obamacare effort, scott, is stalled out and probably not moving forward despite some words of optimism that he had there. >> we appreciate it, jeamon javers the president making the comments on the failure of the republican plan. "power lunch" picks up much more on that and the markets right now. >> i'm melissa lee here's what's on the menu. the gop abandoning the senate health care plan and the repeal to replace is dead, too. insurers on edge, markets are slipping and the president just sounded off and the unfolding details on this d.c. drama straight ahead shares of goldman sachs getting hit hard after reporting their worst quarter ever for commodities training and we'll go inside those numbers and from the milken boom and the burger wars, a full plate of issues on the food menu. we'll dive right in with restauranteur danny meyer. belly up to the bar. "power lunch" starts right now ♪ ♪

>> where are the drinks? i'm ready. welcome to "power lunch," i'm michelle caruso-cabrera. you can see the dow is lower by 91 points and the nasdaq is managing in positive territory, goldman sachs and united health are weighing on the dow following their ownerings and those two stocks are responsible for more than 50 point in th dow's near triple-digit decline. on the flipside, as i mentioned, netflix is up more than 10%ity hitting all-time highs on the back of their results. harley davidson is tanking 10% motorcycle maker says demand is slowing from the baby boomer customer base and we'll talk more about that ahead and chipotle is down more than 5%. a chain shutting a restaurant in sterling, virginia, after customers got severely sick after eating there that stock down 22% in two months and we'll speak to one analyst who unlucky for him, just upgraded the stock based on

queso. >> qu is eso. >> cheese. >> the gop health care bill is dead and now so is the republican plan for a straight obamacare repeal and president trump now weighing in. this is truly a developing situation with big stakes for the 20% of the economy that's tied up in healthcare. we are waiting for senator mitch mcconnell to speak in the next hour kayla tausche is in d.c. and let's go back to eamon javers at the white house. did i understand correctly that there will not be enough votes for a straight repeal of obamacare either >> reporter: that's right, tyler. that didn't each survive until the senate went into its lunches today so the question is where do they go from here the president venting some frustration here at the white house just within the past couple of minutes, calling reporters into an event where they weren't originally supposed to have reporter says so he

could answer questions about this obamacare repeal and replace failure today. the president saying ultimately, he's been hearing complaints about obamacare for seven years seeming perplexed as to why republicans can't pass this bill up on capitol hill saying that he is standing in the oval office ready to sign it and he's got his pen out and ready to go and republicans simply won't send him the bill and here's what the president said moments ago at the white house >> i am certainly disappointed for seven years, i've been hearing repeal and replace from congress and i've been hearing it loud and strong and when we finally get a chance to repeal and replace, they don't take advantage of it. so that's disappointing. i'm disappointed in what took place. it will go on and we'll win. we will win on taxes and infrastructure and lots of other things >> so if you listen to the president there, tyler, you seem to hear an emerging white house strategy of simply doing nothing on obamacare moving forward. he talked about letting

obamacare fail under its own weight and letting the democrats coming back to negotiate and he might not do anything between now and 2018 and we simply need to elect more republicans in 2018 who will have the votes to do this after that election. it's very tricky for this white house going into that 2018 election they're going to need to demonstrate some kind of concrete, legislative accomplishment for those senators and congressmen to run on in that 2018 campaign maybe that's why you heard the president there seemingly eager to pivot to infrastructure and taxes, two of his other big agenda items, tyler. >> thank you very much, eamon. now let's get to kayla tausche in washington, d.c kayla? >> reporter: the two republican senators who came out this morning and opposed the stand alone repeal plan less than 24 hours after majority leader mitch mcconnell and said that wouldn't be the route they would be taking did speak to

reporters. nbc talked to murkowski who stopped the bill in its tracks take a listen to her reasoning for her opposition >> i said in january we should not repeal without a replacement and just an indefinite hold on this just creates more chaos and confusion. >> susan collins of maine who was one of the no votes back in 2015 when they pursued a standalone repeal and at that time did pass it, she said this morning that at this point the health care system is too reliant on the infrastructure that is in place listen >> at this point the affordable care act is so interwoven in our healthcare system that to repeal it completely with no idea what it's going to be replaced with is not the right approach. >> the third senator to defect

on this was shelly from virginia who said i will only vote to repeal legislation if i am confident there is a replacement plan that addresses my concern and of course, having years between a repeal and a potential replacement would not seem to e lay my concern >> it does not support a bailout for the insurance companies and they rely on billions of dollars of payments that originate from hhs and are greenlighted by the white house. the president has said unilaterally he may decide to stop those payments and sean spicer said they're taking it on a month by month basis and we're waiting to see what the exchanges look like and whether or not the white house is willing to let them fail. >> piles of uncertainty. thank you so much. if you want to see how the latest version of the republican healthcare bill and you can serve as circles and just take a

look at the front page of "the drudge report. the headline, the most unproductive congress in 164 years. for more on the d.c. drama let's bring in bill crystal, founder and editor-at-large of "the weekly standard. good to have you here. >> hi, michelle. >> the president says when it comes to the optics it's not the republicans who will suffer and it will be the democrats and that they'll have to vote in or the american public will have to vote in more republicans come the midterms do you think this is how it's going to work out? >> no. i think if you control the presidency both as the congress and you have an expectation so high that you're going to act. they said from the beginning that this will be very hard and we'll need 60 votes and bring it to the floor and then maybe you can say the democrats are not willing to work with us and now we have to resort to a partisan vote if you begin with a partisan vote and you're telling peopleio you can do it on a partisan basis and you don't, every president has had some

legislative accomplishment by the august recess. reagan and bush had the tax cuts and obama had reduced the deficit and president obama had the stimulus i think they will go into the august recess without any big legislative accomplishment and voters will say, gee, isn't donald trump supposed to be able to shake things up and/or, shouldn't the congress be able to govern? >> should they take a vote so they can live with the vote? >> he's not going to get the votes to proceed to the bill. >> something that makes them take a stand >> i think it's crazy. what does that do? i wonder what mcconnell was thinking last night. it was obvious nobody wanted to vote with replacing without repeal seeming to make a good-faith effort so he can now say let's move on. mere's the question for me health care is very hard and they shouldn't have begun with it, they began with it and now let's do taxes and infrastructure and that's the

conventional hopeful view that maybe they can get legislative accomplishment with that that's not easy to do with that one. it's easy to lose the next one the president has established that if donald trump, and paul ryan say they're for something, it doesn't mean it will happen >> does electing more republicans as the president called for moments ago, does that solve the problem when the republican caucus seems so internally divided on this and by the way, they've had seven years to come up with a coherent plan to do that. that's question one, bill, question two, is mitch mcconnell's leadership in jeopardy >> you put it very well. of course, if they had 60 republicans it would be easier than having 52 in that respect, it's true, but yeah, once they've touted their ability to do it with 52, we need even more and so let's defeat a few democrats and they did such a

