want the look at aalphabet back to work. see strong upside call buying. bought it during the show here today. >> is this over in fang? another little blip and back >> netflix it is over. i think in apple probably over google i'm making that bet, as well. >> thank you for being here. >> thank you for having me. >> "power" starts now. >> i'm michelle and here's what's on the power lunch menu president trump meeting face to face with russia's vladimir putin for the first time ever. g20 leaders talking trade, steel, north korea, syria. and talking a lot longer than anyone expected. how's the president doing at the summit we have a live report straight ahead. strong jobs market even stronger but janet yellen faces a dilemma as the fed faces raising rates what about inflation nowhere to be seen an area of the economy seeing it, though beef rising prices eating into the bottom line of america's steakhouses. ceo of uncle jack's weighs on that and the battle of minimum

wage as "power lunch" starts right now. >> it is friday and we are in love with the stock market apparently because that big league jobs report has stocks higher and we should finish higher for the week once again the douby the way is now up more than 8% for the year some of your individual standouts today, you have the home builders as well as semiconductor and equipment makers lam research and 'plied materials. it is not all sunshine today sears shares down again. announcing even more store closings more on that later on. tyler? >> thank you very much welcome, everybody we begin this hour with this first face to face meeting of president trump and russian president vladimir putin in hamburg, germany beyond that meeting, so much to talk about steel, tariffs, trade, protectionism, climate, north

korea. ayman jaefrs live with the latest eamon? >> we are inside the hotel here in hamburg it was hairy on the streets here with the protesters out there marching against the g20 some rioters smashing the hotels of the ho pel where we are and we are inside and we can tell you that vladimir putin and donald trump did meet just over two hours as you say we got a little bit of an idea of what they talked about going in we saw pictures and then heard from the president, his take on what they were going discuss here's what he said. >> president putin and i have been discussing various things and i think it's going or the it is very well we will have a talk now and obviously that will continue but we look forward to a lot of very positive things happening for russia, for the united states and for everybody concerned. and it's an honor to be with you. >> reporter: so the president there saying it's an honor to be

with you to vladimir putin but not giving us a lot of indication on what specifically was talked about in that session between the two leaders. angela merkel addressing reporters here gave a little bit of a sense of when's been discussed so far today at the g20 including saying that the g20 offers a chance for a multilateral steel agreement and also saying that the president trump attended the first part of a climate meeting and took the floor at the meeting, that being a flashpoint here, a lot of european nations angry that the united states is pulling out of the paris climate accords and then angela merkel saying that they agreed to work together to dry up sources for funding for terrorism and the members to talk closely with internet platform operators on security so that's something that the tech sector might want to keep an eye on and we are told that senior administration officials are going to brief reporters here a couple minute's time and expecting more details of what exactly was hammered out between

the u.s. and russian sides when they brief and bring you that as soon as we have it >> thank you very much. one of the wig big takeaways of the meeting of president trump and president vladimir putin has the president performing at the first g20 meeting? with us is angela stent director at georgetown and dan dresner. thank you for joining us two and a half hour meeting. scheduled for 45 minutes we also did get an announcement about a potential agreement of a cease fire in syria. what do you think, angela? is this far more significant than what people had originally anticipated to come out of this? >> i think it is i think everybody deliberately down played expectations before the meeting and a pull aside and then be a bilateral meeting. if they talked for that long, they must have talked about substance. we hear they made an agreement

of cease fire in syria i would caution, of course, we have had agreements in syria with the russians before and broken down but i think it is significant and i think if even when you looked at the body language of the two leaders before they went into the closed meeting they went out of their way to be respectful towards each other, praise each other, putin stressing that bilateral relations are important. so are multilateral relations an means i'm a great world leader i'm not a regional power as president obama once described russia with president trump saying he was honored to meet him. both of these presidents wanted to come out of this looking like a winner, showing to - >> sure. i want to get dan in here, as well tantalizing headline crosses from intrafax, russian news agency putin telling them they discussed cyber security with trump. do you think they talked about the u.s. election? >> let me put it this way, it would be damaging to trump talking for more than two hours

and the election didn't come up. you can understand in a meet and greet of a half hour without an agenda trump not necessarily brought it up an no expectation he was going to bring it up but talking for two hours and among other things cyber security was on the agenda, if the election hacking did not come up or the degree of disinformation spread by russia in the campaign did not come up, that's very damaging to trump domestically. >> you know, dan, one thing to tend to forget about with trump and russia, put season a strong leader in his own way, but the country is not strong. you've got an economy that is shrinking. you have unemployment that's up from a couple of years ago effectively a one or two commodity economy. do you believe that in these negotiations personal stuff aside that putin has any position of strength coming into this discussion? >> well, he has a few, you know, tools up his arsenal one of which is that donald trump clearly wants better relations with russia and has --

we have been hearing stories for stic six months now the degree to which the trump administration wants concessions, return of compounds to the russian federation or accommodation on syria to generate better goodwill - >> do you believe that russia is a strong or weak nation economically >> economically in weak nation. >> how about militarily? >> militarily, they're stronger than they were ten years ago they did a decent job of building up the military and if nothing else vladimir putin demonstrated the will if he wants to to use force in the near or broad as he defoons and no question they're more powerful militarily. >> angela, when's next >> first of all, the russian economy turned around. it is growing this year. yes, it has problems and clearly falling oil prices and sanctions and the lack of reform have affected it badly but it's doing

better they have weathered the worst of the crisis so far. >> it was contracting 5%. >> yeah. and so - >> it was in a deep, deep, deep recession so anything above a contraction is -- i mean, i wouldn't consider that better. just slightly less worse. >> their agricultural sector, in fact, done quite well from the counter sanctions imposed on the europeans so the picture's maybe -- it's not a black and white picture an of course they do have the ability to project military power not only in the neighborhood but in the middle east i mean, they have come back into the middle east in a way that they haven't been there since before the - >> there's another headline to get to which surprised me a little bit. diplomatic speak, for the audience not familiar, when things go very badly in a meeting, diplomats say it was a frank discussion angela merkel today said the discussions about trade are very difficult. i don't want to talk around that that is above and beyond what you would normally hear from a

leader during one of the meetings it suggests that behind the scenes, put aside putin, but the issue of trade is really dominating these discussions aren't they, dan >> yeah. i mean, and this is obviously been a thorn in the g20's side because while most of the members of the g20 by an large, you know, been consistent in calling for restraint on protectionism or promotion of free trade, donald trump sounded extremely different note and this summit is happening just as the trump administration contemplating section 232 which is a national security exemption in terms of raising barriers to trade in terms of steel imports and problematic for a number of reasons and not the least of which is the trump administration's complaint primarily of low cost chinese steel and the chinese doesn't import that much and no small part because the obama administration implied regulations and any type of action against steel is going to

