and business is just people. but we have a lot of boards are sort of ab ten senne tee. if you're going to be on a board of a bank, you've got to be in the weeds. >> the banking industry is down in the tumps. starting to -- sort of crawl out of this stuff then this drops.

you got stuck with 140 or so million dollars. maybe at a time -- >> who's going to do it? >> go ahead. >> i think we have to remember that the banks and the whole financial sector is at the heart of our economy. unless it functions well, our economy in the long-term even in the median term, is not going to do well. it's been crippled. t not functioning well and regulation is piling up on it in addition to the fines, so r we have to get out of this mess. not just to restore the reputation of wall street, but to get our economy back on track. >> is there a correlation between bigness and bad behave here that really is what we're circling? you don't hear about this kind of stuff at smaller community banks. >> the banks -- >> sometimes, you do.

maybe there's go ahead. >> small community banks don't hit television. that's why you hear about the big banks. if you go back to the savings and loan kris nis the '80s, it was small savings and loan institutions that had these problems making bad real estate loan, particularly in texas and the take away was well, we have to have mergers, so we have larger institutions that are better able to manage themselves. so, i don't think the you know, we're going to get less violations by breaking banks. i think you can make the case that a place like jpmorgan and indeed, wells, apart from this particular event, are in a better position to manage risk than small institutions. >> we're going to have regulation upon regulation upon regulation. until they're suffocated in rell reglations unless the quality of market improves. where you have people, i saw the

headline yesterday, they knew as early as 2005, he's done. they get lett to th go on and on without taking a high level manager without saying to the company and the world, look, this is permitted here. it's always the cover up, not crime. they tried to cover it up and i guess banks and their boards have a special responsibility to the whole system for high quality management. otherwise, the trust will go out. what's left of it. >> thank you guys very much and before our next guest, "usa today" with a story that stumpf is still on duoboards, making $650,000 a year. that's the kind of stuff that mom and pop read, the it's gross. we've got to make sure there's capital in capitalism. mark cuban is the owner of the dallas mavericks and a shark tank investor he joins us from

santa monica, california. we are just talking about the developments that have happened in the past 24 hours over at wells fargo. just curious what your take is and whether or not the reputation of this bank can be improved at this point. >> i don't know enough details honestly to have an opinion. i've be so caught up in other things. i just heard the headlines, so i have nothing to add. talk b about donald trump, a topic on which you have been outspoken and a lot has happened since the last time you made very public comments about trump. what's your take on where he is now, are we closer to his end than you think before? or is this just all proof he is somewhat teflon this this race? >> oh, he's certainly not teflon. his number keefe on going down. i think there's more stories to come out. i've heard a few. i don't know if they'll become public. but i think this is just a beginning of the end of the middle of the end for donald trump and not just in his run for the presidency. but his brand.

his properties, his businesses. he's been scorched and i think the whole thing has a real chance of o going down with him. >> that was where i was going to take it. the trump the brand we just had robert frank reporting that hotel book at some of his named properties are off. there's conflicting information and of course, mr. trump will probably come out with his own numbers telling a different story. his nature is to punch back when punched, but do you think his brand is toast? >> done. over. i mean, could you see it now, honey, we're going to vegas, where do you want to stay? and the answer is, anywhere but trump. where do you want to go in d.c.? anywhere but trump. there's just the stigma attached to his brand now. and it's crazy because he went from being a top five brand recognized by almost everybody, to probably being a bottom five brand recognized by everybody

for the wrong reasons. >> mark, want to ask you about the bus tape. because it's been written off by mr. trump as being locker room talk. you're the owner o f f the mavericks. you've been in a locker room or two. what's your assess m of this? >> i've never heard that talk in a locker room ever. i mean, when you talk about sexual assault, that's -- i've never heard anybody discuss anything like that. >> so, there's no just boys being boys. this is just what we do behind closed doors. >> not the boys i've hung out with, no. that's just, no. >> mark, i agree. played football for a lopg time, baseball. all kinds of sports. didn't hear that kind of stuff. let's get -- >> i've heard a lot of stupid stuff, too, but nothing like that. >> plenty to have stupid stuff, but nothing like that. i don't know if you heard our previous segment, where i was sort of arguing about wells

