if it dips, i'll buy more. >> final trades. we have 20 seconds left. >> apple let's move on. >> facebook. i bought calls today >> nice. >> first republic, great bank, good niche. >> llb >> incana. >> that does it for us "power starts now. >> i'm melissa lee so long summer recess. the president turning up the heat on senators right now in a lunch meeting with them. the details straight ahead higher highs, nasdaq and dow setting new records. plus, man versus machine health care. the surgeon who is using robots in the operating room. "power lunch" starts right now >> we begin in the nation's

capital. happening right now, president trump giving senators both a prep talk and beattodown, too, r not getting the health care over the finish lime. eamon javers is at the white house. eamon. >> reporter: that's right. i can tell you that we know some of what he has said to these republican senators. he's gathering them here to talk about ways forward on the obamacare repeal and replace effort which was all but dead earlier this week. today the president says he wants to continue to push forward. he says ultimately that we have no choice. we have to repeal and replace obamacare. the best option is repeal and replace even though the president suggested early that maybe the best option was to repeal obamacare and wait to replace it until sometime in the indefinite future. today, the president saying that obamacare was a big lie. it was a lie directly from the president. that was from president obama.

he also says that he thinks the senators should stay in town until they have the opportunity to pass this he said the democrats are not going to help them they're obstructionists, they have no ideas and they want single-payer health care which is going to bankrupt the country. real tension was expected in this room because you have republican senators who did not want to walk the plank politically and vote for this obamacare repeal and replace and a president who wants to pass the bill, send it to him so he can sign it. the president expressing some frustration that the republican senators voted to repeal and replace for seven years but now a president who will sign the bill, they are not willing to do that frustration on both sides here, michelle. >> i was surprised, eamon, and we'll see on the tape playback, when asked yesterday -- and i wonder if it comes up today -- if he's angry at some of the

republican holdouts. he said he didn't hold it against them clearly, he's they are the reason that they are not on the same page. >> reporter: he said they've been talking about this for seven years and now i'm ready to sign the bill but went out of his way not to antagonize those senators that coming after he did antagonize a bunch of republicans in the house by saying that the bill that they passed and he held a celebration for here at the rose garden in the white house was, quote, mean that didn't sit well with the republicans who took a dangerous political vote to pass that and send it to the president, as he requested. and then for the president to turn around and call it mean the president clearly not trying to do the same thing to senate republicans because he needs them he needs these votes it's not clear where they will go from here we'll wait to see what the white house has to say. >> we'll see what our guests say.

joe watkins is joining me, former white house aide to george w. bush joe, there's supposedly a republican majority in the senate but when you look at, for example, susan collins, a republican in maine, is very different than a republican in texas. we don't have republican majority at this point what do they do? >> it's going to be hard at the end of the day, all politics are local and they have to consider dltheir own state a how they are treated if they vote for a bill that doesn't support medicaid expansion and some of the other things that are supported like in ohio and maine and the like they have a difficult job to agree together on the health care bill that replaces obamacare but at the same time doesn't reduce medicaid expansion in the states that have signed on >> ben, should they go smaller here should they just put this thing

aside and when the whole -- when it seems -- we've heard now for 16 years that everybody agrees there needs to be corporate tax reform, that they focus on something much more targeted and small right now rather than this quagmire of health care? >> i've got to say, this is what frustrates republicans on capitol hill so much about this white house. trump has been on every side of this in the past week. first you absolutely have to repeal and replace then it's, no, we can just repeal it and we'll deal with replace later. then it's let obamacare die and democrats will come to the table. there's no consistent message on this, it drives them nuts and tax reform, they should go big there's no reason to go small, i don't think, on tax reform. >> you can criticize trump all you want i don't think it's going to move susan collins. >> he had an actual plan and was invested in the detail.

>> they have no fundamental agreement. and he laughed he laughed when he was asked that and he was right. >> but i had understand, joe, republicans having fights about how republican you ought to be when dealing with this situation. but what do you do when you have somebody who actually doesn't believe fundamentally in changing and reforming medicaid, which is core. hold on. president trump was speaking moments ago at the white house about his meeting with the gop senators. >> we're in this room today to deliver on our promise to the american people to repeal obamacare and to ensure that they have the health care that they need. we have no choice. we have to repeal and replace obamacare. we can repeal it but the best is repeal and replace and let's get going. i intent to keep my promise and

i know you will, too since 2013, obamacare premiums have skyrocketed in alaska, they went up over 200% recently. we know that in arizona, they've been up 118% and those states are good compared to some of the numbers that are coming out. despite the promise that premiums would decrease by $2,500 on average, they're actually increased by almost $3,000 and even much more than that in some cases it's crushing the middle class and the families of the middle class. it's frankly crushing our country. obamacare was a big lie. you can keep your doctor, lie. you can keep your plan, lie. it was a lie directly from the president. you can keep your doctor you can keep your plan 28 times he said it. 28 times

and it was a lie and he knew it was. and now it's hurting this country ir rep pra blee. premiums are so high that 6.5 million americans chose to pay a fine to the irs instead of buying insurance, the famous mandate. we will pay not to take the insurance. people don't understand that they don't even understand what it is or what it represents. if obamacare is not repealed in 2018 over 1,300 counties in the united states will have only one insurer. 40 county also have absolutely no coverage in the exchange. and that number will grow rapidly and i think those numbers are extremely conservative i think they are very low. i've been here just six months i'm ready to act i have pen in hand believe me i'm sitting in that office

i have pen in hand you never had that before. you know, for seven years you had an easy route. we'll repeal, replace and he's never going to sign it but i'm signing it so it's a little different for seven years, you've promised the american people that you would repeal obamacare people are hurting inaction is not an option and, frankly, i don't think we should leave town unless we have a health insurance plan and unless we can give our people great health care. we're close. we're very close the other night, i was very surprised when i heard a couple of my friends, my friends, they really were and are -- they may not be for very much longer. i think i have to get them back. you didn't go out there. you're going to be

you're going to be look, he wants to remain a senator, doesn't he? i think the people of your state are going to appreciate what you hopefully will do. any senator who votes against starting is telling america that you're fine with obamacare but being fine with obamacare isn't an option for another reason because it's gone it's failed. not going to be around we pay hundreds of millions of dollars in subsidy when those payments stop, it stops immediately. it doesn't take two years, three years, one year, it stops immediately. on the other hand, and i have to say this, a yes vote will let the senators debate the future of health care and suggest different ways to improve the bill that's what we're going to do at lunch. we are so close, the way i

looked at it, we have no democrat help. they're obstructionists. that's all their good at, is obstruction. they have no ideas they've gone so far left they're looking for a single payer. that's what they want. single payer will bankrupt our country because it's more than we take in for just health care. so single payer's never going to work but that's what they'd like to do they have no idea what the consequence will be and it will be horrible, horrible health care where you wait in line for weeks to even see a doctor but we're going to expand the hsas to increase health care coverage, getting washington out of the way and giving more control and funding back to the states, stabilizing exchanges so that those pre-existing conditions are protected and before he knew what the plan said, he didn't say it