be directed against our allies which are primarily canada, south korea and germany. and so that would be understandably upset if these kinds of across the board tariffs imposed and still unclear to degree to which the administration will go forward on this. >> we are waiting to see that. the administration also argues that, in fact, they think what happens is chinese steel ends up in the other countries because of dumped elsewhere and ultimately ends up here and a discussion for another day great to have you both really appreciate it and will and dan. monthly payroll number blowing past estimates jobs grew in nearly every sector steve liesman who lied in russia for a while is here. anyone characterize this besides a good report? >> english or russian? >> as you prefer. >> english i think it's characterized as a very good report and rumors of the death or the softness of the job market premature and

exaggerated. a quote of oxford economics. very much from brian said. a solid report that reflects still strong increases in payrolls and modest gains and here's the numbers they like looking for 174,000. march, april revised higher. unemployment rate ticking up and you get it in the noninflationary way and average hourly wages disappointing, a modest gain right there. here's where the jobs were leisure and hospitality, government and all local that government level federal down construction, temporary help and retail, first job gain in five months over at barclays, saying the fed believes activity and labor markets will lead to higher inflation and likely comfort that the recovery will continue despite the modest removal of accommodation. the market, not so much. they really didn't increase rates today. whatever they think is going to happen this year, for the fed was confirmed by this number

this morning. >> actually, rates at first fell marketedly. >> came back on wages and the unemployment rate rising, right exactly. there's a great chart for the discussion or i can show you now. >> save it. >>okay we'll come back to it and show you how -- >> you pretty much nailed the number on payrolls. >> over time, reversion to the mean ends up making it plus or my nous 50,000 time and i'm on a good streak. >> play that number. 220. all right. stick around the big dilemma of the fed now raising rates and inflation is still low for the fed. so how's this going to play out for investors? bring in tom percelli. tom, what is your spin first on the jobs reports and what it says about the economy and second, what it does or doesn't say about one of the fed's key metrics, inflation

>> so the unemployment report broadly speaking suggests a consistent pace. 2% the 2.5% clip nothing changed in that regard we thought it was a good report and even sort of a guts of the report we thought fairly constructive some people made a big deal of the up tick in the unemployment rate and keep in mind, not too much in the weeds on this one point, but keep in mind it came with a labor force that actually rose by 361,000 which generally speaking is a big increase and expected a more sizable increase and the reason you didn't see that is because huge portion of that 361,000 increase absorbed via employment so it was a really nice outcome overall. the wage picture i get it. right? average hourly earnings is what everyone wants to focus on and wrong. we have been saying this for years. average hourly earnings is an incomplete measure of wage picture in the united states you have to also look at hours and when you do that and see we

had an increase in hours so the paycheck for folks actually increased over the course of the month. so net-net we thought it was a good report that keeps the fed engaged in this cycle. >> i don't understand this people worried about wage growth not as strong. if that many more people entered the labor market, that's a good sign they think they can get jobs increase that would tend to absorb any potential wage increases as if they hadn't come into the market. >> it is all about the question of where full employment is. where is the point where -- how do you say this? where the job market is tight and therefore employees have the ability to bargain for higher wages. now, can i just get to the really cool chart here >> hold on i think it's an important -- >> chart. >> let the chart hang out there. a greatest tease we're deep tease no to michelle's point, if old people retire and young people are coming in -- >> that's a component of it. >> less money. wouldn't we not see wages go up

because of - >> demographic issue over a year you have historic baby boom retirement what you don't see, though, is overall wage growth for the level of unemployment where we're at a fen you look at the last two times we were there, here you go. >> this is your chart? >> this is my chart which shows you the last times where the blue line dips down, where it's near the unemployment rate of now. what happened to wages rising at about the same year over year rate as -- go on ahead to the next period that happened down to that low unemployment rate wages were rising. and then look at the gap now you can see that for the given unemployment where we are now wages are severely underperforming which i'm sorry to say to the great economist that undercuts the argument a little bit previous times with the low unemployment rate we have had stronger wage gret. >> yeah. so it's a totally fair point

here's what i would say. the problem is wage rigidity it's funny we have been half joking saying we need more quitters in the labor force. more people to leave and take a job if you look at a chart of quitters today verse where they were sort of in the previous cycle, they're roughly similar the quit rate is roughly similar. when's different wage rigidity. wages are rigid today. basically people that are staying at work that are seeing zero wage increase, it's extremely elevated >> right. >> so what has to happen from there to push it along it's sort of a circular idea the beginning of the conversation you actually need people to leave because guess what's happening. people leaving the work are rewarded for leaving the quitter run rate from a wage perfective is one full percentage rate higher than people that stayed so sort of a -- >> what does that mean, tom?

>> so yeah what that basically means if the cycle moves classically in a tight labor market then people that stay, they don't necessarily have to leave because employers will pay them not to leave and that's usually how it happens. in fact, you are starting to see signs of that developing right now. >> i come at it from a different point. i think the dynamics of inflation are either more -- or even dead at this point. i think a big part of that is a little bit what tom is talking about which is the global nature of production. >> okay. >> you compete with people all over the world in ways that you never did before and at kind of occupations you never did before the ability of this mechanism looking to, tight labor market leads to wage growth leads to inflation i think that process is broken and in way that is when i listen to the fed i think they're beginning to believe this. >> models are outdated

>> i don't know. i don't think we have another idea to take its place for that -- >> why is the job market growing and gdp continues to lag >> another interesting point. >> doesn't match up. something is wrong in the way -- >> tom, i'm so sorry we have to go. appreciate it. >> next time next time. >> next time >> thank you, tom. jobs actually grew in the oil sector, as well, despite the continued slide. all the new rigs every week helping put people back to work. let's find out if they grew again. jackie >> good afternoon, brian that's right baker hughes reported to see an increase in rig count. seven more oil rigs added for the week and up to 763 this is up from 412 last year. remember, we had 23 straight weeks that the number was going down last week, we had a slight bump. this week, a slight bump, as well this is certainly supportive, constructive traders went to see a trend here and see it build up a little bit more you can see momentum to the

downside today and they continued to slide session low was $43.78 but two weeks in a row now that we are going up. back over to you. >> thank you very much now a market flash. >> hi. we are watching shares of tesla. added to earlier gains after updating the quarterly vehicle and production report. tesla now says that in addition to second quarter deliveries about 3,500 vehicles in transit to discuss merles at the end of the quarter. these will be counted in third quarter deliveries shares as you can see rebounding slightly after falling as much as 15% in week through yesterday on lower than expected second quarter deliveries and new model s safety issues. >> all right thank you. on deck, where's the beef? prices on the rise and they're taking a big bite out of the bottom line of restaurants but is the economy strong enough to handle this kind of an inflation? we'll ask rest raur and is the oracle of omaha seeing a market

downturn ahead why the latest multi billion dollar bet might be sething off alarm bells for your money uch. thank you! so we're a go? yes! we got a yes! what does that mean for purchasing? purchase. let's do this. got it. book the flights! hai! si! si! ya! ya! ya! what does that mean for us? we can get stuff. what's it mean for shipping? ship the goods. you're a go! you got the green light. that means go! oh, yeah. start saying yes to your company's best ideas. we're gonna hit our launch date! (scream) thank you! goodbye! let us help with money and know-how, so you can get business done. american express open.