miserable job making the bill, it was unpopular by 50 to 25% among voters who knew something about it, and so it's not as if there is a big backlash in the country, hey, we really wanted to have that bill and you guys denied the to us as you suggested in the question i don't think that's promising i happen to have been through a couple of republican senators this morning on the hill just by chance i've struck how unhappy they are with the way mitch mcconnell ran this, and i've been in washington for 30 years and major senior republican senators didn't know what was in the bill and the leadership staff was drafting and what are we going to go with we'll let you know when you get to the floor >> they paid mcconnell and the president back and by letting them jump ship, which is pretty extraordinary. >> just to extrapolate, this loss makes another loss more

likely are you discounting a tax cut even at this point >> i think they have a shot at it, but i think it's just hard to get the legislation through in a weird way, the economy is doing decently, so what's the urgency? >> you say that, the minute this news hit, the dollar got smoked today. treasury yields started to fall. people started buying safety stocks are weaker today and maybe to your original point, the idea being okay, let's get past health care so we can do tax reform and now, instead, that is not maybe what you're saying if they can't get this done, does that say tax reform to melissa's question? you can't get done either. >> you can pivot, but pivoting requires a fresh message and fresh thinking and saying we screwed up on tax care and here's what we will do on tax reform, and let's see if the trump white house has figured out a way to have a serious -- work seriously with congress democrats onboard, i think that

still remains important. so it's a big question mark for me me. i don't think they're doomed, but i don't think it will be easy either. >> good to have you. >> thanks. market watchers saying beunderstandio earnings, the d.c. gridlock, investors appear to be losing some confidence that the administration can move on key items of the trump agenda michael maron chief strategist with state street global advisers burns mckinney, i know i got that right chief officer with nnj chief investment group gentlemen, welcome how big a deal for investors, burns is the collapse of the repeal and replace of obamacare? >> it definitely matters, but not for the reasons that people are talking about. the fact that they touched the third rail of health care and failed there is not necessarily so much that the markets are

focusing on. what the markets want is tax reform and these two items are really interlinked they're tied together because of the fact that health care reform and the repeal and the replace plans that were in place actually contain budgetary offsets that would have been helpful to pay for substantial tax reform, and so as a result of that, this is something that is tied together and it does matter to the markets and that is one reason, in fact, that you've seen the fact the bond yields have reined in, i think that's mr. market's way of saying that the market is saying no, we didn't succeed here this renders us less likely to succeed on tax reform. >> michael, what do investors really, really want? if you had to prioritize all of the things that investors would like to see to keep equity values going up, what would they be, in order profits, this, this, this. >> the number one thing they want is growth, and that's what we continue to see this has been a time warp of a bull market. it's been defined by modest

growth, low rates and benign inflation, and we continue in that time warp so the number one thing investors want is growth, earnings growth, profit growth and you're seeing how tyler in today's market that companies are able to generate earnings growth are doing pretty well like netflix, technology, financials and those that can't seem to be lagging >> so burns, give me the case for financials financials are pretty much across the board posted okay earnings there were some misses for certain metrics and certain banks and the reaction pretty much across the board has been negative and to michael's point, it looks like the michael wants the sure-fire growth and we're seeing bank stocks up-to-date, for instance >> i think a lot of it is that you've seen the yield curve tighten which certainly is a negative for financials and this results in that happening more so, that spread between the two and the ten-year that's, in essence, bank prophet margins and that's as narrow as it's been for years when you combine the fact that

there's nowhere to go, but up, and the valuations next to telecom is the cheapest sector in the market and what's most attractive to us is the fact that coming out of the -- >> if the only reason for financials are -- that seems like not a very good reason to be in financials just for the net interest margins which have pretty much missed each with the yield curve steepening during that quarter >> i think that that can act as a tailwind. >> sure. >> the real thing is dividend growth and better-than-expected dividend growth even through the stress test. you have jamie dimon saying they're the best, as well as valuations. >> what the investors want and markets want is growth when we see today that yields fell almost immediately, the dollar started to fall i mean, the euro almost went to

$1.16 at one moment when they found out that health care reform was just not going to happen and a vote was going to fail on all counts, it seemed to suggest that the market feared we're not going to get as much growth as we wanted. this is telling us something is that a correct way to read what happened? >> absolutely. i think that investors have built in a tremendous amount of growth expectations and interest rate rises and inflation based on the fiscal policy agenda, and what's happening with health care is another illustration that that fiscal policy agenda is stalled so not only is it about health care now it becomes a question of can they get tax reform done, can they get the infrastructure projects as trump was mentioning and the market's beginning to question that and we're seeing that reflected in stock prices and lower growth expectations and we're seeing it expressed in interest rates and in the u.s. dollar today >> all right >> michael, thanks very much and burns mckinney, thank you, as well

>> thank you >> just talking about financials, goldman sachs is a big drag saying it had the worst quarter ever on commodities trading. the cfo saying we need to do better how? chipotle, new fears after oppele getting sick after eating there. we'll discuss that "power lunch" will be right back you know what's awesome?

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that lady. these houses! yes, yes and yes. and don't forget about them. uh huh. sure. still yes! you can get it too. welcome to the party. introducing gig-speed internet from xfinity. finally, gig for your neighborhood too. >> welcome back to "power lunch. netflix stock on a record high and that means ceo any co-founder reed hastings is reaping the reward with praises at current levels his 5.8 million shares is worth $1.7 billion, and it could have been worth more if he'd held at netflix. hastings had 29.5 million shares of the stock in may 2004 if all those shares were kept, his position would be worth $5.5 billion of course, you can't fault someone for lightening up the

shares some financial advisers may call it prudent timing. tyler? >> thank you very much goldman sachs, the big culprit here bob pis an ani who is at the ne york stock exchange is no culprit. the sectors that are moving today and sort of a defensive situation with the markets right now with the utilities rallying a bit and we also see reits rallying a bit and the ten-year yield is down and this may be due to the disappointment and techs not doing too much and the homebuilde homebuilders have been doing well recently. it's a story of the banks, and if you take a look, you see goldman sachs, bank of america and comerica, a regional bank, all down downside. i'll try to summarize the bank earnings as best as i can. the things that matter are the fixed income and commodity

trading and net interest income is up in all these banks, but not up as much as people had hoped and non-interest income and these are the fees that have been charged and that's been a big topic and a big source of revenue for many years and that's higher and that's been a plus and here's the other big issue and loan growth has been fairly anemic and you can see this in comerica bank and this is in the center of the united states and texas what's called middle market lending and comerica, they gave guidance for the year and their loan growth will be up 1%. they had previously been up 1% to 2% and the bottom line is we're getting some growth and it's not great and the interest income that you would normally get from a lift in rates is there, but not that much that's why you get these slightly disappointing results and then you get trading revenues week and that's what hurt goldman sachs >> thanks a lot, bob pisani in the new york stock exchange. jason goldberg is senior equity

