>> seriously jcp leaving s&p. >> do you want to give it a eulogy >> it's happening today. the bad news is amazon is already in there. >> can i say i bought more schwab yesterday, 50 days turned up, i think it's going up. >> ""power lunch"" started now. >> thank you, skochlt i'm michelle caruso-cabrera. we're going to separate the fact from the fiction straight ahead. and shut the front door. new home says, have you seen them they surged last month we're going to tell you. they're on the move right now p we're going go inside the numbers and we're just hours away from this year's ugliest dog competition, but we here at "power lunch" aren't down with fashion kay neins. this year we're going to bash

the dogs on the street we'll tell you if they're worth taking home. this tail-wagging edition starts right now. ♪ who let the dogs out >> welcome to "power lunch." i'm melissa lee. we'll have nasdaq on track to break a two-week losing streak, take a look at the gains the dow is up by about 9 points, s&p by 5, nasdaq by 25 oil seeing a bit of a bounce, lifting shares for a change. and look at bed bath and beyond shares they're plunging today. in fact, a seven-year low down almost 12% and fast food giants mcdonald's and yum! brands at high numbers court. >> thanks, melissa for the first time ever the

affordable care acted has topped the 50%. again, once you give people something, even if they don't like it, it's hard to take it away kayla tausche has the latest. >> call it the art of the health care deal part 2 the expectation is that the president, much like he did with the house version of the bill will now take matters into his own hand i just spoke with the principal debt secretary sarah sanders repealing and replacing obamacare is still at the top of his priorities but he's less concerned for getting it done and more with actually getting it done. that might spar with the majority mitch mcconnell who's

said to be adamant about holding the vote next week before they go on fourth of july recess. i asked if the outreach was going to be on that. she would onto say that the outreach was going to focus on those who aren't on board yet, those who have been outspoken against the bill there were four senators who were outspoken yesterday, who came together yesterday afternoon, senators cruz, johnson, lee, and paul, who said they wouldn't support it only senator ted cruz is up for re-election thek year. democrats, meanwhile, have seized on this lack of minority. chuck schumer back in new york was talking about this and the fact they were going to try to destroy this bill.

listen. >> they're ashamed of this bill. if our republican colleagues were supporting this bill, there would be a brass band down the middle of fifth avenue. >> we could see the white house, guys ges guess much more involved. >> thank you very much, kayla. kayla's going through all the politics now that we've had 24 hours to digest what's going on, what the and one for lack of better words. gop care medicaid under obamacare did a dramatic expansion they said we'll pay 90% of those new costs if these guys want to zoom in here because these letters are small. did they increase the coverage

for the people already in it pregnant women, low-income children, disabled people, elderly poor sth they were still covered but at an average of 50%. the gop doesn't like the expansion to able bodied adults. so what do they want to do they want to roll it away. it's going to be year-away reduction and a complete restructuring of the way the dollars go from the fed to the states, eakin to block grants per capita limits. that's medicaid. that's one way, right? what happens in the individual market not a lot of changes under obamacare you must have coverage the only way to charge people more who cost more and there was a mandated list of coverage.

that's what made it very, very expensive, all of those mandates what happens under the gop plan? we solidified the health plan and senate plan. you can be impolicicly penalized but there's no mandate the merely elderly, they could pay five times more than young people states can get wavers on the mandates those are theory are going to make it cheaper to buy an individual plan and yuter are going to be able to pay it less, incentivizing them in addition, there will now be risk pools that can be funded by the federal government that will subcy dyed died the sicket it, who wins and who loses under the hello health care? let's bring them in. max baucus, former democratic

senator from montana senators chair the senate finance chat kmit tee. you played an incredible role. what do you think the senate plans to do here senator, can you hear me who's the question to? >> senator. >> yeah. i think it's unfortunate we're going down this road president obama and the rest of the congress back then worked on a bipartisan basis with the republicans to try to find a good health care solution so more people would have health insurance which was then the case it then became partisan. unfortunately this bill is very partisan from the outset its like the sunnis and shiites. they don't talk to each other. the only thing that counts is a winning of a vote. so it's very unfortunate

>> can i ask you something >> sure. >> why is it the able-bodied should be subsidized under a program that should be for the truly needy? >> you're going through a fundamental question that this country is going to have to answer but should they be under the free market condition? that people that can't afford it don't get it or is health care something something all americans are afforded some wain wain ansz question ahh thae that kwechlt e haven't done that in america. i think think we're going have to do that

that helps reduce uncertainty. >> mr. troy, does the senate plan or the house plan get closer to that in terms of making a product, that might want to actually buy of their own. >> there is some indication that this would reduce the overy'all cost of premiums that's the idea. ha, i think, is what the republicans are trying to go over if you redue the practicing sides of the ceremony, if you do that thud you don't need to get so much an inspection.