he was saying, death, everyone's going to die death. that's the only thing they are good at. this is a great plan this isn't just a good plan. this is far better than obamacare and more generous than obamacare. saving medicaid, which is on an unsustainable path and let's states spend those dollars freely, the states are going to be able to spend the dollars and as a smaller entity, the states will be able to take better care of a person with a bad back, with a bad prognosis, with a problem i'd like the federal government to focus on the middleeast, to focus on north korea to focus on things where we have very big problems. the states can do a better job than the federal government when it comes to health care. and that's what we're letting

you do and we're committed $45 billion to help combat the opioid epidemic and some states in particular like that. so my message today is really simple we have to stay here we shouldn't leave town and we should hammerthis out and get it done. and not just a repeal. hey, it was sort of early on, along with a few of the other folks at the table the repeal was fun i think the people of this country need more than a repeal. they need a repeal and a replace. and we were very, very close and then little things happened but now we're very close again we have to get it there. now, with john cornyn, the other need we had a couple of things that we put down on paper. i'm just going to read them really fast. these are some of the things that are done because the democrats are always selling their plan but they don't do that anymore they don't talk obamacare

anymore because they can't because it's failed. they know it so they're selling their plan and we never sell our plan if we've done anything, it's on letting people know how good it was. so we wrote down these few things repeals the individual mandate how big is that? people are paying not to have insurance. nobody ever talks about that repeals just killing employer mandate. how big is that? well, substantially lower premiums crosscountry lines, crosscountry state lines where it's almost impossible for insurance companies to compete in different states, we can't because, unfortunately, the 60 votes. but it's going to come very soon we're putting it in a popular bill and that will come. that will come and your premiums

will be down 60 and 70%. people don't know that nobody hears it. nobody talks about it. we're going to have to cross state lines and you'll have insurance companies bidding. you'll have forms of insurance that you don't even know about right now because that's the way it works there's tremendous competition so, your premiums will be substantially lower. repeals burdensome taxes, big. we'll restore choices. the bill also provides for coverage options so you're going to have a tremendously expanded coverage and options. we'll stabilize insurance markets. the markets right now, by the way, are gone. they are a mess. and depending on what happens here, depending on what happens over the next couple of weeks, the insurance companies are all fleeing. we'll protect pre-existing condition coverage you listen to the democrats and

they say, oh, you're giving up you're going to have better pre-existing than they had in their plan and you're going to be protected we'll allow the use of pretax dollars to use premiums. we'll expand the hsas. we'll devote substantial resources to fight opioid and substance abuse. we'll provide better coverage for low-income americans by the way, low-income americans under our plan and we're doing things at this meeting which i think you'll be very happy about because we're going to spend some more money to make sure everybody is protected we'll provide better coverage for low-income americans we'll improve medical outcomes for low-income americans and put medicaid on a sustainable path, which it's not on right now, levels the playing field when it comes to federal dollars, now a principle driver of the $20 trillion debt that we have and

will redirect authority from washington, d.c., to the states, which i've already said where they can innovate and develop the best practices and on a smaller basis they'll be able to take care of people better so we can repeal but we should repeal and replace and we shouldn't leave town until this is complete, until this bill is on my desk and until we all go over to the oval office. i'll sign it and we can celebrate for the american people thank you very much. thank you. [ applause ] >> all right well, we were told that there was more i guess not. a couple of things one observation, he talked about

being able to buy across state lines. that's not officially in any of the current legislation, just part of the bigger plan that paul ryan outlined months ago. just to clarify that and the president saying don't go on vacation until you actually bring something to my desk and trying to sell the plan once again, another observation we've made, a big focus on the individual insurance market, where most of his comments were directed and very little discussion of what prevents anything from happening. >> that's the reform of medicaid. >> which senators in maine, senators in virginia -- >> right senator dean heller. why do you think they sat him right next to him. he's one of the holdouts that doesn't like what is happening with medicaid. >> ben white, he repeatedly said we're so close we can't get any closer. how close are they >> not close not at all close republicans are pretty much

desperate to move on from this mess, from this fiasco that has crossed it him for the last six months the problem -- the big problem here is where was this trump speech three months ago, six months ago, where was he on the stump saying, this is what is in the bill and good for your health care and it was nowhere. >> i think that's a fair point, joe watkins. has the president underplayed his happened he was strong, forceful and in full salesmanship mode there >> that's right. >> we wouldn't have found ourselves -- not we. the congress may not have found itself in the position it is in right now if he had been a more forceful salesman along the lines we just saw four weeks ago, six weeks ago. >> if he had worked on this sooner and applied the pressure, we might have a bill already being signed into law. but that being said, this was

the right speech and at the right time at least america knows where he stands on the issue and likewise he's saying, don't blame me if we don't get this done i'm doing everything i can to bring folks to the table and to get this done. it may be late but, guess what, better late than never he's saying the right things it's still going to be hard because for those senators facing re-election, like dean heller in nevada, they have hard decisions to make. the white house has to get its hands dirty and make deals with the republican side who may be a holdout and get them on board. if they can get their 50 members on board, they have a bill they have a bill. >> they need lyndon johnson. >> a very quick issue with one thing in there we know where the president stands he could stand somewhere else in three hours from now >> 24 hours ago he was saying replace the sucker and let obamacare die. >> and now he's saying repeal and replace.

>> he could be different at 2:00, at 4:00. he just wants a victory no matter what it is. he just wants to win something. >> for the insurers, this is a huge sigh of relief as opposed to just letting it die in a couple of days, there's going to be a subsidy payment due to the insurers. he says we're not going to let that happen and destabilization of the insurance market happen, at least not at this point joe? >> this was a good timing speech from that standpoint and a message, of course, to the market as well as to those members of the u.s. senate >> tax reform, joe ever the holy grail of the markets. it's there, isn't it when ever >> hopefully soon. hopefully next >> coming soon to a capitol hill near you. >> all right, guys, thank you. great to have you.

