fundamentally flawed company advertisers know that the stock's been trading down, that the sentiment's been negative on it, so maybe they don't buy time on it. >> give me a final trade, josh >> i would say watch this red thin ipo i'm not buying it today but i want to be in. >> pfizer can get a little pop on earnings. >> good stuff, guys. great we could all of you as well >> thanks, scott here's what is on your friday menu from great expectations to no expectations. wall street no longer holding out hope that d.c. can do anything but chase its tail, point fingers and curse up a storm. but could that be good for the market meantime, a developing story north korea firing a missile that appears to have been launched in the direction of japan and may have landed in their economic zone offshore crude oil closing back in on 50 bucks a barrel will breaking news send oil back down we'll find out as a big ""power

lunch"" starts right now welcome to "power lunch. stocks are lower at this hour. the dow getting another record intro day before the pull back health care attacked the best performing sectors s&p health care 40% almost flat. consumer staples off more than 1% good year tire, starbucks and mattel, the biggest drags on the s and a. exxon, ge and dupont buying on the dow at this hour >> michelle, thank you very much welcome everybody. tyler mathisen here. the fda announcing a plan to cut nicotine levels in cigarettes. commissioner talking about this new proposal at a news

conference a short time ago. >> the nicotine in cigarettes is not directly responsible for the cancer, the lung disease, the heart disease that kill hundreds of thousands of americans every year yes, it got them all dignitied and it kept them addicted for the long term. it got most of them addicted as teenagers. but the other chemical compounds in tobacco and smoke setting tobacco on fire that cause the illness and death, not the nicotine >> nicotine as the doctor said there is the addictive component and the fda is looking to cut the amount in cigarettes to nonaddictive levels. not surprisingly stocks have publicly traded tobacco companies are getting hit hard on this news british american tobacco, altria group, phillip morris and impeer ral brands are all lower commissioner will join us live here on "power lunch" in roughly the 2:30 half hour. >> tyler, as you know, it's been

24 hours to remember or maybe forget in our nation's capitol where to begin how about arizona senator john mccain casting the deciding vote on the senate's skinny repeal of obamacare and giving it a big fat no trump administration couldn't flip the man that president trump had hailed as an american hero on tuesday over to yes. we remember all the other things, though, that president trump said about mcdonald's contain, don't we? then there's tmz heats the real housewives d.v. addition no scaramucci take down in the white house. language you hear on the trading floor, but nothing we can repeat here not the type of stuff you would say is -- presidential also keeping up that drum beat for raising taxes on the rich with the rate of 44% maybe

here now to play the battle of the d.c. stars, chick correspondent ben white. ron christi, former special assistant to george w. bush and tony, bush's former deputy press secretary. ron, i want to start with you. you've worked in the white house. you've seen this interview that no anthony scaramucci gave to the new yorker how can anything get done when that makes clear there is internal warfare in the white house? how much does this distract them from achieving the agenda that trump laid out when he was running for office >> well, michelle, good afternoon you to as my good friend tony also knows, staff in the house are there to be seen and not heard anything that's a distraction from the president's message, anything from what the president is trying to articulate to the american people is a bad thing i've never seen anything like this after being in politics for 25 years where not only staff are onlily fighting with one another, but undercutting the

president. the president had a very difficult health care vote that he lost this week. i wonder if the staff didn't have their act together and stayed out of the way, maybe president trump would have gotten the health care bill through working with the senate. >> ben, have you ever been on the receiving end of a phone call like the one anthony scaramucci apparently placed to the new yorker writer and could there be any doubt that this was either on or off the record? >> i have been on the receiving end of those kind of calls sometimes from you, actually no >> but not with thatkind of language >> not with that kind of language there can be some gray area there where a reporter and a source have not firmly established which part of an interview with on the record, which is off, which is on background ryan at the -- >> i've got to say this. we all know anthony. i consider him a friend. he's a great guy he's a true american success story. anthony, if you're out there, start the phone call with off the record he hosted a tv show. >> yes >> he should know this >> he knows better

>> let me say this, though it at least lays bare the reality when he came out and said rinse priebus and i are good friends, they despite each other. priebus tried to kill scaramucci repeatedly for jobs in the white house. this has been well known in political circles. now out in the open. maybe we could have done without some of the colorful language. >> and the fact that prebiebus s chief of star in name only the same is true for ben i don't care if he wants 44% taxes. nobody in the white house cares either. >> tony, you're in communications what do you think about this communications director? >> look, i agree this is f you've had-- if you'vy from the conversations with scaramucci, the problem with him -- two problems. one is personal for him and that

is that he has no background in communications and these kinds of jobs, so when he was announced, there were views that is he really the right guy for this job, is he competent to do the job, and then he fumbled on something that we teach associates and june or press people that source suggest a two key event. you asked to go on background or off the record and the other party has to agree to if that's an elemental thing. the second part of it, bigger for the white house, is imagine you're in japan right now and yo you're leadership in japan and this crazy guy launched a ballistic missile towards you and you look at the white house and you're alongilook afor an a and see people threatening to fire each other. it does not inspire confidence

in our allies. these are important jobs dealing with big issues. >> new topic, john mccain. ron, john mccain, taking this vote there were a lot of republicans who did not want to vote for this bill. is he taking one for the team? because he knows it's incredibly difficult to criticize him right now or was this a you know what to president trump for all the awful things he said on the campaign trail >> i think it's the latter interesting how president trump was lauding mccain as a hero and saying hugh heroic it was for him to come back from arizona. what the saerpt denator by comi, he stabbed his republican colleagues in the back for goodness sake, if you can't find a way to repeal this destructive act, find a way to work with the house and go to conference and get to a compromise i think it was a disgrace, it was disloyal and now we're talking about john

mccain, the thing that he enjoys the most. >> when he came back he cast a critical vote to bring this whole matter to debate so he voted for and with the administration on that occasion. >> you know, tyler, it reminds me of john kerry back in the days when he said he voted for money before he vetted against it john mccain votes for it moving forward and then voted against it he acted as he always does as jaim t ja john mccain the maverick >> we were talking about that show "the gladiator. remember that? at the end, what do they do? the king, right, he would do this mccain, even if he wanted to vote for this bill, do you think he gave the thumbs down to donald trump because he wanted to >> i think there is definitely a piece of that. i don't think it felt bad for john mccain after all the things

that trump said about him on the campaign trail that he likes heroes that weren't captured, all that stuff to be the guy who tanked health care reform. i'll put in a word for him about ron's comments he did try to explain it and say i don't like what's in the skinny repeal if we're not going to have something getting rid of the obamacare taxes and mandate without something to replace it, i'm not for it you could make the conscious he voted his confidence >> look, one other thing on this also is that the idea that there is some landing place on health care that the house and the senate will be able to agree to eventually i think is really myth making. it's better for them to have this over with now than later. i don't think there was agreement that can get done. there was never going to be agreement. if we're talking about tax reform, which is also going to be difficult, there is a lot of agreement on a lot of pieces of it to move forward again and get it done. that's not the case with health care >> let me go back to scaramucci.

