>> curb your enthusiasm comes back -- >> larry david is the key to the market. >> the next thing that jolts the market one way or the other, is going to be politics i think mueller will not stop what he's doing and the market so far has been blasseflt. >> you see sullivan staring over your shoulder? >> did you see that? >> sully yesterday he was dancing. >> photo bomb. look at him. >> power starts now. it already started apparently. go ahead >> only place i have to go was that creepy, josh? here's what's on the menu, dow 22,000, you can't pick up a newspaper or turn on the tv without hearing about it the question now though is, if main street is getting bullish, should you head for the exits? we'll debate and president trump threatening to tighten trading screws on china and the twitter

tirade on congress what's the hardest thing to make profitably in america? your guest is doing just that and in los angeles, no doubt and impossible is possible edition of "power lunch" begins right now. >> welcome, everybody, brian, thank you very much. in this business there is no such thing as a bad time to be looking over your shoulder welcome, everybody, the dow hitting another new high today but it's really the outliar. major averages decidedly mixed the dow up 11 points but the s&p 500 down a fifth of a percent and nasdaq off the same. a few stocks to watch today, shares of aetna, all tie high on the back of a big earnings beat. humana and signa surging

how bad is the health care business after all one stock unable to snap out of its funk is snap there you see the stock right now at 12.55. >> we begin with the market and another tweet tw president trump taking credit for it, saying a business looking better than ever with business enthusiasm at record levels and stock market at an all tie high that doesn't just happen can the president take credit for this rally let's check in with bob. >> can he claim credit for the rally? the answer is yeah partly. some sectors saw notable rallies after trump was elected. fang stocks rallied almost 30% that's clearly on hopes of regulatory relief, a powerful inducement for owners of bank stocks infrastructure spending and

regulatory relief was a big role in the rise of industrial stocks look at the industrial index, rose about 9% in the month after election, straight up there but another 9% since then. something else is going on technology also had almost no reaction after the rally look how small that was, about 3% but it's been on fire this year, up 28% why is this? because a relatively small group of tech stocks are putting up very large earnings in revenue numbers. you can see how strong earns have been all year and this is the catalyst, up 15% in the first quarter. now nearly 12% in the third quarter and that's going to move up in the weeks to come i predict. stocks trade off of future earnings prospects, that's the big mover for stocks right now the bottom line, give the president partial credit but only partial the big issue for the trump rally is how much of a risk premium is really embedded in the market for few are regulation and tax cuts and infrastructure

if trump tweeted tomorrow, those three initiatives are dead, how much do you think the stock market would drop? i don't know but i'll get there's a 5 to 10% premium embedded on the market just on that, still alive very much. >> thank you very much let's bring in karen kavanaugh and castle arc management. we can talk about the president, whether he deserves credit or not and what would happen if those things were taken out of the equation maybe we'll get to that. karen, when the world starts unanimously saying how great the market is and we start seeing every day front page stories about dow 22,000, is that a time to start fretting a little bit >> well, i think you should always be concerned there could be a correction. that's a normal part of the market when earnings are as strong as they are and keep getting

revised upward, not just in the united states but internationally and emerging markets, you have to let the earnings do the worrying for you. right now earnings aren't showing me any signs of worry. i would say that there could always be a correction but right now i don't think there's a reason for investor s to be worried because the market doesn't seem worried. >> jerry, do you see it that way? it seems the market is moving higher on fundamentals and probably a little change in the atmosphere about the business climate. >> tyler, you start with trump, there's clearly some signs by taking regulation away and giving companies a longer runway to invest, that's going to make the long-term outlook for earnings better. when you reinforce that by showing good short term earnings, the combination of the two gives stocks a much better -- when you think inflation is where it is, a much better long-term lead and that's what's confounded a lot of

possesscy mists, how far they can go on key fundmentsals that don't have a lot to do with politics overall but it's power that sits underneath low inflation and strong earnings growth that investors really come to appreciate that's why this market just keeps moving along. >> it's fair enough. this merits shows again. you'll know what it looks like by heart, off the 2009 bottom in the dow, going to the beginning really of the campaign, the market rose 180% in six years. it literally took the campaign off for 15 months the market gained zero, moved but gained zero then restarted that trend once the election was basically finalized, all be it at the faster pace. how much of this pent up buying frustration from a 15-month period where we didn't do anything >> some of it is it worked into the investor

mindset in that at least we know we're not going to get an increase in taxes and not going to get an increase in regulation it worked its way into the mindset. there was pent up -- there was pent up reserve in that we were worried that taxes migtd increase and we might get more regulation that has come through. that's one of the reasons why we see the market moving ahead in addition to earnings so that's why i would give trump partial credit as bob was saying, that he is responsible for some of that pent up enthusiasm >> jerry, key to this rally has been what has been going on with the fed and the fed basically remaining at bay is it a concern of yours at all if we do get the action on fiscal policy, if we get some sort of tax reform, the fed will have to play catch up and that could actually be negative for the markets in the end >> so you do have to play those two off of each other. basically what you're describing is an environment where we would

push inflation because we would push more growth into the system and it would clog up financial markets and force rates much higher and the fed to respond. right now where inflation is so benign, i think there's a good 12 to 18 months of room if you want for growth to accelerate without making the inflation story something that the fed has to respond immediately to. if you combine those two, that's where you start putting multiples on earnings that are really reflective of much higher valuations and that's -- to me that's the key to the market and why we're still in the early innings of a secular bull. >> shares of teva tanking, meg terrell joins us live from new york with much more on the story. it was commentary about the pricing environment for generics that sent shuders through the industry. >> it did. it's a tough day for teva, the

second quarter miss on the top and bottom line and lowered their 2017 guidance and cut the dividend by 75%. the interim ceo and president saying in a company statement, all of us at teva understand the frustration and disappointment of shareholders in light of these results. and strengthening the balance sheet, of course a lot of commentary on the environment for generic drug pricing in the united states. this is something we've been seeing pressure on over the last few quarters and the unit reported and wells fargo putting out a research note showing that erosion in sales volume, down 10% in the three months ended in june that's been an ongoing story you can see that reverberating against other drug makers mylin and novartis it's a year anniversary when it closed its acquisition generics

business, that's not playing out so well today. there's a lot of interplay between the two companies, not looking like quite a bad bet at this point we're in front of the brooklyn courthouse today awaiting the martin shkreli verdict and we'll bring you any news when we get it. >> that deal also made the biggest shareholder, holding 10%. the company became eligible to sell its stake i believe yesterday, august 2nd. any word on what could happen with that stake now? >> yeah, it sounds like the company is potentially planning on divesting the shares. you've seen analysts wondering if the weakness in allergans stock could be because they are looking to day divest. >> thanks, meg. >> coming up, the good news story on a medical breakthrough that just might be a game changer for many deadly diseases

