she's got to make that commitment she's got to make that commitment if she doesn't do it, just can't do this anymore with the obstruction and the obstructionists. if we don't get cut taxes and reform approved, potentially the biggest ever, we're looking for the biggest ever, jobs and our country cannot take off the way they should. and it could be much worse than that, but at a minimum, they won't take off the way they should the demes are looking to obstruct tax cuts and tax reform just like they obstructed so many other things, including administration appointments and health care. not one vote we got not one vote to try and fix health care and get rid of obamacare. the strategy of our economic rivals has worked.

they made their taxes lower, and far lower in many cases than ours and jobs left our country. large corporations changed their business models by exploiting jobs to other countries and then shipping their goods back to the united states where they make massive profits and they wouldn't be paying tax to us either so we lost the jobs, we lost the taxes, they closed the buildings, they closed the plants and factories, we got nothing but unemployment we got nothing other businesses, even classic american brands switch their headquarters to foreign countries. because of this and other reasons like weak borders, america remains stuck in the past although i have to tell you, we have general kelly here today, and we stopped 78% going up to 80% on the border traffic coming

through. in just a short period of time [ applause ] he's done some job whole different world out there right now. today, we are still taxing our businesses at 35% and it's way more than that -- and think of it, in some cases, way above 40% when you include state and local taxes in various states. the united states is now behind france, behind germany, behind canada, ireland, japan, mexico, south korea, and many other nations. also with these countries and almost every country, we have massive trade deficits numbers that you would not believe. but this administration is going to fix that. one by one we're fixing it.

we're working right now on nafta, the horrible, terrible nafta deal that took so much business out of your state and out of your cities and towns and we're working on it. let's see what happens [ applause ] mexico is not happy. but as i told them, you make a lot of money for a lot of years and everybody left you alone we have to change this deal and hopefully renegotiate it, if we can't, we'll terminate it and start all over again with a real deal [ applause ] so when it comes to the business tax, we are dead last. can you believe that so this cannot be allowed to continue any longer. america must lead the way, not follow from behind we have gone from a tax rate that is lower than our economic

competitors to one that is more than 60% higher. we have totally surrendered our competitive edge to other countries. we have totally surrendered. we're not surrendering anymore [ applause ] ideally, and i say this for our secretary of the treasury, we would like to bring our business tax rate down to 15%, which would make our tax rate lower than most countries, but still, by no means, the lowest, unfortunately in the world but it would make us highly competitive. in other words, foreign companies have more than a 60% tax advantage over american companies. they can pay their workers more, sell their products and services at lower costs, and still make more money than their u.s.

competitors. we cannot restore our wealth if we continue to put our businesses at such a tremendous disadvantage we must reduce the tax rate on american businesses so they keep jobs in america, create jobs in america, and compete for workers, right here in america the america we love. [ applause ] thank you. thank you very uch because when businesses compete for labor, your wages will go up lower taxes on american business means higher wages for american workers, and it means more products made right here, in the

usa. [ applause ] when i was growing up, i always used to see the signs and it was also stamped on the product, made in the usa, you don't see it anymore we're going to go back to made in the usa made in the usa. [ applause ] the third principle for tax reform is a crucial one. tax relief for middle class families [ applause ] in a way, and aye been saying this for a long time, they've been sort of the forgotten people but they're not forgotten any longer i can tell you that. [ applause ] we will lower taxes for middle income americans so they can keep more of their hard-earned paychecks and they can do lots of things with those paychecks

and that really means buying product, ideally made in this country, but that means they'll go out and they'll spend their money, and it will be a beautiful thing to watch this includes helping parents afford child care and the cost of raising a family. that's so important to ivanka trump -- [ applause ] very, very important to everybody in this room, but so important to my daughter, it's one of her real big beliefs. and she's very committed to that right, ivanka? we believe that ordinary americans know better than washington how to spend their own money and we want to help them take home as much of their money as possible, and then spend it [ applause ]

so they'll keep their money, they'll spend their money, they'll buy our product, our factories will be moving again, companies are going to move back into our country, jobs are going to prosper, and our country is going to be just like it says on that beautiful red hat, it says make america great again that's what we're going to do. [ applause ] all right. fourth and finally, we want to bring back trillions of dollars in wealth, that's parked overseas because of our high tax rate and horrible, outdated bureaucratic rules, large companies that do business overseas will often park their profits offshore to avoid paying a high united states tax if the money is brought back home so they leave the money over

there. the a. money we're talking about is anywhere from 3 to $5 trillion can you believe that by making it less punitive for companies to bring back this money, and by making the process far less bureaucratic and difficult, we can return trillions and trillions of dollars to our economy and spur billions of dollars in new investments in our struggling communities and throughout our nation it's time to invest in our country to rebuild our communities and to hire our great american workers [ applause ] my administration is embracing a new economic model it's called, very simply, the

american model under this system, we will encourage companies to hire and grow in america, to raise wages for american workers, and to help rebuild our american cities and communities. that is how we will all succeed and grow together as one team with one shared sense of purpose and one glorious american destiny. [ applause ] so today i'm calling on all members of congress, democrat, republican, and independent, to support pro american tax reform. they have to do it [ applause ] it's time. they have to do it it is time i'm calling on congress to provide a level playing field for our workers and our companies to attract new

companies and businesses to our shores and to put more money into the pockets of every day, hard-working people, and also into the pockets of our companies so they can continue to grow and expand [ applause ] what could possibly be more bipartisan than allowing families to keep more of what they earn? and creating an environment for real job and wage growth in the country that we love so much [ applause ] so let's put or at least try to put the partisan posturing behind us and come together as americans to create the 21st century tax code that our people deserve.

[ applause ] if we do this, if we unite in the name of common sense and the name of common good, then we will add millions and millions of new jobs, bring back trillions of dollars, and we will give america the competitive advantage that it so desperately needs and has been looking for for so long. it's time. [ applause ] products made with american hands, american labor, and american grit will once again be delivered throughout the world [ applause ] that's true.

true it's time. instead of exploiting our jobs, we will export our goods [ applause ] our jobs will both stay here in america and come back to america, we'll have it both ways millions of struggling citizens will be lifted from welfare to work they will love getting up in the morning. they will love going to their job, they will learn earning a big, fat, beautiful paycheck they will be proud again [ applause ] that is the future i want for our people that is the future i want for america. a nation where we are proud, prosperous, united, and free today, i am asking every citizen

to join me in dreaming big and bold, and daring things, beautiful things, for our country. i am asking every member of congress of which we have many with us today, to join me in unleashing america's full potential. i am asking everyone in this room and across the nation to join me in demanding nothing but the best for our nation and for our people and if we do these things, and if we care for and support each other and love each other, then we will truly make america great again. thank you. god bless you. god bless you, everybody thank you. [ applause ] thank you very much. governor, thank you. thank you, governor. thank you, senator, thank you, thank you, everybody

thank you. >> that was president trump wrapping up his tax reform talk in springfield, missouri i'm kelly evans here along with mike san toely for closing bell this hour. let's bring in more reaction we heard him lay out a four-point plan basically on tax reform talking about that 15% corporate tax number and saying he wants middle class families to take home big, fat, beautiful paychecks. >> the president was on message in this pitch. his pounding the pulpit for tax reform the most interesting part, he had choice words for democrats, calling them obstructionists on the health care bill, warning them not to do the same thing when it comes to tax reform and calling out senator claire mccaskill of missouri. she's a red state democrat and she is up for reelection next year and the president said, if she doesn't vote for tax reform, the people should vote her out of office. so, again, trying to put the pressure on both republicans and

democrats that come on board, and the president also saying that congress should not disappoint him so there putting the blame and the responsibility on lawmakers on capitol hill, specifically he talked about a 15% corporate tax rate saying ideally he would like to get there, perhaps a little wiggle room in that number. but more broadly, this was his chance to try to frame tax reform as part of his america first policies linking this to things like renegotiating nafta, bringing jobs back from overseas, and he called tax reform really the foundation of his job creation agenda and something that is focussed on the middle class, kelly. >> ivan, you're absolutely right, the pressure on democrats was an interesting twist on this one. we thought that might happen what does that say about the white house's approach here? i mean, we've also been hearing that really this process is going to be driven by congress, possibly just with republicans trying to get done what they can get done on their own.