>> the insurance companies hate the ideal. tla absolutely hate it because they think it might eat into their profit they love sort of privatizing their profit and thoeb then lidge voss losses. that's where the rick should document come atom should come out of profit. shoumtd connell out on tan payer's poochlkts what to yuni that is, we american pay more than any other country it's a glancing blow kwhie

health care costs are so high. all that we pay that others don't pay. that's one of the reasons why. they try to cut costs by caughting coverage if we cut that then we won't have to cut payments to the lo low income and agenten. >> i totally agree with senator baucus i'm not that optimistic. i think the private sector, the employeening joobed a heenlt costs down for the pan sin years of sole.

i they they're going to have information come from there. >> gentlemen, thanks we'll have to watch this good to have you on. >> thank you. now over to january jackie deangelis for a news alert jackie. >> hi, there total is 758 up from 428 a year ago. the stunning part of this is we're seeinging 28 straight increase intempts of an. the first loss sense the 19et 0s back over to you. >> thank you, jackie deangelis disney shares are, par on

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disney might have lost some

of its saassets will it stay frozen? bart, good to have you with us you look like you're ready for the weekend. >> you kwies caught me the first day of summer break with my kids, so, yes. >> in terms of disney, does it all stem from concerns about cord cutting and the skinny bundle >> disney has a lot of tv network stocks it's suffered multiple compression. you know, i this i we have a market performance at disney and one of our concerns is we don't know what causes that secular cloud to go away we fear that the multipleable are compressed for disney as they are for the group. >> what's the hope for the bowls though espn has laid off about 100 people, it's gotten investments. it looks like they're looking at how they deliver sports

programming. can they turn that around? >> well, i think that it's a grind, right i think netflix has de valle used the pay tv bundle you'll get onloon distribution but i don't know if that helps with the market. you see more alternatives, entertainment kind of package that's cheap i think it's hard to hang onto your subscribers you'll get a bit of pricing leverage you know, i this i that part of the business is a grind and one that's kind of beset by fears of the pressure and evaluation multiple. >> you know, the amazon purchase of whole foosd has made everybody think of all kinds of crazy combinations that everybody could have because there's so much cash sitting in silicon valley i'm speaking rhetorically, but is there the future world where disney becomes part of something else that does something in a

crazy combination that we didn't think about? >> well, sure. it's disney, so you can dream, right? you can dream about all of these tv network stocks. i wouldn't use it as my lead you know, that's why we have a market performer maybe. i wouldn't lose any sleep kind of waiting for it. >> barton, i understand that right now television is where the bulk of the business is for disney, but they have movies, they have theme parks. we're looking at a more experimental world is there a chance they i'm amp up to take over a big chunk of the business >> theme parks are great boosted by shanghai, attracts in orlando and california, offsetting it, movies as great as they are is at a peak the history is you don't consider to have the dominant

amount so you've got one step forward, one step back and a grind on the tv side. hard to get completely excited about the earnings tra jekty. >> what's the price sth. >> 116. >> thanks a lot for your time. appreciate it. barton crockett. coming up next, shares of t.r. horton. we eek looking abend tt hihe move you see going on the screen there. almost 1% when "power lunch" prepares i joined the army in july of '98.

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new home sales rising in may, but they're still down. one of the reasons people can't afford them our diana olynick is here to tell us there may be a solution. diana. >> reporter: the real headline was the median price well over $345,000 that's a new record-high and a whopping 17% jump from a year ago. builders claim they're targeting the young first-time buyer, but clearly they can't get to those lower prices due to the high cost of regulation and that's where town homes come in we're seeing more builders, especially in high-density metropolitan arias turn to townhomes to hit that midlandpoint this is south of d.c they say local governments are looking for ways for building to add more units on less land, so they're easing up on the regulations. >> when a builder looks on the market to see what's available,

part of it is what's regulated we're seeing more town home-type products than we are single-family in this region >> reporter: town homes are cheaper per square foot, so they attract more young people and just like in the apartment sector, they're adding more social amenities to entice the social generation. with d.r. horton and pultegroup for now we're joined by susan. thank you for joining us on your initiation day if i could pick up a point from diana, town homes are looking better for first-time buyers but from your information you're looking for single buyers ott first homes.

what do you make >> interestingly while there is buyers looking for more attaching product in urban areas, as we look across the country, you are overwhelmingly see them move. data shows over 80% of them when they make a purchase decision, that does tend to be where they go and buildings are trying to meet that demand and it's easier in some parts of the country relative to others. >> if you look up the shb is up, the ibetf is up 23%. so where do you see the group going from here? they eave been outperforming industrials, materials will that continue for the rest of the year? >> yeah. we do think there could be some summer lull coming in as some activity lulls or normal seasonal kind of pattern but generally speaking it seems like demand has been fairly strong you've got a good economic tailwind coming in that's

helping the buyers they do see accommodative. you have mortgage rates that have remained relatively low and we think this that's going to allow people to move from rental to homeownership. >> we're showing some of the suppliers with which the homes are built. what's a better bang for your hope at this point the builders or the masonites? >> yeah. we think it really depends on sort of the investor's timeline and your perspective on things there's going to be slower steadier growth over time. it's a bit more dramatic it's more about real earnings growth that can come through over the next 12 to 18 months. >> why pulte and dhi versus the other names in the sector?

>> we're positive. in the builder's space, we look at those that can really drive faster inventory turns and control their costs. >> thankings for joining us. still ahead in honor of tonight's competition, we're taking a look at the ugliesting to s on street and who can give them a loving home that's next. reliable network to tell them when and where to water. so that farmers like ray can compete in big ways. china. oh ... he got there. that's the power of and.