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shares of tesla higher at

this hour. phil has all of the details for us from chicago. hi, phil. >> so much of the conference call yesterday after tesla posted earnings was in regards to the model 3 and what type of demand is out there for this vehicle. we really hadn't gotten an official update in terms of reservations the company says that it has 455,000 current reservations, people who put down at least $1,000, that's in comparison to 325,000 shortly after it was launched april of last year. they did note there have been about 63,000 cancellations, people who have said i don't want to wait or don't want to put $1,000 down, whatever the reason might be. that's how much cancellations they had at the same time, the other question that came up quite a bit on the conference call, how quickly tesla can increase its production its target is to build 500,000 vehicles next year and that's a huge increase, almost a five-molfive five-fold increase in terms of this year.

that's why musk made it a point to say during the conference call, they are in for a tough slau. >> when i said manufacturing hell on friday, i meant it i mean, we know this, signed up for it, not blaming hell but we bought the ticket. >> it is an expensive ticket through production hell. capital expenditures for the second half of this year, $2 billion for tesla. it's that cap excess expenditure that has some people saying, how much is this going to really cost tesla as they ramp up production but overall, you look at the earnings better than expected and some of the other things were talked about during the call, that's the reason why the stock is moving higher today. >> they said importantly, no capital -- nothing that would be dilutive although they could do a debt offering. >> debt they are considering.

>> phil, thanks, model 3 powering tesla stock to new highs, can they deliver? we're joined by tony, you're pretty cautious on the stock $265 price target going into the earnings your note today seems pretty bullish in terms of what tesla was able to manage for the quarter. what are the outstanding reservations that you have >> yes, melissa, i think this story is all about can tesla build in volume the model 3, do so profitably and do so with a good and high quality level? and it's really all about execution. if tesla is able to deliver on what they said last night in terms of its gross margin targets and manufacturing ramp, the stock will do well from here i think the real question is, is that realistic

as phil mentioned, manufacturing will go up five-fold and tesla is striving to achieve margins on the model 3 of 25%. they've struggled to achieve that margin level on the model x which has an average selling price of over $100,000 the model 3 starts at $35,000. and so i think at least in our mind and the bull/bear debate on the stock is highly polarized. the bears would say they are spending billion in cap x, fw they can't get margins, they will drain cash and may run out of cash. >> how many money are they running through quarter by quarter or year by year? >> well, right now we don't expect them to make money in either the third or fourth quarter plus they have a billion dollars of capital spending per quarter. they could be burning through more than a billion dollars per quarter over the next couple of quarters, that's why there's real sensitivity to what the margins are in the model 3 if they are weak, they are going

to be burning through more if they are better, the cash burn may be about that level. >> how come nobody is making a bigger deal about the 63,000 cancellations, that's not a couple of guys deciding they don't want the car that's a large number of people who for some reason changed their mind >> well, you know, i think there's a number of different reasons. you know, people get swept up in the moment and announcement last march was pretty compelling and people like option value they know it's going to take 12 or 18 months to get the car today so they put a deposit down i put a deposits down. i'm not sure i'm going to exercise it. we did a survey of 280 tesla owners and found there might be up to 30% who put down a deposit on the model 3 who ultimately aren't sure whether they are going to exercise -- >> they drop out at 65,000 is not as bad as what your survey indicated, correct >> correct our survey had indicated that only 70% were likely or very

likely to exercise so we weren't really surprised by the fallout number yesterday. >> something that was mentioned on the conference call that may play into your margin issue is that the model y will be built on the model 3 platform. doesn't that give you optimism there could actually be a much more margin upside to the story than maybe we're thinking about right now? >> certainly longer term what they did say last night, the model y would be built on the model x platform which is different from what they said 90 days ago, said it would be entirely different that would enable higher levels of manufacturing efficiency on one handy think the manufacturing ramp for y will be better than perhaps we thought than moving to an entirely new platform, but perhaps the upside even by tesla's own admission in terms of manufacturing efficiency, may not be as high -- >> tony, i'm sorry to jump in,

i've got to ask you, you just said you may cancel your order is it because you weren't sure you wanted the car or personally did you see something you didn't like >> no, everything we've seen about the car we love. it's really a question of does the car fit us reat the right time when we get it delivered. >> thanks, tony, a lot of people put that reservation down. it's noncommittal. you don't lose anything and you can see what the process is in terms of when they asked what the configurations are so you can track the process. >> one of those rvs that you have. >> it doesn't run. >> i want to believe if somebody is concerned about the new interface, the dashboard change is dramatic running the whole car from a tablet. i want to know if there's any viewers that for them this might be a concern i love tesla, love what they do. just worried that -- >> you looked at buying one once, don't you? >> i still have. i'm not a tesla hater -- we've

all had technology problems and i wonder if running all of our stuff from a piece of technology might be -- i'd love to hear from the audience. audience, you're the boss. let us know what you think send the good stuff to me. >> we're all used to this at this point so why not. >> and fingers don't work. >> that's technology for you. >> but this is like life and death because you're driving a car, not like -- >> the slump for luxury home sales is over. did you know there was a slump it might be on the ascension as well at aigto a tt is next

(upbeat dance music) (bell ringing)

today it is the housing edition with our resident expert diane olick, are you rtd >> i'm ready >> number one, luxury home sales, just hitting a milestone. >> reporter: yeah, the slump is over for first time in three years, luxury home sale prices are seeing bigger gains than the rest of the market this is according to red fin, which defines luxury as the top 5% of the market's most expensive homes. prices are up. why? because sales are up, 19% in the million dollar plus range, that is according to the national association of realtors. why? sure, you could point to the stock market but jonathan miller, an appraiser who compiles the high end reports says it's the sellers are finally coming back down to

reality. they were overpricing for too long and now more willing to meet the buyers. >> topic number two, and every real estate agent in america needs to listen to this story. could commission based real estate brokers be a thing of the past >> starting to there's a little company called really, small brokerage in the san francisco bay area today it announced a new flat fee model. no commission. for that one fee of $4950, sellers get a full service brokerage package which focuses very much on high tech offerings, property anlices and online marketing you get a real live person but there is no commission on the buyer agent side either. they also offer on demand house tours if the seller agrees, all of this technology is of course targeting the millennial buyers -- >> so wait a minute, if i sign up with this company, does that

mean that the seller also has to be playing through that company? in other words -- >> reporter: this is the seller signing up for this. signing up with really to sell their home and it is a flat -- >> the seller always pays the commissioner. >> good luck getting a real estate agency to get into that agent. if you're the buyer's agent why would you go into that house >> they are paying that side as well no commission on either side paying both the agent fees on either side with the flat rate and doing it no matter whether the house is $300,000 or $30 million. the price model still works. i talked to the ceo. this is where the market is going. >> been trying to change it for 20 years we'll see if this works. we all thought that american malls were dead but retail may tell a different story >> reporter: they've been getting slammed because investors think malls are dead and retail is dead but that is not exactly the case

the top mall space seeing 95% occupancy right now. even upped its guidance, increasing rents, and kimco which owns though open air centers at the highest leasing volume it's ever had of course there is pressure from ecommerce and that will hit certain malls and certain strip centers and certain places but these are not the ones generally owned by big publicly traded raets. thanks very much. >> data and taxes the latest from the budget chief. while the president is going after congress, congress is coming together on at least one issue, helping small businesses on main street t aleiljoes from opposing sid ofheis wl in us next ree 20 years ago, and i've never seen a better time to refinance your home, than this summer. why? because right now we're seeing our average customer save $20,000. but with the fed already talking about raising rates, this window will not last for long.