as they do a budget. as we do debt ceiling. how is the process going to play out from here? >> yeah, the key here is that the margin is so thin for republicans in the senate, they only have 52 seats so if only a few republicans decide not to support tax reform, that could do the whole effort that's exactly how we saw health care play out. so republicans are hoping and the white house is hoping to add a few democrats to their side in order to provide that buffer in case they do see a few republican defections. >> and yeah, i thought it was interesting how he said, michael, sort of congress, don't mess this up -- >> don't disappoint us the way -- i don't want to be disappointed by congress the way i was on obamacare. >> that's another, that's another key point because the president here has not really laid out a fleshed out tax proposal we were told we weren't going to see specifics today. didn't see them in that speech, even though he used a lot of soaring rhetoric and that means

there's not really a proposal out there with trump's name on it sop that means there's a proposal, if it fails, it won't be his planned failing, it'll be congress's planned failing >> thank you very much we'll be talking a lot more about this with you as the weeks go on. joining us now to look deeper into it all is former republican senator from new hampshire, judd greg who served as the chairman of the senate budget committee, steve and rick here to talk about this tax speech. senator greg, starting with you, what were your observations about the way the president framed his priorities on this and where does it leave the process as really it was initially thought to be kind of a congress-driven process from here on out? >> i thought he framed it perfectly and he basically talked the need to give middle income americans relief and he talked about the way a better tax law would create much more prosperity for our nation and

the fact that there's so much money basically stuck overseas that should be back here invested in the united states. it was all about jobs and prosperity which is what tax reform -- which is how tax reform should be defined and pushed forward if you're the president of the united states or if you're a member of congress i thought actually it was an excellent speech on themes of how to proceed with tax reform, obviously the specifics were limited, but they should be limited at this time until there's an agreement or until they're much closer to an agreement. i thought it was a good kickoff to the effort. >> did it push all the right buttons for you? >> absolutely. i think the president wasright on point he emphasized correctly that a business tax reform really is about creating jobs and higher wages for american workers and that is so important to understand because that is the key component to growing this economy. we just heard in q2, this is what america needs more of and tax reform is one of the biggest policy priorities to get us

there. >> steve, not so much on details, obviously this was a statement of kind of top down priorities, therefore not a whole lot about the inherent trade-offs in getting something like this through. you've been throwing out again that 15% target for corporate taxes which, you know, other folks in the process and congress are saying, probably is a long shot. >> yeah, i mean, get harwood over in this chair, i shouldn't be here. this is a political speech, really and i was looking for things to talk about and that's really where we are i'm sort of surprised my colleagues from the heritage foundation pushed all the right buttons. the buttons are ones that tell us what are the rates what reductions are going away. these are the things that the economics world and the policy world are waiting for. i do want to underscore something that elon said earlier, i deally it would be a tax rate of 15% for chaens, that kind of presented a little bit

more wiggle room than i've heard in the president in the past it's going to be 15% and nobody in washington is saying that it's -- they can actually achieve 15% because it would, it would boost the deficit too much so the idea that the president has political reality in this score about it being 15%, i think, is a good sign actually for the potential passage. everything the president said is generally agreed, i think, on both sides of the aisle depending upon how far right or left you get the tax code's kind of productive the idea that deductions just -- and the code itself distort economic behavior. those are all generally agreed what's not generally agreed are the details to get there >> yeah, and rick, do you think that's going to derail this process? adp number was hot, hot, hot, the ten year still, i don't know, some woeful level, and now we're talking about tax cuts or tax reform i mean, do you think something big is on the way here or no >> well, let's take a couple of

little pieces, the president's correct about 3% today and he's incorrect that president obama never had 3% he never had 3% for a whole year, but president obama had many quarters that were in the fours, one that was in the fives. it's not about one quarter >> rick, the president was right on that. he did say 3% yearly for the previous administration. so he i want to stand up for the president's accuracy on that score. >> good, okay, but most people walked away with this is that we have a 3% economy. we do if this quarter's replicated for the next three, now moving on, if i recall in september of '86, i was in one of these pits. the vote was 74-25 okay my issue with this president isn't what he said i kind of like it. and you need to build a bridge between the middle class and corporate taxes. because, that's the thing they may be able to do. we have this little thing called the bird rule, we have democrats that are not going to work with

this president, and in my opinion, if you do it through reconciliation, you have to make adjustments and it's going to make garbage in my opinion if you really want to do reform, somehow, you need to reach the other i'd of the aisle i think they're unreachable. so what does that mean in practical terms? moving through the political speech it means that middle class taxes really complicated made you bling the left on board. boy, that's a complicated move corporate tax are much easy to tweet, i'm not sure if his base is going to like that. >> quickly, quickly. quickly. >> can i get in here for a second >> i was in the room in 1986 i was on the ways and means committee, and rick's right, it was a bipartisan effort. i wrote it with ron wyden on the bill, but i don't -- i'm a great fan of rick, i listen to him all the time and admire his thoughts i don't think he's right on the issue of using reconciliation. it does make the tax law temporary, but it doesn't get

subject to the burden rule in this instance because the burden rule requires that policy not exceed budget effect whereas in tax policy serving budget effect so you can write a very substantive been very large tax bill under reconciliation. it'll be better to doed it in a bipartisan way doesn't that mean you have a lot of paid for language i'm not arguing with your expertise in the area, doesn't it make it so there has to be a couple more sack official lambs to do with 50 votes? >> i think it comes down to -- are they willing to cut spending because they don't have to have -- they don't have to have revenue neutral tax reform all they have to do is deficit neutral tax reform they could just adopt a cap on mandatory spending on the entitlements set up a commission to debate the details of that plan, get it through -- yeah cap on mandatory -- >> that's not going to happen. that's simply not going to happen >> yeah, we got enough of a

hornet's nest, yeah, exactly guys, we're getting the contours of the argument laid out we have to go, but look -- >> i'm sorry >> real quickly. >> you can get -- you don't have to -- you can put a ten year package together and you can use dynamic scoring and in the end, you can probably get very close to very big tax cut numbers as a result of doing that you can certainly get the personal rates down to 25%, corporate rates down to the mid22% >> all right former senator judd greg, guys, thank you all. very much appreciate it. >> thank you >> tune into "squawk alley" tomorrow by the way. steve's not done he has an exclusive interview with treasury secretary steven mnuchin, it'll be 11:30 a.m. eastern time warren buffett in new york city for his charity auction lunch when which went for $2.7 million. cnbc's becky quick sat down with the or call of omaha for a first on cnbc interview this morning joins us now with more becky, seemed sharp as ever for