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welcome back to "power lunch. i eat kate rogers and here's your cnbc update for this hour the police have arrested a moroccan man he's also accused of being in a network that defrauded danish buildings. four people were injured when a paris bus got stuck under a bridge they had to take a detour because of road closes in the

station. thigh said jeff neville's condition has continued to improve after he suffered a large slash to the neck that caused significant bleeding. the ceo says they're watching more than an hour of videos on their smartphones and tablets 50e67 kay. that's cbs interest. >> they won't get off the phones with the youtube thank you, kate. >> thank you. >> let's take a look at some of the movers today blackberry missing after sinking on rough knew and comp sales will increasing for the full year sonic moving higher despite missing forecast and oracle continuing its run after getting an upgrade from argos. in just a few short hours from now the ugliest dog context

will kick off in petaluma, california here's the thing we don't think there are any ugly dogs. all canines are cute in their own way. stocks is different. they're flee bitten, not house broken you tell i didn't write this. >> there are no ugly dogs. i have two of them myself. some of these partners to look at some of the stocks tradesing well lolo the average price for the past 200 days. first of all, one of the big ones transocean it's traded on average over the longer term. checking out -- okay well, there's a dog. i don't think it's all that ugly, but, still, it may be

resonating i happen to think that all dogs are good looking next up, macy's. also a stock that's about 30% below its average trend line again, another dog of a dog here but perhaps one that has an upside i don't think it's all that ugly, but that's just me. >> over here we have mattel, a toy maker. complete opposition of hasbro. it's about 25%, 23% below and check out this other dog as well we have another one here we'll take a look at this one here tractor supply another dog to kind of finish off our little look here overall, but there is one mega cap telecom stock.

it's only about 89% below its long-term trend line still one of these stocks that's not performing ly point out on the positive side of thilgts. transocean, 55%. macy's, mattel, 20%. tractor supply, 9. verizon, 10. so it's notary all of a dougish story if you ask some of the guys rngs bam over the two >> let's ask some of those so-called experts if these names are worth buying or will they be in doughouse let's bring them in. gentlemen, good to have you here what do you think of trance oaks, r.i.g., rig? >> the problem is the amount of

debt we would be avoiding this one. you you'd have to look at perhaps the debt as investing in that >> would you buy it? >> no. it's a terrible stock. i don't see any upside here at all, period, so i'd stay away from it. look, everybody is expecting more downside on the commodity in general again, avoid rig all together. >> you've got a sell on macy's that's one i focus on. there are supposedly catalysts at the beginning of the year, but you're not locking at it there's inconsistency with regard to the cash flow.

yes, they could improve but they still have to contend with the amazon halo effect so we would be neutral to avoiding this ving name. >> mr. sieberg, what's your thought? >> it's not a name you want to invest in. it's uninvestable. >> what to you mean by a tradeable stock? >> it looks like it could go to 22 bucks it's like foot locker. from a trading position and the way people base it on short or underweight. yeah, you can buy it you don't buy this one, close your eyes and look at it a year or year out and expecting it to

do anything different. tractor supply who knew. >> yes, perhaps they're going through some transitory issues but i think this that is a short term kind of think i think that your annual in the next two or three years, they're in. >> you wouldn't buy that with somebody else's money, huh >> i think it sits there i don't see the stock as working out. no i'd avoid it here. >> how about mattel and the toy making space. >> >> the problem with mattel and the reason stocks are down is margining as are down

so at this point we would be waiting to see if there's amon come of improvenment to add it we need to see that kick in. >> ken with a man bun, dreadlocks >> who wants ken doll with a man bun? that's gross. >> maybe if you have one, you would cut it off. >> david seger, would you have a man bun? >> never maybe some facial hair they need to prove and skew f execute. again, a name i'm not going to be investing in here i don't think you should put it

in. >> the pressures as well as cut the cord issues. i believe that this company is going to to fine as an you boengt talked about the dead kilometers tooj which if they rung sboolg debt issues, bond is worth zero >> you have a come billion dollar mark or a cap close to it a tremendous amount of cash on the balance sheet. you have a $10 million debt. >> the question is whether or not you've owned the stake here. >> if you're betting that the ten-year is going to din

>> yes look at when yields got to their lows where wu the stock it was in. based on wherein yields crash. 6 i think the store is toifrability not a great business mild. if e believe yield pay absolutely little bit. >> lot's play this gamt. buy verizon with a 10% yield or this at 2%. >> would you waem wear >> i would by the 0 year. >> right there

my gand father held stocks. >> now you're -- if you timerize it, perhaps it's the ten year. if it's 12 years, you want to look elsewhere. from dogs to girlness. take a look at this. this is zoe la dancing his heart out at the dallas zoo. take a look at this. we've taken the liberty of adding video footage ♪ >> zoe la's 14 years old happy birthday. >> btw. still ahead, one company

tends to convince a panel of experts that they have what it takes to be the next big thing and they have 60 seconding we'll find out next. first, rick santelli >> thank you think he must have been shorts oiled. you can clearly see it's been going sideways it looks like ecg. unchanged on the day look at some charts today. if you look at the two-year fielder. you can see on the month to day chart. all maturities will chained on the day. bow, that is a really a big catalyst it's shields are down six basis

points finally, the dollar index. let's take a long view let's look at this chort we now it's hard to gem two bolls up even though they're fighting don't touch that dial. "power lunch" will return in ouabt 20 seconds

welcome back to "power lunch. >> shares of portola pharmaceuticals. it approved its blood thinner. portola plans to launch that drug sometime between august and november it was halted pending the news take a look at those shares now.

they're up 45%, trading at about it time for today's power pitch does this startup have what it takes to be the next big thing in beef. >> my name is monique and i'm the founder of jonty's prour says is simple we use high quality ingredients to maintain the meat's tender flavor america is a country full of consumers and too often do we settle for poor quality products because they're available.