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hello, everyone, i'm sue herrera. with veterans affairs secretary david shulkin at his side, president trump announcing initiatives to use technology to improve health care access for

veterans across the country. >> we're expanding the ability of veterans to connect with their va health care team from anywhere using mobile application on the veterans own phone or the veterans own computer this will significantly expand access to care for our veterans -- >> about 500 migrants including 119 ship wreck survivors arriving in sicily after arriving at sea. eight bodies were recovered and three more people had drowned. one person is in custody after a gun fight erupted at a gas station in jackson, mississippi tuesday night. the gun fight started as a verbal rg. before escalating into gunfire amazingly no injuries were reported that is the news update had hour back to you, melissa. >> thanks very much, sue herrera. let's look where we stand in the markets as we check out the bottom of the hour we're not moving too much. i wanted to make sure because

we're virtually unchanged on the dow jones industrial average, 22,000, above that mark importantly, s&p 500 down by 6.5 points and nasdaq down by 25 points check out u bik quitty after strong earnings as well as a rosy outlook, surging 19.25%. >> john harwood coming out of a briefing john, what did you learn >> director mulvaney cleared up a couple of points of debate within the administration. said the administration now supports a clean debt limit. this is has been the treasury secretary's position meaning that the congress should raise the debt limit without conditions attached to it. mulvaney in the past said he wanted to see negotiated spending cuts with it. now he says he's lost that argument and steve's position is prevailing and that's what the administration is going to try to get in september when congress comes back. the second is that the idea of

raising tax rates on the highest income members of the population, which steve bannoning. white house strategist talked about at some points in the tax debate, that is no longer alive, that the administration is not going to raise any of the tax rates in fact the administration's position they put out is the top rate will be 35% but haven't formally unveiled the plan. director mulvaney said that john kelly, the former homeland security secretary now white house chief of staff is imposing some new discipline on the process within the white house obviously that has not extended so far to the president's twitter account but mulvaney did say now when he calls the president on the telephone, john kelly is in the call and when he walks in, john kelly is seeing who goes in and monitoring traffic in the oval office that's a sign of tightening of the ship under the new white house chief of staff. >> interesting tidbit, john

harwood reporting from washington the senate planning to address the debt ceiling after they return from the august recess. joining us are senator james wish of idaho and jean shaheen, the senate small business committee, rare display of bipartisanship they want a tax reform bill that helps small businesses on main street. welcome to you both. let me begin senator with your response to what john harwood just reported and that is that mick mulvaney of omb says the administration is now and he is now on board with the idea of a clean debt ceiling raise, i.e. not attached to spending cuts or other things your reaction? >> the white house is 16 blocks away and things are a lot different down here than they are up there i appreciate your feelings and when we get back we'll have to wrestle with this before anybody draws a line in the sand it's appropriate we talk about

this and negotiate i want to correct one thing, you said a rare display of bipartisanship you're looking here at the republican, democrat, two former governors. we work together on the small business committee almost nothing we do on the small business committee is full of partisansh partisanship helping small businesses thrive is not a partisan thing. two out of every three jobs created are created by small business they are -- they are truly what makes the engine of our economy move we're both committed to see that small business do as well as it did. >> i take your point let's call it a happy example of bipartisanship. >> i like it. >> let me come back if i might it sounds like you're not as convinced as the white house is that a clean debt ceiling is the way things are going to evolve did i hear you correctly >> i wouldn't put it exactly that way what i would say is that discussion is barely getting

started here we just went through the health care thing and people are tired and this was a very difficult exercise we got some heavy lifting to do on the debt ceiling and other things we've got the full funding coming up before october 1st we've got a lot of things we have to work on when we come back this is just starting. i don't want to start laying out perimeters here -- >> okay. >> one of the things that we're talking about is tax reform and how it can help small businesses and the fact is we want to see a bipartisan approach to that as senator said, we work very closely together, yesterday we had six bills go through the small business committee and all passed unanimously so this is an effort that we think is best done together. >> forgive me for interrupting and i want to get you senator shaheen to pinpoint one of the key areas in tax reform that

apparently you both agree about, the section 179 matter, which involves when small businesses can deduct the cost of investments in their business. talk to me about that and why that is one of these places where you guys agree >> well, we had a hearing not too long ago with representatives from small businesses talking about tax reform and they said a couple of things about their challenges one is that compliance is one of the biggest concerns they have 89% of small businesses have to go outside to get help with doing their tax rereturns. that needs to change we need to simplify the tax forms for small businesses they said expensing as you point out, the section 179 is a place where they think we can really help them if we make it easier for them to expense their investments. so those are two areas that we heard a lot of u.n. nimty from

small businesses and members of the committee. >> senator, it's brian sullivan, i want to pin you down a little more have you talked to colleagues on the house side when they might get a bill on tax reform and actually put it to a vote? do we have a time line >> the short answer is no. i know they have some objectives that they'd like to meet and goals they'd like to meet but i can't underline this enough how health care has really sucked all of the oxygen out of the air in the room -- >> was it a mistake to go after health care first before tax reform in your opinion >> you could make an args. on that either way leadership made the judgment call i'm certainly not going to criticize it but everyone wants answers particularly when it comes to what the spending will look like and what a tax reform package is going to look like and what the

debt ceiling is going to look at we're starting these discussions and there's some healing that needs to go on we need a little time to go by but people are starting to talk about that, fair enough, jeanne? >> they are. people are talking about the need to go through regular order in the senate to have committee hearings to listen to what people have to say, to listen to the experts and then to work together in a bipartisan way that's what the american people want and i think that's what the majority of our colleagues want. >> i think that's true if you want to look back at this, hekt reform when it was done with all due respect in 2009, it wasn't done through regular order. when we did it just now, we didn't do it through regular order. neither one of them worked very well everybody is in agreement. >> time to change that. >> this is such a happy conversation i'm loving this, guys. tell me a couple of the other areas where the two of you agree on tax reform and then pinpoint maybe an area where you don't

agree. senator shaheen, go first. >> i talked about the compliance piece, simplifying tax code, that's one of the things we heard from small businesses. you know, pass throughs, again, that's a place where a lot of small businesses are pass through entities we have to see the details of what that will look like it's one of the thing the administration's proposal talked about. i don't know we can agree or disagree at this point because we haven't seen the details. >> senator risch, some question. we're short on time. >> very briefly, both of us are trying to pull the wagon together to help small business. if there's any disagreement, we haven't discovered it yet. i have no doubt we will but we'll get through it we work together well and we'll keep it moving forward. >> final question to both of you, since you both were governors, which job do you like more, senator or governor? >> listen, it's apples and oranges. we're here because we care about