age 87 today >> that's right. you know, he's 87 today, mike, as you pointed out we got into a little bit of talk about politics too just listening to your panel discussion and the comments of president trump a bit earlier. there have been some business leaders who have weighed in and said what they thought about trump administration where they differed with the administration, where they've differed with some of his points, but that has been uncharacteristically silent on this he's given us his political support. he supported hillary clinton for president. but hereally has not had much to say about the trump administration so i asked him why today he said, look, it's not my position to criticize this president or any other president. he pointed out what's happening in north korea and there are too many important things to be there. and by the way, mike, as you pointed out, it was his 87th birthday today, he's been alive for 15 of the 45 presidents who have run the american -- run america at one point or another. that was something to keep it in a little bit of erspective

one thing he was theenl weighing in on is the comparison between the tech holdings for birk shir hathaway, there are two technology positions, buffett never used to get into technology stocks. we know that over the course of this year, he has been buying shares of apple and selling shares of ibm. today he explained a little bit as to why. >> i decided that i made a mistake. sometimes i make two mistakes, sometimes when i buy and when i sell so i -- i still don't know that much about the future, but i feel i know more about -- i feel more certain about the future as i look at a company like apple and when i look at ibm now >> make this up as we go of course the other big news overnight was that they have officially converted the warrants of bank of america into common stock as of today, birkshire hathaway

is the largest in shares of bank of america it's a position that buffett is standing by. that's a position they plan to keep for some time >> we're very happy we got 700 million shares, and you know, i -- i like the business i like the valuation, and i like the management very much so that -- i think you'll see that far long time in our holdings >> it's not the only big bank that birkshire hathaway is the largest shareholder and wells fargo, the largest over 10% of that company for quite some time and that's a trouble, that's a company that has had some more troubles the scandals that have popped up over recent years over how they go ahead and manage their portfolio. how they deal with customers those problems are not going away any time soon the ceo tim sloan warned employees very recently that they are very likely to be other additional bad headlines that come on. buffett says that's okay, he's standing by the stock. he expected something like this to happen anyway

there's never just one cockroach in the kitchen, guys >> has a gift for analogies. we're going to play much more in case anybody missed the whole interview. have you been hanging out all did? did people descend on him. is that where he had the lunch >> yeah. he had the lunch here. it was a private lunch the people who bought the lunch didn't want to be public about it so we haven't even seen them, but i don't know if you saw that big cake that was made for him they've been dishing it out to people downstairs. apparently the cake is enough to feed 500 people. they've been giving it to customers all day. before you ask, no, i have not had a piece. >> well, he did say there wasn't going to be enough for you there was a good off the cuff line you had well, thank you very much. >> exactly >> excellent, excellent talking point there, becky >> thank you coming up in about 30 minutes left before the bell dow's been up solidly losing altitude up about 28 points just below that 22,000 mark s&p up 12 and the nasdaq is up

almost over 1% there has been the outperformer all day. >> big session in the nasdaq >> it is ceos of america's airlines are meeting with secretary of state tillerson today. we'll tell you why coming up and harvey's return to land this time as a tropical storm has ravaged the city of port arthur forced a shutdown of one of the largest oil refineries live report on how all of this is impacting gasoline station owners coming up thank you clients? well jd power did just rank them highest in investor satisfaction with full service brokerage firms... again. and online equity trades are only $4.95... i mean you can't have low cost and be full service. it's impossible. it's like having your cake and eating it too. ask your broker if they offer award-winning full service and low costs. how am i going to explain this? if you don't like their answer, ask again at schwab. schwab, a modern approach to wealth management.

some of the waters are starting to recede in houston and some businesses are reopening. cnbc's contessa brewer has been in the middle of the harvey story all week joins us now with the latest >> reporter: yeah, we're at a home depot here south of houston. and as you can see, there's lines outside of customers waiting to get in. i've talked to some of them and they say they're desperate to get supplies one guy said my roof has been leaking. i need to fix it before rain comes in this store is open they have employees. they are out arranging the carts inside it's a busy place but i have to tell you, 18 other area stores are closed today because of harvey damage and flooding and many of the people who are standing in this line may be expecting some help from fema rental assistance, they can get help with their personal property replacement or repairs. they can get help if their home is uninhabitable

they can get help staying in a hotel for a period of time home depot knew this was coming along. they set up a hurricane command center in response to harvey basically what that does is it supports coastal communities, makes sure that logistically they can get the supplies they need into the stores that need them most. that's been up and going home depot committed $1 million. at this point, this is a great example of what it's going to take to get this community back up and running small businesses, big businesses, personal homeowners who need to get out and get these repairs done so they can get back to the business of houston. >> that's right, we're happy to see the waters coming down it doesn't mean it's an all clear. this is a big tep. contessa thank you for taking us along with you 25 minutes, dow's up 29. look at the nasdaq, better than a 1% gain today. everybody's in the green. >> harvey's turn to port arthur

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welcome back hurricane harvey devastating parts of texas and louisiana forcing refineries to close. motiva plant, it's the largest in the country how is that going to impact gas stations that need a fuel and how long will they be back up and running, until they are? joining us on the line from beaumont, texas. harvey, thanks for joining us. >> hey, elly, how are you doin today? >> look, i think we're doing pretty well, all things considered when we look at just how badly your region was hit. how are things in terms of access and the cost? >> yes, in the southeast texas region, all the way across in through houston to san antonio, the big problem is supply at the lifting point of the petroleum products terminals due to shutdowns dealing with the storm

and the rise in the water circumstance so even if we could get trucks to the terminals, the problem now is no product availability and then secondly once that does come online, we'll deal with the logistics of the problem of getting fuel trucks across the roadways because of the flood circumstance in a lot of areas that's still impassable. first responders will be first to get fuel, then we get it out to our independent operating stations >> so at this point, do you have locations that simply do not have fuel? do you have guidance from your suppliers when you're going to have a supply? >> mike at the moment it's a

slow turn on in states back in the market the biggest logistical problem i've ever seen and the ones that have done it, they are tough in fuel and quite certain most will run out unfortunately unless we can get a string of supply on and get it loaded and get it there i'm sitting in beaumont, texas, right now, it's been raining substantially. houston has sunshine, san antonio region has sunshine. but we have the same problem in san antonio is product supply for the terminal enlight of the gulf coast refiners having to shut down in a precautionary circumstance. >> how harvey the mayor of houston said is his understanding is there would not be a fuel shortage, they had stockpiled product going into the weekend. perhaps that's available to draw

on i don't know if that's been effective since. also, what's happening with prices there how many gasoline stations in your area can even open? >> i guess if you pull a handful of ten in the air, identify two. it's just kind of shoe lacing, for example, interstate ten between beaumont and houston is frankly closed, although you can divert and got enough guts to take some two laners north or south, you might get there so the interstate chain of stores and truck stops is very ham strung right now >> and so, once again, you don't really have a good sense of when any of these refiners are going to come back online? at this point we're sort of assessing all the damage at various plants, you're just waiting to hear until some of that supply reaches the