>> thanks. and now to kayla tausche with breaking news where else, d.c. kayla? >> we got headlines from the supreme court which has again voted to uphold the president's travel ban on a temporary basis but it's taking a little bit of a stricter approach and now is saying that the president will not be able to bar people who have relatives, specifically grandparents, here in this courcour country. that's something that was sued over and it appears to be a temporary relaxation of that travel ban that the supreme court last month did vote to uphold 90 days for travelers. 120 days for refugees from six muslim-majority countries but it does now appear that the supreme court is saying that people with relatives and specifically grandparents in this country can still travel here. back to you. >> thanks for that update, kayla. so while dysfunction continues in d.c., the nasdaq and s&p 500 are at all-time

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markets moving higher today. nasdaq calling for a nine-session winning streak. bob pisani is live from the new york stock exchange. hi, bob. >> hi, melissa the market is doing fine a lot of comments about paul ryan saying that he's going to start legislation to overhaul the tax code as soon as they get back from the summer recess. that's helping things. yes, still very much alive s&p is doing well. very rarely when you see the s&p doing better than the dow jones industrial average in the meantime, banks are doing well and morgan stanley had good wealth management. u.s. bancorp based in minneapolis, they did better loan growth was up 3.5%.

most are 1 or 2% banks are doing better and tech stocks are doing well. all of the f.a.n.g. stocks are doing better facebook, amazon, microsoft is there, netflix at a new high as well we've had a weak dollar for a while now. that's helping some of the aerospace stocks boeing is there, stanley black & decker and borgwarner. and for at&t, new 52-week lows for at&t it's down 16% of the year. of course, we're still waiting on that time warner merger the dow is up 33 points. back to you. >> thank you very much, bob pisani investors are not over the moon in this market and that's a good thing for the health of this rally. he believes there are no

expectations joining me is jim paulson. good to see you. you actually think we could have about 130 or so points to the upside on the s&p. that sounds really bullish >> it's not as much as it used to be. it's 2600. it's around 5% from where we are. but you know, i guess i think the biggest thing that hits me, melissa, is that we're kind of in a backdrop for the stock market which is close to goldilocks it's still producing a pretty solid rate of job creation we've got rising real wages for workers. we've got rising profitability, rebirth, if you will, of the earning cycle. all of that without inflation challenging price earnings multiples. we've got a fed moving to titan but the best you can say about

them is really they are just easing less from still a very accommodative policy. >> so is a big component that the fed is going to raise but they are doing it so gradually and at what point do you get concerned about what the ecb may do tomorrow or at future meetings or central banks around the world might do that could propel bond yields higher? >> i'm not as worried about that i think their moves will be much like the fed and they are coming from such accommodative positions that i don't think it's going to be impactful what will change this is if we do get -- and i think we'll eventually get -- more inflationary pressure. i think it will go above 3% and one big important catalyst hovering out there is that dollar the u.s. dollar is right on the cusp of a 30-month trading range low. that will put juice back into commodity prices, particularly oil.

if that comes at the same time that wages break through 3%, you can start to see, you know, angst among bond vigilantes and the fed's slow and steady process. i also think for a while that inflation will come with better economic growth i think it's a ten-year yield. >> in the hierarchy, i must say, when everyone says it's goldilocks, i want to call somebody and say sell. at any rate, if i were to ask you to order the hierarchy of risks as you see them, it sounds like you just did that and that you would say that over the long term, the risk comes from a weaker dollar and higher inflation that spawns higher interest rates is that the principle? so it's not washington that's not your big worry,

right? >> no. i think you're right i look at washington and i think the market looks at it this way, too. the positive price index out of washington is so negative that it can't get any worse and there's no expectations for anything to be done. so if it does happen, it's a positive if it doesn't, the market is prepared for that. under washington's wound, if you will, as long as we have the type of global and u.s. goldilocks sort of economy going, they can screw up badly and the stocks will continue to do well. if that momentum changes, stocks will start to struggle. >> jim, thank you so much. jim paulson, he was talking about interest rates let's talk about them in the bond market. rick santelli is at the cme. rick >> two years settle at 1.35.

308s are at $2.85 unchanged. if you look at intradays of twos and tens, they jump out at you it's been the glide path look at one-week and tens, it still glides down. there's wild action today. you like looking at dyhg, it's important because usually what sovereign prices are going up, yields are going down. high yield becomes the new love affair of investors. look at the chart. new highs of the year and for this etf going back to june of 2015 melissa lee, back to you. >> rick, thank you rick santelli. scripps and discovery rising today on rumors of merger talks. what this says about content how you get it and the future of media. and a retail worker at amazon everything that we've heard y tat the job losses in reil

mabe wrong we've got that debate coming up next ♪ this is a story about mail and packages. and it's also a story about people. people who rely on us every day to deliver their dreams they're handing us more than mail they're handing us their business and while we make more e-commerce deliveries to homes than anyone else in the country, we never forget... that your business is our business the united states postal service. priority: you ♪

yeah, and i can watch thee bgame with directv now.? oh, sorry, most broadcast and sports channels aren't included.

and you can only stream on two devices at once. this is fun, we're having fun. yeah, we are. no, you're not jimmy. don't let directv now limit your entertainment. xfinity gives you more to stream to more screens. hi, everybody, i'm sue herera president trump addressing the opening meeting of the controversial voter fraud commission he told members that voter fraud is a menace to the rights of law-abiding voters. >> your work will help protect our democracy. this will be a very transparent

process. it's going to be very open for everybody to see you'll approach this important task with a very open mind and with no conclusions already drawn. >> airline passengers traveling from mexico to the united states will begin a new enhanced security measures today. all electronic devices bigger than a phone will have to be fully charged for potential inspection. and why did the alligator cross the road well, this one doesn't seem to know the individual kbroe shows the gator going one way and then another way and then he turns around and then eventually he runs into the woods. the gator needs a garmin you're up to date. ty, i'll send it back to you >> sue, thank you. >> you got it. >> two media companies may look

to merge scripps and discovery. julia boorstin is in l.a. with more fill us in. >> reporter: tyler, neither discovery nor scripps would comment but they held merger talks three years ago and have long been speculated as a good match. discovery which owns animal planet and scripps ratings and advertising are under pressure from streaming and bundles that don't include all of their channels a combined discovery and scripps could offer a streaming service and have negotiating leverage with cable and satellite tv carriers this comes as a media mogul tries to reinvent television for the mobile age

it's original movie series of episodes of ten minutes or less and in line with top tier tv costs. he says that he has top show runners on board, such as j.j. abrams and ron howard and he'll be able to license custom content for media giants including disney, fox, cbs and lionsgate. it will take at least $2 billion to launch this new tv service. sources tell me he's talking about funding and distribution with apple, google, at&t, verizon, spotify, among others whatever partner he should end up with would determine what the final business model would look like there could be a free ad-supported version and also a subscription service that potentially has no ads and no more exclusive content certainly a fascinating thing to

watch. let's talk more about the potential for this media merger and what it could be telling us. joining us is the staff writer with "the l.a. times." steven, i don't understand what this gets other than maybe a lifeline would a merger directly address head-on the secular changes going on in the industry or does this buy them time in that they've got cost energies to bring out of the thing and it gives them cost negotiating with the cable companies? >> i think it's a combination of all of those things. these channels have done relatively well. others are facing double digit rating declines last year and this year as well. food network, hdtv, they've held

up pretty well that's because there's still a market out there for people who want to turn on the tv and know what they are going to get and maybe just sit there and watch it these channels program to their audience distinctively because you have a few channels like that, you put them together and you could put together a formidable over-the-top product because they serve the audience in the same way. >> let me turn to benjamin with a two-headed question, if i might. content is king. i'd like you to talk about that, whether content may still be king but some kings are more powerful than others and consolidation, second part, seems like it is coming but where does it ultimately end what's after consolidation