the country and want to try and make sure we can have a future for our children and grandchildren. >> which was harder, senator risch. >> if i had a nickel for every time i was asked that question, i would be wealthy right now they are different jobs, one is an executive job, one is a legislative job. they both have pluses and minuses like everything you do i wouldn't trade either one of them to be honest. >> you guys are going on recess, i thought you were going to stay through august that changed, right? >> well, we're going home. we have a lot of work to do at home. >> i have six offices i have to visit around idaho, i wouldn't call it a recess a recess from d.c. yes i led our state senate over 20 years, i know when a legislature needs time away. this legislature needs time away they really do. >> mental health break, perhaps after the last couple of weeks >> senators, thank you very much for your time. appreciate it. >> up next, we'll introduce you to a company doing something

that we rarely see here in america, they are making clothes. yeah, t-shirts, sweat shirts, stuff like that, right here in america. the story of guardian gear's historic rise when power lunch returns. first, the bond report and mr. rick san telly >> thanks, sully it all starts today with the uk and bank of england. look at the two-day chart. yesterday in the mid-120s, now 114 where it closed the session out. look, see that pattern, look familiar same thing could be said for the bunds, close the at 45 here's homeland, u.s. 10-year, same formation, little less well developed. how will it close the rest by closing under 223, that's a level to pay close attention to. and pay close attention to "power lunch." it will return in two minutes.

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upeace of mind.s we had a power outage for five days total. we lost a lot of food.

we actually filed a claim with usaa to replace that spoiled food. and we really appreciated that. we're the webber family and we are usaa members for life. welcome back, the market flash on snap, they were down as much as 5.8% this morning and bounced up moments ago to be nearly 4% higher now you see those shares up about 1.5% this turnaround in snap shares seemed to be timed by the article reporting resumers of google floating an offer to buy snap in early 2016 the article goes on to say that there's lots of chatter about this and the fact the two companies are still close with eric schmit being an adviser, mute ool reyou'll respect. so lots of movement there in the

stock. of course we're a week away from snap's earnings and there has been a lot of concern from investors about a sell-off around the expiration of a lockup period for snap shares. there was one lockup expiration this past monday and we'll have another one on august 14th but the stock seems to be moving higher on that report of google interest in buying snap for at least $30 billion last year. over to you. >> big story there i think the key there was interested and 30 billion. julia, we'll hear from you again i'm sure let's continue now or special make it in america series. today's guest a little different, this one highlights how difficult things can be for a small company. in 2008, guardian ware fell hurt by the incoming recession but reborn a few years agency and insists on making majority of clothes in the u.s performance apparel designed for america's first responders but not exclusively for that joining us the man behind guardian wear, jim daily

you're wearing a fantastic shirt. look at that, "power lunch". >> in american colors -- french colors too, but that's okay. you're an interesting story. you don't make 100% of your stuff here what i like about your story, our guests have highlighted the quality and sell made in america. you have a more basic financial reason, which is if you make it overseas particularly in china, you're going to tie up your capital and potentially get your cash flow crushed. explain that side of making it here. >> so for us, when you're a small company, allocating capital is as important as anything because capital -- >> you don't have a lot. >> thank you please don't remind me of that all the time. >> so what happens is when we did this first time, it would take us almost four and a half months to get delivery of our product. we would get deliveryof our product, assuming it came on time in the four and a half months so you're kind of like trying to

get your sizes between small and 3xl, let's say you run out of mediums and four and a half months out i take that entire line of my product -- >> and cash flow -- >> now my inventory, my cash -- >> you didn't have enough mediums. >> exactly it could be that simple because it is hard to look and say where are my arguing pat tefrns going to be. we sell to military, fire, ems, there's a lot of bigger folks, bigger guys, very small women, i'm going to keep that, right? but we sell to the responder market so sometimes we will run out of the double xls but a lot of times we get requests for medium now if i'm two weeks out, i've got that those inventory turns are up, which helps us especially as a small company.

so that's a huge thing for us. that's just the financial start. quite frankly, the mission of the company is even better when it comes to guardian wear. i like to say make it america for the american hero. >> are you able outside of first responder market, are you able also to respond to trends and sort of respond to what the market wants better because you're able to be more agile with the sininventory? >> that was one of the issues in the past we literally had some styles that people just didn't want now i've got all of that stuff sitting on shelves doing absolutely nothing except absorbing that capital that we had. now i can get my orders in smaller numbers so if something doesn't work, i don't have all of that tied up. >> what i like about your story too, you want to be perfectly transparent. there is one shirt, a polo you make in china. >> yes. >> it's not 100%. >> one of the reasons we wanted you on because of that you're literally -- you want to bring the manufacturing here,

you're in the middle of a battle, a live real time battle to make that shirt affordable but bringing -- how close are you? honestly for our audience, how close is that gap to being able to bring it here >> honestly not really close yet. we think we're going yet we think we're going to get there. we really do one of the big issues with us, i have to maintain the quality of our product. it's our first responders. we will not settle for anything less >> it doesn't seem on its face that this is a shirt -- it's got sleeves, a body. and a polo shirt isn't all that different. >> it has more moving parts. >> what's moving >> button, collars so there are different moving parts to it. so we were real close to getting something done but the collar we wanted was not made in the usa so that's why we're trying to put this thing together to get

our polo made in the usa. >> jim daly, guardian wear, let us know when you bring that polo back. >> i absolutely will. >> thank you for the shirts. by the way, this is a double -- this is a 2xl. >> is that a statement as to what -- >> is it that bad? go made in usa the fabric, cuts, all made in the usa. >> does this have spandex in it? >> it's a poly spandex. >> it goes under a bulletproof vest. >> thank you >> appreciate the time >> thank you up next, the four big analyst calls you need to have on your radar today. "street talk" is next. and a game changer for deadly diseases but it's raising rietcal concerns you'll hear both sides to that debate when "power lunch" returns.