terminal >> exactly i can tell you and i've spoken to every one of our refiner reps this morning from about 5:00 a.m. to now, and every refiner is poised and ready to reactivate, certainly from corpus christi coming forward. there's three big refiners, refineries in that town. you've got three big refineries in port arthur, texas, the pasadena port region is mainly products terminals that supply houston north and south. and it's just a fact of this weather finally getting on board land and getting out of the gulf and the water rising water stopping is starting to go down. that's just a logistics matter, but the refiners are staged and ready and i feel like in the next 24 to 36 hours in the state

of texas we'll be flowing. i'm not going to say 100%, but 75 to 85%, i think is a realistic number it's a big job to turn one off and it's a bigger job to turn one back on. but, it won't be long i feel >> all right harvey, we really appreciate your time today. good luck as you guys continue to try to get back to business >> thanks so much. appreciate the call. have a good one, bye bye >> that's harvey, he's president and ceo of the fuels with about 17 minutes to go. dow turned negative just now nasdaq and apple today is up 567 points s&p 500 is up a third of a percent in the russ 28,000 is up half a % tomorrow of course a market influencer coastal texas is receiving help from across the country. up next, live to the lowe's emergenccoand y mmsee and see how that company is aiding in the harvey aftermath

as hurricane harvey batters the southern coast of the u.s. corporate giants are doing their part to help lowe's set up an emergency

command center how's it there, court? >> reporter: hi there kelly, we are here in lowe's emergency command center this has been up and running since thursday it'll continue to be around the clock, 24/7 for probably several weeks. and the key goal is to make sure that inventory and supplies get to where they're needed most the folks here in constant communication with lowe's various supply chain the different nose throughout. they're also monitoring the conditions making sure to pay attention when weather patterns change or when folks can get back into their homes. the manager of the emergency command center, rick sits back here and he tells me that some of the items that are most critical include water, generators, tarps, bungee cords, anything that might help folks get back to their home and get back to some level of normalcy

and clean up about 900 truckloads have gotten into texas or are en route to texas. lowe's has to work with fema, the texas department of transportation and homeland security in order to make sure the trucks get to where they need to be the corpus christi store did reopen on saturday even though the manager suffered displacement himself and a number of pleas. only four stores remain closed right now for lowe's, kelly and mike, back to you. >> courtney, thank you courtney reagan at lowe's in north carolina we've got a news alert on uber >> all hands meeting today in san francisco, uber's new ceo answered a question about uber's plans to go public, and he said uber sees an initial public offering in 18 to 36 months. now this comes after it's chief

executive also ride sharing company reportedly has valuation of around billions of dollars. back over to you >> wow that is huge. >> it's obviously the company's stating it not a big surprise they're headed for an ip out at some point. putting a time frame on it is interesting. dleerly he was brought in with the understanding he's going to be the person to lead them through that ipo process >> that's still 2019 basically >> yeah, it's not eminent. i think a lot of people thought they could hus it will out well before that. but maybe -- >> company will be ten years old at that point. >> they don't need the capital at moment at least ten minutes to go until the dow is between positive and negative nasdaq up decidedly today, 1% gain for the s&p and the russell. comments from warren buffett shares lower today we'll tell you what he said coming up next

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welcome back to the dow back up 17, art stopped by to say there's 300 nol buy on the bell to perhaps push us back in positive territory >> shares under pressure today

after warren buffett made these comments about the future of the food company >> so i'm not asking this directly enough, would kraft heinz buy it >> i think the answer is no on that >> okay. there's a direct answer to that. would you go back after unilever >> no, no, no, that was -- that was a misunderstanding, basically. we will not make hostile take over ours and we didn't intend it to be hostile and we immediately, when i learned -- it was a misunderstanding >> michael, interesting thing about that, he said there's no point in buying it because you're just left with more brands and it wouldn't necessarily make them a bigger, more powerful -- >> really undermine what's been the presumed strategy or advantage of getting bigger in consumer package he said look it's the quality, not the breath of them more power over supermarkets just because you have more brands for the show. >> it just leaves me wondering

what is the strategy then? to go the 3g approach and you have to simply cut costs that way? >> maybe it tells you why kraft heinz hasn't done a deal as everybody's expected them to do. no more unilever in the plans as well which i guess we probably knew >> probably knew it's recovered somewhat. >> down about 3% earlier >> we have new details emerging about a possible fire risk at a chemical spill in texas. >> kelly the company just had a conference call with reporters they started evacuating their employees yesterday as the water started rising now they are basically saying that they expect chemicals on that site to catch fire or explode within the next six days the ceo says there is no way that the company has to prevent a fire or explosion near the plant because they are swamped with water of about six feet high they did bring in generators to try and keep these chemicals

cool that's the issue these are combustible chemicals that are used in creation of rubber products, styrofoam cups, it's used by commercial entities and they are highly combustible. they need to be kept at about 30 degrees. the evacuation has been taking place of people near and downwind that particular chemical plant about 1.5 miles surrounding it but the company is now saying that they have no way to prevent a fire or a chemical combustion event within the next six days >> wow, that's a perilless situation. sue, thank you very much >> you've got it >>wh we me> enco back, we're going to have the closing countdown for you. (baby crying)

(slow jazz music) ♪ fly me to the moon

♪ and let me play (bell ring) less than two minutes left in the trading day dow up 16 just holdening to some gains. we are, however, holding on to yesterday's bounce had a big reversal, losses in the morning after that north korea missile test we've come back. today the standout is the big tech stocks, nasdaq 100 up more than 1% in a flat broad market the banks also a bright spot today. largely mixed though, kind of tentative trading down two >> tent stif probably the best way to describe it right now i was talking to the traders down here with about five

minutes to go. we traded about 40 million shares in the spider on a normal day over the last 90 you trade 65 million on a full day. you can tell this is the last week before that last hurrah of labor day and then people start coming back to work. you mention technology, i want to focus on that within technology, which is a sickly kl sensitive, that's a good sign if you're a value and growth investor. just everything's kind of moving up semiconductors are the real lead standout stocks within technology -- >> that's a favorite >> right, exactly. look at that trade so far today. some of the best performing tech stocks have been amd, sky work solutions, applied materials, you get the theme. a lot of stocks are the ones that are helping to lead the way higher if you look at a sector overall, that's been up 23% so far this year to date outpacing the 10% s&p is up, you wonder whether or not that's going to be a real sign. >> find winners, month end tomorrow, see if there's any rotation out of box, perhaps into stocks because bonds have outperformed for the month of

august, we'll see how that plays out. dom, thank you very much appreciate it. we have the dow going out with a gain of about 25 right now ringing the bell here at the big board. they have clear shares and up at the nasdaq, it is intermap corporation. and here is kelly with the second hour of the closing bell. welcome to the closing bell, everybody, i'm kelly evans strong gain for the technology stocks nasdaq with 1% higher today. the 63, 68, but by the way, about to close lower in august which ends storm same for the s&p half percent gain today. 2457, dow up a tenth of 1% today. second different decliners weighing there on the blue chips. 21890 was the level.