analyst at barclays. good to have you with us >> in the last quarter when it posted the big miss, we all thought it was a one off here it is, second time in a row also underperforming the rest of the sector does goldman have a trading problem? >> it was a challenging quarter and experience is a very low volatility and not a lot of conviction from investors. a lot of the things that weighed on q-1 results and carried into q-2, it was a challenging quarter in the commodity space, and it resulted in a tough quarter for the company. you know, going forward, we think they could benefit from further diversifying their customer base and they're not as big as serving some of the more traditional asset managers and they've been more focused on hedge funds and we think further diversifying the customer base may make a lower lows and also could limit the higher highs >> at the same time, we're seeing the stock reaction and it's fairly dramatic amongst the

financials about 2%. are investors making a mountain out of a mole hill in the rest of any other single business actually beat expectations >> that's a good point away from investment think bahhing fees and the management fee revenue rose and investing was up from the prior quarter. other than thick, it was a very good quarter out of goldman, and we think on average over time this company finds a way to figure it out and we don't think this time is different it may take a quarter or two to get things back on track and ultimately if you think back to morgan stanley two years ago, they were putting up 5, 6 million and they got that to 1.5 million and we think there's room to pivot and they'll tick figure it out over time. >> there were questions about did we get any clarity what happened in come are commodities? someone asked if there was a

loss there what's going on there? >> it's a challenging backdrop the other banks aren't in that business and it's hard to look at them on a relative basis and it was challenging listen, commodity prices are generating low across asset classes. you don't have a lot of volatility, so there's not a lot of need for people to hedge and just lack of activity -- >> so you mentioned diversifying the client base? do they have the product -- when you are working with hedge funds you are coming up with specialty, exotic things to help them mount certain trades that are not typical. if you will move on to much more vanilla like customers like pension funds, do they have those products and do they provide enough revenue >> i think there are a lot of avenues they could go and there's a lot of people and product and place and it's a matter of increasing the market share to some of the sessigments that they're in and they're overindexed to something like commodities and something like mortgages and unfortunately, this was a quarter where the

reverse of those perform better. >> all right >> thanks, jason >> sure. >> coming up, the news behind today's declines for the homebuilders >> plus, everyone loves bacon and everything is made with bacon. as you learned in economics 101 the price of bacon is soaring. we'll lkta to shake shack founder as "power lunch" rolls on my experience with usaa has been excellent. they always refer to me as master sergeant. they really appreciate the military family, and it really shows.

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i'm susan li and here is your cnbc news update for this hour president trump says he's disappointed the gop doesn't have the votes to repeal obamacare. earlier senate democratic leader chuck schumer said that the door is open for republicans to craft a bipartisan health bill >> after numerous delays, false starts, false predictions and

two pulled votes, it should be crystal clear to everyone on the other side of the aisle that the core of the bill is unworkable it's time to move on it's time to start over. a wildfire threatening hundreds of homes in central california, the wildfire has scorched over 15,000 acres and is threatening power lines which provide electricity to yosemite national park. nearly 800 firefighters are battling the blaze. >> and residents in a philadelphia neighborhood are being inundated with cockroaches. they say the insects started crawling out of a manhole cover on sunday night. there were so many of them that it was hard to see the streets they're calling it a horror story is definitely my version of a nightmare guys, back to you. >> thank you very much, susan. >> home builder stocks are lower today as confidence among the builders fell this month you don't want unconfident

builders, folks. dia diane olick joins us from washington why are they feeling so glum, di >> homebuilders sentiments sliding down seven points from its high last month. the national association of monttly index bill two points in july and june's reading was revised down and the index now at 64 and anything above 50 is considered poz, but that's the lowest reading we've seen since november just before the presidential election and sentiment had shot up and it rose further when the trump administration rolled back environmental policies involving water in march and then it took a u-y and more trump trade policies will add more costs to their already cost-burdened bottom line. granger mcdonald wrote this is hurting housing affordability even as consumer interest in the new home market remains strong current sales, sales

expectations and buyer traffic all fell on the survey with that last one still stuck in negative territory. we've got all of the numbers online, and we'll have to check that out at cnbc.com >> we'll look for them there, diana. speaking of something driven by the housing market or the opposite the bond market, and rick santelli being troisi santelli tracking the action the bond market moves the housing market. >> i'm not sure what moves what with regard to housing and rates, but everyone wants to know what legislation or lack thereof moves markets and that's what this will be about. what i want you to notice is up until 5:00, 6:00 in the morning it was steady as show goes around 2:30. most of the news hit earlier that that and the drip wasn't very large let's take this chart all of the way back to june didn't have a gad june and made the annual low yield close in june, long before any legislation was r.i.p. let's look at what might have

really been the cause today. let's look at the june 1st euro versus the dollar. wow! look at that takeoff look at a one-week chart and pay particularly close attention to the right side, basically today and how we plowed through the 115 handle and if you want to know why rates move and why the equity markets were squeamish? maybe it's the terror of the euro dollar and the euro yen and the euro pound melissa lee, back to you >> thank you, rick santelli. is the restaurant business changing forever a lot of people would rather eat at home than go out especially when you get a meal delivered right to your door, so what do restaurants need to do to stay relevant we'll talk about that with danny meyer next on "power lunch."

to keep our community safe. before you do any project big or small, pg&e will come out and mark your gas and electric lines so you don't hit them when you dig. call 811 before you dig, and make sure that you and your neighbors are safe. 811 is available to any business our or homeownerfe. to make sure that you identify where your utilities are

if you are gonna do any kind of excavation no matter how small or large before you dig, call 811. keep yourself safe. >> welcome back to "power lunch," everybody. let's check the markets right now, if we dare. there is the dow, and it is down, as you see the s&p 500 on eye need to put my glasses on to be able to see that .08 and the nasdaq up a quarter of a percent the ten-year yield falling to the lowest level since june. gold also on the move, highest level since july 3rd gold miners are up nearly 1% the move to those safety assets are a result of the senate in part scrapping its health care plan and in just the past hour we laerned thearned that a movel obamacare isn't going to happen either here's what the president had to

say about this >> i am certainly disappointed and for seven years i've been hearing about repeal and replace from congress and i've been hearing it loud and strong and when we have a chance to repeal and replace they don't take advantage of it so that's disappointing. i am disappointed in what took place. it will go on and we will win on taxes and we will win on taxes and infrastructure and lots of other things >> we are expecting senate majority leader mitch mcconnell to speak soon on the hill about the now-failed bill. if you recognize any of these restaurants then you must know the name danny meyer. the restaurant our of union square hospitality group has built a restaurant empire throughout new york and beyond and he'll be the 2017 recipient of the julia child award, the first non-chef to be given this honor. it's always great to have you with us. >> thank you it's great to be back here you also have a new restaurant, martina, opening up in august

and we do want to talk about that everyone talks about the restaurant business being super competitive and these days you have the competitor and the low cost of food at the grocery store and people can go buy, and cook a meal kit and economically eat at home, and are you feeling any sort of impact >> no. let's get back to julia child for a second and that's the reason i'm here. i couldn't be more honored to win the award. nobody didn't like julia child, and let's talk about your question, julia more than anybody led to food tv, made it seem like a really safe and fun thing to cook in your home, and i think, you know, the more things change the more they stay the same we've never been at a place in our country, and i give julia a lot of credit for this, where more people, and take pictures of it and they want to show everybody where they ate their last meal and people ate everywhere what's interesting is where are they doing it?