tony, one quick question if anthony scaramucci appeared at a trump rally today, would he be cheered or booed? >> he'd be cheered we have to remember we're living in a different world right now with some of these thing we look at this and say wow, this is chaos. how are they going to do it? how are they going to get anything done? they look at it and say this is entertainment, we're speaking frankly and directly and it's more raw if he went to a rally and the president introduced his new communications director anthony scaramucci, they would all roar in cheering him. >> all right gentlemen, thank you very much >> ben, ron, and tony. >> another developing story, the u.s. treasury announcing new sanctions on iran which are in retaliation near the recent ballistic missile launch taking a different approach than the obama administration when it comes to iran. >> market's lower today. not that much. nasdaq and s&p negative for the week, a week which there were

records set. there is a lot of u uncertainty j.p. morgan out saying the nasdaq 100 could be headed for a pull back. should you be worry ied about yr money? jo i'm going to start with a question that may be a little off kilter charley, how can the markets be so zen when washington is so not? >> well, because equities are better than a lot of the other investment alternatives. tha that's been true for a long time y it's why stock markets keep going up that makes stocks look attractive stocks tend do to well in a growing economy even if it's a slowly growing economy and that's what we've got.

>> so my words here, matt, charley seems to think that fundamentals trump trump, right? >> yeah. i mean, the fundamentals look okay when you look at earnings growth we had a great first quarter we had a good second quarter i think things get more challenging. you also look at the economic numbers and they keep coming in a little less than great gdp is a good example. so i think it gets a little harder from here then you add in the washington factor and the fed trying to reduce its balance sheet there's some head winds, i believe. >> to follow-up, maybe we can flip it. d.c. has been a disaster since i was four years old and all of stock market does is keep going up. do we pay too much, by we, i mean the media do we pay too much attention in d.c. >> we pay too much attention to the insignificant part of d.c., people yelling at each other,

people swearing at each other. that really doesn't matter what does matter in the end are policies this is a funny day to say this. but the general policies of those in power tend to be relatively directional favorable for corporate america. that's still true no matter how vulgar our president and his aides are. >> lower taxes, et cetera. >> exactly and especially regular la tore reform which really has been a foot on the neck of particularly the financial sector. >> that is indeed happening. we've seen the congress roll back so many regulations, they don't have to worry about the white house to do those things are you concerned about a delay in tax reform? we're talking about 2018, not twec 2017 it seems. >> sorry, i thought that question was for me. i am a little concerned. the agenda the administration has is having a hard time moving forward. the lightning lod of health care is moving on to probably the most important part which is tax

reform i think it will be a real problem for the market i hope they can get their most important part of the agenda accomplished >> i take both points. i think it may be less that investors think the administration will be able to do, but it is more about the knowledge of what they won't do. that is they won't take on policies that are anti-business. let's go to some stock picks so we can leave our viewers with some ideas to put money to work. charley, you like a couple of asset managers broadly speaking. tell me why. >> because one of the big trends that's going on that everybody recognizes, massive move in the index funds and etfs what people miss is some stocks that have been left behind that can't be owned by those indexes. my two favorites kkr and lazard. they can't be owned by s&p they're making tons of money kkr had a spectacular quarter.

great business trading about eight times its earnings because it's not owned by the index. >> you like an asset manager too, t. rowe price >> i would say they're a proud actively manager 80% of their funds aroe outperforming on a three and five year basis. they have a retirement plan business a lot of lifestyle and target date funds that everybody pours their money into retirement funds, they're growing their business through that. they've got $5.4 billion in net inflows this year. they just got on schwab and fidelity networks which will expend their retail presence that will be a huge avenue. they're spending moneys to get overseas >> gentlemen, thank you both for the conversation charley, matt, appreciate it >> thank you >> well, it's friday that means the rig counts are out. jackie d., are we putting more

rigs in the ground >> yes, we actually did. baker hughes is telling us we added two rigs here in the united states. oil rigs total 766. compare this to last year at this time. 392. so we added rigs for the third week in the last four. that makes sense when you see oil prices chtrading just under $50. but at the same time it's the same problem that pushes us down as we saw earlier in the low 40s. that certainly becomes a problem. that's really what the producers have to watch. >> we are watching that. you are right, it is my favorite time of week which says that my life is incredibly pathetic. jackie, thank you. coming up, amazon's earnings missed the company keeps spenniding li a drunken lottery winner is it time to pull back? heck no, buy the stock we'll find out why coming up flexshares etfs are built around the way investors think.

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the stock would plummet. when you're amazon, it's kind of business as usual. investors have gotten used to their spending sprees. maybe that's why the stock is only down about 2% today your next guess, you've got to buy the stock. $12.50 target on it. securities, i mean, does it bother you at all, michael, that amazon's operating income is only $38 million a quarter more than dollar tree and one tenth that of walmart? >> you know, brian, i think you said it very well. back when amazon was trading under $300, which was not that long ago, three or four years ago, people thought that when bezos spent money, he was irresponsible. my note says drunken sailor. now he's a sly fox

he's delivered consecutive orders of profitabilities. as long as you're spending out of profits and not deficit spending, we're going to assume you're doing something right revenues keep chugging along as long as this invest ment is turning into growth, i think investors are going to be tolerant. >> we're tv anchors, so we're geniuses about everything. i know everything. except i've run out of questions for amazon we've all been covering the stock for 20 years t. doesn't matter what they do. is this -- it's a story that you buy because it's amazon almost at this point. it's almost mythical the balance sheet and all the stuff we're taught in business school to understand doesn't seem to matter >> yeah. you know, it matters as if they start, like, losing money. people care. we've talked about this before people don't care about netflix burning cash

they would care about amazon burning cash because they would think maybe they're doing something irrational the categories they're spending on, when they build mull filament centers, you know that's going to lead to more centers. i trust bezos. i think he's pretty smart. i don't know that whole foods is going to lead to dramatic growth if he starts ramping up amazon fresh, we're going to buy into it this guy's earned the right to spend investor money because he's provided a return for quite a while. i think people will tolerate this for maybe four or five quarters if they start generating losses, no, i think people will get fed up and stock will go down. >> we're going to have a segment later where we're going to talk about big oil companies and i'm going to ask one of the analysts, why would you ever want to own the two companies we're going to talk about. why will you want them with amazon the question is sort of the reverse why would you not want to own amazon why wouldn't it be, if you have

a portfolio of individual securities, one of your core holdings >> you probably don't know that i spent 15 years working for atlantic richfield, so i'm an old oil guy. i see the contrast amazon is going to dominate retail, period retail is going to go away, period there's just no question that they are the winner as retail goes away. yeah, you have to own it the global retail sales are $23 trillion amazon gross merchandise value may be $230 billion. they're at 1% of retail. they're heading to 10% there's just no question it's going to happen. so yes, i agree with you, why wouldn't you want to own the future dominatrix and that's them >> i like that i didn't know you worked at atlantic richfield >> i did >> but i did know you have a really cool car because you took me for a ride in it once >> there you go. >> thanks a lot. >> what car is it? >> a little porsche.