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time now for "street talk. the stocks you need to know about. comcast getting an upgrade to a buy. while they prefer communications in the past, the opportunity for

comcast for solid core trends at cable communications content momentum at nbcu and a strong balance sheet to share appreciation price target for the stock, 46 bucks. >> i wonder, too, if there's a threat -- i don't want to say just from netflix but from a lot of them because the offerings from on demand are so high right now. so much content. we'll see. all right. next up is veritiv it got crashed yesterday it fell 18% yesterday on earnings and guidance. the analysts upgrade to a buy. the stock is undervalued relative to the lower forecast, veritiv is now trading below book value and only at 1.2 times its hypothetical valuation

third stock here, take-two interactive, a strong earnings report raising the price target to 97 bucks. it keeps on getting better all three firms noting that the success of grand theft auto, that series, was a big catalyst to the strong earnings up 12%. >> big day there finally, the cap call of the day is kemper. it's a chicago-based insurance company. now, raymond james upgrades it they go to a strong buy from market performance they went to a strong buy. the so-called nonstandard auto business is turning around i reached out to the analyst and said what's that the people who buy the absolute minimum policies or have bad driving records or have super exotic cars. there was an operating loss for three consecutive quarters

$55 target on kemper that's about 20% upside. and still to come, hard to believe it's been ten years. madman cramer will be with us walking down memory lane plus, record-breaking sponsorships taking on real madrid. the commissioner of mls will be with us.

welcome to the second hour of "power lunch. we'll go inside the slide straight ahead plus, hard to believe it's been ten years since cramer's rant heard around the world to cramer's dressing down with the fed. jim will go down the memory lane with us. and plus, the rise of rosae. the second hour of "power lunch" starts right now well, it's been a wild week

in the markets but right now they are pretty calm the dow hit another record high at the open. right now, it's just the slightest part, 007 there is the number up 15 points at 22,031 s&p 500 and nasdaq are ever so slightly lower by a quarter percent and less than a fifth of a percent. worst performing groups, energy among them concho, noble. and macy's, kohl's and foot locker all in the green today. >> thank you now, we are on the clock for the big july jobs report it's that time already the first friday of the month. 8:30 a.m. eastern breaking right here on cnbc steve liesman joining us with what to expect from that jobs number >> very excited, brian we have new data an hour ago that adds to the other reports suggesting tomorrow's jobs report could be healthy. the national federation of

independent business is 19% of those surveyed up four points for june and the highest level we've seen since june 2006. more than half, 27%, say they increased their workers compensation here's the other stuff we have jobless claims are down and ism manufacturing index is pretty healthy. the negatives, the ism services number and the workforce where are the workers going to come from? here's the numbers we're working for. nonfarm and average hourly wages and unemployment given what demographic growth is, average wages seem healthy at 0.3 and unemployment ticking down again to 4.3% with a labor pool, businesses having a hard time finding workers macroeconomic advisers just

minutes before i came on air ran the bill through the model after ten years, the raise act would lower gdp by 1.5% and wages would be 0.3% higher >> who said that >> macroeconomic advisers. they have the best model out there. >> lower gdp >> i'm an immigration reformer, okay and i want to legalize the 11 million who have been here for many years but this is a skills-based, merit-based system not every detail has been flushed out. >> but your numbers, larry, they are going to go down >> no. look, by half. you've got to divide skills versus unskilled that's the key point. >> i agree with that >> and the shortage in the workforce, hear me out, is skills the jobs are getting mismatched. now, the other point i want to make to you is look at the employment to population ratio. >> okay. >> and the labor force

participation rate just to kick the tires on whatever the number is tomorrow. just saying. because we've had the backbone of the economy, which is 25 to 54 their employment ratio has been low and remains historically low. they are not working. >> did i announce that larry kudlow was joining us? >> let me come back to something. i get and ratherintuitively an rather attracted to the idea of a merit-based system however, my question is, why when you have 4.4% unemployment, very low, and 6 million unfilled jobs, why do you want to reduce the number of people coming into the country? and at that point -- and i guess one of the reasons that the administration sides say the influx of foreign workers is hurting american workers >> can i respond to that, larry. i think you're correct, that increasing the skills of immigrants would increase

perhaps per capita gdp and perhaps raise wages. the trouble is, they are saying it's not enough to undo what you're going to do by reducing labor force growth and i think tyler is spot-on given what we're hearing from employers and we're in this sickle of the labor market, reducing the number of employees coming in -- potential employees, is not going to help gdp. >> this is case where macro aggregates don't tell the whole story. but you have to separate it out and we have to break this chain where family-based come in and they don't really work. >> then why mess with the number, larry? >> because it affects hospitals, it affects welfare and government assistance plans,

taxpayers. i'm not against them i just say we have enough. they're going to create -- >> and they are going to keep, respect they, the number of employment-based green cards. >> that is correct. >> which is 140 -- >> by the way, the slope-down is very mild. you're going to go from overall a million -- >> but they work >> not all of them work. >> you are going to reduce the labor force and therefore growth. >> it's not the labor force you want and puts great stress on -- >> productivity equals gdp growth. >> i want to get to the jobs report >> you nailed the number the last time. >> i did i have my number now. >> what is your number now >> very pedestrian 183 the idea that it's on the consensus, i hate being on the consensus, but my model gives me 183 for tomorrow. >> are we going to run out of workers? here's the problem i have as a reporter

here's the problem i have had and will have as a reporter. if the number of -- if the amount of job growth declines, i will not know if it's from a shrinking economy or economic weakness or from a lack of workers. this is an issue that's out there. >> steve -- >> we're creating many more jobs than we have -- >> then you have to ask -- >> in reserve. >> don't dodge deal with this the employment population ratio, you talk to ed lazear, labor party, the employment population is too low and the backbone of the labor force, 25 to 54, has been falling during this and that is -- i'm telling you, we don't have too few jobs that tells me there are too many people not working for one reason or another. now, hang on -- >> i agree. >> it may be skills and it may be training. tech training, community college stuff. >> there's a problem with --

there's education. >> opioids >> by the way -- >> we're going to have to leave it there. >> i agree. >> sometimes -- >> i agree >> two senators were preaching from your song book and republicans, democrats, they both agree. >> really? who is the democrat? >> shaheen >> i love that i absolutely love that by the way, the administration is holding firm at 15% corporate rate and the timetable they laid out is very doable very doable. >> it was just reported that the bannon idea is out of there. >> out >> i was in his office he said to me, will you take 42? i said no and gave him five reasons. so then he upped it to 44. >> all right, guys >> over to you, melissa. >> few drugmakers are reporting drops in profits

and raising some concerns about generics joining us is equity research analyst with wells fargo securities what teva said about volumes and pricing, it's really sending chills throughout all of the generic drugmakers today, isn't it >> absolutely. they've said it's not just lowering the numbers for this year but for even for '18 and owe 19 it might be a drill. >> they've said it's an increased number of approvals by the fda. there is commentary for amerisource. he said he expects to see price deflation. 7 to 9% in the coming year what's happening here? >> two big things are happening. first, the buyers are unaring t running the market they said these are commodities. why do we need to pay a premium? they have raised price as lot

for the last few years and so the companies -- the buyers just got smarter. they are saying we want to reprice not just once a year but twice a year that's one part. the other part is, you're seeing that other indian generic pricers are coming into the market they've committed to clearing out the backlog. when they approve more generics, they are saying, well, high prices are caused by limited competition. let's approve four or five generics and by doing that, that lowers the price. >> does that mean that all of the stocks have to be rerated? is what we're witnessing a rerating of the stock to reflect lower for longer when it comes to generic drug pricing. >> i think that's what we're starting to see. we looked at consensus numbers through 2022 it has revenues growing for the industry and also for tev aa

and mylan. what we're seeing today is the absolute opposite. so i think the market is starting to go, well, maybe we don't have that. maybe we have traction we're on an arc slowly declining now. >> the company that is looking good out of this whole mess is allergan they sold octavis to teva a year or so ago, correct >> correct. >> they have a 10% stake in the country and they are eligible to sell that stake august 2nd. >> yes they sold the business for $40 million. whatever price you can get for selling things at the top, they sold it -- teva -- their operating profit is down year over year.