we want to interact with our kmebs and now we have the best quality availability on the market we're now ready to take this to the whole saul market. ge get ready, america. >> twok today's power pitch. joining us is alyssa monique is in the hot seat alicia, kick it up. >> how do you get consumers over the stigma they may have around beef jerky been that the consumers. once you try it, you can see it. >> how much do you escalate is >> overall market size is in the $4 billion to $5 billion range,

even 6 manufacture dollars it's taken off with people being more concerned, the quality. what does it taste like? >> ilgt's the perfect braenchild of bury chute toe beats beef jer jerky. >> we live tlove it. you're doing product expansion how do you grow that without biting. >> we had originally started e-commerce only because i wanted to get it out there. we expanded to stores. >> it's really good. very thaevful that at relative ly pricey.

how do you explain that? >> it's great for diabetics, it's gluten frooechlt that's how you justify the cost. >> thought it was naturally very flavorless, very delicious. >> lt. >> at the moment our home is 100% we work with two tripers by and large, it hasn't influenced us. >> we ta non high protein, low character this company decided to start with brick asnd mortar. so unfortunately for now i'm out. >> the beef jerty market has

experienced strong grouktd i thitd's going to be tough in a crowded market i'm out? >> for me, i didn't like it. i wish there was the voice of south africa or being the tate of south frachlkts what about you? >> i got feedback and i i'm ready to go. >> any enow hook amg am. it doesn't look that a trey tragic tiff. >> worth $11 >> not in my --

>> airports, blaus they them >> i didn't know i thought it came with cheese. coming up organization now hoe good it is to find a quarter in the couch what about finding dollars in urey closet? kotn found some. >> sure did, i will explain how you can do it, too coming up next i put everything into my business. and i had all these points from my chase ink card. so i bought ingredients, utensils, even made custom donut cutters. wow! all with points. that's how i created the ripple: the doughnut in a doughnut in a doughnut. suddenly it's everywhere. i mean, it really took off. what will you create with your points? learn more about the ink business preferred card.

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. welcome back to "power lunch. we have an update for you with house majority whip, steve scalise. the congressman is out of intensive care unit that's according to the source of his situation. there is no update of the hospital that he's listed in fair condition you will recall scalise was shot at a baseball practice last week again, we are hearing from nbc news that the congressman, house majority whip is out of icu. >> back to you >> thank you very much, we appreciate it. >> if you are looking to clear out your closet and making some money. they are playing a website to help sell used clothes

i decided to do a scientific test to earn some money. >> i started out by spending quality time in my closet picking nine pieces from brands like j crew and club monaco now time to sale >> i discovered posh mark is worth more each items have its on wish list and creating one took time to sell, you need to be social, following others and commenting and sharing your listing ultimately, i got offers on four items on posh market it is considerably less work you order a bag for ten bucks and when it comes, you fill it up it took eight weeks to get the

total for my bag in the end, they excepted three items. the club monaco test and the same j crew sweater and pants that shoppers made the offer on posh mark's take $2.95 commission for sales under $15 factoring all of that, my sales came out to be $144. >> for offseason clothing sold on a consignment model my net came out to be $13. >> we reached out to both companies. posh mark's ceo has millions of people selling many items a day. it only accept items of high quality standards that we know

will sell quickly. good news for sellers, they are getting rid of the $10 bag order fee at the end of the month and that may increase your trade off. >> you spend a lot of time for posh mark to get you more money. >> it is interesting of which items sold a lot of them are all brands the j. crew items were sold on both i think because those are brands that shoppers know very well and many shoppers know their size so they search in the app and that's when they pull it up. maybe they look through the rest of my closet and checking out other items. >> that thing fits them. >> yes >> it was a very interesting model for sure >> an experiment for both of very different the tricky part is, you pay the $10 that we know that's going away you fill up your clothes and put it in a bag and send it away

if they don't accept items like i think they accepted three or four of them the rest of them keep. >> they send them to charity and recycle them but i don't get them back. you are still doing it on your own? >> all right courtney, thank you. >> thanks. that's cool. still to come of a the details f the new report and you will meet the man of the high climbing, his stock already doubled this year second hour of "power lunch" starts in two-minutes. okay. i'm plugged into equities- trade confirmed- and i have global access 24/7. meaning i can do what i need to do, then i can focus on what i want to do. visit learnfuturestoday.com to see what adding futures can do for you.

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this is on the menu of a new report out right now the details of which company are getting hit the hardest straight ahead. check out this mystery stock of a healthcare company that shares a surge of nearly 120% this year the executive sharing of this cancer fighting biotech joins us minutes from now we ask what they think of president trump in just one word guess what it is words that can be said on tv we'll tell you those words second hour of "power lunch"

starts right now checking out the markets right now. you can see the nasdaq is higher by 30 points and s & p is higher by six and nasdaq. is higher by 9 bed bath & beyond is down. >> sales were disappointing due to a drop of shares. stock is still up to 70% this year even though it is lower by 11%. i am scott walker beginning of this hour of "power lunch." julia is joining us more >> core cutting is accelerating this quarter most likely for people to drop cable tv are not netflix customers but hulu subscribers

studies are seeing on demand of hulu it is coowned along with disney and time wanrner the study found elevated core cutting specifically with both charter and comcast of most pronounced and at pronounced at charter. >> video subscriber fell as discount expires comcast added 42,000 video subscriber in the first quarter and that was continuing of the hot streak from the first quarter of the best new video subs in ten years. with players like amazon snapping at nfl streaming rights we'll have to see if that change can be a catalyst for more core cutting. yesterday, robert croft, says