>> the details on the new club this rocket eeer is set to join 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? in-app chat on thinkorswim. only at td ameritrade. thank you so much. thank you! so we're a go? yes! we got a yes! what does that mean for purchasing? purchase. let's do this. got it. book the flights! hai! si! si! ya! ya! ya! what does that mean for us? we can get stuff. what's it mean for shipping? ship the goods. you're a go! you got the green light. that means go! oh, yeah. start saying yes to your company's best ideas. we're gonna hit our launch date! (scream) thank you! goodbye!

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. developing story north korea launching yet another missile. hans nick ols live at the pentagon >> this was an intercontinental ballistic missile. it flew for 45 minutes but that really isn't the issue. the issue is the time a lost which gives awe a theoretical distance that it could go much far further than the previous muscle that's what we're learning now still waiting for official confirmation july 4th was their first successful intercontinental ballistic missile test we've been expecting thchl t the pentagon had been observing just what was happening.

there was an important date in north korea, day of victory for what they think is an important date there it didn't happen then in part because of weather now it happened and they're trying to figure out how dangerous this is. pentagon assesses and the military assesses they will have a nuclear chip warhead on an icbm as early as twae2018 this week they moved that whole date forward from 2020 to 2018 and then guys, i've got to say, the discussion of military options and there are no good ones >> thanks very much. we appreciate the report meantime crude oil closing in on $50 a barrel but haven't we been here before? take a deep oil dive air b and b causing price line and other companies to change thr sisseibune models.

hello, everyone. here is your cnbc news update for this hour. clashes breaking up between muslim worshippers and israeli police after the main muslim prayer session at the mosque isreal recently got rid of enhanced security measures but banned men under the age of 50 from entering the shrine german place say one person is dead and four injured after a man with a knife attacked several people at a supermarket in hamburg witnesses followed the suspect and alerted police who arrested the man near the scene no word on any possible motive wells fargo has agreed to refund $80 million to customers hit by car loan insurance they didn't need. the money will go to some

570,000 customers wrongly charged for those loans. the unnecessary cost forced more than 270,000 customers into delinquency on their loans do you want to eat chicken and play video games at the same time kfc has the answer apparently. their gamer's box comes with a built in bluetooth controller as well as a smartphone mount along with of course a box of chicken. it's a tie up between kfc and mountain dew it's not for sale. rather then boxes can be won as prizes in a contest. that is the news update this hour i'll send it back to you guys. >> i won't be participating in that contest but i wish them the best of luck >> greasy fingers on the -- no >> this generation has everything chicken video game boxes nylon underwear. we have nothing. >> jealousy is ugly. >> shares of american airlines

are lower despite an earnings eat on the top and bottom line qatar airlines expressed a desire to acquire a stake in american airlines. doug speak to cnbc on the halftime report a short time ago. >> it's not fair our job is to make sure that we point out that it's not fair and do everything we can to stop them from being able to expand into our markets and take away american jobs. so we're fighting like crazy we'll continue to fight. >> american airlines said it cancels it's co share agreement with qatar airlines which allowed the airlines to back passengers on each other's flights. shares of american airlines are up more than 30% over the last year. >> your next guest knows a thing or two about travel. he is the world's 11th most patented investor -- inventor and founded a little company called -- i did it >> we had a whole conversation during the break >> you got in my head. >> it's her fault. >> you can say what you can say. >> hey, just because you're awe

genius doesn't mean you criticize us you also founded a little company called priceline now we're on a company called upside travel. jay walker, good to see you again. >> glad to be on the show. >> travel is evolving. maybe not as fast as some thought. air b a airbnb airbnb is hugely powerful. what do you see travel in five years? >> changing information, changing how we find things, discover things, how we share things so travel is not changing in terms of crowded airports, planes that are full we don't have enough infrastructure and the system is breaking under the load. it's just braking planes are 102% full. travel itself senior actually about experiences, about doing things in you're a leisure traveler the more money a country makes,

the more the citizens travel and the more businessmen have to get on planes and work alongside those leash isure travelers and that's a nightmare when you travel on business >> what's the next cool things in travel? >> the old thing service. if you're a business traveler, you get no service >> it's awful. >> awful you've never met a market of 15 million people, every one of whom spend $1,000 and it's missable there is no service. >> why >> in part because there's no money in providing service there's no incentive f. you're a leisure traveler, you can barely afford to give service you don't make any money the airlines don't pay you commission if you're a business traveler, then you can afford because you've got a lifetime value. the phone is going to change it. you're going to have an app on your phone it's going to be there with you 24/7 knows where there's service,

you're essentially going to have an angel on your shoulder. >> are they going to smile when i ask a question >> no. they're going to take care of you for the first time you're so abused as a business traveler, nobody has ever taken care of you. they put you on hold >> when you travel business airlines, you're treated much better than when you sit in the back where they act like you didn't pay anything for the seat at all. >> except a lot of business people near that back. a lot of times the middle seat is the business guy and the college kid sitting next to them paid half the price for the ticket that business traveler couldn't book until a week ago >> but i am confused i hear your point about service. but i also hear your point about technology so why would service matter if we're going to an app based economy where you're going to probably cut the people out of the equation anyway? >> no, you're not. service matters. >> i disagree. if we go into say a hotel. there are a couple that do it well kempton, they have --

>> i know them well. >> you can bring your dog, they feed your dog. they're very good. you walk in. three people working the hotel counter. yooufr g you've got the app you walk right by them, don't acknowledge them check in why would they be happy? >> service is when things go wrong, not when things go right. >> fair enough. >> service is when you've got to change your rental car, your hotel, your flights, all because some cloud formation, who are you going to call? you deal with t. press one and hold for a week. human service is the key >> are you fixing this >> you bet your ass. >> how >> we're fixes it because essentially we facility an entire service infrastructure from the ground up we designed an app that's always on you press the button and our rep knows who you are and your whole itinerary is in front of them. >> am i talking to ea human

being? >> human being >> how much does it cost >> they're in the middle of the country. >> who you talking to? >> our people in omaha >> how much does it cost >> less. because when you buy your air and hotel from the package, we get discounts from the carriers that are below the published rates. >> if i paying any fee >> no. >> as long as i purchase my flight and hotel on your app >> together on the app or the website and we've got enough profit to give you real customer service. >> how is it going so far? >> we have a lot of customers. >> how many? >> tens of thousands to start. but we're really just beginning. >> what's the name of it >> upside. because that's what business travelers should have some of for the first time. >> how do travel companies are not alone in this by the way your insurance company it be whomever when you call them, if you want this, press one. if you want this, press two. >> it's a nightmare. >> you go down to eight. how do they know, how do they

know that what i want is never one of the eight options >> because they have designed it specifically to irritate you and it seems to be working. >> great job, tyler. >> i don't know if this is what's going on in most of the world. the fact of the matter is technology and humans together are better than technology alone and better than humans alone you need both. those humans need real technology the difference is with voice recognition, you're going to have better and better service in the real world. business travelers pay enough for their flights and rooms, you give them real service right now. >> we were talking during the break about hiring is it easy to find people? >> it's impossible to find software engineers in the united states you know what? it's an incredibly competitive world. every company is reinventing their business there isn't a company in america that isn't hiring software engineers that have to completely restructure the information layer of their business that's true if they're a product business or service business we're rewriting business from the ground up.