>> well, i think content is king but you have to be careful they are seeing increase in competition. if you think about youtube and netflix and what they've done to the television landscape in the last five to ten years >> they've devalued the traditional content provided by traditional, quote, bundled networks like discovery or hg. >> yeah. and you could even just remove yourself from the media discussion and look at any industry when there is significant new competition bringing massives amounts of capital, return goes down. i think the market has been waiting for media consolidation for a long time. it hasn't happened a lot of these companies are family controlled or have majority shareholders. a lot has to line up for consolidation to take place. if you look at these companies,

the cable network stocks in particular, on the advertising side you see facebook and google, which are multiples larger than anything these tv companies are able to aggregate in terms of eyeballs >> what's the end game let's say you get the natural consolidation. what does it look like deeper down >> i think they have to start thinking about offering new products you know, smaller bundles are the way to go. a generation of viewers are growing up not getting their tv through cable or a satellite and you're going to have to find a way to reach that audience primetime usage among 18 to 49-year-olds has gone down dramatically about 25%. it's not because they are not watching tv. they're just watching tv the new way. you have to learn to connect with those people who are getting their content from netflix and amazon and often without commercials. >> yeah, those are all the

trends that we keep watching and wondering about. ben, should these two companies get together or is there a better deal out there to be made they've been talking about others going after scripps and what if they do get together and have enough of that passive content that people like to put on and tune in to the food network. you know what you're going to get. is that enough to drive an over-the-top consumption ala netflix and ala hbo? >> i was asking ben, thank you >> well, obviously time will tell but i think that these big brands, discovery food network and hdtv have more success together to combine a large audience with dedicated fans than they do by themselves it's an incredibly crowded over-the-top market already.

we've seen a lot of demand not just netflix and hulu. there's a lot of success stories. they all have a million plus customers in the united states people like ott content and you would think that scripps and discovery can explore that better than on their own. >> and you have each of these weighted equal if they combine does that make it overweight >> well, we'd have to assess the deal determines and the opportunities there. we are one of the few media bulls out there on the sell side market right now we upgraded media earlier this year when you can buy stocks at 11 times cash flow and you think those cash flows are relatively durable, that's pretty attractive in this interest rate environment. my favorites are disney and viacom. >> very quickly, how are christina and terry doing? what's the latest? >> i'm not up on that show

but the thing is, you know, these networks do so well because you can turn them on and you don't have to know the mythology or see them in the past they reach the passive viewer in a way a lot of other channels are not doing anymore. >> you have to be must have or must watch. >> just turn on the radio and -- >> yeah, whatever comes on yeah >> steven, benjamin, thank you >> thank you interesting debate earlier today on cnbc "squawk box" about the state of the labor market and how jobs are counted we can make that interesting because we are cnbc. how labor is counted particularly in the struggling retail sector. here's a guy who made it interesting. steve liesman. >> thank you very much i'm going to be as interesting as i possibly can. our rumors greatly exaggerated the national federation is

acknowledging the industry challenge but still growing, they say, and the government data itself could be misleading. it has been a tough year according to that data for government jobs. the economy has gained more than 800,000 raising the specter of the death of stores with e-commerce we talk about that a lot the data could be missing. more warehousing and transportation jobs have become more a part of retail employment even at the brick and mortar companies, not just the e-commerce ones. this has made headquarter jobs for anyone not involved in retail and actually selling to people here are some other points 87 million square feet of new retail space add in 2016 retail is at the highest level since 2008 and pure play, e-commerce, online retail, they are less than 6% of total sales but they are growing and high-profile stores get headlines but don't tell the real story what is happening at

the million of small shops that are responsible for the bulk of hiring we could not reach the bureau of labor statistics. >> 87 million new feet >> square feet >> that's net? retail square footage went up in 2016 >> that's right. >> does that count warehouse space? they want those jobs covered under retail. >> the best answer when you don't know the answer is to say i don't know the answer to that. there could be some warehouses in there i think that's fair enough to say. >> it's not quite as much and if they are building new square feet and rents are high, both of those would speak to market

let's challenged overall than perhaps the data suggests. >> where should those jobs be counted if you're going to count them in other words, someone who works for, let's say, macy's or target in a warehousing function or -- are they really retail jobs or are they in shipping or distribution what would you say >> the other thing i've learned over the past decade or so is to be very clear what question i'm asking the data to answer. >> yeah. >> why am i asking that question to find out about the health of the retail industry? am i asking that question because i really care about how jobs are classified? i don't think i care about how jobs are classified. i think i care about the health of the retail industry and if there's more people there -- and the other thing that is interesting, when macy's or somebody shuts down stores, 1, 2, 3,000. big headlines. we all do it to the overall

health of the industry it's something like 91% of all retail employment is at stores with less than 20 people. >> so if target has lost a thousand workers on the floor of target stores across the country but they've added 1500 workers in distribution centers to pack and ship and so forth, is it a loss or a gain i guess i would say it's a gain because the ultimate employer is in retail. >> i think that's fair to say. >> just as i would count the back-office accountant who works at the headquarters. >> can i ask a question? why do we care so much because it drives -- is it related to the employment number i mean -- >> it's a perception issue, right? >> but you know, melissa, these people in the financial business those perceptions drive prices about the future >> right. >> and if you put up that chart

of the overall future -- the overall trend -- what is that one? this is the rise of e-commerce jobs it's the next one. when somebody in the busies a flat line like that and a dip, what does that do to your expected returns i'm going to lower them. what does that do to the prices for capital? i'm going to raise it. that's why as an industry it's fighting back against this perception i will say i was beginning to read a paper that has to do with the way we classify jobs and asking the question about whether or not a big change we made in 1997 from one classification to another, they say it's overall reduced the number of manufacturing jobs in classification and in resale and wholesale jobs >> where you classify them. >> again, that has impact on people's perceptions and that's what -- >> we care about this because we

can discuss it. >> it's fascinating. >> an interesting topic. >> content is king. man versus machine robots are shaking up a wide range of industries. retail among them. but meet the surgeon who is leading the charge to use robots in the operating room. operatin. are costs worth it how much better are the surgeries turning out? what are the outcomes? we'll explore all of it.

may not look like much is going on in the market, but new record high for the s&p 500 as 'lcoin tthe nasdaq wel ntueo follow this rally when "power lunch" comes right back