ott is the future for the nfl. we'll be glad to see how that trends out >> thank you very much julia taking us inside the market moving report of the author of that note, corey barrett, it is great to have you with us. >> thanks for having me. >> is this surprising? >> is this what the market has been discounting when it comes to a lot of these stocks >> no, that's right. i don't think the idea that core cutting is accelerating to a surprise what stood out to us was that it was most pronounced among hulu subscribers and misconceptio misconceptions -- when you look at core cutting and network subscribers is similar to network subscribers. >> is that because, i am trying to think of the two products

netflix i am thinking of much more movies and hulu is all of the network put in of recent shows so it can closely replicate of the live tv experience, do i understand that correctly? >> yes and no. netflix works on a window of ktv service where as hulu is more day-to-day which makes it closer in age or two of the types of services it is naturally >> it almost surprises me in terms of hulu folks cutting th cords rapidly. you got to watch the ads and you are not gaining time by your day by watchinghulu. you are still forced to watch ads when you are watching hulu >> that's right, what we have seen for a long time is that

cord-cutting has been on the come for the long time it is a generational shift i don't know that the cord-cutting dynamics really owes to or has anything to do with advertising or anything like that or the service in of itself but what we are seeing going forward now is really indications that cue on and there is real evidence of cord-cutting is accelerating an youtube tv being announced and launched within the last couple of months. as a munfunction of that, you g players coming in outside of the existen existence that are disruptive to the current ecosystem and drive heavier cutting than what we see of direct tv now something of the ecosystem >> why does charter stand out in

your survey of the ones most talked about, perhaps? >> i would caveat that charter is still long-term relatively resilient because its got a strong offering. i say charter stood out relative to comcast and we have seen prolong periods of acquisitions of middle of last year of time warner cable and bright house and a period of escalation of core cutti cord-cutting indications at charters we did see indications that it is taking up at comcast as well. but, given the long-term trend continuing for charter that's what -- >> can i ask you you find cord-cutting as i am not going to get my tv service from the cable company nor my broad band service, i don't pay them a check at all or i don't pay them for tv but i will pay them for broad band?

>> in this case we are referring to someone staying with the service or staying with the service provider but keeping a broad band in most cases, cord-cutting inld occasi indications we are seeing it going to broad band bundle amazon announcing they are look to sell thursday night football packages for around $2.8 million get this nfl ads on cbs and nbc are valued around $550 million or $590 million more our media writer at la times, steven, welcome. >> what do we make of this number, is it too big? >> what is the package i mean they have ten spots per game

last year twitter was able to average about 250,000 users watching thursday night football as opposed to 15 million on cbs. are you going to pay, you know, $1 per person when you are selling these ads. so i think this is an experience amazon wants to find out how much they could get and it is an experience for the nfl these streaming deals are non exclusive, you can watch these games on cbs and later in nbc and cbs streaming them on all access what the nfl wants to find out is what is the user's experience like and how many people are they going to reach. it is all about the next package of 2022. these deals are up are they going to give these tech companies an exclusive nfl pa package. that's where the real money comes in >> that means you would not watch it on tv like in the quote

on quote, "old days" and given only to a streamer rather than a broadcast company, that would be an ex centtraordinary event, rit >> it would certainly up for the broadcasters right now games are available and a lot of places if you are coming home from your anonymous meetings, i can see you stream the game on amazon prime >> once you get home -- >> i know. >> that was quite the example. >> you have to evaluate who the viewers are. i would imagine a prime customer is valuable than just some person watching on twitter or watching on a broadcast network in terms of -- they probably profile were well for the

advertisers. >> there is no question that you are getting a premium viewer here and the average of prime household or the honora the 50% of amazon household own $11,000 a -- $100,000 a year when you are reaching customers with this ad, it is like they're already in the store there is tremendous value. again, we don't know exactly what this $2.8 million package is, how much more you get besides a few shpot is in the g. it is about finding data and who's out there and who they would reach something like this and then you can decide how much you can ask for in the future going forward. >> i am sorry. >> i am playing this out as a user you watch it and streaming it on your computer, it is amazon, the ad runs and you can click right

on your screen and amazon can tell you and buy it right now. >> you can watch it right now. >> that has tremendous value >> alexa, buy me that and deliver it tomorrow. >> that has tremendous value how many of those people are there and how many are you willing to pay for each one? >> i mean television network television broadcast television still provides tremendous reach, they can still get to every consumer or potential reach every consumer in america and they can get to a certain number and target quickly that's why money still goes into linear television. >> damn straight >> you said at the offset that this was an experience every experience has a result. what will the result be? will it be successful? >> it is hard to predict i think it is sort of a beauty pageant that we have been seeing with these tech companies and yahoo and last year was

twitter and this year was amazon and they got $50 million close to $10 million i am sure the next package will be sold to $100 million to a tech company >> okay. >> it all leads to that next big contract up in 2022. >> got it. steven battaglio >> thank you for having me >> we also talked about owning whole foods and wrapping my head around what amazon could be one day getting more and more difficult every single day that passes >> i hear people -- well, i hear people raising the question too is that at some point it is too big of a problem and some point is becoming a turn off to people. >> investors >> anybody is enough is enough at some point? >> so you can referencing political issues at some point or are they quote on quote, "too

powerful." >> can you be too powerful to turn off your vital customers. >> and on wall street, what is there left to do amazon will be much bigger >> you know exactly. >> well -- and build it up again. >> here is what's coming up for "power lunch." it is a slow summer for stocks, what is it going to get it moving again we'll show you what he did and one more look at maystery charg. cancer fighting company, its stocks doubled this year and the chairman is joining us next, all that and more, coming up on "power lunch." you are watching power lunch with brian sullivan and melissa on cnbc. first business worldwide [vo] when it comes to investing,