fargo may hurt overall confidence in the market. i know you've got a view on the market generally. do yu agree maybe to susie's point, people are so disgusted that it won't matter or does this provide another black eye? >> just in terms of the stock market, i think both eyes are black and the body the is black and u blue nor a variety of reasons. so many different things to add up. we've talk ed about high frequency trade ng the past. just there's a significant decline in the number of public companies. you know, maybe hopefully, we're seeing a change in things now, but companies don't want to go public. and i think you know, because companies don't want to go public, we've seen too many acquisitions. i use this example all the time, but just imagine where how things would be different if instagram and twitch and ok louse and any number of acquired tech companies were independent and looking at going public like

snap chat is. we'd have a whole new attitude about the vibrancy because we'd be seeing these companies go public. >> you know, i love you, buddy, but how sad is that that we're kind of afreeing ta everything is terrible? that the -- >> very sad. >> if we don't, my point of the piece i wrote, just a little scratch off thought. if we don't have young people, getting into the market as old people age out and cash out. there will be no market. we don't have new factories. we're not quoing to have this. how do we fix it? >> yes, on one hand, people are just investing in indexes now. money coming in is kind of forcing the market up along with low interest rates, but i agree. my buddies at the sec, they want to talk about enforcement, but they should be doing everything possible to simplify the process of taking companies public. ray gay plus was a minor, minor step. and they certainly haven't done

anything to insent companies or encourage them to go public and that should be their number one folk. there are a lot of great up and coming companies. there are a lot of great entrepreneurs who could take their companies public. far sooner and all of us, you know, one of the reasons that the middle class has a challenge participating a long with the 1% is there aren't companies that we can attach to that we all get that we can invest in that are coming public and when they do come public, they come public so much later than they used to that you don't get to participate in their growth. imagine if twitter had come public two years earlier. we'd all be able to talk about, yeah, maybe a slowdown nourk, but it had a great run and it gree. we just don't see that anymore. and that i think is a marketing problem for the market. that is you know, an investment problem for all of us. and i think it hurts competition as well. because every major public

company knows they can use their stock to acquire their potential up and coming competition and so, those companies are so small, or small enough they haven't reached the level of antitrust ibs. no knock on facebook, because what they did was brilliant. when they bought instagram and what's app gone were two potential competitor, ip oz, b b reasons for us to get excited about the market. >> would you take a company public today in you had the opportunity or keep it private? >> in a heart beat. in a heart beat. >> you would. >> and specifically because oh, yeah. because there are so few ipos. look at how the tech ipos in particular have done. there was an oil and gas ipo read that did well. i mean, there's such a thirst for ipos right now. the demand is there. they're just aren't the companies ch just the culture and particularly on the west

coast or silicon valley in particular has just down played all the hassles of going forward. i think that's bad for the entrepreneurs for the investors. bad for the general investing commune and for america. >> is there a job in government that would interest you? any? >> no. >> none. >> i haven't asked. i haven't asked, i haven't offered. you know, one, you know, i've invested in 150 plus companies. i love helping entrepreneurs. i love creating wealth for people. i love creating jobs. i love doing shark tank because it sends the message to 20 million plus people you know, across all viewing for every episode that the american dream is alive and we. it gets kids from 8 to 80 excited about entrepreneurship. that's where i know i can have an impact. that's what i love to do. i just could not see myself

going through all, what we call politics. but i will add one thing. i am finding a group and it hasn't been given a name yet. i think one of the big problems we have a a as a country in politics is that we don't not everybody who's our best an brightest has the able toy run for office. because of the two and a half party system. that has to do with ballot access lots. i'm putting up $2 million for a group, starting with texas and other states to go out there and say let's do what we can to change ballot access laws. you have to have 30,000 or oyefuwa 60 thourk signatures to get on the presidential ballot in those states, so if i could help change the access laws, maybe we could take a step towards creating more diversity. >> won't run for office. >> i think that's a great step. >> you know, i think one o the things, certainly my house, what