it's as if electricity was started. >> where are your engineers? w we're all over but our headquarters are four blocks from the white house in a cell area that has no cell service literally. we get a lot more done in our offices. but we're all over the world we use offices all over. >> you have wi-fi. that's why you can't find workers. they keecan't be on their phone. no signal. i'm out. >> we all have wi-fi just regular cell service is hard to get. >> we enjoyed having you the 11th most patented investor. another big day for earnings bob has highlights from the nc.. >> we're seeing downward pressure on banks today. it's been rough for the banks this month they're down again today some are down 2, 3, 4%

good year had a big slash. their profit outlook mattel missed. starbucks disappointing. been rough for the consumer discretionary stock. big story is in oil. exxon, 52 week low the chemical business did okay same situation essentially with chevron, although they had an earnings beat. exxon did not. you see the differences between the two of them. look at how difficult it was for these guys to get the earning situation. they kept cutting the prices of the analyst expectations for exxon's numbers. 22% eventually they still couldn't get it right. that's because nobody could get the direction of oil right, so where is oil going look at this a lot of people are talking about royal duchess ceo. he came out yesterday and said we have to -- we have projects that are resilient in a world where oil has peeked lower forever. yeah, that's the mindset guys, lower forever, that was a

big moment out here. that was the big talk on the desks late last night. back to you. >> robert, thank you very much let's bring in roger reed, an oil analyst with wells fargo joins us on the cnbc news line how do you react to that last little nugget, the ceo saying oil will be lower forever? that's a long time >> thanks, tyler glad to be on. i would say we all struggle making a real price forecast for the next 30 days and 30 months, much less forever, but i think it does encapsulate the industry right now where technology is helping us lower operating costs and development costs and then, you know, the market is not really cooperating in terms of what we all thought opec might deliver at the beginning of the year >> let's talk about the two stocks that are on the radar today, exxon and chevron you're pretty lukewarm on both

of them. is there a reason for me to own either of them ever? >> yeah. there definitely will be a reason we look at them, they're both dividend and slow growth companies. they're struggling today to grow either way either production earnings or the dividend payout. but these things are big companies, diversified companies. they're the super tankers. slow to turn, but once they get pointed in the right direction, they're going to be able to hold that for quite a long time we think it's maybe not quite the right part of the psyche toll b - cycle to buy these two >> the dividend play, it's best to wait until the cycle turns. are there any acquisitions you can see either of them doing that would energize their growth >> yeah. as we've looked at them over a long term significant growth

really only occurs with acquisitions and we don't believe at this particular time that those acquisitions are likely but as they present themselves, that's what you'll see the companies do for sort of a stair step improvement between now and then it's all about cost management, getting the cost down, getting the capitol down, tearing off the assets and operations that don't help them do that, invest in the new ones then you'll see cash flow growth, operating growth and then we'll see that dividend grow mid single digits maybe a little bit higher. probably two to three years away from that process. >> roger, thanks very much roger read, we appreciate it. >> thank you >> coming up next, today's power pitch, h2o that is supposed to make you beautiful magic water. does it get picked or panned stick around

first rick santelli, he doesn't need any water to make him beautiful. he's at the cme for today's bond report >> i could risk a couple gallons. if you look at an entry day of two year, we're down one on the day but up one on the week a lot more action on the long end, although not necessarily today. ten years down two on the day, up five on the week. here's the chart everybody is looking at you see this chart 1.17, we've touched both sessions this is big time because zoom zoom, you have to go all the way to the end of 2014 to find 1.17 closes on the euro versus the dollar as we think many technicians think we'll see 1.20 and 1.20 and beyond she's nationally recognized for her compassion and care.

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x is now worth that's based on $350 million series h round of funding analyzed that now makes the space startup one of the most valuable private companies on this planet space x declining to comment on this, but equi date arrived at that by corporate filings. this represents a 75% jump since 2015 when an investment hedged spacex at $12 billion it's unclear who is participating this time, but there is a lot of stuff under way at spacex starting with f falcon heavy which musk tweeted last night will be launched in november musk has already cautioned that this first test could be, shall we say, dramatic >> there's a lot of risk associated real good chance that that vehicle does not make it to

orbit. i want to make sure to set expectations accordingly i hope it makes it past, you know, far enough away from the pad that it does not cause pad damage i would consider even that a win to be honest >> he said that last week, but keep in mind risk of explosion is a given in the launch business investors know that going in certainly know that where it comes to spacex which as you'll recall less than a year ago did suffer that explosion on the launch pad at cape canaveral >> it is rocket science. >> it is rocket science. >> i think equidate sounds like a dating app. >> and a credit agency at the same time. >> it is time for today's power pitch where entrepreneurs have 60 seconds to convince a panel of experts that their business has what it takes to be the next

big thing. >> i am founder of all beauty water, a company focused on changing the beauty conversation to make it about beauty from within our skin is our largest organ and what we put into our body you will have an impact. skin experts agree that many molecules and skin care products do not penetrate to the deeper layers of the skin and that hydrating and nourishing from within is critical yet, many of us don't drink enough water we either don't like the taste or find it to be boring. this was my inspiration for all beauty water benefits to combine food and beauty into one. each bottle has two glasses of water in it. eight skin vitamins, seven additional skin newt utrients we recent le expand our distribution from 20 to 150 stores, launched our first chain account stores in the northeast

and are working with two distributors and a broker team. >> welcome to today's power pitch. you just saw kimmy's pitch now let's meet the panel alicia, venture capitalist chu okay, condeyou are in the hot s, alyssa, lets kickoff >> you say your product is to special hydrating skin, is it a special slogan or special data to back it up. >> all ingredients have resea h researched behind them >> how are you differentiating yourself >> the message is beauty from within and healthy looking zskin we are looking for people to drink more water now, i was not a fan of the taste but the only criticism i have seen with your

product online is the price. >> what are you going to do to bring the price down we'll be able to bring the price down after efficiency. what are you bringing to this company from that experience >> i was able to get experience in both food and beauty and retail also, i worked on formations and launching of new products, all of these things have come into what our beauty water is today >> you are marketing this as a beauty water how are you going to get in the beauty isle? >> we would love to be in the beauty isle in addition to the beverage isle. a lot of people when they go to our store are looking for refrigerated or chilled products as an introductory place for people to discover the beverage,

that's one of the places that we have targeted. you heard what kemi had to say, now we want to know if our panels are in and out. >> this is a competitive space you have an entrepreneur with a strong consumer background she gets health and beauty trends and i really like the product myself so i am going to go in. >> kelly >> it is a little early for me to commit to this. i don't want to see what's happening. right now i am out >> kelly >> i was the judge that was not crazy of the taste with that being said, this is an entrepreneur of a team of one accomplished a heck a lot in a short time so i am in. >> all right, two ins and one out. >> what's your reaction? >> i will continue to grow our beauty water and focus our beauty from within >> thank you, kemi and our focus as well. that's today's "power pitch.