what should i watch? so you can get business done. show me sports. it's so fluffy! look at that fluffy unicorn! he's so fluffy i'm gonna die! your voice is awesome. the x1 voice remote. xfinity. the future of awesome. striking a deal for one of america's power transition companies of encore which is owned by energy future but what does this deal possibly signal about the intentions and thoughts on the market let's bring in shareholder jeff

matthews on the phone. fifrs off, are you happy with the deal >> i think it's great deal for berkshire. it's what he would like to call a slow pitch down the middle $18 billion of cash. he's going to earn a lot more on that than holding the cash in the bank it doesn't dent his war chest. he can still hunt for elephants and meantime bags a deer. >> pretty nice when $18 billion doesn't dent your war chest. i have to admit. you know, this also by the way makes berkshire hathaway one of the america's biggest energy producers. we have a chart of 1999. seems a lifetime ago but october of '99 buffett bought mid american energy and then we know what happened. the market tanked as the intranet stocks rolled over. do you think this deal is in any way a buffett hedge against a possible downturn? >> i have to say i don't

i really think it's just something that came down the spike. remember, this is -- berkshire mentioned in connection with this maybe six months ago i think their name first came up i don't think there's any kind of market timing issue here. i think it's just an opportunity that came along. buffet does not time the market. he looks for deals and when the price is right he will go at it. >> i guess he must sort of accidentally or ins didn'tally timed the market well in '99 but doesn't signal anything here other than a good deal. >> yeah. no you know, think back to then it was just old economy in the tank and cheap and he was buying all the economy and then that happened to look really smart and doesn't sit around and say, what do i time today. >> it did and berkshire stocks up this year thank you. have a great weekend. headlines crossing that are

coming out of hamburg. we have seen the foreign ministers, in our country the secretary of state and tillerson speaking and lavrov in russia. and the headline from secretary of state rex tillerson is that the two leaders acknowledged the challenge of cyber threats and interference in the democratic process in the u.s. and other countries so it appear that is the election was discussed during the meeting the you heard the discussion at thetop of the show about whether or not this was going to be addressed lavrov confirming there was an agreement on a cease fire in syria starting july 9th. jordan also announcing that, as well and there's also been u.s. representative when's going to visit ukraine appointed to ukraine. a point that continued occupation in the western part of russia and taking over of crimea and still is the reason why sanctions still exist against russia eamon is out of the meeting there and joins us from hamburg with more. eamon? >> reporter: yeah, hi, michelle.

senior administration officials are briefing reporters as we speak and one of the pieces of news here is that they're saying that president trump opened his meeting with president vladimir putin of russia by raising the concerns of the american people about russian interference if the u.s. election and answers a big question that a lot of people had going into this would president trump raise that issue and there was some sense here in a meeting that went as long as this one did over two hours that it would be nearly impossible for the president of the united states to avoid that topic and now we are being told by u.s. officials that, in fact, he opened with that topic and pressed president putin repeatedly, talking about cyber security and interference in democratic processes around the world we are told and that ultimately led to the agreement on a frame work here in terms of cyber security going forward the officials are framing this very much as a discussion about the future of the u.s./russia relationship and saying that the two lead earls discussed a

number of important issues including on syria and you guys have been discussing they're saying that the united states, russia and jordan agreed to a de-escalation process in the southwest part, particularly near the jordan border of syria. that they say is laid out in very specific detail including who will get to control the region there exactly how that will be handled and the timing specifically of any cease fire that's going to take place there over the weekend, this weekend. that briefing is ongoing and bring you more headlines as we have them. >> in fact, as you were speaking, eamon, rex tillerson quoted as saying it's not clear to come to a conclusion on election interference but that the u.s. is seeking a commitment not to interfere in u.s. affairs and they're focused on how to move forward on what may be an intractable difference. >> reporter: yeah. that's a diplo-speak for

agreeing to disagree if russian side has not acknowledged any interferon in the u.s. election. u.s. intelligence concluded that, in fact, they did and the president of the united states occupies sort of a third space here where he says he believes it may have been russia and may have been somebody else. so with all that going on, it is unlikely that the russians, a, acknowledge that they did it, and b, agree to take any steps not do it in the future if they're not acknowledging that they did it in the past. nonetheless, the president pressing president putin on this issue. officials saying first right at the beginning of the meeting. so that's an important point from the white house - >> often in legal matters, of course, when people agree to settle a case, they agree to not do what they said they weren't doing in the first place and so, maybe that's the most you could ever expect out of this that we'll agree not to do -- >> reporter: cyber security experts will tell you that the russians conclude from this that this kind of sort of below the

response threshold activity really works it was effective and the ukraine and central europe and united states and will be tempted if they're not already making plans for 2018 and then of course in the presidential election in 2020. you talked to some republicans in washington and they are concerned thinking that it's not clear how those elections play out and what side the russians decide to come down. >> looking at live pictures as you speak, eamon, looks like macron walking in with donald trump and his wife, as well, with the first lady walking into the main hall for what - >> locks like -- >> some kind of a -- >> this is the - >> angela merkel walking in, as well. >> the g20 concert here at a brand new, gorgeous facility here, symphony hall, the elfi is the nickname for it. a social piece of the event, an opportunity for the world

leaders to gather. it is a beautiful facility we have seen the outside of it i haven't been inside and seeing the interior now and the world leaders we saw all walking in. president trump coming almost directly from the meeting with vladimir putin to this meeting we saw he and the first lady walking in together just moments ago and now taking their seats there in the hall. not clear what's on the program here tonight but some entertainment after the work day remember, it is about 7:30 p.m. here in hamburg, germany. >> you will be shocked to hear crossing as we were speaking that tillerson told in his speech or in his talk that putin denies hacking the u.s. election >> reporter: he denies hacking, right. consistent with his previous denials of hacking and shocked to hear he's confirmed the thing he said all along. >> is hacking -- eamon, also cyber security expert. is hacking the right term or

meddling seems more appropriate people have come up- >> yeah. >> people asked me did russia go in and change votes on computer servers? >> right. >> which the word hacking implies that >> yeah. that's a good point. i mean, hacking would imply that in this case, the was the theft of e-mails which is a hack, right? it was a much more socially sophisticated hack, right? not just involving the hacks of particular e-mails but also deploying those, strategic release of information in a very savvy way designed to impact voter sentiment here in the united states and something russians have done in other countries, first time we saw it rolled out as aggressively in the united states and much more than a hack. >> that's a picture there with xi xinping of donald trump macron of france merkel, as well as other leaders. i believe the south korean leader sitting to the president's left that is really a -- where's putin? haven't seen him

maybe he's still - >> apparently vladimir putin and, michelle, you might know more than us likes to make the entrance known as being the last man in the room which is, you know, sort of a universal sign of social power. >> famous for making everyone wait all the time. no matter how -- if you're an equivalent, head of a state, he made angela merkel, wait very angry. >> coming in the late comers seating break. >> a power move, right i'm more important i'll make you wait. >> christine lagarde this is a new theater as you mentioned, eamon, built at cost of $200 million and i bet the acoustics are great in there i wish i could hear what they're saying right now drfr talking with macron. >> said to be fabulous, michelle it is said to be a fabulous facility and also told that this facility is focus of the ire of the protesters that we have seen