so he sold it for a great price. the stock is down today. that's immaterial. i would expect the day they can, they expect to do it. >> all of these prices are coming down into the generic world. let's talk about valiaeant >> they have stabilized little pieces of it we run the prescription trends and it looks like things are continuing to slide. >> to decline. all right. still downside for valeant stock, in your view? >> i think so. >> david, thank you. brian, over to you. >> thank you here's what is coming up a record-breaking crowd and record-breaking sponsorship deal for major league soccer in the last 24 hours. the commissioner will join us with the details. plus, jim cramer famously saying that the fed knows

nothing ten years ago today. what does he think now jim will join us. and scientists figuring out how genes -- how to manipulate genes to prevent disease just because we can, does it ian we should ors that playing god we'll talk about it coming up. hundreds of dollars on youmy car insurance. saved me huh. i should take a closer look at geico... (dog panting) geico has a 97% customer satisfaction rating! and fast and friendly claims service. speaking of service? oooo, just out. it was in. out. in! out. in! what about now? that was our only shuttlecock. take a closer look at geico. great savings. and a whole lot more.

well, this should put the final nail in the coffin of

anybody still out there who believes soccer is just a niche sport. major league soccer signed the largest sponsorship deal in its history. adidas agreeing to a six-year deal valued at $700 million as the mls real madrid game in chicago last night brought 61,000 people to soldier field joining us is don garber, major league's commissioner. can you confirm that number? >> i can't confirm but your researchers did a great job. >> it's not fake news. >> it's not. they love our sport and our league and a transformational deal for us. >> it may be in many ways. not only is it a big number on its own but it's larger than your current television rights contract that next tv rights deal is up in 2022, right >> it is. >> how much do you think it will

go for >> a heck of a lot more than we have right now. >> over a billion? >> i hope so this was 3x what our previous deal was i have no doubt our television deal will be larger. there's so many changes in the marketplace. very bullish about it. >> what i love about watching soccer on television, they don't break it up with a lot of commercials. >> we have the commercials but not in the middle of the game. >> not in the middle you watch and there's a reliability about how long it's going to take. that was an exciting game. mls scored with three minutes, right? >> yes a commissioner can route f-- roo for his team. >> when it comes to signing a deal like that with adidas, does it matter to you or mls that this is a company that is -- that seems to be an ascendant

company when it comes to the results? does that factor in at all >> it factors in so much our league is on the rise. you want to associate with companies that are resurgent and rebuilding their brand and launching to young people, particularly in this country north american business is exploding. they are hip and cool. they are moving designers to brooklyn making our product. when our fans go online or into stores, they are going to get great designs with an unbelievable product. >> it sounds like you haven't done a deal with under armour. what would you have said >> we're happy to be doing a dealing with adidas. >> expansion, quickly. it's well known that major league soccer -- let's show all of the current clubs right now there's going to be two new ones on that wall soon. >> right. >> it's rumored that david beckham's ownership group will get a team in miami.

can you confirm that >> i will confirm that they are as close as they have ever been. there will be four new teams we will go from 24 to 28 that process will get resolved -- >> at the same time? >> two will come in and -- >> i meant the next two. >> they will get decided in december the 24th team we hope it's david beckham earned when he had an option when he played in our league many years ago. todd bolli, one of the owners of the dodgers, is partnering with david to try to make that deal a reality. our board just approved us negotiating a final deal. >> bottom line, miami looks good you're not going to say it, but they are in the running? >> they are lookingreally good >> who else? >> nashville looks good and cincinnati looks good and tampa and sacramento, detroit. we have 12 that have bid for four spots when our league was launched, it was launched with ten. we now have 12 teams -- >> let's talk about player

salaries where neymar, the transfer fee was paid 250 million euro and then they are going to have to pay him a salary on top of that that's over in the french league how do you control your player costs? you've generally kept them down. you have some famous internationals like ricardo and -- >> flinestager making millions >> we've got a strategy that's really smart the founders of the league created mls as a company we're a single entity. we're a limited liability entity we have governance to be able to determine how we're going to structure player salaries and we're doing it in a variety of ways investing in home-grown players, a young guy like kevin acosta, he's on our national team. he came out of a dallas academy up to others, designated players, and in the middle you

have -- >> designated players -- >> meaning they can be paid outside the cap. >> and those three cylinders are how we grow the quality of our product. when we're competing against the likes of madrid or barcelona. >> very quickly -- if d.c. united goes up for sale for more than 500 million, what does that do to valuation? >> it will explode it and it's a team on the market at that value. they've broken ground on a new stadium right where the nationals play it would be the highest valued pay -- >> lift everything up? >> lift everything up. our expansion fees are 50 million. so think about how that puts us to where we need to be and create this soccer nation. >> red bull stadium is a wonderful place to see a game. >> lots of soccer fans fantastic. i love being here. >> appreciate it very much. up next, forever stamps.

the good, the bad and the ugly plus, must-see video of a bungee jump gone wrong roseot to leave you hanging. "power lunch" will be right back nothing's wrong with the elevator. right. but you want to fix it. right. so who sent you? new guy. what new guy? watson. my analysis of sensor and maintenance data indicates elevator 3 will malfunction in 2 days. there you go. you still need a pass. for her compassion and care. he spent decades fighting to give families a second chance.

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welcome back to "power lump." it's the good, the bad and the ugly stamps.com has stocks up 150%. to the bad, cheesecake factory, earnings were better than expected same-store sales sell for the first time in 2 1/2 years. and it's an ugly day for comm scope. it's a networking company. earnings lower than analysts were expecting it blames the challenging industry environment brian? well, if you think that drop is bad, check this out a man had to be rescued from a bungee jump gone wrong at a county fair in california. now, there's nothing bad here because when you hear bungee jump gone wrong, it doesn't have a happy ending he was hanging upside down 30 feet off the ground for 30 minutes because the ride

malfunctioned. firefighters had to come to him with a ladder. the only reason we showed it to you, he was not hurt >> you're a risk taking guy. have you ever done that? >> i have not and i'll tell you why. because the load limit on some of these is always right around my weight and i feel like that's pushing it >> you don't want to push the luck >> one step too far. >> he breaks the chair by sitting in it here on the set. >> i break hearts by living. still ahead, a major medical break through to talk to you about. it could be a game-changer for deadly diseases but it's raising serious ethical concerns and later, the rise of a rosae, the latest in the booze trend. "power lunch" will be serving next ♪

hi, everybody. i'm sue herera a group of republican senators introducing a bill they say will combine tougher physical security along the u.s./mexico border with stepped-up interior immigration enforcement as well. it's an alternative to president

trump's call for a wall along the entire border. >> twwhat this legislation doesi provide a strategic plan, something we haven't had before, by authorizing more resources at the borders, boosting trade through ports of entry and strengthening enforcement of existing laws. >> israeli prime minister netanyahu says his government has done more for settlements than any previous administration he made these comments at a ceremony for a new settlement in the west bank. and soccer star neymar has paid the $262 million buyout clause to free him from his contract freeing his way to sign for another team the payment of the clause directly to the club was the second attempt by neymar to facilitate his transfer. that's the news update at this hour back to you, melissa. >> quite a sum thank you, sue we're 90 minutes away from the close of the market.