you can get it at the grocery store and the farmer's market and you can press an app and have it delivered to your home and press an app and skip a line at a fast, casual restaurant, and i think it's going to be really interesting to see how people want to do it, but here's what i think at the end of the day. going out to eat is something that has always worked for people for three major reasons i don't feel like cooking. >> amen. amen >> that's two out of three right there. >> and i want to have a social environment that transports me to a place other than my home. >> would you have ever invested in something like blue apron or any of those meal kit deliveries or have you thought why didn't i invent that or, god, i would never go into that business. it is so hard. >> or maybe i should >> boy, you sound like my mind right now. you know what? i didn't invest, and i didn't invest for it, i didn't invest against it i think that it's going to be interesting to see

there's no question in my mind that as time goes on, people have less time in their day and so therefore they want more convenience, and i think they want more experience so if part of the experience is that this product gives me a sense of being a cook, even though i don't cook i think it will find its way. >> my wife nearly sliced her finger off >> imagine if she had done all of the cooking from scratch. >> the first lesson is you should never ask a question you don't know the answer to and i don't know the answer, of all your restaurants how many of them can i go to and pick up a meal or carry them out or do you deliver? >> it's definitely changing. >> here's the thing, restaurants, nobody wants to talk about this, but we're basically a manufacturing plant with a showroom. >> right right. >> what's always been an odd bit in the restaurant business is what other manufacturing company would pay a rent to be on main street, any town usa

you wouldn't we're shifting as more and more people can take out their smartphone and they press an app that allows the food either to be picked up right there or to be delivered more people want to play with that kind of convenience >> and so are you meeting that customer >> we are meeting that customer more than anywhere else at shake shack. shake shack has a fantastic app that's on both ios and android and people are using it like crazy. in our full service restaurants like union square cafe we're not doing it so much we have a restaurant called marta which makes pizza and blue smoke. >> i've been to those. >> more than anywhere else, those kinds of foods, pizza and barbecue lend themselves to being picked up, take them home. >> because, obviously, if you have the kinds of restaurants that you have where there is a premium on great, fresh ingree ingredients and good cooking,

you don't want the degradation when travel. >> some food travels well. >> historically, way before there were smartphones, chinese food and pizza were classic ways that you could take out food and they package well and stay pretty hot, but i think the biggest thing gets down to this. when people want a food experience, they always wanted this combination of going out and coming home and to the degree that restaurants can blur the line and provide that hug that you wanted at home, the convenience of not having to cook web great. >> what's the biggest challenge you face in the restaurant business right now is what is it food cost or is it rent in new york >> minimum wage? i think the biggest will cha efrj we face is a different type of computation than people always told me about when i first got into the business. it's not that there are so many restaurants that you're competing against. i think you're competing for people's time. i think people are cramming more experiences into the same number of hours, and where i have my

food and with whom is very different today. i can actually get on facetime and share a meal with somebody at the same time >>never thought of doing that. >> do it in our restaurants. >> on that note, how much are you spending on technology right now compared to when you first got into the business and are you surprised at how much you have to spend on technology? >> we're spending a lot more on technology as far as i'm concerned when i got into the business we had two kinds of technology. >> cashier >> cash register and when union square cafe opened it was the first year that the electronic point of sale system was use, but through many, many years now we've had electronic -- >> that means instead of sliding the thing on the credit card, you actually swiped the credit card >> and had the waiter running into the kitchen >> i see >> but youio know, reservations for many years have now been done online and increasingly, people are ordering their food online, as well. >> what about in the back? are you automating back there

back there >> we automate quite a bit in the back of the house. we are also increasingly looking at companies that can help us match in the same way that people who want to fall in love match up we want to match up with the people who have the right emotional skills to thrive in the hospitality. we are looking for any kind of program that can -- >> bring applicants with job openings >> you open a lot of restaurants and do you ever look out there and think, there is peak, whatever it is like, burger bobby play yesterday said that bobby's burger palace is going public, and a lot of people were writing up that story, there's so much competition and there are five guys and shake shack and there's everything under the sun. is there something as peak burger or peak any kind of food out there in your view >> i think the bigger question is that at a time in our history when there is an unprecedented interest in food, there is also

an unprecedented number of ways you can eat. no one will stop eating and so part of the rush to the food world is that it's not cyclical. you're always going to eat and you're more interested than ever, and i think the question is going to be how many different ways can i slice the pie of eating, and i wouldn't relegate it to one category like pizza or barbecue or burgers or fine dining. i would just say is today a day that i would take out, pick up, order in is it a day that i'm going to cook am i going to cook all of the way? am i going to cook half way? so many entrepreneurs have been attracted to the world of restaurants and we just now, this is a great time to be a consumer >> that sounds like a different version of melissa's question. it sounds like peak restaurant, and there were numerous stories in "the new york times" about peak restaurants in the city >> there are peak opportunities to eat and what's going to shake out? something. >> that's harder for you guys.

the flipside is it's harder for the restaurant operators, right? >> it's more of a challenge and that's when we roll up our sleeves and say as long as it's apples to apples, we love to compete and our restaurants are full so i'm very excited >> that they are >> we have bacon news we want to ask you about. >> bacon news! >> our frenzy for bacon is pushing pork belly prices to record highs and they're up 30% this year, and i feel like every menu item there's bacon part of it what are your feelings about bacon? is it here to stay is it going just as loved today as it is tomorrow? >> i want to try to answer a bunch of your questions with one answer whether you're talking about bacon, burgers or pizza, there are some things that are not fads we didn't invent burgers and we didn't invent bacon and people have been enjoying them for a long time. what you are now seeing is people want food they know cooked better than they've ever had it cooked before and that's

where i would put my money as opposed to new gimmicks of ideas as opposed to who thought about putting ingredient a, b, c and d together those will be flashes in the pans and when i hear that people are doing great bacon and i love bacon, i'll go try it. >> bacon forever is what i am hearing. >> i hope so thank you. danny meyer. netflix hitting all-time highs and the streaming serviciservice hitting two major milestones chipotle plunging 6% and a new round of people getting sick at one of the restaurants is today done? we'll speak to an analyst who upgraded the stock before the news broke ...it starts a chain reaction... ...that's heard throughout the connected business world. at&t network security helps protect business, from the largest financial markets to the smallest transactions, by sensing cyber-attacks in near real time and automatically deploying countermeasures.