people love about shark tang, it's family entertainment. whole family can catch, have an opinion, play along, the whole business. i wonder whether you have spoken to mark burnette his experience with donald trump? producer. >> we spoke. >> what did he tell you? >> he doesn't want to get involved in political side at all and donald's a big bay. i think he came out with with something yesterday or the day before aing he's a democrat and you know, i don't remember the exact details, but i let mark speak for himself. mark is i love working with mark. he's a big proponent of shark tank. i'll let him speak for his own politics. >> where do you think we stand in terms of value wasuations? stocks in narcotics you're interested in now? that you've invested in recently? >> the companies that i bought

recently are bright cove. i bought cheg. but they've gone up. recently, for me, i don't trade nearly as much as i used to. those were probably four months ago. i bought some uranium. i was so much research on this clinton foundation and selling and all the nonsense and all of the falsehood that is i got to know too much about the uranium business, so while i think it's going to be down, i bought some ccj. >> futures in uranium? i hope you're not stockpiling uranium. >> no. >> something weshl talking about with the chair, the cooperman case. have yreached out to mr. cooperman? if so, what did you tell him? >> i told him kick their ass.

if this is six years later, they're bringing this, there's probably nonsense. i also told him, read the trypsins of other sec trials because they tend to do the same thing and make the same stupid mistakes. you know, i don't know what general white had to say, but the thing about sec and insider trading, there are no real insider trading laws. you could talk to five people who work at the sec. none will give you the same definition for any particular scenario of insider trading. no one really knows what the law is and i'll tell you the other thing i've said to others who have reached out to me about insider trading, if you get hit with civil liabililility and lon insider trading, it's like a speeding ticket. unless you work in the industry, you couldn't nak two people that have lost, that have been what's

the right terminology, that have lost a civil trial. been found liable. that's what i was looking for. impacting your business. changing your perception among your business and workplace. those days are long gone, so i think the sec has to rethink how they business. they have to start defiping bright lines on what insider trading is. if the sec wanted to reduce the amount of insider trading, they would public glooins about what individual investors and in corporate, employees can and cannot do. there would be no doubt b about what is or is not sbooder trading. that f they did that, anybody who bloke broek those laws would have u no excuse. every case is so hard to prove that it wastes tax pare money and accomplishes nothing.

if the sec wanted to eliminate trading, they would glooins about every scenario and everybody would be able to read those and make a decision before they made a trade or understand what they can and cannot do and you would see insider trading cases disappear. the reason they won't do it because that's a lot of jobs that they won't need. a lot of lawyers they won't need. a lot of people who lead the sec to work in private practice that won't get jobs. >> maryland has the highest percentage of militaries in the united states, but you can name one fortunate 500 company. great state, built on taerns. thank you. >> welcome, guy, always fun. >> mark cuban from santa monica. much more "power lunch" straight ahead.

hi, everyone. here's your cnbc news update. secretary of state john kerry arriving in rwanda to attend a conference on climate change. he is expected to speak to virmal ministers from around the world to endorse an amendment.

scotland's leader telling her party they will publish a bill next week laying the groundwork for a new independence ref rerendum. the first step towards a new vote on whether scotland should leave the united kingdom. voters rejected independence in 2014, but britain's decision has reopened that debate. back here at home, deaths from breast cancer fell between 2010 and 2014, but rates fell faster for white women than black women. the largest difference by race was for older women. and a record breaking 13 foot alligator was caught in a small texas town. might be bigger than the town. it was hauled out of a lake after six hours weighing more than 900 pounds. it was taken to its new home in gator country. that's the news update. >> boy. i didn't know they had gators in

texas. >> it's gator country. i don't want to go there. >> no. and no petting of the gators in gator country. at all. >> sue, thanks very much. >> sure. shares of delta, a bright spot in today's sort of wishy washy market. the airline reporting a mixed quarter. phil lebeau spoke to the ceo. >> he told us that it was a tough quarter and despite that, delta was abe to turn it better than expected earnings. the revenue side, it was challenging quarter. they came in shy of ek peck tases and don't forget in august, they had the computer outage. scrapped about 2,000 flights. that cost about $100 million. here's the ceo earlier today explain why this quarter should convince investors the airline can turn consist profits. >> despite probably the weakest pricing environment we have seen in recent memory, we had a really strong quarter.