and for the small cap russell 2000 were making a comeback. half percent gain to 13 # 1. more on the market moves in just a moment meantime, many businesses have been shud everied in houston including texas capital banks in the city we're going to speak with the ceo about when them reopen and what hurricane harvey could mean for the bank's bottom line rejoining me is commentator michael san toely. also with us is kevin o'leary, good to have you both along and michael, since we're going to have more coverage of all of the stories today, i want to dwell for a moment on how strong the nasdaq has been. look at the biotech stocks up 7% today. inside i think maybe had some earnings, it was up 10%. the ibb, the biotech index is up 2% we've had significant break throughs not only the steal with the cart t advancements, but also the news today about treatments for kids who might have some of those issues as

well >> yes and a group we talk about last but related is life science tools, medical tools and devices, been one of the strongest groups in the market i think the theme there is gross stocks baetding value. even though banks were up today. good economic data today, gdp 3% it's been kind of a grab for those growth stocks that have worked largely for this year look, i think the market basically up a half percent in terms of the broad market. it's probably slightly encouraging given the fact that yes, it means yesterday that wasn't a one-day wonder. we're at middle of the range as it looms tomorrow. >> kevin, as we zoom out, go back to the morning where we had good news, u.s. gdp up that's not bad for this economy. you also had the private sector adp figure adding 237,000. and it's been underestimating jobs we could have a pretty big number there come friday >> those are both good numbers about the gdp though i don't think we're at a 3% economy yet.

my guess is this was a great quarter. there's a lot of volatility in that series. i think what's going to happen is we're going to end up averaging on the year, probably around 2.2, 2.3, that's sort of my guess and we're getting, you know, that means there'll be some down gdp numbers coming in quarters ahead. i think to get three, 3.5% we're going to need the tax reforms that the president just talked about. just a few hours ago so we're not -- we're not at 3% economy in my view as an investor. >> well, ignoring warren buffett's view, here's what she was told this morning. take a listen. >> does this feel like a 3% gdp economy to you >> it's been about 2% a year now for -- since the fall of 2009. eight years. and remarkably close to that most of the time i would guess we're in about a 2% growth economy now. and as i've said, every now and

then we think it's accelerating and every now and then we think there's a double dip or something. and it just seems to be a couple %. >> how do you hit 2.1% yesterday? >> if i'd known that was coming, i would have done a lot of different things five years ago. no, it's sort of unbelievable that rates have stayed down. i mean, it's not what any expected, at least i didn't expect it. >> well maybe chris expected it. he's cio of region atlantic, he's also joining us what do you make of it, chris? >> kelly, i didn't expect a 2.1% ten year at this point in time i think rates, rates have got to increase as the economy starts increasing and, you know, we had a strong quarter here, but i, i agree with warren buffett that we've been in a slow growth recovery for a while this is just one quarter we've got to put together a lot more quarters before anyone believes we're at a 3% economy. >> and as kevin was saying a moment ago, michael, maybe that

does hinge on tax reform and the president did speak about that in his effort to kind of go out today and really sell -- i don't to want make too much of this. the fact that ann coulter tweeted she didn't like the speech i only wonder if that's significant in the sense of, does this really -- this whole idea of corporate tax reform really play to his base? is this something the president is really, really 100% in the heart of his hearts behind and so something that could happen. >> it's a stretch to make the case to that person who's real income hasn't gone up in a while to say the way to change that is make companies pay less in taxes. it doesn't translate directly. it's also very mainstream republican and i think that also might be what the ann coulter's of the world are reacting to. what else is at the disposal of somebody who says tax cuts equal growth you can't cut personal taxes anymore. you really can't just kind of do the same tweaks on the marginal side corporate tax is what you're left with. so look, i was here in 2001.

the bush tax cuts were a goose to growth. did they change the projection in the economy probably not >> no, absolutely fair we have a couple of earnings to get to as well workday and box. box is out let's get to that one with josh lipton, josh >> kelly, box reporting a los here of 11 cents the street was looking for a los of 13 cents. 121.7 million. turned to guide, kelly, saying to look for a loss of 13 to 14 cents on 120 to 129 million. that's basically in line for the year they improved the guide modestly they're not looking for a loss of 44 to 46 cents. it was at a loss of 46 cents and revenue they say they're looking for 503 to 056 million analysts and modell ele eled 506 million. for one he pointed out the large

deals that got done saying we did eight deals above 500,000 versus four a year ago and four deals over a million dollars versus just a year ago so pretty significant increase he told me in the large deal categories of course, box has done a lot of partnerships with microsoft and ibm, about those partnerships, levies saying great momentum on the partnership broadly really strong quarter and it continues to put us into the position to being the central platform that works with all of these different technologies, applications, and services that our customers are using when they want to access their data and finally free cash flow on q2, kelly, negative 14.7 million. i did ask levy if he was still committed to that bogey being free cash positive on a full year basis for fiscal '18, saying he was telling me we always see a dip in q2 from a cash collection standpoint we are reiterating our commitment to being cash positive for the full year

this conference call, kelly, kicking off at 5:00 p.m. eastern and we'll be on it, back to you. >> josh, thank you mike for a double beat here, the shares are down 6% >> they are, they have had a good comeback. since the beginning of 2016, they've close to doubled which still leaves them below their post-ipo highs i think it's almost a company that's still in post start-up mode when you're talking about signing deals, when you're talking about top line momentum, cash flow not there yet. $2.6 valuation that's what you have to look for. and, you know, i think that they are kind of following along in the plan, it just isn't really enough at this price level. >> it's results are out now as well we have those numbers. >> hi kelly, we're looking at workday shares moving higher here in after hours trade, earnings a big beat, 24 cents adjusted the street was looking for 15 cents revenue also topping wall street consensus at $525 million, really being driven by ookings in fact, this is the fourth consecutive quarter of over 40%

subscription revenue growth for a workday. the company says with the momentum we are raising our fiscal 2018 numbers. we're looking at the stock, oh, currently down right now i believe, 1.1%. so we'll keep an eye on this report and dig through as to why the stock is down right now. keep in mind, workday is up over 60% year to date following this big tech rally that we've seen, kelly >> yeah, looks like it had a little spike higher initially. the ceo of the company is going to be on mad money with jim kraimer to talk about these results. that'll begin at 6:00 p.m. eastern time michael, what would you focus on >> i think she just answered her own question about why it's done it's been a tremendous performer. obviously in the right spot in terms of software. and in terms of subscription type model so, i mean, hear what the ceo says later it might be a i did jex, the pattern of this earnings season. sell off first and change it later. >> chris, anything you'd to want add on workday or box here

i know you like a company like intel right now. >> yeah, i'm a value guy i'd really like a company like intel where you're buying at something at 14 earnings and gets, a dividend deal. i think a lot more opportunities with a lot less risk >> what about you? the real strength today was in some of the biotech stocks which we haven't talked a lot of about. we know the story with the big companies like apple and it also had a good day and it is a little weird to me on the back of the strong gdp. you would think it was more of the industrials and materials rally. that wasn't really the story today. >> i think there's the current of the gdp may be increasing. a lot of skepticism as we talked earlier, it's not really a 3% story. i think what's going to move the markets more in the few months ahead is people betting on whether tax reform can actually happen in q1, q2