the dow is holding on to the 22,000 mark. up 22 points in today's session. we're continuing to watch shares of tesla after the company's results says no raise will be needed at least for the equity markets and it's on track to hit the big production target next year stock is surging 6.8%. a major breakthrough has researcher's buzzing editing genes to help defected genes. the companies that developed the tool are getting a big boost on the news joining us to help us understand the results, a senior author on the study director at oregon health sciences and university center for embryotic and cell study. thank you for joining us we appreciate it this is extremely exciting technology and extremely exciting study to read about at the same time, you caution

that this is still in the early stages how far off are we from this getting into the clinical study stages and perhaps a widespread use? >> i believe it's probably a few years before we actually say we are ready to implement in clinical trials. we still have to employe employ efficiency. the government agencies still don't have an idea how they are going to regulate it this is new technology that's never been used and the clinical trials that would be required, i think we still need to work with the fda on the steps of how to move forward. >> right now, this gene editing tool can be used -- has been used to successfully get rid of a heart mutation assuming this tool can be used for other gene mutations, do you

have insight into what could be next >> we are interested in applying the same approach to correcting other mutations. we're interested in mutations when it will be coming from one of the parent while the second parent will provide a healthy copy of the gene some of the examples would be genes causing breast cancer known as braca 1 and 2 those genes usually inherited in one but still sufficient to cause disease. >> so just to be clear, what your team is, working on is using this tool in order to edit genes that are life threatening, correct? >> correct >> so this whole notion of designer babies, no, you're preventing these babies from being born with something that could eventually kill them >> yes

and we convert them to become normal and we've developedand the study shows efficiently as soon as we show it's a very strong embryos and we've been using this native mechanism to repair a mutant gene and become normal so likely the same mechanism can be used to basically modify dna. >> all right we'll leave it there thank you for coming on and talking about this exciting science that will be on the horizon. this study is also raising ethical concerns just because we can edit people's genes, does that mean we should?

doctors, thanks so much for joining us dr. schaffner, the science could be there and ready for use for the general public in a few years, but the legal aspect hasn't gotten there. the ethical aspect hasn't gone there at all yet, has it >> not yet but that's always the way science is science comes first and you can't stop it and then we in society, the ethical part and regulatory part, hurry up to try to catch up. so it was with automobiles the automobile was there and then we headed to devise a traffic system with green lights and red lights that came later. but the investigators sound extraordinarily responsible and very, very careful and i'm sure they're going to proceed in a very deliberate, careful way and as they said, it's not yet ready for primetime. we have some time to do this. >> and ethan, i want to get to

you because i read your article that you wrote for "nature" in february it was fascinating it raises a question just because we can, do we do it and you have firsthand experience with your own daughter who has albanism >> yes and it wasn't my article it was another fantastic science writer the experience of having this technology develop in realtime in front of our eyes has led to thinking on the part of me and family and friends and colleagues we have a unique experience because we have a daughter born with a rare genetic condition. and so it's the kind of thing that before she was born, if we had the opportunity to fix it, we probably would have and that's a relatively heavy consideration, something to think about with your own kid who is now 11 years old and functioning in this world. >> but you asked your daughter -- she's old enough to be asked now

you asked your daughter if she would have liked to have that happened and the answer was surprising to me when i read the article. >> i've asked her consistently again and again and again and this is a pretty unique kid and i don't know and i think i said this in that story or in other places i've written about it i don't know if she's a remarkable person because of her condition but i've said, if we had the opportunity to fix this even before you were born you wouldn't know it, would you want to and then i said what would you want to do with your own children and it's really hard to understand exactly what she understands at 11 but she's been consistent about this. she likes who she is she's proud of who she is. she has limitations and can't do things that other kids her age can do she occasionally gets upset and is bothered by it but mostly she just likes that she has this difference. >> you know, it's an amazing story, ethan, but i can well imagine that other families, parents, children might come to a different kind of conclusion

and so there's a question of ethics here and there's a question of preference and i wonder where the two meet. do you see what i'm driving at >> of course and you know, so for me it's interesting because i'm a scientist and physician by training i work in a lab and spend 80% of my life running a research lab i've dedicated my life trying to understand disease mechanisms and find ways to cure disease using science and technology and i would never make a judgment that anyone else should or shouldn't do something one of the things i've learned in this process is we all need to be humble about it. we had an unexpected conclusion. we reached a conclusion we do not believe we would have reached before this happened the time to think about this is now before it p happens. what we struggle with is that reality that there are absolutely going to be places where kids are devastatingly sick need this technology but

there are going to be other places where you might think they do but maybe they don't and so the question is how and when to apply it. >> i want to turn back to dr. schaffner and get your reaction to the conversation but, also, this is the nature of medical advances we're old enough to remember the first ivf babies and the ethical questions that came about there or questions of surrogacy which posed legal questions all down the line and we're, in many ways, still trying to figure that out. >> well, it's a constant, right? but i'm optimistic that we together, humanity -- i don't want to say control but we can guide. perhaps that's the ride word guide the research in appropriate direction and make sure that we don't go off the rails down to the dark side. we don't want designer babies but we do as has been suggested

by dr. wyatt want the opportunity to offer the ability to change something for the better >> dr. schaffner and wyatt, thank you for your time. jim cramer sounding off on the fed almost ten years ago to the minute we'll take a stroll down moremy lane with jim when "power lunch" returns.

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he has no idea. >> cramer -- >> i have talked to every one of these firms in the last 72 hours and he has no idea what it's like out there none my people have been in this game for 25 years and they are losing this job and their firps ams are going to go out of business and they know nothing. >> cramer -- >> i have not seen like this since i went five bid for half a million shares and got hit in 1990 this is a different kind of market and the fed is asleep >> that was ten years ago today almost to the minute, in fact. jim cramer sounding off on ben

bernanke and the fed jim is back on the anniversary >> thank you for having me. >> what a time that was. >> it is so hard to -- first of all, it's hard to believe it was ten years ago. >> we are old. >> it's so hard to remember how horrendous that time was because all the things we see in our market now, we'll have a day that is down there's nothing like this. this is an actual cataclysm. the fed met after this and they said the problem was it was inflation. they laughed at me they listed kram acramer and thd laugh. i certainly wasn't composed. i've gotten a lot of information in the last 24 hours which said that many places were in jeopardy but they should have had it. >> but you ultimately listened at that point, the dow was 13,500, roughly. and it actually rose for a few