>> it is time to find out if you are in or out of all beauty water. follow our conversation on twitter and using th the #powerpitch. and for more log onto cnbc.com >> a call and one stock is sending its sharp lead down. we are back after this we created the ripple: the doughnut in a doughnut in a doughnut. right away, it was a success. i mean, it really took off. what people don't know is that it all started with points from my chase ink card. i bought the ingredients, utensils, even custom donut cutters. wow! all with 80,000 points. what will you create with your points?

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it is time to "street talk."

if i recall believes of free cash flows is poise to improved of the company's effort to reposition their capitol >> we got something pretty cool coming up. >> i do. >> i am going to tune in >> okay, good. you have a choice. >> very interesting there. second stock is paypal coholdin cantor paypal is stating its margins and paypal technology gives it a competitive advantage.

next up u.s. steel of u.s. flat role place prices for the remainder of the year. also, we are worrying about end market risks listen to this rate counts should be peeking. and they're thinking autosectors are rolling over >> something like that and finally your last stock of the day, it is alexion pharma. the pipeline is moving along and historical evaluations his target there on alexion is 138 and about 30% upside seen on

al >> charlie >> the latest from dc after the break. plus, the count down is on, the test of the big night for the model three. the first 30 cars with roll off the assembly line. what does it mean for tea.sl we'll go behind the wheel and a skin skinny "power lunch. experience unparalleled luxury at the lexus golden opportunity sales event

before it ends. choose from the is turbo, es 350 or nx turbo for $299 a month for 36 months if you lease now. experience amazing at your lexus dealer. they always refer to me as master sergeant. they really appreciate the military family,

and it really shows. we've got auto insurance, homeowners insurance. had an accident with a vehicle, i actually called usaa before we called the police. usaa was there hands-on very quick very prompt. i feel like we're being handled as people that actually have a genuine need. we're the webber family and we are usaa members for life. usaa, get your insurance quote today. welcome fox to the second hour of "power lunch." i am tyler mattis. fda is looking to lower nicotine to non aaddictiddictive levels. pl plus, a green day for redfin

a 40%, the ceo, a happy ceo once expects and will join us in our first on cnbc interview. millennials are not buying traditional homes but they are buying mobile homes. "power lunch" part two starts right now. >> all right, welcome back, thanks ty, lets get a check down on your money, stocks is not doing a whole lot. the dow's hitting an all time high whatever that's going down in dc, the market does not care amazon is slowly climbing back it is now down less than 2% and it is down more than 4% earlier today. it is the biggest one day drop

more than two years. mattel is sitting at its lowest level in six years and boston beer is soaring >> a developing story at this hour the pentagon confirming of a basic ballistic missile from north korea tch korea, the missiles flew for about five minutes there is no damage at this point. the pentagon is assessing the situation and will have more information for you soon and we'll bring you the latest headlines. after a bitter fight in the republican party the republicans' attempt to repeal obamacare is coming to a screechi screeching halt. lets bring in our john harwood >> john, we began last hour of the question of can anything get

done when the white house seems so fought and driven by internal warfare. it had to do with the mismatched of what they have been promising the last seven years and what was popular and what was it and all of that brought it crashing down obviously, a dysfunctional white house does not help. if you are donald trump and you are trying to drive the next item on the agenda of whether tax reform or infrastructure, it is all the more difficult if you have a situation where it is opened warfare in the white house. the next few weeks reeince priebus is going to be replaced and we don't know the replacement. this white house is not stable and it is no t a formula for

success. >> a lot of people are bidding on trump and dangerous to sell him short. >> that's true what happens now to the august recess can they go away now >> the senate is due to be in on nominations for a couple of weeks. my guess is the couple of weeks are going to get shorten once senators know there is not a healthcare issue going out there, they're going to want to get home as soon as they can the immediate priority is to get going on tax reform. remember though, tyler, to get to tax reform they want to do they need to get a budget passed

first. they do not have consent of what a 2018 budget is going to look like they'll have to settle around deficits and in the house and senate exactly of what the reform is going to look like >> is there an analogy between the divisions in the gop on healthcare and the divisions within the gop on tax reform are those as deep on tax reform as they seem to have been on healthcare >> i would not say quite as deep because tax reform is home turf for republicans. the tax issues and tax cuts in particular here is the challenge, on healthcare, they failed because taking away smog from people is very difficult to do on tax reform if you are going to cut rates, you don't want to increase the deficit

without the revenue mechanism like that, they'll need to have smaller rate reduction or they'll have to expand the deficit and that's not easy to sell in both houses in congress. john harwood, thank you very much have a good weekend. the second quarter is a rose ier one for the economy. >> here now with some more on the numbers is steve liesman >> first quarter as you know has been historically weak and second quarter rebounds common 2% plus or minus as joe has

said >> across the economy, consumer spending of 2.8% we have positive numbers and invest ms up 2% and that's the business under the economy and government up, 0.07% all of these were healthy bounce back and sometimes negative figures. the president set this 3% bed mark for good growth most are below 2%. mid 2 is a healthy number should be good for job and it is good science so far and what i am hearing on the street is remaining in the mid 2's that's the lowest probability we have seen for the contract and we have been here before and another one brian, maybe you can add -- >> the psycho killer >> no, that's not appropriate.

we keep on ending up 2% growth >> we are not followed by the house though >> not when it comes to growth >> that's a good one >> stick around. >> a rock n' roll. >> i am going to start with the first question that steve opposed, we got this nice number today, bounced back and first quarter of the start of something really big, mark sanders, what do you think >> we are growing 2% we have been experiencing since the expansion began and you know it is eight years long >> the length of it by definition means that something bad is going to happen based on cycles >> no, it does not an interesting factoid

the average length of time is three years. the clock is ticking on the expansi expansion. it does not have to be three years and a lot of things can happen it is a regulatorregulatory once you hit employment, you tend to pass on it that's a recession >> steve richutto. >> this week is pretty significant and it appear that is the health camera reform effort is dead and they move onto tax reform. we are full-timeinally consequel news and a lot of that is going to be built in gdp and a lot of taxes were going to go away and etcetera and etcetera, that's not going to happen.