i estimate if we end up in the middle range, we're never going to get 15% if we got 20 and 25, let's say 22, that would give 15% more free cash for mid and small cap companies to basically pay all of their taxes domestically and don't have the benefit of going offshore lying the big guys. what i'm going to do, and look, i'm guessing like everybody else i'm optimistic the president wants a win, and he's got more of a bipartisan opportunity with tax reform the play is going to be in small midcap stocks in america they're going to outperform large cap, if we believe the tax reform's going to happen and i believe it's going to happen so i'm putting more money there in the months for the back end of the year. i think it's -- >> that's interesting, kevin, look -- yeah, looking at the dollar index today it has jumped back up to 93 and the russell finally showing life, for months, it's just been a dog. it's interesting that for whatever reason, people weren't

really believes if that's the reason to own it of late now all the sudden today, maybe something on tax reform is going to happen? >> kelly, that's exactly why it's a good bet. it has not participated at all, and we've seen p expansion and capital gains all over the map in the s&p 500 and yet they have 50% of their sales offshore where they get the benefit of paying lower taxes, corporately, in all kinds of other jurisdictions the president was very detailed about this today he wants the domestic companies to compete at the same tax rates. if he gets anywhere near there, i think the play is small and midcap and i think over verss are going to start thinking that way and i think it's their time to shine at the back end of the year >> all right we've got to go, chris quick response to that what do you think is the time to shine? >> oh, i don't think small caps are the way to go. i think small caps are taking a breather from, you know, from their early -- from their earlier gains and the large cap stocks are still much better

valuations and i also discount the fact that i don't think the president's going to get tax reform done. so i think large caps are much better play than small caps that the point. >> if you want to sell something small, sell it to kevin, large and big, sell to it to chris thank you both for joining us today. kevin and chris, very much appreciate it. the rain has stopped in houston, texas, some businesses are working to reopen their doors and serve the community. contessa brewer has the latest there on the ground, contessa. >> reporter: hi kelly, we're inside a walmart that's just south of houston as you can see, there's still options for fresh food, pretty good for a store that had to close down for several days because flooding surrounded this whole place. you can get bananas, plums, there are lots of lemons and avocados, but they're running short on tomatoes. speaking of running short, look over at the meat section here, dear mother hub bard, the cup board is getting bare. if you think this is a problem, look at the grocery store we saw

in galveston where the stores are so bare and the employee told our team, hey, we have put everything that we have out on the shelves, and once this is gone, we don't know when we can restock because our supply chain has been cut off just to give you some perspective here, in terms of businesses coming up and running, yesterday at the height of the closures, there were more than 100 walmart facilities that include sam's clubs and distribution centers that were shut down because of harvey damage or because of inaccessibility. today that number is cut nearly in half. we had more than 50 that were still closed, but pretty good. mcdonald's seeing the same thing. they went from third restaurants area open this morning to this afternoon. half opened. here's what one of the owner, operators told me about getting everybody back in business >> i'm very optimistic we're going to be up and running by the end of the week. hopefully as close to 100% as possible if a restaurant's able to operate because they didn't suffer damage, i'm thinking by

the friday, saturday, everyone's going to be open >> reporter: and another restaurant i talked to, buffalo wild wings says because of the shutdown, they're looking at $100,000 loss per loss that they were counting on because of the mayweather fight and the texans playing. >> people working there that missed wages, maybe money to prepare the homes. contessa, thank you. contessa brewer in houston. >> sure. hurricane harvey is having an immediate impact on gasoline prices too it could also cause a rise in jet fuel what that means for air travelers is coming up and with thousands of homes underwater, harvey may deal a blow to the mortgage industry. chief executive of a regional texas bank abo wt 's tipating on that front next. your insurance company

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welcome back harvey may be the most expensive storm on record for the mortgage industry diana joins us now to explain. diana. >> well kelly, i spoke earlier today with the ceo of the mortgage bankers association dave stevens who said loan servicers are about to see a lot of missed payments and dling sis

impossible to say how many until insurance companies step in and assess the damage. just as a comparison, in the houston area, there are more than twice as many mortgaged properties with nearly four times the unpaid principle balance than there were in the counties affected by katrina the majority of these houston homes do not have flood coverage if you take katrina as the model, over 75,000 borrowers could make a payment and 45 within the next four months. all that according to black knight financial services. katrina borrowers had less equity back in 2005, about 20% of borrowers had less than 10% equity considerably higher than the equity in the home, they may just walk away

the mortgage bankers association launched a help page for ho homeowne homeowners you can link to it on cnbc.com >> diana, thank you. texas bankers association estimates about 1,000 bank branches and home offices have been impacted. joining us is the ceo of texas capital bank and on the phone is doug johnson, senior vice president of risk management thank you for joining us today and, you know, we've sort of overlooked the impact of the banking industry obviously it's the life blood of that economic area so how affected are you guys how are you able to support the recovery >> thank you, kelly. job one, we anticipate in the next couple of days, we should be opening, at least one of those two branches and by next

week, up to full speed >> and doug, what are the issues from a kind of more systemic basis here in terms of looking at the functioning of the banking system in this region that's been affected even just in getting cash to people and the basic operations of banks >> well, first of all, our hearts goes out to those who have been impacted by the storm and of course the banking industry is going to respond in turn to help the recovery. compared to actual impact, right now customers need cash and all the fed reserve offices in close proximity to the affected area are open and cash is being directed to those atms that are functional at this point to their juncture and we're actually suspend the atm surcharges in many cases to assist customers when they're using atms are not from their bank so banks are doing that as well

as looking at suspending potential late fees on loans and other service fees as well at this point of course it's all about getting branches operational and in areas such as rockport, we've seen banks offer mobile branches to institutions and get those operational. i think that's just representation of what we saw during katrina houston was primary destination of individuals leaving new orleans as a result of katrina and responded just amazingly in terms of helping customers of banks get banking services and i would expect no less within the eastern area as they provide a vital part of the recovery as you indicated, there are 1,000 financial institutions and main offices could be affected >> keith, diana mentioned earlier the impact sort of the

angle here on the mortgage industry does that affect you guys as well >> it'll have some impact on us. any house that was in a floodplain was required to have flood insurance. what we don't know yet is by how much this particular flood being a monumental flood, might in fact have flooded houses outside the floodplain and that's an assessment that's going to be ongoing and one that we don't have completed at this time >> because what's the risk for you if those people did not have flood coverage and then they're facing out of pocket losses? >> well, the way that this works, we're in the mortgage warehouse business so we don't originate loans, we actually are financing loans originated coast to coast. so roughly 2% of the national volume up to 6% of the national volume might be in houston or the affected areas and so we are a national footprint company in that particular business.