19% operating margin. now, it's up to us to prove the resiliency. >> over the last year, investors have said not just delta, wu to all airlines, what have you done for me lately. >> they have not been listening to the bottom line that many turned profitable quarters. we're going to talk about why delta's revenue pressure is forcing the -- when it comes to transatlantic flights. guys, back to you. >> look forward to it. thank you. come up, the man who was let go by the trump campaign will share his opinion on the race and talk about what it's really like inside that trump war room. what did he hear the donald say from time to time? we'll find out coming up. d afla. aflac! isn't major medical enough?

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the trump campaign is pulling out of virginia. sources speaking to nbc news saying the decision was announced on a conference call wednesday evening. the decision shifting the campaign's focus to four battleground states now. considered critical to trump's

chances in november. they would be pennsylvania, florida, north carolina and ohio. let' bring in corey stewart former virginia state co-chairman for the trump campaign. corey, welcome. you called this move totally premature. do you think that trump is still a possible winner? in the old dominion? >> absolutely, he is. look, i've never seen such excite m for any campaign on the republican presidential side. there are thousands and thousands of volunteers, really dedicated, very, very loyal to mr. trump. the only thing that really the campaign needs in virginia is a robust ad campaign that was supposed to be financed by the rnc, but that never came to fruition. >> do you think his supporters in virginia are being undersampled by the poles because he's trailing there substantially. >> i know. he is, but you know, those polls i think you're right. that he is being, they are being

undersampled. a lot of people who have never voted before, never been active in politics before, who are thrilled by his campaign and are not being polled. i think that the numbers are going to look better from election day than the polling number rs showing now. >> now, you were fired from the campaign op o monday for conducting what was described as an unauthorized demonstration outside of the rnc headquarters in washington. having to do basically with how the rnc was redeploying money that had been raised in your lights to support the trurp trump campaign and now being redeployed. who fired you and who's calling the shots now inside the trump campaign? >> well, dave bossy is the one who fired me. there were some personal political reasons why that happened, ultimately, the reason i did that and i knew i was going to be terminated when i went through with the demonstration. is because we cannot, it's going to be very, very difficult to

win virginia. despite the massive amount of support on volunteers, if there's not an aggressive ad campaign and the only way to though shao the rnc needs to step up to the plate. i had to call them out. especially the members of the establishment within the rnc got to shame them into doing the right thing because they have been diverting resource frs the trump campaign to various congressal campaigns around the country. >> you're running for governor as i understand it, election will take place next year. do you believe that the support of mr. bossy for your competitor in this race, former rnc chairman, et gillespie, figured in your firing? >> no question. i was told weeks ago that ed gillespie was working on mr. bossy, to get me fired from the campaign. i knew what the risks were. but i was determined not to let that stop me from doing what i thought i had to do as chairman

to get the resources necessary into virginia to win the campaign. but look, you know, the most important thing for me that he get mr. trump elected president and 2017, when i'm running for governor, will take care of itself and look, this, i made a commitment to mr. trump. i stuck with mr. trump. i'm continuing to be loyal to him. he's what the country needs to turn the country around. >> who is really running the campaign apart from mr. trump? is it kellyanne conway? mr. bannon or is it mr. bossy? >> well, like any campaign, there are struggles within the campaign. the best campaign manager ever was corey, he was excellent. there have been struggles inside the campaign. not saying anything negative. but you know, mr. bannon is superb. he represents more of the grass roots movement. there are struggles with some of the new rnc elements. the establishment almosts,