out in the streets they feel they spent too much money on the facility and they feel it's sort of a focal point for the globalist capitalist elite and in the streets here today. >> to your point, the number i just quoted was the original price tag. it went over budget to $243 million. way overbudget >> these things tend to do this. >> i don't want to put you on the spot here, buddy do we have any idea how locations are selected and why hamburg was selected if you're going through a list of cities where you probably don't want to have this kind of meeting, i would imagine hamburg's at the top not because it's not a nice place but to your point, eamon, a sort of capital in germany of sort of a resistance, anti-capitalist movement the meeting is a city that's hard to manage with the water. do we know why they selected hamburg? >> reporter: well, that is a point of contention here in

hamburg today. people feel like this event should not have been hosted here give you a sense of the geography here we have our backs to the river here about a mile to my left is sort of a headquarters of the anarchist movement, the neighborhood where that movement is centered and seen a lot of riot activity and police activity and then about a mile or more to my right is elfie with the world leaders gathered. they couldn't be closer to the epicenter of the anarchist movement in this city seeing the activity over the year to your point. some people have said, you know, maybe it wasn't the right place to hold this and maybe they should have held it at a country retreat and not a major city near a university with this kind of history to it nonetheless, the world leaders are here angela merkel wanted to show that germany could do this. >> we are looking at modi next to justin trudeau on the screen. >> sure. >> to tyler's point, you can imagine the security levels to have so many important people in

the same room at the same time. >> i will get in significant trouble because the 0 producer is a german-american we'll watch some video and peruse the german language network paper this morning what are they saying >> putting her on the spot poor thing working here in the meantime -- >> waiting for trump not too critical according to the german papers. >> hamburg very famous for shipping, eamon. lots of shipping bankers are there. >> reporter: yeah. a lot of shipping. this is a major port facility. we have been staring across the river at the port facilities here in hamburg legendary and go back centuries and as we were talking and looking behind me and see a sort of a flotilla of protest boats floating in the river here that are going right past that area where the elfie is and the world leaders and taken to the water here as well as in the streets of hamburg to get the message across that this banner on the boat that just sailed just behind us just now

said time for a change so the protest movement is visible here and not to those leaders inside the concert hall right now. >> got it. thank you, eamon >> you bet. >> with the headlines of what happened between vladimir putin and u.s. president donald trump. we're going to take a break now, me, ght? co back, talking the markets don't move. >> why not whoooo.

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welcome back watching shares of blue apron closely down more than 5%. trading at. >> caller: 7.50 a share or around there well below the ipo $10. went public in late june trading down more than 24% certainly not an encouraging sign awaiting analysts to s itiate coverage or readingon the stock. "power lunch" is back in two minutes. well, when you have copd, it can be hard to breathe.

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hi, everybody. i'm sue herera police say the hostages have been freed in the wells fargo bank robbery northwest of atlanta. the suspect remains inside we're monitoring that ongoing situation for you. the uk's high court rules today if a british baby can come to the u.s. for treatment. two u.s. hospitals believe they may be able to save 11-month-old charlie gard he suffers from a deadly genetic condition. firefighters investigating what caused an apartment complex under construction to go up in flames today in oakland, california and damaged at least one house. do reports so far of injuries.

and a freak play in the pittsburgh phillies game a phillies bat flew into if stands last night. the play is in play. the first baseman didn't know that he missed the ball the result, the phillies got the first run and couldn't hang on on the the lead. the pirates won, 6-3 that's the news update this hour back the you guys. ty >> all right thank you very much, sue appreciate that. the latest data showing a big jump in jobs, 222,000. added in june. that is the most in four months. so is the economy back on track? jobs are growing is the economy again joining us are mark morel of the urban league and also joe watkins, former white house aide to president george h.w. bush. welcome as always. >> thank you. >> obviously this looks like a good number, higher than the anticipation brian raised a very interesting

point. jobs are growing but the economy doesn't seem to be very much why? >> well, it takes time i think i mean, rome wasn't built in a day. you've got a new president who certainly is promising to do some things with taxes, reform taxes and to spur the economy. spur job growth. this is a great sign i mean, 222,000 jobs this month is great news for the economy. i know that the u-6 number up a little bit and labor force participation rate also slightly ticked up just a tad and wage growth is still sluggish but i have high hopes for economic growth going forward. i think we are headed in the right direction. >> so mayor, what do you think do you think that the economy will get out of sort of first gear here being sort of one, 1.5% growth rates and get to second gear for the second half of the year and maybe moving towards third? >> the obama jobs recovery

continues. this is now almost eight years of continuous job growth and that's a positive sign for the economy with unemployment coming down. if you ask me what it takes to increase economic growth i'll tell you we need wages to increase because consumer spending represents 70% of the american economy and when americans earn more money their propensity to spend is greater and that has an overall economic impact and -- >> why as unemployment has fallen haven't wages risen more? >> well, i think the question is, now that unemployment is where it is, we have a tightening of the work force but a tightening of the labor market but i think, ty, we still have thisenge where we have jobs that require lots of skills, chasing people yet on the other side of the ledger, we still have people who are looking for jobs where not

significant skills are required. so - >> sorry to jump in, mark, but often, joe, it's because they're in different places r. they not? i mean, if you look there's people that need jobs and the midwest or the northeast and all the jobs are in the south or the southwest. and there's no way for them to get to each other because maybe you're stuck in a mortgage you can't get out of is there anything to do to help match up the geographic disparity that we are seeing in america? >> i don't know if there's anything to do you make a great point, brian. you're right on point. i don't know there's any easy thing to do to match folks up from a geographic standpoint but from a sector standpoint look at the sectors that are hot as it is, the legislative side we don't have anything going with health care and the number of health care jobs jump this month. that's a good indication of, you know, where there's opportunity for people looking for work. >> all right, gentlemen, thank you very much.

we have to leave it there. i'm sorry. we have a lot of news today and we're tight on time. guys, thank you again. we want an update on the bond market which is today all about this morning's job report. it was a rock n roll session when the jobs report first came out, everyone focused on the weak wage growth and we saw yooelds drop markedly and then a lot of economists, traders saying, you know what? every other part of the jobs report is very, very strong. we started to see interest rates go up. so you see that the 5-year, 10-year and 30-year is higher. the 10-year yield at 2.38% and the 30-year reapproaching 30%. the 2-year is getting buying and actually seeing green on the left and red on the right is yield curve is steepening. you know what else is deepening? beef prices. how they're dealing with the high cost of meat and if you

didn't bring food, the segment won't go well. we're back with that next. ♪ if you could book a flight, then add a hotel, or car, or activity in one place and save, where would you go? ♪ expedia.