so, to the extent of those roughly 6% of our mortgage warehouse loans that would be in houston. it would be those that are not covered by flood insurance that would be impacted. the investors will see a new appraisal if in fact it doesn't have flood insurance and obviously the new appraisal is going to show a lower value. >> all right gentlemen, thank you for now laying out the risks there to the banking business keith and doug, appreciate it. >> thank you, kelly. >> thank you we have a news alert on uber another one this afternoon john ford, what's happening now? >> well kelly, this has to do with the lawsuit that benchmark and investor in uber brought against uber founder travis. that was going to court in delaware's court of chancery and the judge there, judge samuel glasscock sent it to arbitration. the matter itself is not through, but it is being sent to arbitration which is what travis wanted, and what his allies wanted as well of course we had sherman an

early investor in uber on squawk on the street this morning he was defending travis and arguing that benchmarks should be off of the board of uber. he was heading down to delaware right after he got off the air with us to make the case that this belongs in arbitration, not before that court. the judge agreed with that side of things. of course, the dispute on the board continues even as the new ceo who was a ceo of exmedia gets ready to join a statement from sherman who again was on our air earlier today. reads in part, now that the matter has been ordered to arbitration and with the appointment of the ceo, we look forward to this company achieving even greater success this drama not over, kelly, but a new phase as this matter heads to arbitration >> john, thanks. michael, quickly, i was just saying a moment ago, i'm surprised this hasn't been put aside now they've agreed on the ceo. >> you would think that the ceo

would want to come in there and have the outlines of how this is going to be resolved maybe that'll be the way it goes it's unusual situation it's a typical private company, silicon valley, kind of board squirmish to the extreme i think far company of this scale, it probably isn't sustainable. >> he's trying to say 24 months and it's one of the first things to go. kathleen served a governor of louisiana during hurricane katri katrina. she's going to join us with her take on the efforts in texas and louisiana and what it will take to rebuild after this historic storm. but first, the ceos of the big three airlines, united, american, and delta are heading to the state department today. what thediusd thy scsewi secretary tillerson is next. ♪ it's been over 100 years since the first stock index was created, as a benchmark for average. yet a lot of people still build portfolios with strategies that just track the benchmarks. but investing isn't about achieving average. it's about achieving goals. and invesco believes doing that today requires the art and expertise of high-conviction investing.

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welcome back here's another angle on the texas refinery shutdowns they could push jet fuel prices higher phil has more on whether travelers could pay more for tickets as a result. phil >> kelly, more about that in just a little bit. let me give you an update about what's happening within the next half hour down in houston. both of the airports, houston international as well as houston hobby will be reopening for limited service. and we have to stress limited because there are some reports that we may not see some southwest flights down there until friday or saturday we're trying to confirm that with southwest airlines, but again, for limited flights and to give you some sense of how limited, united airlines stay may fly just a dozen or so flights over the next 12 to 15 hours. and those are basically hub to

hub flights. so your smaller commuter regional flight, that service won't start for a couple of days in part because it takes the staff time to get to the airport, so many people have homes underwater, and with regard to jet fuel prices. you mentioned they are moving higher, yes, not surprisingly, they have spiked over the last week in part because of what we've seen with the refineries down in the houston area this chart here shows you gulf coast jet fuel since august 15th, and in particular, look at what's happened over the last couple of days so does that mean that the airlines with, because they're paying more for jet fuel will say sure, maybe question pass this along to customers in the form of higher ticket prices nope, that's not likely to happen why? because we are expecting an increase in capacity in fact hopper which is the air fare firm that tracks air fires, they're estimating we'll see them bottom out in the $233

range. nationally the navrge october and start to move higher after that a lot of people have been e-mailing me kelly saying here we go, everything's going to spike higher because of what's happened with hurricane harvey, yes, jet fuel prices are moving higher, but it's unlikely that we're going to see the airlines be able to pass that along because there's just so much capacity and competition out there right now. >> so what was it that all the ceos were visiting secretary of state about today? >> the open skies issue in relationship to the persian gulf carriers they have been complaining for some time and they have been pushing the trump administration to enforce the open skies agreement to limit the expansion of these carriers into the united states. look, their argument has long before that the persian gulf airlines are subsidized by their governments, therefore they can run money-losing routes and not worry about it and that hurts obviously the competitive landscape for the legacy carriers and what's

really interesting, kelly, is that if you look at what the persian gulf carriers have started doing in a couple of cases, thaifr adding flights from europe to the united states, and what american, united, and delta are saying, wait a second, it's one thing if it's subsidized coming from dubai to the u.s., but if you do that from europe, now you're really going to change the competitive landscape. they want the state department to the get involved by limiting that expansion >> so michael, what happens if i go, oh, look, i can go to paris or, you know, pick your -- and it's going to be cheaper and i hear emirates is pretty nice i mean, is this consumer friendly in the sense that it complicates the issue for washington >> that's exactly the issue, right. it's by definition, yes, what's more fair in the airline ceos minds for them is not necessarily great for international travels. we have to keep in mind, it's mostly international, even if it is not exactly to their home markets. >> are they going to -- phil, this is speculation, do you think it's, you know, going to hit home for this washington

that wants to drain the swamp? yes, we'll protect, you know, american airlines or is it going to be like, you know, come on, no one's crying over the 1% who are getting, you know, cheaper potential air fare on emirates >> the interesting twist is the legacy carriers would like to see this expansion limited in part because of their lucrative routes going over to europe. well if you talk with the non-legacy carriers and by that we're talking about the southwests or the jet blues or the alaska -- they're not as worried about this that solidifies their financial position as far as their performance and the profits they can make on those flights over to europe and other parts of the world. what does that do for us >> it's an interesting point i notice their shares were higher today too phil, thank you. >> you bet >> time for for a cnbc news update with sue herrara. >> hi kelly, hi everyone

here's what's happening at this hour pentagon officials confirms there are approximately 11,000 u.s. troops in afghanistan that's a higher figure than previously disclosed they say it does not indicate an increase in troops, but an effort to be more transparent without jeopardizing sensitive information. houston authorities have found the submerged van in which six members of a houston family, including four children, died when they that vehicle was swept off a bridge that brings the death toll from harvey to 19 overseas, u.n. secretary general antonio gutierrez meeting with local rallily residents before heading to gaza he was accompanied by the ambassador to the u.n. and the deputy military chief. it's gutierrez ears first trip to that region since taking office and the preliminary hearing continues for 18 penn state fraternity members charged in the death of a sophomore pledge during a night of alleged hazing 19-year-old tim piaza died from a head injury, ruptured spleen,

and a collapsed lung that is the news update this hour, kelly, back downtown to you. >> all right, sue, thank you very much. our sue herrara. hurricane katrina cost more than $100 billion in damages, and many estimates now have harvey coming close if not exceeding that mark. the bigger challenges even still to come, and that's rebuilding we're going to speak with kathleen blanco about how she moved her state forward after e or thstm.

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hurricane harvey hit texas the same week that devastating hurricane katrina hit louisiana 12 years ago kathleen blanco was louisiana governor then. she left office in 2008 and joins us now discuss the rebuilding effort that texas now faces. governor, thanks for joining us. >> thank you, kelly, glad to be here >> and i understand you were only in office what about -- it was a year or two when that storm hit? >> well, katrina and rita hit 12 years ago, but just last year in august, about 60,000 homes in louisiana were inundated with unexpected rainfall and homes were flooded and the pictures are very similar to what we're

seeing out of texas area right now. >> and so for texas, i read earlier your comments about evacuation process and how -- i mean it was interesting to think about, you're right, you should evacuate the southern parts of the city first and then the rest of it and you avoid gridlock, but houston's mayor said, you know, he was concerned that that could have been worse than kind of what we're seeing here, these images ultimately of people trying to make their way through the floods and out of there. are you saying basically that's what should have been done here? >> well, i think in the future they really should look at a staged evacuation process. and they should really study the floodplain maps right now. well, today, but in the aftermath of this great tragedy that's happening you do want to spare as many people as possible the stress and the traumatic experience of having to relocate in flood waters i mean, that's, that's the whole idea of pre-planning but you know, that's for another