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>> welcome back, everyting to "pow "pow "power lunch," netflix, the company hitting a milestone on two key fronts julia boorstin with more >> netflix added 5.2 million new subscribers in the quarter for the first time it topped 100 million subscribers and for the first time over half of those subscribers are overseas, driving that growth, new

original programming in the quarter. 14 new seasons of series, 13 comedy specials and six documentaries and nine new feature films and the ceo reed hastings says they are producing more of the content themselves >> we produce an amazing show like "stranger things. that's a lot of capital up front and you get a payout over many years, and seeing the positive returns on that for the business as a whole is what makes us comfortable that we should continue to invest >> with this new content model netflix upped its negative cash flow forecast for the year to $2 billion to $2.5 billion, but hastings says they have plenty of room to grow. >> we are such a small player in our viewing compared to linear tv, compared to youtube. so we've got a long way to go to have more and more content to please more and more members and continue to grow, and what you see us doing as we grow is also improving our margins.

>> and analysts are increasingly bullish. j.p. morgan, goldman sachs, cowan and atlantic equities all upped their price targets for the stock after the quarterly earnings report last night guys, back over to you >> julia boorstin, thank you let's stick with netflix the analyst recommendations on stocks you need to know about. the slew of price target hikes after the strong earnings report want to point out j.p. morgan raising the price target to $2.10, saying q2 is netflix's strongest quarter ever goldman also boosting targets. >> susquehanna out with a bullish net up 67%, and the thesis was based on the the potential for more merchants to accept paypal. since then, big names like macy's, crate & barrel and apple itunes are signing up and there's more room to grow from

here when it comes to acceptance >> chipotle, raising the price record to $4.70. the company's newly introduced queso will boost sales and help margins in 2018. >> in proof that timing is everything, the stock is lower a number of customers reported sick of the location in virginia >> maximum upgrades ma ed the case steven, good to have you here. i feel bad for you this morning when you upgraded before this news broke what did you think, a lot of people thought this company finally had their hands around the supply chain what you see this news, does it make you think oh my gosh, here we go again. >> what happens with the norovirus out in northern virginia most likely to be the case where either an employee or maybe another customer may have spread the virus in the restaurant. management did catch this early and closed the restaurant last

night. they reopened the restaurant as of 2:00 this afternoon in our view, this is a typical protocol of what the company is doing in case of an effort like this norovirus, is not all that uncommon among restaurants what separates us of the 2005 incident, nora vai was wovirust case >> tell me why you would upgrade the stock based on the new qeuso product. >> as a backdrop we had the negatives in 2016 on chipotle based oen tn the fact it will cut margins. that's not the case since this year as the company continues to generate full margin sales, i think it will get past this

pricing. what's interesting of the testing of queso is the new product. this is a new improved way of getting queso. chipotle has not had it. most have had it for years chipotle does not have any >> are the margins a lot better. >> is it a non-protein item that the margins are better for queso? >> we believe so it is also an add on item much in the same way that guacamole is an added item it gives a little bit more earnings and margins visibility and we think it can be an increase in traffic just as a curiosity as it gets rolled out.

>> just driven by the cheese >> it is 2018 catalyst >> thank you for coppiming on. tyler, bacon and cheese all in one, it could not get better. how the other half lives inside the napa valley home of the hardware ceo, the power house caben trusted and it is nicely decorated, coming up next "street talk" is sponsored by wisdom tree, to learn more visit wisdomtree.com you always pay your insurance on time. tap one little bumper, and up go your rates. what good is having insurance if you get punished for using it? news flash: nobody's perfect. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident.

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time now for our "power house. this week the house in napa valley of the ceo restoration.

>> everything inside this $8.5 million mansion looks like it comes out of a tavares store realization hardware catalog >> that's because it did this is the home of the company ceo, gary freedman of napa california the palm trees surrounding the massive swimming pool outside. the home has six bedrooms and a dining room table for twelve and a separate guest house with its own private terrance for $8.5 million, they're willing to throw in every piece of furniture >> not only the furniture but the linens and hardware. gary paid $5.9 million in 2013

for the house. now, it is selling for $8.5 million >> like you live in a catalog. >> the catalog is big like their house. >> has it appeared in a catalog? >> it has not. it is making it an experience company as opposed to retailer and they're hoping to do more of these. >> robert, thank you repeal and replace is going nowhere, the nasenate healthcar bill is dying a slow death plus, baby boomer brands, why it is struggling right now. stay tuned it can be hard to breathe. it can be hard to get air out, which can make it hard to get air in. so i talked to my doctor. she said... symbicort could help you breathe better, starting within 5 minutes. symbicort doesn't replace a rescue inhaler for sudden symptoms. symbicort helps provide significant improvement

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welcome back to the second hour of "power lunch." here is what's on the menu, healthcare hit, senate

healthcare bill. harley davidson is sinking and the trillion dollar question, the one hurdle stands in the way of amazon hitting the cap of $1 trillion "power lunch" starts right now >> lets check the market where they stand right now major averages are of the worst levels s&p 500 have lowered about 8 points and the big gaining today is nasdaq composite. good afternoon everybody, i am tyler matheson, welcome. here are the headlines consumption of artificial suiwet

sweeteners lead to a body mass index. according to a new survey -- 70% more on college than other regions of the country, they are also more likely to borrow and taking on nearly twice as much debt and pizza huts says it plans to hire 3,000 drivers every month of the year. the hiring spree come s with a few months after pairing with company young brand after they plan to invest in $100 million in the chain what is the white house saying a about asa saying about all this? >> eamon jarers.

i can tell you officials here are scratching their heads trying to figure out where to go from this point starting from ground zero again. i saw david bossy, the former trump campaign official going in the west wing door here could be a sign that the president is bringing in outside council. the president did call some cameras in he said he was disappointed about the direction of this vote and he thinks the republicans would be best now to just let obamacare fail on its own and the democrats would come to them to negotiate and maybe 2018 to fix the problem. the republicans who voted against him were threatened to vote against him were not being disloy disloyal >> take a look at what he says there. >> they were not disloyaled.

i was surprised the two folks came out the way i look at it is in 18, we are going to have to get more people elected we have to go out and get more people elected than the republicans. we have to probably pull in those people that voted against it i don't know, they'll have to explain why they did and i am sure they'll have fine reasons we have to get more republicans elected because we have to get it done. >> so here is the question even though republicans do criminal the house and the senate the question is, what does the majority means >> there are other two areas where it is not likely to get a lot of democratic votes on tax reforms. will he have the same problem on those issues that he had on healthcare we'll ask sarah hucklebee

sanders in the briefing in just a few minutes. next step is the budget. the house. >> the healthcare bill would pass both chambers of congress they were counting about $204 billion in deficit reductions over the next ten years from the repeal and replace of obamacare that was a key part of how they'll get their budget to balance. already, the house's numbers are in jeopardy. earlier today, house budget community, diane black, says she has two goals for this, she wants to use the budget on mandatory spending program on medicare she's not giving up even though the healthcare bill has failed >> the american people wants tax