your favorite steak dinner may cost you more this summer because global beef prices risen every month so far this year some steakhouses reporting hikes as much as 30% from distributors just last month! how's it impacting the restaurants? bring in willie, founder and ceo of uncle jack's steakhouse in new york and former host of restaurant steakhouse, a reality tv show on the food network and the voice from check please. good to have you here. >> beef prices are rising. >> why >> always happens. >> why >> grilling season big retail like costco load up on it. people home cooking more than ever green dome guys, guys charcoal,

grilling, fire roasting. jack the prices. >> this is a remarkable move from memorial day to the fourth of july, 30% doesn't happen every year. >> fluctuates. always a reason now today with big corporations who are running the running the pakards and controlling the market >> so between grilling season and big retail and china market. minimum wage restaurant business today and i talk about it being under attack the labor increases and everyday's a war basically i am a general and i am fighting this war

everyday you wake up, do you want to be in the business or not build more concepts. the whole industry is being a little dummy down and social media has changed the way people eat today. >> why >> callers, cheesy and comfort food and all the normal great american stuff are made from scratch, deli at your favorite place and people lining up for cool shakes and what's the unicorn and rainbow color a-- >> because it photographs better >> visualization i have the make the place for camera ready then? >> some of the food they are putting out on social media are

edible it wows you and you are enticed to it and you are sharing these videos we did a bacon wrap with the bacon that i have set up for you. that's crazy, we would eat that, we would have to charge $200 or $150 for ta steak. >> it is stuff you don't serve but you show the pictures. >> we'll serve it. it is like women's clothing on the runway nobody would buy that but it serves as a marketing tool >> yeah, women is pulling its sets and breaking boundaries and wow factors and it trickles down >> can i go back to michelle's point. forgive me and i don't want to be fake news the cost of running a restaurant is almost twice the cost of the next --

>> it is not just rent, it is lab labor. labor increases took right out of my profit >> a family of four going to apple jack's and a couple of glasses of wine for grown ups, a couple hundred dollar bill >> they cannot more casual, diner, american style, american grill, burgers and sandwiches and comfort food, great atmosphere and cool energy and funky and selfie worthy. i put a selfie mirror in the bathroom and all different local areas so you go to the bathroom and takes selfies and come out on social media and print your pictures on the wall i am adapting. >> what's going on the scene or the food? today with the younger people is more of the scene and the

selfies. >> real mirror for me it is the food, we have to go to break because i want to take a bite of that. >> yeah, that looks good >> you are a great guest, thanks for coming on. so fun good luck with your biz! >> that's it this $35 million home belongs to one of the world's biggest weight loss entrepreneur the power house of t wk.heee look at that >> he's not eating this next burger like i am that's a great idea, but why don't you just go to thinkorswim's chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders? i know. your brain told my brain before you told my face. mmm, blueberry? tap into the knowledge of other traders on thinkorswim. only at td ameritrade.

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each week we take you into the homes of celebrities of the ceos who's house are we seeing today robert >> this $35 million beach property, delmar california is the home of jenny craig's. ent enters through the front gate. jenny owns the property for 30 years and she is not spending much time hair especially her love for horses from the light up photos jenny has been involved with horse racing for years and for just steps away from the delmar horse races. >> the delmar home has five bedrooms and seven bathrooms head up the spiral testaircase o

reach the suites that offers an incredible view of the pacific ocean. down be low is patio pit and seatings for your friends. this home is the largest beach front property to come to the market in delmar for the last 50 years. >> $35 million, this pacific sunset can be yours. >> jenny has been a very smart real estate investment she bought it back in 1986, $3.2 million >> oh gosh >> you know when you be i that view, you will have it forever and it is worth it sth >> it is wonderful >> that one i really love. >> coming up one market's watcher warning, could a downturn be around the corner for high schools too high

profits, meet the two teens catching on the fidjet spinner crazy. the second hour of "power lunch" starts in 90 seconds or less oin. 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.

good afternoon and welcome everybody, the second hour of "power lunch," i am tyler madison. here is what's on the menu states of pain is not just illinois feeling the squeeze when it comes to its budget. the next state that could be headed for trouble not fidgeting around

two kids are building their business in a couple of months "power lunch" starts right now >> lets get you check in the market of today's gain, all three are higher for the week. and nasdaq is by 1%. nasdaq is higher by 70 points. kellogg and campbell soup and general mills and jm smucker this is even as we see longer terms interest rates rising today. those are higher across the board between 2% or 3% >> tesla is back in the green today higher by 1% or 3 bucks to

3 $ 311.86 live in germany with the latest, eamon >> reporter: exactly, that's right, russian foreign minister lavrov puts out a statement saying president trump accepted putin's assertion that russia did not med el in the 2016 elections. let me give you a couple of bullet points of what we know. they did discuss, rex tillerson, has been briefing reporters this afternoon. u.s. relationship is going forward. the two men did not want to

spend time dwelling on the past and wanted to move forward both russians and the americans have been upset of each other. they wanted to come up with some concrete accomplishments in the session. they talked about russia interference of the 2016 election president trump opened the meeting on that subject. the south western part of syria and syria cease-fire and the north korea threat and cyber crime was discussed. that maybe a code for russians interference in the u.s. election in 2016, the two sides saying they can -- the following he said with regards to interference of the election, the president took note of actions that have been discussed by congress and most recently additional sanctions that's been voted out of the senate to make it clear as to the seriousness of the issue what the two president rightly

focus on is how we move forward. i can tell you that democrats on capitol hill and back in washington will not think that is an aggressive stance in the part of rex tillerson and the president of the united states we'll see where diplomatic wrangling goes between the two sides. we'll wait on more information on the russian sides on their take on their highly anticipated meeting. back to you. >> we'll see in a bit. >> what can we take away so far. what we know about trump's meeting with putin joining us is editor of the weekly stand i want to get your take on what we heard over seas with the president. it is a meeting that nobody wanted to end and melania trump tried to break it up

it would be good if the president took a strong stance in syria, maybe they got some useful and minor agreements there. we have fundamental inconvenience with russia and putin. the trip is how ordinary what it struck me. it is not like obama meeting with putin they tried to reset and after the election, it maybe different. putin took all of that and ignore it and interfered in the election of 2016

i wish i have more confidence that trump is sending a different message than obama is sending. >> they don't look too happy there. >> two happy guys there. >> they don't look ted too happy >> more dialogue more time is better than less time if you look at stock prices, bill they're in the green, significantly and my guess is there is a lot of reasons why and there is a nice job reporting today. but, at least the meeting did not go baddelely the flip side of that was that you can deceive yourselves by having nice meetings and everyone is surprised. >> it is so low and you are

dismising everything expectations were zero and zipo for this >> that's exactly right. i don't think expectations are low. >> trump has said over and over he wants better relations with putin, i am not against that as long as not giving away on ukraine and syria and other issues these meetings are over rated. i guess it is better of a two hour meeting and i would not over read it markets can react short term and hey, it is better going to war and that's true. if you are kicking the can down the road and not resulting >> do they really tee up what they ultimately where the meeting where the real real -- mustard gets cut >> that's right.