especiallements. >> you come from what is it, prince william county? >> which is the second largest county in virginia. just outside of washington, d.c. >> vote for mr. trump? >> it is the biggest bellwether county in virginia. i don't know at this point if we had an aggressive ad campaign, coupled with all these volunteers erat, we would win in prince william county and we would win virginia. at this point, i don't know. >> corey, you're in campaign rooms with donald trump. you've heard the alleges. what did you hear? what do you think based on your experience with the man? >> i really like him. he's tough. he's a good ceo. >> it's not what i asked. >> he makes decisions. he list b b b bens to advice and does his own thing. i grew to have a tremendous amount of respect for him. >> asking if you've witnessed

personally any inappropriate behavior. >> no, i never witnessed anything like that. not even close. >> why do you think all this is coming out? >> you know, i think it's just politics. look, he's a billionaire. he's a well-known famous billionaire. and i think that if in fact all these women had been groped years and years ago, they would have sued him and there are no lawsuits out there. so, i don't think it, honestly, i discount those allegations. and most importantly, i think as we saw in '92, '96 and even in '98 on the heels of the monica luns ski scandal, people don't care ab about that stuff as much they care about the state of the country. they're worried about the compa economy. they were worried about the economy in the '90s and are worried abt now. >> obviously, just as a a man, a human being, you understand that sometimes, people are afraid to come forward against billionaires because they're billionaires.

because they don't have the legal resources, the other person does. it's dangerous, but once one comes out, it's safer in a group. you understand that, right? >> absolutely. but if as prevalent as these ags allegations are making it out, i mean, mr. trump would be in jail. at least be sued. i just don't believe it because you know, he would not expose himself to liability by going out and groping women as a well-known billionaire, he would have been sued. i just don't believe it. >> all right, corey, thank you very much. >> cnbc reached out to the trump campaign to speak with the representative, but they did not respond to our questions.

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you can even enroll right over the phone. n't wait. call unitedhealthcare or go online now. ♪ we are to kick off an important round of earnings. how will this impact the markets? christine, good to see you. >> great to be here. >> we were on the eve of a major round of bank earnings. what are we expegting, which uns are going to be the win sners. >> you don't need that. >> okay, i can hear you guys fine. initially, it was the big question on their minds was this rally and it's going to continue.

maybe there's jitters around. what are the banks going to report and i have to say that i don't expect a repeat performance from the first half of the year. numbers are looking more muted for q3. got jpmorgan, goldman sachs and morgan stanley. we've seen those estimates come up. they're expegting year over year growth. complete opposite story. all of those numbers have come down since their last report and they're expegting year over year declines. >> it's not just a -- just a good idea, so on those three banlgs, the ones i mensed, we're

expegting somewhat of a miss. it doesn't mean it's necessarily going to happen, but when you see revisions come down like that, for wells fargo, that's going to be the big focus and tomorrow, we've got john stuchf out. going to have to hear what tim sloan's strategy is. can they turn things arn and remember, wells fargo was the most profit bable bank in 2015. >> wildly praised by warren buffett. >> of those six, it was the one, they were continuely seeing loan growth and certainly, you can see that again in third quarter. i think we are going to see loan growth continue, but how much are they going to have to pay out to their clients to keep them. >> all right, thank you so much. we'll be seeing more of christine in the comes weeks and we've got the return of the earnings squad. remember that? >> i love it. >> "power lunch" is back in two.