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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. robots are changic the way many businesses -- how would the field if a robot was being used to operate on you? drove farris had amount d is the first surgeon in england to use robots to help do knee surgeries. thank you for being with us

today. we understand there's a bit of a delay between us, so i'll ask the question and wait for your answer first question -- will there be a time where robotswill be better surgeons than surgeons? >> i there won't be a time when robots necessarily better surgeons, about we're already in a time when robots can make a surgeon better in my field, it gives us an opportunity for better planning, more accuracy, more precision, less trauma too the tissues, so quicker recoveries, and for tenchally fewer problems down. line i don't think we're in a situation where the robots will take over, but the robots are there making it much easier for us to do our job, and much, much more straightforward to do the right job for that patient at

the right time. >> tell us how the outcomes have improved or the patient satisfaction has improved when you use robots on knees versus hips versus other things i understand you're an orthopedic surgeon, but how are the outcomes different >> my hear is hip and knee surgeries, and our experience so far has been that we have seen less pain, less swelling, and less inflammation, and we've seen a quicker recovery. that's been reflected in a shorter length of stay in hospital, in less need for medication afterwards, and in fewer physiotherapy appointments before follow,up our patients have generally been much happier earlier to return to their activities, to return to work and get their motion and function back. we've seen that as the biggest advantage in the knee. that's really been the area where the biggest gains have been there to be had in the hip what we have seen is greater accuracy in terms of

restoring the mechanics of hip to gain better strength and reduce the risks of instability and subsequent pain. >> doctor, i've read you're a pioneer when it comes to would be robots. does the nhs pay for it at this point. >> at this point the nhs has yet to pay for robots, though there are robots being accessed for research through research funds to come into the nhs one of the pieces of work that we're doing on the back of our prospective studies is do the health economics ultimately the capital expense to buy a robot i think is rapidly offset by reduced length of stay, but less returns to the operating theater, about i fewer outpatient appointments and by happier patients >> very quickly, are you using them for total hips and knees for acl repairs.

>> at the moment partial knees, total knees and total hips not to the stage yet of yew acls doctor, thank you very much. we appreciate it president trump making his case for made in america in the next hour. it comes as leaders pleat today to avoid a trade war 17 years later, this sector is about to finally wipe out lotions from dot-com bubble is rnames you need to own in thun, the second hour of power is ahead

i think we should do that meeting tomorrow. well wait. what did you think about her? it's definitely a new idea, but there's no business track record. well, have you seen her work? no. is it good? good? at cognizant, we're helping today's leading banks make better lending decisions with new sources of data- so, multiply that by her followers, speaking engagements, work experience... credit history. that more accurately assess a business' chances of success. this is a good investment. she's a good investment. get ready, because we're helping leading companies lead with digital. welcome, everybody here is what's on the hour two menu the record that won't quit today f.a.n.g. stocks on a tear. where you can still find value in today's equity market. plus a tax revolt in

seattle. washington state's gop calling for civil disobedience from some of the city's residents and biotech bounce can you still get in or has it gotten away from you "power lunch", hour two, starts right now. major indices in the green across the board right now s&p and nasdaq hitting all-time highs. look at where we stand the dow is higher by 0.2, and the nasdaq adds 0.6 of a percent. ibm the biggest drag on the dow, trading on a 52-week low after disappointing earnings mastercard and visa hitting all-time highs today we should know that american express is at a one-year high ahead of its earnings release, and vertex after positive results for a cystic fibrosis

drugs. the president putting the pressure on, saying they need to make good to the promise they made to the american people that this he would repeal obamacare eamon. >> reporter: you're right. he even chided those republican senators saying he change his mind from yet. to come to republicans to negotiate, today he put the pressure on the republicans to, instead, pass, repeal and replace. here's how he expressed himself just a little while ago. >> i'm ready to act, for seven years you promised the american people you would repeal obamacare. people are hurting, inaction is not an option. frankly i don't think we should leave town unless we have a health insurance plan.

>> reporter: the president hammering home that point about not leaving town that's something sacrosanct. the senators go home to campaign and take a bit of a vacation, but the president said they shouldn't do that unless this mess has been sorted out. >> we have to stay here. we shouldn't leave town, and we should hammer this out and get it done. not just a repeal. hey, it was sort of early on, along with a few of the other folks at the table, the repeal was fine but we ought to get more i think the people of this country need more than a repeal. they need a repeal and a replace. >> reporter: we'll see what the reaction in my experience senators don't much like the feeling they're being lectured to. we'll see if this breaks the logjam and we'll hear from sarah huckabee sanders at the press

briefing, which is again off-camera we'll see if she has insights given the near failure of this bill is there anything they can do now to resurrect it, michelle. back over to you. >> thank you, eamon. despite the gridlock the markets continue to march higher the nasdaq seeing the longest winning streak in two years, casey math thee and jordan pose ner are here gentlemen, welcome to the both you seem to flag a notion that the leadership is coming from four tech stocks, and that's really concerning. why? in every market rally, isn't there a concentrated leadership among some of the biggest cap stocks in the market why the difference >> i don't know that anything is different, but the fact that these -- you know, a small number of very large-cap high-growth names have driven

the market makes for a narrow advance. we're not expecting necessarily the tech stocks to it decline, but we do think that a lot of the leadership will likely rotate, because there's been a significant valuation disparity that's developed between what i call the growth value stocks, and as a result growth technology is re highly valued, leaves room for error, and the valuation of the -- is a lot more attractive and doesn't count for potential up side. >> casey, would you agree in that jordan was saying -- you see them being leadership in the second half of the year? >> i think the story is not a new stories. we had a earns recession, and the f.a.n.g. stocks provided earnings growth and revenue growth it's the same book, just a different chapter. when you look at valuations,

wait a minute, you look at amazon 20 times ebitda, with 20% revenue growth that sounds rational, so i think you have some legs, because you have this growth profile. >> don't you get nervous, though it's been so long since we've even had a 5% correction, never mind a 10% correction, just reversion to mean at some point means there's a sell-off >> correct, i agree with we haven't seen one since mid august, it's almost a year, but the thing is, it's a crowded trade. technology is a crowded trade. i still think a lot of people missed the ride. so you get a correction on some of these high-growth profile stocks, i think you'll see buying. >> jordan, what have been your latest moves, both adding to positions, subtracting or maybe opening a new division explain why you've been adding and southbound tracting and what it

says. >> in a tax base, one of the names we've been adding to where we've had available cash has cisco systems. the stock has done okay, a 3.7% yield, trades at ten times earnings, adjusted for $7 per share in cash. we think the valuation is astou astounding the nuismt ceo, chuck robbins, he's been there a couple years and performed well both in terms of improving execution and focusing on strategy improvements. >> is this a growth stock or really a different play? which is it? >> we think growth can accelerate from the mid single-signature level, and it's still going to pay an important

dividend we think between the dividend and also we think reasonable capital appreciation, perhaps 40%, we think the stock can be a contributor. >> that's a nice total return right there. >> guys, thank you. >> a pleasure. >> u.s. and chinese officials trying to hammer out their differences without starting a trade war. kayla tausche is live in washington. >> they passed the first 100-day dead like on small boar items, but now the two countries will try to tackle larger issue, special the u.s. trade deficit in opening remarks this morning, commerce secretary wilbur ross blamed this phenomenon on the chinese. >> china now accounts for nearly 50% of the u.s. goods trade deficit. if this was just the natural product of free market forces, we could understand it but it's not