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it is novocure's break out the stock is up 120% this year it is one of the best performance stocks that tracks the biotech index and bill from

washington, welcome to the show. >> thank you for having me >> it is something that you can put your shaved head to treat brain cancer, bill doyle >> sure, it is something we think about of radiation and drug therapies all of those therapies we think of side effects along with benefits our therapy which is tumor treating field is completely different. it under lines the opportunity and the work that we had to do in order to advance and bring this therapy to patients tumor treating field acts on electrical property of cells we know we are a system of electrical impulses and we are able to apply forces to the 14 that are involved in cell

divisions. the cell do die because if you interrupt it and one becomes zero and we kill it as it is >> right now you are looking at phase three and looking to put out four other indications and four other kinds of cancer and that should be out in 2018 can you tell us the time frame of that? >> when we brought the concept there thank you fd-- this conce was found in the 2000s this was completely different and nothing like it. so the fda said start with the most difficult cancer which is the deadly brain cancer clear. all of our initial work was in this tumor we had a successful phase three trial and we were approved by the fda by the end of 2015 it is interesting to know that

the last 23 phased trial have all failed so that gives you an idea of what we are working on we begin to commercialize therapy for brain cancer since 15 >> speaking of which, how much will it cost >> how much does it cost >> because we are charging for them and one thing i will remind everybody while it acts like a drug, we deliver this therapy through a medical device the patients wear patches, they wear the patches and those are connected to a box that provides the therapy. the full package today is list price at $21,000 per month of therapy. that's a global price so europe, japan and the united states. >> in your past life on the investment team. >> that's right. >> as an investor, your stock is

up 120% here to date you would have been overwhelmingly happy as an investor in your past life to stock up that much, does it make you nervous and how should investors think about the gains at biotech >> in our case because of what we are doing is completely new and all of our data is drug-like data but we deliver it through a device there is no real comparable to what we are doing. i think the mark et is catching up to what we are doing. we think today we have about 20% of the u.s. market and about 20% of the german market we have not yet started in japan and gioglastoma. >> when should we get that data? >> we have phase three trial under way today of brain

matastasis this is in response of all cancer deaths. it is hard to pin point this because of recruitment but sometimes in 19. we are running a phase three trial. this is still the number one cause of cancer death in the u.s. i would hope to complete enrollment in that trial in 18 and again sometimes in 2020. we have the best phase 2 data, phase one, two and three of pancreatic cancer. this is a terrible killer. if i have to rank them, pancreatic is among the worst. >> it sounds like by 2022, you could be using off tune for at least three other indications.

>> that's our hope, of course. a final one i will mention is me mesophiliomia. >> it is still growing in europe and asia we just received humanitarian use of designation for our therapy so that mean there is a potential for shortcuts. when people are under gone re radiation if they want to continue with chemo therapy later, it feels long when you wait is there any indications when it comes to other treatments that people may take? >> i am grlad you asked that, on of the best aspects of this therapy is, everything else we tried it with is either

additive that includes the immune therapies that you hear so much about and chemo therapy. >> healthcare bill, you are no long subject to a medical device tax. >> temporarily >> what's your take of what's going on with healthcare in washington and how does that impact you in washington >> i read the same thing as what you read that's as much as what i know of the senate bill. cancer is a true catastrophic event. this is what health insurance really should be all about the extent that legislation allows for low costs, catastrophic plans and more people can afford those, that's ultimately the better for cancer patients >> that's one of the criticisms about healthcare in general and healthcare reform in this country. instead of being for

catastrophic event and things are unexpected, we expect health insurance to be pre-healthcare and paying for things that you should have been pay forget all along and as a result, all that money gets sucked in other things and the moments coming to curing treatments like yours and it is less available and it becomes a fight over a dollar. >> your characterization is exactly right. whatever comes out of you know the next phase in washington provides for affordable catastrophic coverage will be helpful to all oncology and therapy. >> car accidents and cancer. >> exactly >> bill, thank y doyle, thank y hope you come back >> executive chairman. >> my pleasure coming back, the dad of the baseball game, he's holding his baby when the foul ball came right at him

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so you miss the big city? i don't miss much... definitely not the traffic. excuse me, doctor... the genomic data came in. thank you. you can do that kind of analysis? yeah, watson. i can quickly analyze millions of clinical and scientific reports to help you tailor treatment options for the patient's genomic profile. you can do that? even way out here? yes. even way out here. even way out here? we rbut we are not victims.ack. we are survivors. we are survivors. we are survivors. and now we take brilinta. for people who've been hospitalized for a heart attack. we take brilinta with a baby aspirin. no more than one hundred milligrams... ...as it affects how well brilinta works. brilinta helps keep platelets from sticking together and forming a clot. in a clinical study brilinta worked better than plavix®. brilinta reduced the chance of another heart attack. or dying from one. don't stop taking brilinta without talking to your doctor,...