the question to ask of russia going forward and china, president xi jinping -- may end up meetingpresident trumputin. we have a big crisis with north korea. lets see what president trump intends to do about that he's wise to ta i can a stuff stance to say that our past policies did not work. having said that, it is a tough situation to deal with is there any way to push the north koreans pack that is can be a more important actual question than the optics. i want to say this i am critical on trump on the whole, the good news from someone like me that this is a normal foreign trip. get a speech if poland and it was an appropriate speech for the president to give. he said a couple of things about fake news which he should have

not said what strikes me the most is watching the coverage today, this looks like a normal and boring soon to be forgotten g 20 meeting, chwhich is a good thin. >> bill, today we are focusing on the men involved or the women involved and everything is about trump and putin as individuals psychiatr strategically, do we want to move closer? >> conflicts ultimately becoming in the east or north korea or china in some form, would it be in our interest to have russia a little bit closer. as bill clinton said, we may not be adversaries but we may not b allies do we want to step away from it? >> being nice generally is not a bad thing to try it depends on what they have to deliver and what we have to deliver. they are engaged in cyber

attacks on us and other people they are helping and backing us up and setting up messages in north korea. so we have issues. if they are willing to be more helpful. >> if china is the biggest economy in the world and the giant of the globe or at least in the region, is it a negative to have, i don't want to call of an ally but a neutral -- i am sure russia has issues with china as well, do you understand what i am saying we box them en . >> i understand what you are saying putin is a big problem i would not say that's a reliable ally. you can cut the deal with iran and did he say he's going

invade -- i am skeptical of putin and i am all for working hard for ra better relationships and i hope the president is not getting sucked into having been too credulous of putin's intentions >> no reset buttons so far bill crystal with t >> thank you bob pisani at the market exchan exchange look at what it is having on the influence of the side. we are up across the board, not just tech leading but transports are having a great week overall. small caps are up, bank stocks and retailer also contributing and weaker early on. they are moving up in the middle of the day as well we have a nice week for

industrial stocks. this is what i call the sleeper group of the week and the last several weeks so we have new high and airlines have doing well and transport as are doing well essentially the nice moves up. the e is setting at a two-year low. we are getting across the board and again of big names and anadarko petroleum and apache and devon energy and baker hughes, it is still a 52 week close essentially and stocks have been no energy at all for the last several months. we have nice moves up. tech continues with the lead and

healthcare is doing well and transport's holding fairly well and some of the industrial sleeper groups are moving up guys, back to you. >> thanks bob. >> healthy job markets stock prices keep on climbing and a sense of calm and the feds raising rates.right? >> joining us, commentator for the chronicles >> labor market of full string, we saw the numbers this number tightening essential banks, yep. persuasive sense of calm why do those things make you worry when most people seem to look at them and think it is good for the market. >> when everybody is bu-- it is

also to the economy. when the unemployment rate is as low as it is today it has more room to go up than it has to go down. we are sitting with little capacity left in the economy any further growth pressing up against those capacity limits, making us anxious. i recognize that is not quite as -- inflation is still very low. so i guess what i am saying is not that i am predicting a recession, we have a precondition of recession. it is waiting for an infection >> the move and rates that we have seen. tyler and i were talking about this during the break about a week ago, we are talking about wow, this curve is so flat and never steepens and suddenly, it

is going up nearly every single day, how does that fit into what you are thinking >> frankly, michelle, i would feel a lot better if they are going up more. rates are up to where they are today, 2.5 so set aside of last week's moving up and moving down. bonds have been ranging down for the last couple of years as a result, the yield curve is only 100 basis point it is a positively the yield curve is classically a signal of recession. there is no such thing, the only point that i am trying to make is when things are good as they have been and long as they are, now people are letting their

guards down and pricing assets, easier and assumptions for everything to get better >> you are not predicting a recession. if today's conditions don't dictate a market melt down, it exposed vulnerabilities and c catalizing erc catalizing event >> it could be some policy thing involving north korea. back in 2001, we had ner9/11 onh nasdaq mark. the federal reserve raising the rates one time too many and causing a lot of people who are positioning and a lot of stress to emerge. tyler, you have been doing this longer than i have

>> don't rub it in >> gregg, i will see with ben frankl franklin, worries is interest paid on debts that's never come due. can we just acknowledge on a friday that things are pretty good in america right now for most people. not everywhere because some people are going to say well, there is unemployment here things are a lot better than they were. >> you have got 401 k, you are a lot bwealther than before pay raises, they're not great. but i am not going to argue with you. one thing looks best people forget that there is a cycle and we always take things to excess. we have got a lot of things to push back. we know and we got further to run, i am going to the market. >> it seems to be sometimes with nice dogs bite, too. >> i read from your column the

other day and i plucked it out off the web and i questioned one of our guests with it. >> the minute you are asking is usually when it is happening that's when you are on the verge of it. >> economists all love the say christmas cycle don't die. i am not sure if i believe that because basically says that if everything goes right the economy will grow forever. it is not like that, human beings are not like that and psych ology is not like that if 200 years we'll be the longest of expansion of history. could it happen? sure why should your base be that a lot of things never happened before are going to happen this time i am asking people to be cautious >> you are right, gregg, i have been doing this for a long time. thanks here is what's coming up on

"power lunch," a big name fund manager says the easy money party is nearly over, what does it mean? what does it mean for the market and one tech start up is going under. could it mean more sales for apple and we'll talk to the kids that's rich but maybe not rich enough on the fiet snndgpier crazy, that and more on "power lunch. most etfs only track a benchmark. flexshares etfs are built around the way investors think. with objectives like building capital for the future, managing portfolio risk and liquidity and generating income. that's real etf innovation. flexshares. built by investors, for investors. before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully.

a good job report should keep the feds and the hike once a quarter mind set the founder of the biggest hedge funds says the era of money is ending mixing the metaphors of dancing and tea leaves we do see an increasingly intensifying big squeeze lets bring in our adviser and our chief investment >> he's finally noticing that rates have been rising and the

feds seem to be taken some of the punch away >> well, i would have to say that perhaps the feds is taking some of the punch away but the fact that he's been doing it for a while. the big drama is other central banks around the world are bl planning to do that or in the process of anticipating the least. what we got to figure out here is, it will cause some volatility near term rob robotics and algorithms are keeping term in checks, slower hiring and less inflation and increase due to technology >> i don't know if you heard our prior conversation with gregg ip or you read our column earlier this week where he says some of the preconditions for a poor

recessions are out there now low unemployment and everything is in a sweet spot the only thing that lacks is a catalyzii catalyziing event. what do you think? >> interest rates are still exceptionally low. and then also there has not been accesses of consumer balance sheets are good and you don't have excess spending in any area and capitol spending we think sure, the government is doing something that derails the company but the company is still good for some time that means that earnings should be pretty good we had a nice job support this morning and you heard what mr.

gunlov said. that would mean september to me and decembers. do you see it that way? there is a good chance that we see rates to be hiked in september and if not in september, just about a certain thing in december. economic data looks good for 2 to 2.5% in growth. we may see an uptake next year >> david, same question to you >> we think the first step is the feds starting to unwhine the balance sheet in september and they'll see how that goes for the first month before they raise rates again. we think probably one hike that comes closer to the end of the year again, we are about normal lilo intere lilo -- abnormal lily low inter rates. >> david katz, thank you for

that >> jawbone is going out of business josh lipton, the story that's a huge high flyer. >> jawbone sold fitness bands and secure jawbone suffers from a number of inflicted wounds and failure to adapt to a fast moving market and he hopes the competitive markets like fit bits. there is a role that the apple watch role here to wearables that jawbone sold.

jaw bbone is not the only store there are also online retailers, one king lanes and fad.com and we are seeing a shake up of a funding boom that started to receive a ton of money that could not sustain business models >> ryan, back to you >> coming up the single best global stock ideas for your portfolio one bank's best of the best league that's coming you. maybe stock is not your thing we'll show you awesome ways to invest in baseball items including the babe ruth's former bat for one of them. we'll be back. yeah, well it was $30 before my fees, like the pizza-ordering fee and the dog-sitting fee... and the rummage through your closet fee. who is she, verizon? are those my heels? yeah! yeah, we're the same size...in shoes.