>> china's vice premier publicly was deferential, quoting henry ford, but contributing it to donald trump saying talks need to be visionary, yet down to earth, but it's unclear how the stocks have proceeded or whether they may have broken down both the chinese delegation and u.s. delve each canceled press conferences scheduled for this afternoon to recap the meetings. while we aren't sure exactly house these meetings are going so far, we did before i came to air just get a statement from the private sector leaders from each country that met yesterday. they urged cooperation between the countries and increased bilateral trade, but we're still waiting to see how this fret hencive de low is oing. >> canceled press conference not a good sign, though. thanks, kayla. the united states and china, are these on a collision course for a trade war? let's bring in michael simmo,

and scott kennedy. guys, good to have you here. you know, when we -- lately when we have this discussion, we get somebody on who quotes me chapter and verse ricardo theory of comparative advantage, free trade is good no everybody, we shouldn't have a trade war, blah blah blah. can we be more specific? let's talk about steel for 20 years hef -- and they have steel production facilities that are not profitable. yet they don't shut them down. they keep them going i've been in rooms behind closed doors who express deep frustration about this china's asense to the wto was about them acting less political and more economically rational, like we do in the united states, like we do in europe >> i think it's an excellent point that china's economy is

still driven by state fee at the chinese even admit that. even xi jinping would say so, that's why you have overcapacity in steel obviously the trump administrati administration's hard is in the right place trying to push china. i don't know if we have all the tools. the dialogue we have right now that's happening today i don't think is going to get the two sides where they need to be. >> president trump has talked about tariffs and quotas, is that a tool to use >> we have to consider it, but i don't think it's effective unless it's combined with multilateral agreements and also more allies on our side. the trump administration is pushing as hard on korea, japan and orders with trade surpluses, and we all need to actually work together to deal with the china

problem. >> michael, what do you think? >> secretary ross is exactly right to continue focusing on the trade deficit. that's what working-class americans voted for president trump to do, to fix the trade deficit. china is nearly 50% of our goods defic deficit. >> can we drill down though, beyond the trait deficit there's this big mac rho idea whacks about affecting change in the way they operate in certain industries steel being emblematic of them how would you get them to be different actors. >> sure, the state-controlled economy providings an overcapacity the they overproduce, underconsume and rely on u.s. consumers to grow tariffs could be on the table, really the dollar overvaluation, we just released a study showing the u.s. dollar is about 25%

overvalued we could even pressure our dollar to devalue our dallas to equilibrium rate, but exchange rates have a large part of the trade imbalance in the global trade imbalances we seed between china and the u.s. japan and the u.s., germany and the u.s., et cetera. >> scott, how do you get a fix without getting in a fix, i.e. a trade war? >> well, you definitely need to up the pressure, because the chinese will not change unless they think there's a big cost to pay. that will come through bilaterally threatening a trade war, and i think the 232 investigation on steel is about that, but it's hard to get them, unless get your allies involved and others china is the world's largest exporter, the economy is still growing fast

xi jinping is facing a big transition meeting, so they're not in the mood to majore make major concessions unless they think businesses a big cost to pay. >> give me an example. >> i wouldn't have drop out of the tpp, but maybe through greater consultation with the japanese and our european friends, we may all bring the same message to china on the importance of reducing overcapacity the chinese report these very teeny numbers of steel mills they have closed. >> but then what so you get everybody together. if they don't, you do? >> then you raise penalties, and i think actually there's a lot of american industry willing to accept some short-term pain for long-term gain there is a big problem that has to be fixed. china is the number one challenge in the global economy, not the u.s. if we put aside dealing with the smaller trade deficit issues, i

think we can get somewhere. >> gentlemen, good to have you much appreciated. here's what's coming up on "power lunch." united airlines grounded following the earnings report. we'll hear from the ceo. plus the wealthy in seattle being urged to revolt by the members of the republican party. the woman behind that move will join us. and what's ahead for chipotle, as the stock continues to suffer. a little bull/bear debate is ahead. bring the queso, all of that and more coming occupy "power lunch. what's with the dog-sized? i'm crazy stressed trying to figure out this complex trade so i brought in my comfort pony, warren, to help me deal. isn't that right warren? well, you could get support from thinkorswim's in-app chat. it lets you chat and share your screen directly with a live person right from the app, so you don't need a comfort pony. oh, so what about my motivational meerkat?

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a. time now, first up, downgrading goldman sachs, a market performance the big miss in trading yet they cut revenue estimates, so they cut the price target from 260 to 230 bucks, which is still higher than where it is right now. with a buy, the analyst says that mobile games and premium business model, that implies -- up side. >> premium means free to start, but you've got to pay.

more raising the pride target on mcdonald's from 172. that's 12% higher from where it's trading right now new promotions such as the dollar for any soft and national launch of the signature crafted recipes, the semi-customized burgers, they say they are selling well >> thof a news sriracha burger really i can't wait. l brands, sell the stock showing the pink line is peaking. the firm says this could add more risk, lower the target to $32. >> pink dress. >> yes, not pink other thinks. john harwood, save us.

the supreme court has set the date for arguments on the travel ban, attempting since jan rather are less than three months from now is when the supreme court is going to hear those arguments. we know that lower courts had been holding up part of the travel ban the supreme court lifted the stay in part while saying they're going to consider these snow arguments and consider the civil liberties questions, and the other objections that have been made to the travel ban. so we have a date for arguments. that's october 10th. >> thank you, john. phil lebeau spoke with the company's ceo exclusively, and he joins us now. >> tyler, it's not look the

outlack they beat them on the top and bottom line, but the numbers are a bit concerning down 5.5%. china in particular is a huge market, but notices -- that's weighs on the results there. with regard to third quarter and the guidance from the ompany, it's in particular the passengers revenue for a seat, the targets the company set, they're disappointing to investors, as well as to those on wall street ed guisian is to be on the range of negative 1% to here is ceo oscar munoz talking about that guidance. >> again, i think united is firmly, and i mean firmly on the right path a quarter does not make a difference the simple difference is others have guided a little higher. part of is they're cycling some negative issues, and then it's a

forecast >> united is post did not 13.2%, the gap between the leading airlines and united is narrows despite the fact that it's one of reason is why -- >> and i look at that on the past one year, and that's the best among delta president any part -- and they point out to other metrics saying, look, we have improved our performance despite some of the issues that happened in april with the passenger being removed from the plane and some of the other public relations issues. they say when you look at how they're operating this airline, it's far better than where it was a year ago, and improving

relative to competitors. >> let's bring in someone who knows a little bit about the inner workings former president and ceo of spirit great to have you with us. >> good to be with you. >> let's pick up on that thought, the idea that unites maintains despite some splips and falls, that their operational performance is vastly improved from where it was a year ago do you see it that way >> well, it's a low bar to go over there, because they were in bad shape a year ago, but you're right. they still have a ways to go >> is -- we were talking, michelle and melissa and i were talking earlier n.ingly it seems