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welcome back to "power lunch. we take you to the good and the bad. onto the bad, sysco, of the food company, it is one of the worst performance in s & p 500 and it is an ugly day for bluebird bio, you see the stock is down 7% speaking of ugly melissa, the new york mets of a rough lost that was nothing compared to what happened in the stand a met fan tried to catch a foul ball while holding a baby in his arm. he does get the ball but he gets a stern talking from his wife, rips the baby out of his hands >> did he drop the baby? >> no, he did not. [ laughter ] >> did he get the ball

yes, he did. >> yeah, hit the baby. >> will the baby eventually get that ball? >> happily ever after. >> look at all the men cheering. >> look at all the men cheering. >> that was a little too close >> what was he supposed to do when the ball is coming right at him. >> he was supposed to cover and duck to make sure the baby does not get hit. >> i am rarely judgmental, you know me. >> this is the best of both worlds the baby is fine and the guy gets the ball. >> all right he really wanted the ball. >> steve schwartz is making a huge bet with his money hoping to ease global tension by starting one year of international group of young

people our cnbc follows these i am previo impressive students studying in china. take a look. >> reporter: they're extraordinary, 110 students chosen from more than 3,000 applicants, tougher odds than getting into harvard they'll face a class of cultures and language barriers. >> and unexpected turns. >> don't do what i did >> in a country where the government watches every thing there are so many interesting things to understand about china. how have they been able to revolutionize their economy. what does the chinese students think. these are interesting questions for me and they're the ones that i cannot answer.

to find out how these fascinating young people contend with surprising culture classes, be sure to watch the best on "a billionaire's bet. >> 110 grad students and 52 from this country at the end of the program, they'll get a master degree and the advise board they put together you are talking about who is who. tony blair, colin powell and kissinger and you talk about a collection of impressive young people, this is it it certainly gives you a really unique perspective, i think in the relationship between chienaa and the united states as seen through the eyes of students on both sides of the world. >> interesting we have to watch 10:00. >> lets head to courtney reagan for our news update. >> here is your news update.

americans are believing james comey than president trump when it comes to different accounts of the event that led to comey's firing 21% say they believed neither of them >> richard richmond, the chair of the black caucus explained why the group is turning down from the meeting with president trump saying there is no follow up of the idea they presented last march >> to go down 49 members at the white house to have a social gathering because that's what it would be, would not be productive my membership decided it is not something they were interested in doing another baseball story for you, the first pitch at a baseball game can be confusing act actor groover turned around. she wound up and delivered and

the mascot gave her a big hug. here is your cnbc news update at this hour. >> she was faking it she was faking that. >> she's an actress. >> i mean so -- look at the big mascot obviously, you are going to look this >> the throw was better than 50 cents. remember when he threw it? it almost went sideways. >> you don't have a mic on yet [ laughter ] >> you are in the next block >> how long are you been on tv thank you. >> s & p 500 as flat as it can be this morning. >> the word they used next on "power lunch. or plan for tomorrow? at kpmg, we believe success requires both. with our broad range of services and industry expertise,

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welcome back to "power lunch. take a look at where stocks are right now almost flat. dow is higher than 2 points and nasdaq is up by a half percent oil in the meantime is closing here, 42.97 higher than a half

percent. it did hit a ten-month low earlier this week. it is a low month for wall street look at the vix is down again. >> lets bring in our bill stone and peter anderson of chief investment officer and cnbc contributor, what do you think of this market compelling evaluations and sales and buy anything >> i think it is hard to say compelling evaluations >> about anything? >> i am sure there is some pockets of interests out there mcdonald's is going to a new all time high as and apple is still looking decent >> i don't think the market is terribly exciting. bill stone what would you do right here is there compelling evaluations some where else? >> i think the value is better

internationally. you know u.s. still looks good as ron ais talking about there are still good things to buy here and tilting more than normal than international. >> why >> any evaluations is cheaper than our focus here on europe. the second part is they're in a point where you see real earnings momentum there because they never really got it after the financial downturn, well, they never got much economic momentum either. they're seeing some of that and as long as they can keep it going and the pmis today that we got earlier this morning while a little worse than before is still really good. we are feeling good that's showing up >> here is a time to begin to energy equities. >> biggest influence in 16 weeks. >> yeah, i know energy, i am still thinking that it is

bracketed by 30 or $40 price i am interested in domestic equities with trump's gridlock, i think we all can agree that we are in gridlock with trump and i think there are some benefits to that and putting the whole issue to the side we can get back to the fundamentals there are plenty of stocks out there that we are not paying attention to because we are so distracted and trying to ins grade all the trump-economics and we are decovering that and lets get back to fundamentals. >> tom lee today took his earnings for the year and next year down. he has the lowest target in the s&p on the street. >> it raises the question really do earnings needing to go up actually need to come down >> yeah, i would not doubt it and from that perspective, the market is probably over valued of the easterning perspectivrni.

we see the u.s. that could pull profits down a little bit. it is an interesting proposit n proposition. the distance for stock is down we have only been trending higher for the last couple of weeks and end of january, we have not made up that much ground it is largely a side way affair with specific stocks out performing dramatics in the sense of lee cooperman was on saying it could be less than $10 >> he does not think of all of this stuff and infrastructure and healthcare to some extent not going to happen. >> not this year, at the current pace of activities, and republican senator opposed the senate's healthcare bill we are kind of stuck there at this point and that's a predicate for tax reform which

does not look like it is going to hit the calendar. >> you think there is gridlock and yet you said that led to some names being ignored like what >> well, i remember contrary contrary -- we have not talked about that for a long time, going out of the limb and look at general mills, for example, that's the most hated stocks right now. they can cobble together an action plan to get themselves back on track. you got maybe of 10 or 15 or 20% over the next few years. things like that have really over shadowed by all the trump-economics and we put things aside and looking at stocks getting a sense of are there contrary out there >> okay, gentlemen, thank you. >> bill stone, peter anderson

and ron isonia >> we asked business leaders to describe the president in one word and one word stood out. we'll take you inside beverley home owned by ozzy osborne but he's not the only celebrity that lives there. our "power house" is next.