tax reform i don't know, who knows. what do you think of their impact on what happens to gdp? >> i don't think there is any chance that the company is going to accelerate of the second half you know and part of the reason is that we got the federal reserve that's pulling away from combination. it is not just the federal reserve that's pulling away, it is every single bank around the world of the importance of ppoc, ppoj, i should say china is pulling away itself out of the equation and we are not going to get any physical stimulus coming down the pipeline i think this economy has a great potential under perform then over perform as we go forward. we are not building a credit in balance in this economy. this is going to be the longest expansion of our city. on average, our economy tends to

run into trouble the variation around that is pretty wide. i think we can be looking at another five years of this low growth, low inflationary and continuing >> can i share one idea out there on the positive side >> we have conditions of good consumer spending and the job numbers. they should under pin this 2% or 3% >> one of this things that changed and makes my optimistic and i want to see more than one quarter in a row of this is the business spending side we have been essentially in the business spending for what now for almost a year or 18 months depending on where you dated from if we get the business side together, we can do two and a half and 2.5, if the potential is two i mean it is certainly a possibility and i am not going to take it away from you, steve. what it happened is the drive up

in energy prices and causing the big shift around reduction energy and energy investment and energy prices where they are right now is $50 a barrel. we are not going to continue to get that >> it is confidence number >> the spending is going to look better if luke at corporate earnings, a lot of them are starting to report that their order books and their backlogs are expanding. >> here is another -- we can talk -- here is another positive take on thing. it is not just business investment there is no head wins to the economy now. so early on in the expansion, there are head wins. >> it is stuffed and the

shifting of the new product and heavily discounted products. they did not go well of the automobile that's a big, big persuasive industry in terms of the u.s. economy. the federal reserve is backing away from accomodation that's a head win. to me it is tightening we are going from qa to qt quantitative aiding and quantitative tightening. >> i would not argue with you. those are good points. look, consumers are going to do their things despite the high interest rate and despite the weakness of the autosector business invest ms are going to be fine and normalizing and trade is no longer a drag because the global economy is firm and u.s. dollars stabilizing and down a bit government spending is positive. >> i disagree with you on the trade. >> guys, guys, sorry, i would

love the comment talking smack >> he's my friend. >> thank you, steve. shares of starbucks is down almost 10% of an unexpected third quarter revenue. this morning, kevin johnson defended these companies' results. >> we are proud of the fact that we posted a 5% comp in your largest market with 1% growth and transactions now, i challenge anyone to point to any other food and beverage merchants in our scale posted with 1% transaction. it was a strong foerm man slaughter and a great result >> our next guest gives starbucks a four star under valued rating. you are with us yesterday talking amazon and now we talk

about starbucks. is the market's reaction is over done >> yeah, certainly some markets warranted here if you dig deeper in the numbers you will see things of program numbers, that's slowing. we saw deceleration through the quarter and right now of 3% to 4% range and down to what they were there is some conceptism i think you will take a step back you got digital infrastructure that's further along most retail concepts there is an opportunity for marking. i think the company needs refinements on its menu and platform how is their digital ordering working for them when i go in, there is some

disorganizations and people are cutting line and i order my stuff over here and i want my stuff. it is not a friendly moment. >> having too much people, changing the lay out of the store. they got point for mobile orders something that you don't do every night but something that can be done. it reminds me of panera where they had problems and they ended up solving that. >> how big is teavana, the brand itself is successful a retail base of tea concept, i am glad they did not pursue further. it is something that's not going to work and little traffic it is better to run through the starbucks stars. there is a number of people

joining loyalty programs it is going up but not as fast as it used to. if you lay that through the company, we'll suggest declining growth >> that's one area that i so concerned about. for a company this size and the market leader coffee to have a program of $30.3 million the company needs to take a look and decide what they are, is this a millennial focus brand or going after ordered demographics and find their target audiences and that'll help them out. that really is key for keep repeat business and driving in traffic and environments we have things like a unicorn frappuccino and happy hour, that was designed for younger generation that's something the company needs to look at, maybe they spread themselves too thin at

this point >> yes or no to buy the stocks here >> it is a huge opportunity and i think having a lot of demand for your product is a problem that you can work out. it is going to take some time and you get the risks. >> rj, we'll see you monday. >> rj of "morning star." >> redfin is making its debut today. we'll speak with the ceo tesla's big night. the company is set to deliver first mass electric vehicles in the form of model three soon >> and cigarette stocks sink stick around, you are watching "power lunch."

welcome back to "power lunch. shares of redfin here is first on cnbc, the nasdaq, the ceo, glenn, congrats to you and your employees. >> so much fun lets take in a little. hundred bucks to trade stocks 15 years ago is basically free now.

five to six percent and split with two brokers are you going to change the real estate sales model >> oh, we are. sometimes it takes longer to win. you trade in stocks every single day and someone screws it up and it is not the end of the world it is the biggest transactions of their lives and sometimes they adodon't do it once every n years. if you are for better service and less money and thousands of dollars less and you sell homes for more money, you are going to take shares. >> so what is the difference and there was a southern beach one >> what is the difference in your model for our viewer who is don't know it how much do you charge and differentiating yourself and winning business of the bankers

of the world >> we charge about a third of a price. 1% enlisting the homes instead of the typical pay to agents we are the number one brokeage website. we use technology at every step of the process >> can you get realitors to work for you? >> oh yeah, year over year $4,000 home, 5% and 20,000 commissioner and you split it two ways, ten each, what are they going to make under redfin. >> you are thinking of it the wrong way. >> i am thinking numbers >> a typical agent is going to sell six or 10 home as year. a redfin agent is going to sell less >> they're going to make it up in volume. >> they'll have technology on

their side to make sure they can do that to serve the customers well they earned twice the industry average and they're working for a brand that does not feel like radio shack or real estate it is a good customer covenant and a great technology platform and a great career our agents are 16 years younger of the traditional realtor who's 57 there is a new generation of folks. >> come on our customers are 41 >> is my redfin agent is going to meet me at the house to show me around? >> yes here is how it works >> that's what's going to happen >> the lyft and uber el real estate >> you are apple and you are lyft and you are uber, i am loving it. >> you want to click a button and instantly to get in the

tour if you are a new customer especially, we'll make sure you get the lead agent and he's the one responsible for taking care of you all the way through >> and help you stage the house in. >> yes, we help you stage the house and we do this cool visual 3-d scan view where you are inside the house so you can look into the ceiling and the floors. we do all sorts of things. one out of five consumers are buying a house without seeing it online until they get to inspection >> google is not profitable. when are you going to be profitable >> well, we are not profitable yet? you got to cut my some slack it is my first day of a public company's ceo. the company is doing well. all of our numbers are gaps so it does not klein you hinclude.