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hi everybody, i am sue herera the suspect was killed during a standoff with police it happened at wells far gogo no reports of injuries to hostages or police two american spaniards are recovering after getting gored by the annual of the bulls running festival cleveland's manager will not manage the american league star team he had a procedure yesterday to treat his irregular heartbeat. the bench coach will fulfill his duties how would you like to rent chris christie's new jersey beach house. it was inspired by christie to

lounge on the beach with his family even though that beach is closed to the public due to a government shut down >> no word on how much it will cost to rent that house. that's the new update at this hour, brian, back to you lets get a quick check on your money. dow industrials is doing well. it is up 9 points. nasdaq, the bigger winner of today, it is up more than 1% and nasdaq is up more than 14% just this year. the bottom line if you invested anything this year, stocks here or stocks over seas or real esta estat estates, that's if you invested in anything of oil stocks. >> good afternoon to you, a lot of people are saying that is volatile week for crude oil. we are ending in the red and a little less lower.

a wide range today starting over 45 and session low and $43.78 the pressure is coming from supply demand dynamics again everybody is looking and saying we are still a wash with oil you got the production number going up in the u.s. and despite rate numbers are starting to come down. it is going to take more than that to balance things out o when you bring in the opec cut in, it does not do much to influence the market we are watching a lot of different factor that is took us higher and lower and expects some of the volatility until the end of summer. >> news alert on today's stories. eliot management, warren

buffet announced he will be pursuing a purchase of that company out of bankruptcy. this is an interesting development if eliot does indeed to pursue a sale he has said many times in the past that he would be competitive in auction type scenario we have a call into eliot and we'll let you know what we learn. >> two men on the opposite side of political as well >> absolutely. >> today the global is 30. it is more than 15% and it is beating its benchmark over the msci developed which jumps up over 9%. lets bring in the man behind the report with rbc's capitol markets. hi >> how are you guys? >> mastercard is the number one pick of the second half of the

year, why? >> frankly looking out to the second half, we are seeing a need for a little bit of balance. at the end of 16th and small cap work and this first half it was a lot more secular growth. and mastercard fit that is bill, its got a lot of economic exposure, it is a significant removal on volume and inflations begin to take offoff, mastercars in the right place a lot is going on there. and a lot of things that are happening. >> i was thinking a bout that deal that jp morgan thought about doing but missed out on. there is a lot going on there as they tried to achieve scale when so many people are buying stuff online and everywhere else >> aramark

>> great play, any ball field you are going to, there is a good chance that you have aramark behind this is a story that they continue to cut out costs for infrastr you c infrastructu infrastructure >> they cater the food, right? >> you got it. >> they're the food and services and they're you know you want to buy your t-shirt at the concert, they're behind it. at the end of the day, that service ace huge busine service is a huge business this guy is at 2% of it. it is a business with a lot of opportunities. right now these guys are about 8% of north american focused >> potentially maybe through market share maybe >> newell. >> the old newell rubber made. a lot of old brands that you know with that merger, a lot and a

lot of costs to take out and that's the story a lot of young people starting out and a lot of momentum behind that >> they're not going to get amazon [ laughter ] >> they are not going to get amazon at the end of the day, they're selling through amazon and some of products are going through amazon they're not the only one of the brick and morter stores. they are in the center of that their number haves bes have beec and costs are coming out still from jargon. >> all of these are done there is more to go? >> there were others last time i picked three completely different names these are three right now where you rook at the economy and the second half, they fits in the center of that good economic expansion and good singular

individualized opportunities to take out costs and do other things and growing their own business you don't need to defend on the economy. it is a little bit of both which is kind of the way you want it >> thank you for the ideas, mark >> thank you, guys the major league all-star game will be played on tuesday one of the big event is fan fest baseball memorabilia auction >> robert frank is joining us right now. >> some really cool stuff on sale it is becoming its own asset class as prices rise up. >> in the coming days, more tha 5 million items are coming up for auctions take a look at highlights from roberto from the pirates that could go between 250,000 or $500,000 and his series ring

his golden glove, they're coming up for sale, ten of them >> one of joe dimaggio's game batch over $100,000. >> this game bat is signed by the babes and lou garret >> that was an amazing condition and ag of teight to 10, that coo to $300,000 to $500,000. >> most of that money will go into the humanitarian effort that he continues into his life. >> thank you very much robert frank. a sad financial stats of one of the richest states in america. you need to hear this everyone if you do not live there >> we'll speak to the two teenagers who helped start the

t dget spinner crazy and almos got kicked out of school for it. "power lunch" on friday.

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on illinois at economic whoes that connecticut is in crisis. the state got a $2.3 billion projected deficits they're tied for the seventh highest unemployment rate in the country. the top 1% in fairfield county of 6 illion. bridge port of a few miles off the road from fairfield county has a poverty rate of 20%. lets bring in derek thompson, he recently wrote about an article about state. what is wrong? >> it is amazing 30 mile fs from where we sit, yu are in the richest of america. another five miles past that and it is deep poverty the state is effectively bankrupt what the heck has happened to connecticut? >> it is a great question. to me it is the worst shock

state. conservatives look at it as a danger as what happens when taxes are too high what is exactly going on with connecticut. one o f the interesting things that i found, connecticut in many ways just like the u.s. more so. it is an incredibly interesting symbol of the rise and fall american city. a lot of companies in new york or connecticut, the state's boomed people are moving out of new york >> connecticut needs to build places that people want to live. it is incredibly important ge, when they moved out of connecticut, they said rather explicitly, we are struggling to get young graduates to want to live here. connecticut ca connecticut cannot rely on its

bold coats >> kerriderrick, one of the this you point out, that the state income taxes attract capital gains. when you do that, the income is very volatile and goes up and down dramatic. when a lot of states have learned and as painful as it is, it is better for broaden the base more of the middle class paying and more lower income folks adding to the coffers. that way, the stream is consistent and dependable rather than the boom box cycle when you rel rely on the rich >> you are exactly right if you loo k k at the capital gs in connecticut, it is a perfect baromet barometer. 13% of their state's revenues

come from the millionaires it is about the iliterations of the middle class now you have low income healthcare workers, you don't have a strong middle class you don't have the sales tax that you would get >> i moved because of airports there are none >> any time you travel you have to drive an hour and a half to laguard laguardia. that's too inconvenience >> the northeast and the midwest are struggling maybe not because of politics but because of atlanta is a better place to live phoenix now has air-conditioning and people for 40 years have realize d that i can go to atlanta and making the same amount of money or charlotte, having a newer house that's

bigger and cheaper and demographic sheriffs what dooms a lot of these states >> i think you are right i love the snow. i love cold weather. >> but you are insane. >> exactly >> tens and thousand of americans voted every year and they disagreed with me the overall trend in the west is south, and cheap and suburbans it is not south or west or it is not cheap. people are moving to florida and parts of california or texas taxes are lower, i think the reason why i want to focus on problems beyond the tax codes is a lot of people and companies are moving from connecticut to new york city or to boston >> so true >> or their weather. >> the hot city is nashville, tennessee. >> greenville, south caroline. >> or austin