reforms and we have talked about it as apart of our better way. we'll continue to work as tax reform here in our house of representatives. >> the house budget does give some guidance for what tax reforms should look like and lower rates. tax reforms should be deficit and neutral and the tax code should be switched to a territorial system >> kevin brady says the budget gives quote, "the green light for the budget to go forward." >> we'll be watching for that. the big ifs there. >> thank you. the u.s. will impose sanctions as early as today against venezuela officials for alleged human rights violation this came after president trump put out a statement saying if indeed the country did create a

super legislature, it will be be hold into the president and oversees the current legislatures that they'll try to take strong actions. >> mitch mcconnell is set to speak moments from now of the failure of the healthcare bill we'll go there when he appears the gop healthcare bill is dead for a second time. what happens next for republicans? can they hope to pass their budget libby cantrell, on the budget as i understand it becomes a precondition to moving onto tax reform can the gop as risen as it is or seems to be on healthcare, can they coalesce on a budget and on tax reform >> that's a great question before republicans can move onto tax reforms, they have to pass a

budget because that'll allow for them to use reconciliations which will allow to go pass tax reforms and verses the usual 60. they'll have to pass a budget before they can move onto tax reform as you mention, it is not clear there is unity among the republican caucus aerround the a forward. even in the republican budget can pass the house, it is not clear the budget can pass the senate and vice versa. there are some head winds coming o out of the budget. >> are the divisions on the budget and on tax reforms as pronounced in the gop caucuses as they seem to have been on healthcare >> there are a lot of divisions within the caucus, things like is the tax reforms is going to be neutral or reduce revenues. we heard earlier on that

halftime report, one of the economic analysts said, why do tax reform reduces -- there is no agreement on that and there is no agreement on what exactly the contours of it all and considering what the outlines of the budget that aelon was talking about a moment ago she says house republicans' budget want lower rates and they want deficit neutral when he wil well, that means they got to raise taxes on somebody else we have seen from the difficulty of the border adjustment tax that they are reluctant to raise taxes on any one else or do anything difficult in order to cut raise. it is true than can pass a budget resolution without a

democratic vote, however, they cannot increase defense spending and cut domestic spending without democratic report. they're talking about busting the so called caps coming from the s queequester bill years ag. >> is there any reason to believe that there could be anything other than basic, the republicans going one way and the democrats going another. are the democrats just happen to see the republicans having all of these internal trouble and watch gladly while it happens or is there a point in which they do become obstructionist and which some people have said already. the public realizes they are not playing ball and they too are a problem. >> it is an excellent question of certainly what the democrats

are doing is taking a page out of majority leader of mcconnell's play book when he was a minority and president obama was president. mcconnell did an effective job making sure his caucus was against the democratic's agenda. i think democrats are sea soeine success. he won the majority in terms of of advancing more obstructionist agenda is there a point where democrats feel like they have to come to the table potentially. i think some people would say in retrospect or maybe republicans should have led something on bipartisan support from the beginning like infrastructure. >> we are talking about democrats not coming together. i understand rand paul, his complaints and he's a republican and the bill was not republican enough for him susan collins, she sounds like a

democratic >> this is a hard thing from the beginning on healthcare. republicans were trying to square the circle here in terms of getting very conservative members of their caucus like rand paul but more of the moderate of republicans to your point who maybe resemble this is why from the beginning and honestly, skeptical on the prospect of getting healthcare through the reason because of the strong divisions among the republican caucus. which obviously, they have come sort of on the forefront and this healthcare debate >> john, take the final question any way you like, i asked bill kris tocrystal in the last hour mcconnell of his leadership is threatened as a result of what's

going on mr. boehner lost his job because he could not heaurt the caps >> i don't think his job is in danger the republicans majority had been leader. and the john boehner, -- he was asked about the republican repe repeal/replacement plan. >> john and libby, thank you very much. >> our cnbc contributor, good to have you here michael.

>> thanks march sheichelle. >> when news broke this morning, yields started to fall, it sounds like the marks aets are sending the message that they are worried about growth that tax reform may actually happen, many don't think it is going to happen >> right >> i don't think it is a market that's stopping its foot but a loud tap on the toe that the markets can throw tantrums from time to time the question was, look, you have not been able to get this through, really the only thing that markets have cared about ever since trump is elected is tax reforms. markets are looking for easy money. now the feds say they are tightening and wall streets are looking to strengthen. >> do you sell stocks now

because tax reform is not going to happen? >> i don't think we know that tax reform is not going to happen we know that healthcare reform is not going to happen if they can get it done. there are a win-win here for portions of this tax for republicans and democrats agreeing both on the corporate tax and the repaid creation. there is a win there and that's a win for wall street. if they can get that done and we can see some progress then i think market stabilized and going higher if not, a tantrum is in the office >> the way i read the reaction at this point it is interesting because of different asset class are telling me different things. the dollar and the bond market is telling me one thing and equity market -- we are going to sit here at record high and it does not matter what happens in washington >> the guy always paying much

more attention of the bond market than the stock market we think the bond market is a bit smarter. the bond market is showing you there is a reaction, i still think we are still a little bit of wait and see. this is a concern, washington did its best to get this done or republicans did, stayed off the august breaks and trying to get the votes and senator mccain got blessed and i hope he gets well, s soon i think it is too early to suggest this market proposal >> do you stick with the allocation does that tell you at record highs maybe i should lighten up? >> yes, you lighten up according to our allocations what it tells the gray hair guy is you go back and check your policy statements and our as a whole occasi-- allocations this is a good time to come back

and rebalance and make sure you are not over allocated to equities caution is really important when the markets making new highs when this music stop, you want to make sure your clients have a seat >> none of that chuck prince met to is o met -- metaphor is out there >> to an extent, it is right there are times you have to dance closer to the chair and this is one of that time >> thank you michael faar. >> i like it >> close to the chair, i like it >> big blue feeling blue it is down actually we'll go straight to senate errand paurand paul. >> all of us promised to repeal obamacare. we voted in 2015 to repeal obamacare. i am in favor of the motion to proceed to repealing obamacare,

that's what we should do and that's what discussions have been about there is an indication that's the way we are leaning there is some spirited discussions over whether we should move forward on the vote or not >> if you look at the individual market and if you are a plumber and your wife is trying to buy insurance, obamacare has failed you. obamacare will still be in place and obamacare will be a drag on the insurance market and making it difficult for people to buy

insurance. >> there is been many ideas for how we get many people in our country on insurance >> 27 million people don't have insurance now in obamacare the estimates of 50% of those 50 millions don't get it because it is too expensive you say you can get it after you are sick, that's the real problem. that's the whole problem we have it is the adverse election of the desk spiral. that's what we need to fix we don't have enough votes to repeal all of thacht. we have to move forward. partial repeal on trying to get to the battle of obamacare that's driven prices up. >> thanks guys no, i am for a vote that succ d

succeed. those republicans promised to repeal obamacare, should vote the same way in 2015 if you are not voting the same way in 2015, you need to go back to explain the republicans why you are no longer repealing for obamacare. >> senator rand paul talking about the repeal vote. well, look, when obamacare is being made, there is a lot of democrats who wanted sipgngle payer. >> when they did not get it, they'll throw a tantrum. the argument is this is what you can get right now and can you go along with it and he did >> he seems to suggest that they're still debating of the procedure mode that we thought an hour ago because there were not enough votes to bring it to the floor.