>> lets have some fun looking at the share accounts of your worth of $30 million today, all of a sudden what are you going to do with it and the first thing you are going to buy >> i think i am going to go get some cough drops, i have got a little bit of sore throat. >> how does it feel? >> that's what our viewers dreamed about. you go public and worked hard and now you are multi millionaire because i will never know >> come on, seriously. >> i am so proud right now of the company, like that's how i feel i know it sounds like a bucket of balogney to you but i swear, it feels great >> we believe you >> venezuela clashes we'll break down what's at stake. >> the commodity is approaching

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herrera. the u.s. is slapping iran with new ballistic missile sanctions. the sanctions target six iranian subsidiary locations >> charlie gard has died he became a dispute between his parents and doctors on whether or not he should taken to the u.s. for treats. he would have been a year old next week. the tariff on american beef sits at 38.5%. that rate will go up 50% from august 1st until the end of march. o.j. simpson will not be invited to watch practice or take part in any functioning at

usc. head coach clay clayton denied him coming back. >> you are up to date. brian, back to you the market is closing for the day and week lets go to jackie deangelis. >> we saw an 8% gained in crude prices very close to that $50 mark. trading at $49.81 session high there are three factors throwing us high this week. the weaker dollar was definitely supported of this trade. you had the saudis that's going to cut their export and the large draw down u.s. crude supplies and giving people confidence that seasonalty is starting to kick in today. that's not to say we can see it going down a little bit later. we test a couple of times and usually we tend to break the

level that we are testing. back over to you the trump administration threatening sanctions of venezue venezuela. numerous leaks suggest that the sanctions are considering banning or taxing heavily of the imports of venezuela oil u.s. refineries that's most impacted, the biggest of 2013, sweeney texas of refineries, you can see it is all in the gulf coast. >> $45 million of louisiana. number three is valero here and number four is sweeney, texas and corpus cristi. what will the impact be?

joining us is our strategy in nbc. hi helena, if of no imports of barrels? >> we would lose it everyday day. it would be good for canada and mexico but this will be a problem in the bottom x. you can see gas prices rising here i shally until those supply issues are sorted out. that would be the issue. >> that was my next question >> that was the other nuclear option that they could do. venezuela government cannot tran sakt their dollars so unlike all other refineries, they could continue to operate

that's right it is out of business. this has to two effects. again, it can drive up gasoline prices here and differential and mexic mexican mines but we can see real impact. what if they're default and they cannot pay their bills >> that's a good question depending on what type of sanctions are put in place >> i watch the dollar sanction for that >> you can convert the refinery from the thick salt and as well as heavy venezuela crude >> can we make it up with u.s. production >> well, this is just taking time and we are talking about a peak summer driving season >> there will be an impact longer term, could they send

america 10 or 20 billion people? >> you cannot slap sanction in iran there is other countries that can supply us, we can make odd occasions of refineries, we can do this. better to bring this story to an end, so i think that's the fight. i some in the white house are saying we need to step you want sanctions. he's making it terrible, lets end the story. helena, thank you very much. >> thank you for having me >> tobacco is there any is taking a hit today the group plans nicotine lefrls in cigaret lef levels to non addictive levels >> mr. kessel l, go, good to hau with us. good idea?

>> obviously, no regulations should passed. this is a start for the public that people are not going to smoke cigarettes if you. are there pay weigays to make a sifsi safer cigarette? >> that's a big question >> the question is, i will confront that for decades and we won that battle. the question is, what are you going do for the person who is addicted >> you cannot just take and do

it as an experience and reducin nicotine level >> what if we find somebody that's already addicted. >> if you take nicotine lefvels down if you make cigarettes and not deliver why people smoke can there be a form of nicotine do delivery that's still a big question trying to do that [ inaudible [ inaudible it changed hundreds and thousands of lives

>> david kessler >> we thank you very much. >> coming up, a lot of news, next week is apple as your main echt to report their earnings. >> do you pie apple now or is there a wait >> a newly bought super car is gone in less than 20 minutes a story of a man and his formal very rare and expensive ferrari coming up.

president trump is speaking of the failed healthcare bill moments ago with a speech no long island, new york, john harwood has more >> trying to rebound the setback last night on healthcare he's giving a speech to law enforcement officers providing restrictions and violence and saying he's going to crack down on that. he took a detour into healthcare and said that what his stance now which is let obamacare go away and it is been vindicated here is what he said >> oh boy, oh boy, they have been working on that one for ser seven years. we'll get it done.

let obamacare implode. >> now keep in mind, that's a program that he's squoering to over seas and now has 18 people on those obamacare places. what happens to those people and enrollment for the new years we'll have to see how he handles it and i don't think how in congress wants to have a bipartisan quick >> john harwood, thank you shares of tesla. the automaker is planning to deliver its first model tonight. >> will the model three help pushed tesla even higher >> the moment is here but i wonder james, as always the stock build up already been priced into the actual news? >> a great question, first of

all, thank you for having me the oncing understanding of ho market is, it is something vitamine investors and the mark et is trying to get their arms around. those brands on the a 4 and c class and affordable priced vehicle, tesla is showing they can differentiate against the higher price segments and this is their first for ray into the much bigger market that's something that people are trying to diverse. qualify barry burbafrankly >> what are we making of the stocks this is also like a solar panel company. >> how do we look at it? >> not the car, not the company but the stock? >> i understood, it is another great question look, i think for now, we are

going to have to make their mumbai building and ramping production of the car. i think when you want to figure out how tesla fits into sort of a pivoting, broader energy cycle question, certainly power storage when coupled and bringing new energy of a nye life as we look around the country, we a autoanalysts but we do look at some degrees. transmission disabuse is antiquated in the u.s. solar generation can be stored and units that tesla can provide. that's an entirely different market of unpacked opportunity that we think for shares >> why is this car is cheaper? >> it is smaller and not having

all the finish if you will of the larger model s or model x. the smaller battery pack and downgrading if you will and upgrading if you will the opportunity to showcase new amendmenti amendmenti amenities. >> the opportunity to buy hardware that we'll couple in a few time >> you wiultimately the big opportunity as you scale hundreds and houns of thousands of units over the fix cost of production >> thanks so much much, we appreciate it. >> millennials may not be buying traditional homes, but they are buying rv's. ro >> reporter: that's right, they are totally anngchgi the way of

where they camp. tell you that story afterwards >> coming up next on power , "power lunch." (elegant music) ♪ and let me play (bell rings) [ light music playing ] you've wished upon it all year, and now it's finally here. the mercedes-benz summer event is back, with incredible offers on the mercedes-benz you've always longed for. but hurry, these shooting stars fly by fast. lease the c300 for $399 a month at your local mercedes-benz dealer.