most people focus on price, who's got the best fare to where i want to go, and also the idea that in many, many markets like the new york markets and many others, your choices are comparatively restricted, because one or another carrier basically dominates. >> price matters a lot one of the challenges is on both ends of the price spec tum at the low end ko compete with the -- frontier and spirit at the hire ens denver is a three-hub market for a city that's really not that big so united -- that delta or dallas or miami that american

has, and that puts them in more competitive pressure with low-fare carriers on the low end and makes it harder for them to attract business customers at the high end. >> i get why everyone assumes customers are mostly focused on pric price. s i'm wrongering, is there any training, that somebody actually smiles at you when you walk up they look terrified, my god, here is another person can he please get a blanket? instead of, no, we don't know that, i'm sorry, we don't have -- the tonality is horrific. >> you nailed it with what you want it's free to smile, it's easy to smile, but it's so hard to get crews who are dispersed all around the country, they're flying in all these airplanes, they have tough jobs, under

pressure, but it's a tough them. the industry needs to train and recruit bers >> thank you, ben. >> thank you very much civil disobedience for the wealthy? high-income earners are being urged to rise up and not pay a tax. today is national hot dog day. we've been having a consequential debate in the newsroom is a hot dog in a bun a sandwich questions people really are asking let us know what you think we want to hear from you visit us tweet us or visit us on facebook lots more ahead on "power lunch" right here on cnbc first in business worldwide.

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president trump's voter fraud commission has been met with growing opposition ever since it requested voter information from every state in response, the democratic national committee launches a commission called protecting american democracy from the trump administration. >> we understand, we hear this nonsensical myth of voter fraud. it is not happening, we are not seeing that, but what we are seeing is people need more opportunities to have a chance to go vote, and we are committed to that here at the dnc. >> massachusetts lawmakers and gun control advocates gathering at the statehouse. they are urging passage of a bill that would ought loy police, doctors and family members to temporarily keep firearms out of the hands of someone at risk of hurting themselves or others this come after more than half of that state's gun deaths were suicide in 2015. a new duke university study reveals very few smokers take medication to help them quit

after a heart attack it says only 7% fill prescriptions for drugs that would help reduce -- you're up to day >> thank you very much, sue. let's look at some of the movers morgan stanley higher on the back of better than expected earnings, and take a look at all the f.a.n.g. stocks in the green. facebook hitting all new highs, blue apron moving higher today that stock is up more than march. the markets are closing for today. jackie >> what a day it was for oil it looks like we're going to settle over that mark after that kniffin tore report. >> large draws in crude, and adding support to all right lifted levels. u.s. production did go up, but it's being -- the dollar index also adding support for this and

it was technically significant as we had. saudi imports to the u.s., it slowing to the lowest in 2015. for this time of the year, the slowest in five years. for the moment right now, the market is saying there's nor bullish factors than bearish ones back over to >> seattle, the city of seattle is trying to pass a new tax targetings its wealthier residents. the state's republican leaders are encouraging them not to pay it robert >> this is the latest battleground for taxes the rich, passing a new high income take that opponents say you should gentlemen ignore for now 250,000 for single filers or above 500 though joint filers. it's the first of the kind in washington state they have no income tax and no other cities in washington have an income tax.

city council members say the projected revenue is needed to offset potential federal cuts and bring fairness to a growth boom fueledly amazon, microsoft and other companies that's done a lot-foot foot top, but not so much on the bottom they are urging the rich not to pay. they're calling the wealthy to engage in civil disobedience and forcible resistance to refuse to pay or comply with the tax they say it's unconstitutional, and a vail attempt to impose eventually a statewide income tax. seattle's median income is now over $80,000, and the median home price just stopped $700,000, twice the level it was just five years ago. and the two will not pay the tax, because they're in medinah.

>> got it. robert, don't move we have the chairman of washington state's gop and the leader in this not my tax movement, susan hutchison. thanks for joining us. >> you're welcome. thanks for having me. >> tell us what you are telling the wealthier to do right snow >> we're really talking to all the people the democratic party has made it clear they will stop at nothing to get an income tax in our state. of you are your viewers live in states with income taxes, and they say what's the big deal we are so taxed despite not having an income tax the property taxes are sky high, with the largest sales tax in the country, one of the most highly taxed states per capita so adding an income talks is a huge burden. there's a tax fatigue among everyone those of you on a business channel can handle numbers

5.4 billion is the budget of the city this is expected to bring in $100 billion, about 2%. >> i'm so sorry. we have breaking news. we're going to listen to mitch mcconnell at the white house with out republican senators >> engaged in everything we have done for the last two weeks. as you know, the president likes to talk on the phone with a load of conversations he's talked to a lot of members, and one of thes on outgrowths of the discussion today is that the vice president, secretary of health and human services, and head of cns will be on capitol hill tonight working with some of our members who at least so far have gotten -- had some difficulty in getting to yes let me describe what yes is. it's the motion to proceed we cannot wait to keep the

commit -- unless we get on the bill so next week we'll be voting to get on the bill. i would remind those of you who don't cover capitol hill that this particular type of bill is totally open for amendment there's no way i or anybody else could prevent members from having amendments, that any 51 of us can pass and changele bill, but we cannot have a debate until we get on the bill. so next week we will be voting on the motion to proceed i have every expectation we will be able to get on the bill >> reporter: the president seemed to go back to his original position. it look like the direct erg going to -- and replace at a later date where are you with that? >> i think we have two options here

there is a large majority in our conference that want to demonstrate to the american people that they intend to keep the commitment they made in four straight election. i think we all agree it's better to both repeal and replace but we could have a vote on either and if we end up voting on repeal only, it will be fully amendable on the senate floor. if it were to pass without any amendment at all, it's a two-year delay before it kicks in the takeaway, no harm is done by getting on the bill. wide open for amendment, n matter what i offer as a substitute first, it's fully amendable. >> reporter: given the president's comments today, and a follow-up on that question, are you experiencing some political whiplash here? >> well, it's pretty obviouses we've had difficulty in getting