>> thank you >> appreciate it coming up, we'll introduce you to the two teenagers who helped drive the fidget spinner crazy and made hundreds and thousands of dollars they think they should have made more, they're here and they are more, they're here and they are spinning, they are next. (upbeat dance music) spin-trepreneurs (dance music starting then stopping) (upbeat dance music) (bell ringing) our 18 year old wase army in an accident.'98. when i call usaa it was that voice asking me,

"is your daughter ok?" that's where i felt relief. we're the rivera family, and we will be with usaa for life.

when i said everything was up, i wasn't truthful. gold is sinking to a four-month low. let's get the next move on gold with the trading nation team stacy, what do you think is gold a good buy here or just leave it, dump it, sell it and move on? >> yeah, i would say, you know, even before this morning's jobs report the tone in gold has had a really more bearish zint sentiment. certainly not helped by the overnight selloff in silver. a couple of things that were happening this week. we were seeing signs of more risk on when you look at the yen/dollar spot rate and if you look at the reflation rate you see signs that's coming back into the market. the last time this happened post-election gold fell off 13%

hitting a throw of 1,128 there's a 20% probability woe could finish at or below that rate at year end signs of inflation trades coming back into the market, hold off it's not a buy signal. >> matt, would you hold of course, hold on or use stacey's money and buy more gold? >> kind of the key point right now. the gold chart looks very treacherous right here i mean, for six months they made a series of higher highs and lower lowers and got up to the 1,300 level and stopped made a double top there and the rollover has taken down below its 200-day moving average and through its slope trending level and it's lower low today a month ago it looks fabulous and now it looks horrible. a month ago it rolled over immediately, so it will have to bounce back immediately if it's going to bounce at all if we see a further lower low next week, it will be really touch. >> watch it next week for a lower low. the headline will be chart looks treacherous. matt and stacey, thank you

for more trading nation go to our website tradingnation.cnbc.com tyler, what is in your hand? >> a fidget spinner, seen these things spinning around fidget spinner craze seems to come out nowhere and now kids over the country are use the addictive toy but who thought this nad could become a big business well, lots of things surprise you in this world. two 17-year-olds alan manon and cooper weis started a company from scratch selling and crafting fidget spinners and have made $350,000 in the process. i hope i pronounced your name correctly are. where did you get the idea for this and how did you start producing them and let us say you're not the originators of the fidget spinners? >> we're very open about the fact we didn't invent them but we're the first company to mass produce them so earlier in the school year and i looked online, have you seen the fidget cube

online. >> i've not. >> it's a cube with all sorts of fidgits. it takes eight months to ship. i wasn't happy with that i have adhd and i wanted this. >> one of the things that distracts you. >> that's why i wanted the fidget cube. i was looking at the alternative and the fidget spinners printed and i've got 3-d printed, i can probably apply this and mass produce them because there was no actual person making them no actual company making them so i knew -- >> you guys are friends. >> yes. >> where do you go to school >> in west chest every, new york, so you started making the things in the school and the school liked that, didn't look it >> why not >> they didn't like the concept of us making a profit off like the school's 3-d printers. >> my god. >> get a license >> that is the dumbest thing ever >> if your students are make you money, give them a cut of the

profits. >> tried to donate a 3-d printer, at the end of the year we'll bring it tomorrow. has to get approved by about the board of education. >> agh >> so then what did you do after they kicked you out in the what did you do move to the basement >> after they kicked us out we bought our own 3-d printers and produced them in my basement. >> where did you get the money for that >> sold enough at school. >> did your school ban them as the school in my town did? >> the middle school did. >> my son is in an elementary school because they banned it because it was getting too distracting. >> any tricks that you can show us using the fidgets. >> you can be a one-handed fidgeter. >> the best i can do is get a one-handed spin. >> how did you come up for the price? >> looked at the price everybody was selling them as we lowered the price a little bit and beat out the competition and sadly since more people got them the company made them and got

oversaturated. >> the price plummeted 25.99 in the beginning and now they are down to 4.99. >> the first ones my wife bought for my son were $22.95, and then quickly, like the stock. >> you are candid about the idea that you've kind of screwed up. >> yeah. >> you could have owned this, if you had known -- >> take me through that. >> we were thinking about going to injection molding in china like a while ago, like four months when no one even knew what they were and we ended up not doing and now they are like in every single store, walmart, target, every corner in new york city, and if we got the injection mold during that time. >> we're still making this. >> how would i know if i bought one that it's yours? >> we have things like custom packaging that you can tell like the quality of our products are much higher -- may look the same. >> this is a good one. >> it's frictionless. >> tell me about social media. how did that help you? >> social media was like that is -- because of social media,

that's where all our success comes from our instagram page is 160,000 followers and that's where we drive all our business from. >> could people buy it directly from your instagram feed >> in our bio, click on the link and the link -- >> 350,000, 1.75 each, almost would cover a university of michigan education congratulations, what are you doing with the money folks taking it? >> we'll reinvest the money. been reis thing into the money itself. >> fidgits 3660 is the name? >> yeah. >> your product. >> what's your next thing, got a next >> we're working on a few things behind the scenes, some programs, some apps. >> new products. >> physical products. >> i think you should call it apostrophe. >> you're going to the university of michigan and you're going to -- >> got no clue. >> got no clue guys. >> he's going to do fine no matter what. >> he'll do just fine. >> check, please is next don't move and now the latest from tradingnation.cnbc.com and a word from our sponsor.

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check, please. >> a bear in colorado entered a home in the middle of the night and stayed a while its romp two the house was caught on several surveillance cameras. what does a bear do in the middle of the night. officials say that the 375-pound bear let itself into the home, spent five hours in the kitchen opening the refrigerator, cabinets and drawers that is "power lunch." >> "closing bell" starts right now. eat up. >> fidgits and welcome to the "closing bell." i'm sara eisen here for kelly evans at the new york stock exchange. >> welcome back. >> thank you. >> i'm bill griffeth trade retaliation. the g-20 getting hostile as eu leaders warn that their mood on trade is getting what they called increasingly combative against the united states. we'll talk about which areas