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millennials seemed to be buying rv's. landon seems to have the story hi landon dowdy. >> reporter: move over, that's right, it is not just baby boomers behind the wheels of rvs. recent growth to younger buyers. homes volume are increasing. the biggest pop of 20% euro over the year according to rv industry association we talk to some of the buyers here at the campground

>> we picked this one because it has a kitchen in the back and outside. >> something we can grow a family livelives. >> we selected the bug traouser because we have some room. rv manufactures like this company is taking notes and upgrading the electronics. >> it is up grating the electronics and adding features they are are used to a lot of rvs are cap ompatible o iphones or running your ac when you are on or jacks when you get there, it makes it easier to camp >> it is not just these affordable weekend that millennials are using. they are using things like tailgate or concert and some of

them are passing everything you will and selling what they can aint take wi take with them >> it is like a vc van way before you were born >> i am do that, do what you described. >> reporter: air streams are cool again. >> say that again, please. >> reporter: air streams are very cool again. we're seeing a lot of those. very popular people are buying the new ones, rather than used ones and these millenials are taking their families talked to a bunch of these moms traveling across the country they are home schooling their children and if there's a geology lesson they are going to the grand canyon if there is -- they are talking civil war, they are going to gettysburg. >> landon, landon, first off, as the only rv. i have two, one doesn't work. >> do you want a towable >> reporter: you're not a millenial. >> i have a classic rv, one is for sale but it doesn't run but it has two giant eagles, 40 feet

long. >> reporter: maybe we can talk to some people. >> and these things, all we hear landon is that your folks, the millenials have no money >> are they paying for it? are these all finances are people taking out massive loans? >> reporter: so it's actually a little bit easier to get an rv than you think had they can start anywhere from $5,000 to upwards of 500 grand plus for the really fancy ones but it's pretty easy to get a loan thor industries says 50% are paying cash and 50% are getting a loan so it's easy for them so it's 5 grand, may not be the one totally updated with all the fancy technology that can be with your iphone, but there are affordable options and even if not that, we're millenials, all about the sharing economy, use outdoorsy like an uber or even, you know, rent one from other companies. >> you are in northern california i imagine there's sharing of other stuff going on at the campground in northern california, you know what i mean, mendecino. >> reporter: we've got the vin

yards, plenty to do around here. >> thanks, landon. >> soda stream. >> they are cheaper than a house. >> that has 18 batteries. >> got to operate a house. >> get off your mom's couch and into the rv. >> two words for you gray water. you'll understand. time for trading nations to talk about apple. mike olson who covers apple for piper jeffrey joins us now hello, mike. >> earth to mike. >> couldn't hear you. >> just asked you a joanus question what are you looking for from apple? >> sorry, couldn't hear you there. our expectation is an in line june quarter for the september quart they are could be a little bit of downside in the guidance relative to where the street is. now the street is getting somewhat right sized in their model. we've seen over the last week street estimates for revenue that have come down by $a billion and a nickel on eps and what's happening is where there's smoke there's fire people have seen enough rumors

for potential for the iphone to launch later than expected numbers are getting shifted from the september quarter into the december quarter i think if they guide slightly below for september and, you know, basically essentially gets pushed into december, it really won't faze a lot of investors. >> eddie, what are you looking for in. >> spiraler alert. they will beat earnings for this past quarter, but really what people want to look for is that forward guidance a few things first it is there are those rumors about slowdown, potential delays with the iphone people want to know about that also about the recurring revenue that you get from like the app store, that nice steady revenue stream investors love that, and also want to hear about china and other places remember, apple is losing market share globally, but the key thing is this iphone 8, are we talking about the same customers buying a slightly improved thing, or is apple opening the door and bringing in new investors? >> yeah.

>> i don't think this looks good here right now i would sit back and wait. >> make a prediction they are going to beat appreciate it. for more trading nation go to tradingnation.cnbc.com. >> michelle. >> check, please is next don't move >> hand now the latest from tradingnation.cnbc.com and a word from our sponsors a double top is a chart formation that suggests an uptrend may be ending and ready to reverse sometimes called an "m" formation because the pattern looks like an "m" a double top consists of two well-defined peaks at approximately the same price. traders often view a break of the lowest low in the formation as a bearish signal. a used car,

break out the eagles and giant american flag, all next week we'll highlight companies across the country making their products in america and also making it. in other words, they make it, and they are making it we'll highlight five different companies, guys, all over the country. they say you can't make stuff in america. guess what duluth pack, guardian service and a couple more. they are just proving it it will be a really fun series next week. >> cool. looking forward to it. >> break out the eagles, break

out the giants and break out the redskins, my favorite team. >> nice. >> the nfl training camps begin this weekend, and i am a huge fan. >> check, please. >> this is check, please how do you like that he interrupted me. what was i going to say? oh -- >> training camp. >> football. >> training camps are opening, and obviously in light of the findings earlier this week that 110 out of 111 brains tested of former nfl players who donated their brains to look at cte, chronic traumatic encephalopathy. >> we know what you meant. >> they had it, and so i think the nfl begins under a bit of a cloud. i don't think people will not play football, but as -- and father of a son of an 11-year-old who really wants to play, it's a conversation in every household i know >> yeah, i bet. >> my check, please, a little more light hearted than one. just because you buy a really fast car doesn't make you a good driver a lot of people buy this hot car like i'm a racer some guy totalled his rare and

expensive ferrari an hour after buying it. it's a special model, $288,000, really fast. less than an hour. car like caught air, burned down he's okay. >> did he survive? >> he had a bruised ego and bruises, but he was fine if you buy a car like that, folks, take some lessons. >> those cars can get away from you. >> something may happen with the car, so i don't want to knock him too much be careful, man. i'm a racer. >> those cars can get away from you. >> all right this -- >> say it. >> david august. >> say it. >> is a company that makes men's suits, and in light of all of the excitement in washington in the last 24 hours we thought this might be appropriate for a certain new member of the white house. the fu pinstripe suit, the effu pinstripe. we show you a slows up but the pinstripes spell out in tiny letters. that might look similar to what you might have read nor a "new

yorker" article that interviewed a certain communications director. >> someone gets close. >> right. >> wonderful. >> all right thanks for watching "power lunch," everybody. have a good weekend. >> "closing bell" starts right now. >> have a nice vacation next week. >> thank you hi, everybody. welcome to "closing bell." i'm kelly evans at the new york stock exchange. >> been a while since we've -- >> stood over here. >> done that sonny and cher thing. >> i'm bill griffeth dow fighting back from earlier declines trying to close higher for a fourth straight session. this would be a record high if it does. any close would be a record are to the dow the s&p is lower though. so is the nasdaq, by the way. >> yeah. we've been watching that one the last couple of sessions going back to yesterday afternoon. then you had amazon off the lows of the day after reporting disappointing earnings the company across the tech sector which has had a huge run so far this year coming u