50 votes for proceed what i said to disabuse any of you of is the notion we will not have that vote next week we will vote on the motion to proceed to the bill next week. >> reporter: will you cancel all of august recess. >> we'll have a vote next week thanks, everybody. insists they will vote we've heard that before. let's see if they actually do that let's get back to ms. hutchison. sorry to interrupt you there what about seattle's -- you were talking about how taxed the residents of washington state are because of property taxes, other taxes, forgetting about income taxes what is are spending levels like >> the budget of the city haus grown 35% in the past four years, so they are obviously our city is growing, we have a tech boom going on. things are very positive, but

this is really a power grab. it's a phony bill, because the whole to overturn the constitutionality of the no income tax that has been the tradition of our state, as well as state laws, we voted on our bill very much like this, just a few years ago, and the voters of the state turned it down in fact we turned down an income tack nine times. when we are asking our folks to not comply, not pay and ignore this, we are basically saying ignore an illegal ploy that has you paying -- >> the spirit of those who supports this, in seattle you have all they tech firms, where you have penthouses in brand-new towers selling for millions, yet tent cities and large homeless population should government do anything about that problem >> well, in fact we do have a

terrible homeless problem, but it's not because of the weather that people are homeless, that people move here it's because of the policies of this city that have made it an attractive place for the homeless to come and set up camp so this is one of the things that the democrats do. the city is totally in democrat and socialist rule so they make a problem, and then they decide they have to get all of us, which is mostly middle class, to pay for it so that's why this tax is such a farce. we don't have enough wealthy people to pay a tax that could make any difference in solving problems we have a huge city government, and they have had a huge budget. >> you say this law that the city council has passed is in violation of the constitution and of state statute. >> yes. >> but why would they do that if it were so clearly a violation of the constitution?

i mean, they must see it differently. what's their argument? >> they want to take it through the court system in fact, it is already written into the prospectus on this bill that they expect to take it to the supreme court. they're waiting for someone to sue them so they can move it through, of course the taxpayers of seattle will have to foot the bill for the defense, then they will take it to the supreme court, which is mostly liberal judges in the hopes they would overturn the constitutionality of no income tax in our state. >> that would be a big moment. >> it would be, and it would be so burdensome to the people of this state to add an income tax on top of everything else. >> susans thanks for joining us and thanks for your patience while we interrupt you to for the on press conference. cho pot lay following another nor ovirus scare, and a

bull and a bear will debate. is a hot dog a sandwich? we want to know what you think we've been debating that fiercely all day longs es pou es. a who knew that phones would start doing everything?

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next possible scare out there when it comes to this stock and the momentum >> absolutely. you know, the biggest issue i think around this brand has continued to be headline risk. we've been on the sideline for i guess about a year and six months now the stock has fallen down, i think it was around 450 or so when we downgraded the stock if the stock were considerably higher than it is now, i would be less optimistic the thing that address more confident is clearly the menu innovati innovation the more aggressive approach, the addition of scott boatright from ashy's i think this is substantial stronger team and brand than it was 18 months ago. >> matt, in terms of the risk to celebrating, there is a big investor in this stock, bill ackman not successful so far, but he

tweeted today, this is his first tweet he's ever tweeted, a picture of himself at a chipotle ordering foot. i get to help bolster and address concerns it is safe toite there. s i just think there's more competition there. i think that's -- up until this -- that caused them to have a stepback which will cause them to come back with marketing dollars, all that means higher costs versus what the stock means. as a stock it was not the same investment as 18 months ago. there's a lot of lack of visibility certainly on the outlook looking beyond the current quarter. guys, i have to wrap there we've got a lot of breaking

news we should note we did reach out to chipotle and they had no comment. for more go to tradingnation.com. the ibb up almost 20% so far this year. should you ride the rally? or is it too late. one of those hot biotechs is rallying big today, how much sty aranerat it go myerinto my business.thing and i had all these points from my chase ink card. so i bought ingredients, utensils, even made custom donut cutters. wow! all with points. that's how i created the ripple: the doughnut in a doughnut in a doughnut. suddenly it's everywhere. i mean, it really took off. what will you create with your points? learn more about the ink business preferred card.

the ibb biotech is up over a percent on the day on pace for it's best day since july 5th leaving the group up more than

20% today, trading on an all-time high in 1991. let's bring in michael ye, managing director. great to have you with us. >> thank you, great to be here >> up 20%, up 21%, do you still like vertex? what was so staggering and you were pounding your fist on the table, when the data was released it was better by orders of magnitude according to a lot of analysts. >> yeah, yeah, so i think the key is we are telling people we'd be buying vertex here, and a takeout or an upside case. vertex zoomed to be become the fastest large cap growth company out there in the sector. revenues are doubling three to six to seven billion now earnings 10 to 12 bucks in earnings powers. 15, 20 multiple can get you to 185 to 200

>> even up 20%, you would buy this stock >> even up 20%, we would buy the stock, the revenues are doubling from three to six to seven billion. so there's a move here today, and i think there's more to come >> one of the reasons why we love having you on, michael, you're able to address the sector in sort of a -- from a market perspective and so i wanted you to interpret what you see going on with biotech especially as we're seeing an appetite for growth in the market piddling economic growth >>ic the key is if you have context, the last two years were in some ways a disaster for biotech. the group was painful.

headlines are mainly passing, that's important two is, from evaluation perspective, with that big pull back in the group, you know, biotech at a whole is trading near the ten year low multiples. meanwhile the market's at an all-time high. we think there's still valuation call here particularly with the political rhetoric passing we'd stick to that >> you'd see that tick higher in the past month or so on the overall index. we saw that in shares, michael, up about 12% in the past month is something going to happen people are saying they have to do some kind of deal, 2017 or '18 going to be it >> look, i think that first of all, next week, gilead will put up good earnings i think the group will put up good numbers, and gilead continues to look for things i think they're going to be patient. i think those are looking for some gigantic transformational

deal are not going to get that you know, mid-cap type companies. and i think they're going to take some time 2018 is a better year for gilead, that's our call. next year, early here. and people will come back to gile gilead >> great to see you, michael ye of jefferies >> it is, maybe you didn't know this, now you will hotdog day in america. national hotdog day is a hotdog, in a bun, a sandwich we agree that a hotdog outside of a bun is no sandwich. we're going to debate it "check please" is next i joined the army in july of '98. our 18 year old was in an accident. 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.

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here it is the video of the day, chris christie making a bear-handed, one-handed catch of a foul ball at last night's mets game he then got booed. then handed the ball to a young fan. i believe he signed it and handed it to a little boy. christie makes a nice catch here look at that >> he signed it? i wonder if the kid wants a ball signed by chris christie popularity ratings aren't high >> popped up >> wow you know they say that christie may ultimately become a sports talk radio host in new york

after he leaves office he had a publicized audition last week on wfan in new york. long time host is leaving later this year. >> and if you're going to do that, you have to get used to boos sports radio in new york, tough business all right. >> just the ingredient is different, it's a hot dog, not

cold cuts. >> melissa, i used to think you knew everything. >> i think it's it's own category i mean, so -- >> boxed in, melissa >> when i go to a an italian street fair on a roll, is that a sandwich >> it's a different kind of hoegy. >> it's an item of food consists of meat, cheese, other filling, a bun is only one piece of bread. see, i told you they were astute >> a hoegy is one piece of bread, people. >> if an ice cream sandwich is a sandwich, then a hotdog is a sand wichl that's a good comparison

a hotdog is just the meat. hotdog on a bun is a sandwich. we solved it >> very good >> all the answers thanks for watching power lunch. closing bell starts right now. >> enjoy your hotdog