more months. >> yes, it did. >> and then we know what happened it collapsed by more than -- >> because it was the fixed income market. that's what was such a weird thing. you look at what we do and so little of it is really devoted to bonds and particularly not that much devoted to mortgage bonds. >> mortgage-backed bonds >> i'm going to say one thing here you had critics a year or so later. they didn't give you enough credit for what you said in august of 2007, 15 months before the thing hit. a year and a half before the real fallout came. you didn't get the credit for yelling at the top of your lungs that a big, big earthquake was coming >> we're worried about keeping my job look, you know what, for some

reason that was my time on the cross. i don't know why when i went out there and i was thinking that maybe somebody would listen there are a lot of people urging me to stop being so complacent, that i would come out and talk about stocks to buy and say the markets -- and they said, why are you so complacent. a buddy of mine runs a major supply store he said, what is it with you that you go and act as if everything is good and you know it's not good. what is it about it that you won't say the truth. you get out there and the truth was a little scary. >> upsetting. >> that wasn't the only thing you said that rant gets all the play but you also had some very prophetic comments about the mortgage market. >> we're going to have thousands of people -- we have thousands of people losing their homes right now. 7 million took teaser rates or piggyback rates.

they will lose their homes this is crazy. >> that's what happened. >> yes i was actually more conservative than i should have been. the loan value was very high for homes. a lot of people took no doc loans and took out a home equity loan to pay for their down payment. the fed knew it. what they thought was important was the interest rates they should have been able to crack down on this stuff and they didn't do it. >> they were afraid, in some respects, too. >> it's very sad because erin said it would be armageddon if they did what you did, open the discount window and lower rates. we're in armageddon. that's the point >> right now at 21 times -- not to bring it back to today. >> no, that's good. >> 21 times trailing earnings, are we at an inflection point for the stock market now >> i don't think so but there

are things that i don't like i was watching a commercial about paycation. autonation has an ad with people chair dancing, a loan that you can get pulled over for. and it's like paycation, i don't have to pay for my car i can just take it from the lot and not pay for three months and i'm thinking, those are the commercials that we used to hear hey, no money down and, now, these are cars but they are so technologically outloaded after three or four years, there's a question of what a used car is worth it's not like housing because you don't live in your car >> erin and i worked together for years and with you, too, years and years ago. >> sure. >> and i knew erin -- we're friendly and her dad had written a key

part of the uniform commercial code in law, uc section 2. and i mentioned that to you -- >> and my father's uncle wrote it with him. all i heard about my whole life, there were these brunette girls and basically, they are better than you brian sullivan, he is better than -- i've got to tell you, i think they know more about what you're talking about but i love you. i love you, jimmy. >> your uncle worked with erin's dad. >> yeah. >> years and years ago >> yes, the burnett family but where is the giraffe dress >> smithsonian i'm kidding. i don't know where it is it should be. >> you know nothing. >> anyway, it was -- i tried i did my best to try thank you for your comments because, you know, it's been a couple of years for me my kids were very embarrassed and that's what you never want you can take a lot of heat but when your kids are hurt, that's

not right. make sure you tune in to "mad money" where jim is joined by steve holmes and ward nye and benno 6:00 on cnbc. why it's game on for video game-makers and the money they are investing. first to seema mody who has been seeing the world all day through rose-colored glasses. >> hi, brian, that's right millenial women are saying yes way to rose. we'll tell you what's behind the rose wine craze and who is profiting off of this boozy trend when "power lunch" returns.

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it's time now for trading nation, and let's take a look at act vision blizzard. one of the best performing tech stocks in all the land up 70% year to date. quite the run here we've got matt mailey and mark temper mark, would you own it or sell it right now >> i think we'd be owners. act vision is a really intriguing play. the growth opportunity is huge you know, the gamer industry in general is growing at 16% per year it's becoming more social which means people are playing longer and longer, and the profit per yewser is growing at 6%.

you know, this particular company act vision, they have got the leaders in gaming with call of duty, overwatched, candy crush. i'm getting a candy crush invitation every day on facebook, so we'd be a buyer. >> okay. matt, what say you, buyer of act vision blizzard? >> well, it's -- i -- i like the stock here, especially if it breaks off from its current level because we give it a nice high because it's really flattened out in the last couple of weeks and i would also say as good as the act vision looks, there is a yellow flag in the tech stocks overall because the stock's semiconductor index, which has been a key leading group, sub group for the tech stocks, is starting to roll over a little bit it's only a yellow flag right now, but if we see further weakness in the stocks, and we have stocks like micron continuing to break down, that's going to be -- turn a yellow flag into a red flag and maybe we'll see a little bit more of a breather in the tech rally >> matt and mark, guys, see you

online thanks very much, both of you, because we do two more segments every day at trading nation.cnbc.com. we'll make them stitt in the studio for a while check, please is next and we'll talk rose, aka hampton's gatorade >> and now the latest from tradingnation.cnbc.com. technicians often look to wedge patterns as cat lifts for stock. a bullish wedge occurs within an uptrend and consists of two converging trend lines slanting downward a break of the upper trend line is considered a bullish signal and a bearish trend consists in a downtrend consisting of two converging lines breaking upward and a break of the trending upward line is considered a bearish signal

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...saving time when it matters most. stay with me, mrs. parker. that's the power of and. welcome back top "power lunch. i'm tyler mattson. i need to remind myself of that because the next segment is drinking, roses which means big bucks for wine-makers. se seema moldy is at a wine store. >> reporter: we're at the largest wine and spirit store in new york city. as you can imagine, a broad selection of roses, 75 still, 50 sparkling, much higher inventory than last year following strong demand for the pink wine take a look at the numbers you asked. rose wine sales reached $258 million over the last 12 months, up 60% year over year outpacing the growth seen in champagne and

the broader wine category. we're talking about peanut grigio, chardonnay some of the wine skrendovendorse hamptons sell out. if you look at some of the hashtags that have gone viral, hampton's gatorade, brose, all contributing to the popularity of rose, specifically among the millenial generation and we've seen rose as a brand broadcast offering in terms of sparkling, frozen, frozen frose, very popular for summer and canned. the canned wine category is up 80% over the last 52 weeks we actually brought some sparkling rowes cans in for you to try out very versatile and seen as mobile, especially if you're on the go or on a boat. this one actually comes with a straw. >> this babe's for you.

>> there you go. >> seema thank you. >> that's amazing. >> very nice. >> there you go. it's a fad thanks for watching "power lunch. he does not relinquish the can >> "closing bell" starts right now. >> i'm channeling kathie lee and hoda here. >> too late for that >> hi, everybody welcome to "closing bell" today. i'm kelly evans here at the new york stock exchange. >> i'm scott wapner in for bill griffeth the dow is trying to hang on as it tries to extend its winning streak to an eighth straight day and post its record seventh straight close. >> didn't realize we were on that kind of streak. talked about 22k and see if we can close above that aetna one of the winners after they beat estimates and a stunning announcement regarding