we are awaiting for senate smih coeleader tcmcnnl. asoon as he comes out to that podium and speak, we'll go straight to him.

lets get the analysts take on this. joining us now our number one analyst on the streets

>> genertlemen, it is great to have you with us what are you expecting, tony the quarter will be largely in line in terms of earnings and you know revenue maybe a little bit light, everyone is going to be looking forward, will ibm will be ready to reaffirm the second half, for us of a few consensus numbers looked a little high. >> the wrap of ipm earnings benefited from a lower tax rate and the single digits or so and a lot of analysts expecting the tax rate to go up. why do you foresee in the second half that's going into 2018 when that is expected to jump >> yeah, you know, i would say to have a challenge a

historically, if you look. this time the guy implies of 64% coming in from the back half that's about 8% of shock in the back half. if ibm closes the gap from lower quality things like tax rate then ibm will struggle on it >> that's what warren buffet said back in may when he sold a third of his chunk, right toni can this company full-timely manage the transition of six years in the making? >> ibm is in a difficult predicament. revenues have gone to 80 billion

this year. the out set is 21st straight quarter. the challenge is twofold the first is chief information officers are now spending externally they want to move applications off premise into the cloud ibm is an off vendor the second challenge is they have two very important platforms. mainframes and unit servers. they pulled in an enormous amount of equipment. software and maintenance and finance and etc. those are two really big structural challenges that ibm faces

i mean you may make the argument that ibm is trying to go through the cloud as this point. are they too late or is the term too slow or is it too big to turn >> there is a lot of debt weight that are declining in the portfolio today. the bull issue narrative come frs the cognitive compute. the potential is becoming this is a new market and is ibm -- if that's the case, that could be a start of a massive upside of ibm and not a start of demise. >> all right, we'll leave it there. thank you, guys. harley-davidson is sliding today. those harley is having an image problem. it seems that the company is for baby boomers but not so much

millennials. plus, amazon is buying whole foods of a $1 trillion cap we want to hear from you, e-mail us at powerlunch @cnbc.com or @powerlunch >> a lot more on "power lunch.

where's jack? he's on holiday. what do you need? i need the temperature for pipe five. ask the new guy. the new guy? jack trained him. jack's guidance would be to maintain the temperature at negative 160 degrees celsius. that doesn't sound like jack. actually, jack would say, hey mate, just cool it to minus 160 and we're set. good on ya. oh yeah. that's jack.

i am susan lee, here is your cnbc update at this hour president trump says he's deeply disappointed on the collapse of efforts to repeal obamacare. >> let obamacare fail and everybody is going to have to come together to fix it and come up with a new plan and a plan that's really good for the people with much lower premiums and much lower costs and better protection i have been saying that for a long time. let obamacare fail, it will be a lot easier >> the vatican tribunal, they

are being charged of diverting $489,000 to renovate the cardinal white house ivanka trump is visiting the international robotic competition, she stopped by to wish everyone good luck. that's a nice story, back to you guys thank you, susan lee lets take a look at the movers right now tesla of more than 2% of the company announcing it. and take a look at pua biotech getting fda approval republicans at the moment to

vote for a replacement for obamacare sometimes in the future will have a vote on repealing obamacare and the same vote that we had in 2015 i would remind everyone in the proposal, there is a two years delay that'll give us the opportunity to work out a complete replacement on a bipartisan basis with our democratic friends that's a vote that we are likely to have in the near future >> we got a sense of what the future looked like we are uncertain of obamacare.

no reforms and no change in the status quo obamacare is a fail. we want to change the structure as we stabilize markets and protecting people from premiums increases and exclusions we'll continue down that road because the alternatives i fear is going to be a democratic effort strictly to bail out insurance companies with no reforms what so ever >> after seven year of obamacare, the american republic knows what they have a number of years i voted to do a repeal of the obama healthcare law. i am ready to make that complete repeal vote again. of course, that's not enough the people of wyoming want more

than that. they want to be able to buy the insurance of what works right for them i am ready to vote for repeal. we need a medical system not just as gbackwoods good before. we need a healthcare in this country is better than that. >> at some point, we need to find out where the votes are this is important work to be done and it affects families and healthcare we need to find out where the votes are. there are other things we need to do present this week to talk about manufacturing made in america. if you can pay the utility bill of transportation systems, those are the two boxes that you check when you start talking about jobs we know the best place to get insurance is still at work where somebody else does the negotiations and somebody else reads the policies and ways where people can get insurance at work is important

this is a considerable amount of time spent on it we need to find out where the senate is and move forward >> there are a lot of people out there who seemed to be spiking football for now it seems to lead the affordable care act in place today. let me tell you what happens if you continue to despite the football in the state of colorado last week, it was announced that the average premium rate increase for the next year will be 27%. that's if you are lucky enough to live in the front range of colorado f you live in the western slope, you will pay 30% more or 40% more on the american people who'll continue to pay more under the affordable care act that's collapsing we'll continue our work to get our jobs done to make sure the status quo no longer stands and instead we provide relief to the

american people. >> this is a challenging experience for us. a lot of people are involved in passionate discussions everybody is giving their best shot as of today, we do not have and could not agree -- what we do have is a vote is many of us made two years ago at a time when the president of the united

states would not found a legislation that would repeal obamacare and with the two-year delay give us an opportunity to build something on a bipartisan basis. we'll be doing that in the near future >> we'll have to see what happens. we'll demonstrated that for republicans by themselves at a particular point to do a replace. that does not mean problems go

away we have a new supreme court justice. we are only six months into it last time i looked congress goes on for two years and there is much work to be done for the american people and we are ready to tackle it thanks >> all right, that's the majority leader mitch mcconnell. this news we got within the last couple of hours, he was hopeful

and did expect the senate to vote on what will be called on a clean repeal of obamacare that would allow two years then p presumably after the president signs it for congress to come up with some replacement that would be better than the aca >> do you believe them at this point? >> there is no credibility >> there is three senators who have said within the last six or so hours they would oppose that kind of move >> they cannot get on the procedure vote to vote on the vote, radioiight >> to the point of that headline of the most unproductive congress, he had to defend what they accomplished in this section so far >> collect sively as a group, y. it goes back to their senators, what are their politics at home and they think it is good for

them to vote against >> you saw how each of them would play their leverage of the past few days. the other thing i think it was notable there senator mcconnell bix basically saying on tax reforms. >> did you know of all the individual market but what is the holdup about >> medicaid. >> exactly, they never want to talk about medicaid. they want to talk about individual markets >> department stores are struggling and who is staying relevant and how do they plan to fight back >> courtney reagan >> kohl's ceo is gtietng lumped into this. he will make his case on "power lunch. and can help protect your potential profits.