time now for "power house" as we bring in you inside a celebrity's home robert with more on this "power lunch" big crib. exactly. >> from oz to ozzy >> this $22.8 million estate in beverley hills that was once home to the osborne is designed around the property's private tennis court every inch of the 15,000 square foot residence was made for entertaining the fireplaces are all hand carved >> this one stands about six feet tall. >> there are nine bedrooms and marble covered bath. check out the grand movie

theater and two lane boeiwling alley. >> the osbornes were not the only famous people who lived here actress melanie griffin. the home was built 1981. for $22.8 million, there is no place like home. if you don't have that $22.8 million, you can lease it for about 100 grand a month. it is sold for 1995 for 2.6 million so it is gone up since then if those walls could talk, during their interesting marital situations

>> house has a lot of stories and fun. [ laughter ] >> and we asked leaders to describe president trump with one word jackie is joining us now with the words they used. >> these are their words and not mind they were not very kind. reckless, unpredictable, erratic, chaotic was one that was used multiple times. the words were harsh and the sentiments have changed when it comes to cfo's feelings on trump. >> we asked them about obamacare, corporate tax reform and building the wall. we ask them about the stock market with the dow before it falls back before 20 k interesting where they think the mark is going to see strengths they think that strength, 40% says it is going to come from technology that was up from 20% from last

quarter. financial drops to second place but 15% thinks that things are going to be a bright spot. when asked how they think the feds are going to think, little more than half says we got our two rate hieneights and we are seeing more this year. >> just under 60% said they are system what concerns of both possibilities. what keeps them up at night, concerns of consumer demands and cyber attacks. >> cyber attacks >> so did not have the opportunity to elaborate and they did not volunteer >> what's interesting is the cfo's words were not all that complimentary but the business counsels and ceos, have a high

level of optimism. >> you joe cornyn made a good point, they may change their tune >> it is the highest they have been for decades does this mesh with the reality of how business really feels about what's ahead they also asked of what they think about the person >> sure, which is different. to that point a lot of what they are excited about is if president trump had not won and had been hillary clinton instead, where would regulation be going instead of going down and it is going down regardless of what the president is doing congress is rolling back a lot of stuff if hillary clinton had been president, regulations would be going way up counter factual regardless of you think he's reckless from a business sense to what looks better >> people always find it bright no matter who's in charge.

still stocks are slump this year, they are popping today, we'll talk to the man who upgraded to those names next on "power lunch." are you ok? what happened? dad kinda walked into my swing. huh? don't you mean dad kind of ruined our hawaii fund? i thud go to the thothpital. there goes the airfair. i don't think health insurance will cover all... of that. buth my fathe! without that cash from - aflac! - we might have to choose between hawaii or your face. hawaii! what? haha...hawaii! you might have less coverage than you think.

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great year for steel stocks. ak steel and u.s. steel are both down by 20%. but our best bet says now may be the time to get in joining us by phone is the man behind the call. he's the managing director and analyst there. welcome to "power lunch. why is now the time? the stocks have certainly had a better month >> sure. part of our rationale in the upgrade was really based on year to day week price performance but we also think section 342 could be another catalyst to keep in mind >> what is that? >> well, section 342 is --

>> in other words, their going to constrict overseas supply which means you're going to get more internal demand domestically and push up prices? >> year to demand date has actually been up 4%, but their tracking 14% higher. so we think section 342 could be a powerful factor when the terrorists started rolling in on the steel sector to boost demanding am >> you do mention higher up in your note the president's pro-growth agenda seems to be increasingly hamstrung by pro-growth politics. why would that impact the steel stocks >> we don't want to put too much weight out of what's coming out of washington in the next new quarters the fast act, that was passed in december 2015, we're actually

starting to see the trickle through of spending on bridges and highways happening right now. and we think that's going to accelerate other pro-growth could be infrastructure spending, but that would be a medium term thing we would expect. and maybe section 332 will -- >> are you basically saying these stocks will see a boost primarily of these sort of manufactured, if you will, reasons why steel prices will go higher it's not necessarily global demand because at the same time we're seeing a rapid decline in the growth of oil. the other indications for industrial metal demand around the world or industrial uses are not necessarily great. >> yeah, i don't know if i'd call it manufactured demand as much as sort of leveling the playing field. the u.s. has been on the receiving end of unfair compermission from china in the

recent years and the fact that the government is now taking seriously to try to level the playing field and have fair trade, i think that's an important factor that can't be discounted. >> yeah, wilbur ross talks about it all the time. >> thank you very much >> check please is next. don't move (dance music) (large boat honking) ♪ i'm living that yacht life life life life ♪ top speed fifty knots life ♪ on the caribbean seas ♪ it's a champagne and models potpourri ♪ on my yacht made of cuban mahogany ♪ gany, gany, gany ♪ watch this

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this week in the past few days or so could be a real turning point for healthcare as a whole. but in particular the bio tech stocks is up by about 9% this week alone and this is on very heavy volume scott, i know you noticed this but the past three days its been multiples of the average volume traded >> healthcare, they've been the leadership group, the real standout zblch it feels like it's just something beyond -- >> it could have also been the rotation of other growth areas going into bio tech. >> i'm still intrigued by amazon -- now it could be a grocery store and an nfl --

>> a fill in the blank store don't forget, 10:00 p.m. eastern. don't want to miss out what's going on over in china with some of our best and brightest. >> thank you for joining us. "closing bell" starts right now. and welcome to the "closing bell." i'm saraizen >> and bill griffith the dow and s&p trying to avoid a four day losing streak this hasn't happened since midmmi mid-may, by the way.