>> like the power rangers of earnings.

remember here at ally, nothing stops us from doing right by our customers. who's with me? i'm in. i'm in. i'm in. i'm in. ♪ one, two, - wait, wait. wait - where's tina? doing the hand thing? yep! we are all in for our customers. ally. do it right.

welcome back to "power lunch." we have a news alert with verizon's pending purchase of

yahoo in the context of e-mail hacking that happened. comments, verizon's general counsel was quoted by reuters as saying i think we have a reasonable basis to believe right now that the impact is material referring to the hacking and we are looking to yahoo to demonstrate the full impact. if they believe it is not then they will need to show us that. they declined to comment on whether or not talks are underway to renegotiate the possible purchase price. we reached out to clarify comments. we asked if it meant that the deal may or may not go through. a spokesperson said that the statement stands on its own. if you are watching for the stock valuation it is possibly the interpretation of comments made by verizon's general counsel. >> thank you for that update. coming up, we will take you

inside one realtor's $1 million house flip and tell you what outrageous new perk is being offered to lure buyers to luxury real estate.

a flipper put a million bucks on the line. how did it turn out? >> you can see it here. she bought this industrial farmhouse for $600,000, put 400,000 more into it and just put it on the market for 1.469

million. that could be nearly half a million profit if she gets her price. this is the fourth flip for real estate agent who gutted this 1938 home. she spent a year remodeling it, added super high end finishing and landscaping and staged it to sell. she used all cash and is confident that the reward will be will worth the risk. >> i believe there is a market for the high end because you are investing in what won't change, location, amenities. the risk factor is a tad bit lower. >> but flipping in general is a risky business and the number of investors doing it is rising fast. there were more than 51,000 flips in q 2 of this year, the highest level in six years according to adam davis solutions. average return rising to nearly 49% thanks to those fast rising home prices and very tight supply. interesting, there are a lot of

tear downs in this neighborhood like this where builders will put up something brand new. those tend to be much pricier. here you are getting nearly new but for a little lower price. so far no offers yet. rice says she is not concerned due to high quality of the location and the renovation. we have more pictures, more facts, more details on cnbc.com. >> let's get reaction to this story. joining us now is star of bravo's million dollar listing. >> welcome back. how do you react to what you just heard there? >> i love a good house flip. i think it is risky. you hear a lot about these flips in a good market. we have a healthy market. 2010, 2011 and 2012 there wasn't so many house flips. in manhattan we don't see a lot of inventory of these apartments coming on. as a broker and working with developers when i pitch you you

have a loft and then i tell you why put something on the market that looks bad. there isn't a lot of product to purchase it. >> you couldn't do that in new york city city which is bad news for melissa. >> the price is so crazy. there is not a lot of really run down apartments. a one bedroom is $2 million. >> a lot of new stuff including 1 sea port. >> that is my project. the most successful project that i worked on. >> not even open yet. >> we just reached 50% sold in three months. >> there is a crazy perk. >> we have done something no one has done before. we added a boat amenity. you heard about swimming pools

in the building. >> what is a boat amenity. >> you put your robe on say sunday morning. you wake up and you take your family in the elevator down and you walk out. >> do the elevator noise again. >> you walk out. this building is right on the water. you walk out and there is your yacht. you step on board. no hassle of owning it. wine, food. no extra fee. as a resident this is the best amenity you can have because it is right on the water. >> it is like a $500,000 boat. a picnic boat like a lottery boat. maybe i'm just a small town country boy. where is all this money coming from? who are your buyers? every building is being sold out. you read "new york times" and see a new building.

>> movie cinemas and this is the place to invest. this neighborhood is everything. in new york in general i always say only one new york and sometimes i say -- you haven't truly made it in life until you own an apartment in new york city and then i smile. >> you can help them with that. >> studio, condo in new york city. >> what are the monthly charges for this apartment? >> all included. >> are you interested? >> i'm curious. >> it's about $2.50 per foot. it is like $4,000 a month for a two bedroom. that includes the swimming pool, includes the private drive way,

the gym. there is the pool. laying like this and you are looking out over new york. seven bridges. all the rivers. look at that sauna. >> i will come visit you. >> you are going to correct me. >> "closing bell" coming up. ♪ >> i love it. i cannot wait for his acceptance speech for the nobel prize. i hope he sings it just like that. he will need a translator. >> i don't want to talk over this. i feel like it is wrong. >> brilliant move by the nobel committee this year. >> awarding the prize to bob