fidelity -- where smarter investors will always be.

shares of kohl's are down this year as well as other retailers. courtney reagan. >> hi tyler, jc penney and

sear's are closing hundreds of stores but kohl's is not i spoke to the ceo and he said that kohl's is benefiting. we are optimistic and we are seeing that a little bit we had some experience with that with other mall anchors, as they closed, we pick up more in sales of the same trade areas. >> the drop came in early january after the holiday sales tavar release. so i asked mr. manziel if he thinks his shares have been dragged down by the negative headlines surrounding the department store sector. >> it is beaten down because we are part of this generalized brick and mortor department

stores retailer. the fact are, we are not the same whether it is of the position of the flexibility that we have or the store's portfolio being newer or off the mall or technology investment which is massive, most of our competitor are not able to do that. >> kohl's has about 95% of its store in off mall locations and 95% transactions are still done in physical stores back to you guys >> all those shares are down, thank you, courtney. shares of amazon are up more than 35% the only thing that stands between amazon and a $1 trillion evaluation is the fdc. it is good to have you here.

i want to set the stage here this is a very interesting political piece that you have written in, the ftc should say no the whole foods transaction, why, james kakmak. >> if you do, you have to rethink the parameters and the regulatory parameters on what defines a company that's too big or you have to say this is the new normal and we'll allow industries to beat amazon. we'll look at normal antitrust parameters which will allow the companies to steam ahead of the world's first trillion dollars company. >> we have discussed around antitrust around the united states it is always about does this lower prices where consumers are not raising prices for

consumers. everybody looks at this and said no amazon did nothing bullougheri but lowering prices. >> why do you think this is dangerous, why >> we have to make a decision as society and as a government if this is the way to go. to your point on the deflation aspect of amazon, that's true. we are seeing across the cpg industry >> consumer product goods. >> exactly >> every aspect industry categories amazon goes after releases half a billion to a trillion dollars we'll be deciding whether we should be going after the economy essentially if we do approve this deal? >> lets go to charles schumer, the democratic >> senator mcconnell a couple of weeks ago said if their bill

failed they would want to work with us. we hope they'll do that. the president have, simply to sabotage the victims and hurting millions of people and making things far worse than they are today is not an acceptable choice i hope our republican colleagues will realize that. [ inaudible >> there is no pride here, we want to do what's best for our people what's united was the realization that was prosed in trump care that would cause 20 million people to lose coverage and would have made it hard for families to keep their loved ones in nursing homes and this

is not a game. we go out and talk to our constituents where this affects. we want to help them you know this is not something where a lot of people on the other side have this view that it is detached from reality that they are removed from it that's not us. we are not entrenched. we are called onto work with our republican colleagues. well, we'll see and find out >> lets try. >> first of all, the markets have been stabilizing until president trump and some of the republicans joining him decided to sabotage it had they call for call sharing

to be premiums, hotealthcare col have gotten better they can do that on their own. in the health committee, we coue that quickly as for change the health care system, it shouldn't be done quickly. it shouldn't be done in closed -- behind closed doors. it shouldn't be done in the dark of night the history of america shows when you do things in sunlight and you do things bipartisan and you do things somewhat deliberately the result is much better than what they tried to do which is have a small number of people in a dark rom and not tell anybody else what they are doing. >> [ inaudible question >> well, if they do, they are sabotaging the system and it's going to rest on their shoulders. the overwhelming majority of

american people know that president trump and the republicans are in charge, and if they sabotage the system they will pay huge political price. i think president trump in his peak doesn't understand that, but he's actually hurting his own presidency and his own party by threatening to hurt so many people just because he sort of wants to play a political gotcha. >> where do you find common ground on questions of planned parenthood and abortions, those types of -- >> we're not going to find common ground on everything, but we can find some common ground right away we've asked for three rather modest things that would do a lot of good which amy mentioned and martin mentioned which is make this cost-sharing, which reduces premiums and makes health care better permanent the insurance industry says nothing to doing nothing more than lowering premiums than cost-sharing the reinsurance exchange

proposed by senators kaine and carper could do a lot to help make the system better and senator mccass kell that in bare counties get the same insurance we do. that avoids a lot of the ideological fights. >> i know on the reinsurance issue in addition to mentioning my own legislature -- >> that was senator chuck schumer to do something related to health care reform. we'll take a quick break and continue our discussion who thinks ftc should say no to an amazon whole food deal after the break.

let's continue our conversations with james cakmak. i asked you when we were supposedly listening to chuck schumer. how big in terms of market share is whole foods in the grocery business it's small, so by traditional sort of metrix of antitrust, there would be no cause for action here. >> absolutely zero. >> so how? >> we just have to think about what it means to be big. because once you have the internet involved, it completely changes the game because they can leverage vast amounts of data, leverage vast amounts of their tech infrastructure as well as their customer base and delivery network and that's something that other companies cannot do, so is the question does it fit in the traditional parameters >> no. >> but can you make a case i'm not a lawyer and i don't

assume you are can you make a case that if we let this happen here's where it may go as opposed to here's where it is. in other words, here's the market size of this combined company. >> we know the direction that brands can go, what we're seeing from consumer packaged goods we knot know the direction that taxes can go from a real estate standpoint, and when you put all that together, you know, i think you can make a case for the ftc to at least consider that. if you do allow this, you have to rethink parameters as maybe you allow other established companies to be able to merge in order to more effectively compete. >> we're being told we've got to go. >> a lot of questions. az a lot of things to order on me thanks very much. >> that's the problem. >> "power lunch" will be right back last year, he said he was going to dig a hole to china. at&t is working with farmers to improve irrigation techniques.

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to keep our community safe. before you do any project big or small, pg&e will come out and mark your gas and electric lines so you don't hit them when you dig. call 811 before you dig, and make sure that you and your neighbors are safe.

811 is available to any business our or homeownerfe. to make sure that you identify where your utilities are if you are gonna do any kind of excavation no matter how small or large before you dig, call 811. keep yourself safe. welcome back to "power lunch. i'm eamon javers at the white house where sarah huckabee sanders, the deputy white house press secretary, is briefing reporters inside the briefing room she says the president has nothing to apologize for in terms of the failure of the health care initiative this week she said that the stock market is at an all-time high, things are going well in this country, and they don't need to a joys at

all. i also asked her if the president is going to change his behavior in any way in terms of tax reform she said no. back over to you guys. >> thank you very much eamon javers at the white house, and we thank you for watching "power lunch." >> yeah. "closing bell" starts right now. thanks so much for joining us. >> see you tomorrow. >> hi, everybody welcome to "closing bell." i'm kelly evans at the new york stock exchange. >> and i'm bill griffeth big news out of washington as you've probably heard by now health insurers today, as a plan to vote for a repeal of obamacare without a replacement is also losing support the latest details coming up in a few minutes. >> those names are in the red. biotech companies jumping after its new breast cancer drug was approved by the fda. more on this breakthrough with puma shares up 8%. >> that's a great story. plus, new problems for