day. they're dealing with what they have today and it's just the beginning of a very difficult route for a lot of people, whether they were evacuated or not because recovery is painful and tedious experience >> and i see that you're now on the board of the superdome commission, of course the strug there will to house a lot of the katrina victims. i was just going to say to your point about, you know, being aware of the floodplains, thinking about evacuation, should there be some sort of national supercommittee, i'm not saying federal, but a group of people like yourself who have experience with this, the next time we're 48 hours away from one of these big storms making land fall, those mayors, those governors, whoever it is can all get together and say to you guys, what should we do? how do we prepare ourselves? isn't it time to put something like that in place >> well, i'm not sure if a national board would be effective, i do know that the

governors of the affected states need to be talking to each other. we had a staged evacuation plan in advance of katrina and most people missed in the aftermath is that 1.3 million people got out of a region of 1.4 million people in less than two days and we have very limited access -- exits out of the city of new orleans so we really had to plan that carefully. and it actually worked it worked beautifully. our tragedy as we saw all of those people who remained behind involved about 60,000 people i'm afraid we're seeing more than 60,000 people caught in flood waters in the texas area. but, that's a lot of people, and it causes a lot of stressful, difficult, life-saving

situations and we've got to get it done though if you admire the fact that so many people are working together though to rescue all of these citizens >> yeah, that's been an absolutely -- pretty nice theme to see as the process moves beyond sort of getting people to safety, what would be some of your recommendations based on your experience for principles to keep in mind, lessons learned as they move to the next stage? whether it's, you know, conceiving of how to rebuild and getting the infrastructure in place, maybe to be better prepared for another time? >> well, i think immediately the governor should put a recovery task force together. and it should include people from the coastal regions all of the directly affected areas that have been impacted. and that planning should start quickly. when you go to the federal government for money which they ultimately will have to do, they

must work closely with fema to get good estimates on the number of housing units destroyed or damaged. and accurate numbers or absolutely critical. you see what has happened is a massive housing shortage was created overnight. >> yeah. >> people, people are homeless people who would never otherwise be homeless today are homeless so, many people will need the state's help to relocate, possibly for a year or more, and that work should be done quickly. you want to get people out of shelters because shelter living is -- for more than a few days is just very difficult especially for the very young and the elderly. so, i think right now, available housing inventory should be quickly identified and see what your capacity is. and this is not just for the city of houston. this is for all of the smaller communities. now some of those were probably closer to 100% destroyed

and houston there's still capacity standing up, it's not exactly like what happened in new orleans when the whole city went down. so -- >> well governor -- >> they've got some opportunity there. >> governor blanco, thank you for joining us >> appreciate it >> good to get your perspective, that's kathleen blanco, she's the former governor of louisiana. hurricane harvey causing the largest refinery in the u.s. to close. the national average gasoline price is on the rise we're going to talk about how far it could climb and for how long right after this. ♪ ♪ integrate any part of your business, and have your systems work as one. the ibm cloud. the cloud for enterprise. yours. there's nothing more important than your health. so if you're on medicare or will be soon, you may want more than parts a and b

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[car tires screech] [bell rings] welcome back the refinery shutdowns in texas have already caused gasoline prices to rise you're looking there at the futures price of gasoline. tups 7% again today. joining us now with how long this increase could last is matt smith. he's clipper data's director of commodity research, matt, thanks for joining us and what's the latest that you can tell us about the gasoline price? >> well, as you mentioned we've got the price right there rising again today. we'll likely see support coming through for rbob as long as uncertainty remains. we're already getting word that some are starting to come back from corpus christi, sort of further west where we first saw land fall. also in houston as well. but what's going to be key, kelly, is really relating to port arthur and the other refineries around that region

there. if we start to see them coming along in terms of the flooding dropping there and seeing as if they're coming back online unscathed and just sort of shut for precautionary measures we'll see the ebbing in those practices maybe later next week, something like that. >> matt, how quickly could the price drop back down if there's no further drinks rupgs and how bearish the fundamentals have been >> so there's two different prices really to watch here. the rbob exchange price really ran up really strongly, sort of 15% there. so the bad news has already been baked in there the other measure to look at is the retail price of gasoline that's on a national basis by about 6 cents to $2.40 a gallon. that'll likely continue to rise here we could see it up 10% up to 255 range before it really starts dropping as we see those refineries up and running again. >> all right and we know if anything further were to happen, it would be a

different story. thank you not only for sketching out the con furs for us. >> thank you. >> matt smith from clipper data. now it's an unlikely pair. alexa is teaming up with cotana. how they might be working together is next then coming up on fast money, his take on the impact of hurricane harvey and what will it will do to the auto industry. stay with us 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.

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welcome back it's time now for today's fast take the it's kind of a fren my's edition. we begin with amazon and microsoft, which have been working on a deal to allow their voice assistants talk to one

another. so, for example, you could say alexa, open cortana. should apple and google be worried? >> i don't know. i've been trying come up with the best metaphor and it reminds me of the early days of search engines and browsers where there was much made of the differences. >> oh, i remember. i had strong feelings about that >> more recently sh r you have microsoft being powering yahoo! or something like that >> those were usually a sign of weakness the bing yahoo! thing because google was so dominant >> it sees more of an integration type thing you're coming up with an industry come ppatiblility stand >> i just somehow i feel like it's there's almost no way ten years from now, we're going to have to remember the names, a i thing is going to hopefully proceed to a point where just natural language is going to take care.

>> then you have amazon and microsoft compete ng the cloud so much. it's interesting they're working together on this i wonder if i just triggered this next, kevin durant slamming stefh curry's sponsor under armour because maryland's basketball team is sponsored by under armour, they can't really recruit well okay, do the companies really have that much influence that they're ending up making an impact on where these kids are going to college >> i have no reason to doubt that it's that strong and for one brand or another and if you're considered an under armour school, you're less cool, i don't want to be associated with it. >> i know he's a -- a nike guy he was one of the top guys but is he basically saying that if you're one o f the top prospects, you don't want to get labeled as an under armour guy >> clearly, i have a feeling that if duke decided to become an under armour school, it might be a little different. maryland has struggled to stay

relevant upper tier of basketball maybe that's what it's about >> if i'm under armour, i'm calling coach k tomorrow you're right that's what they have to do. >> you would think it's not exactly, look, a lot of f these guys are not necessarily going there for the four years to get the degree. >> for the four year period. finally, the unveiling of an electric truck not teslas this is ahead of tesla's expecting unveiling of its own electric semi next month tractor trailers are quite hot ford is look iing at some optio. >> i think that's the more direct line to getting to both electric and self-driving. if only because fuel costs are such a big part of operating >> and they have to go in a strigt line. >> and they have a very fined route and drivers need a break >> auto, in the midst, they see the future we talked to -- self-driving

car, forget about it self-driving trucks. >> i don't know about forget abt, but this is a quicker route aplus, you have a shortage of drivers. we got a news alert that texas governor saying the state could get more than $125 billion in federal a support for harvey relief again, the governor of texas saying the state will need more than, he said far more than 125 millibillion in federal support i think that's double what we needed for sandy >> that's a tremendous number. obviously going to you know, have to get the attention of congress maybe this is just trying to convey the scale of what he sees it's not just about bad was the storm, but how much density of commercial residential activity was in the path. >> headlining, he says the state is also ak cemeccepting aid fro mexico workdays, meanwhile reporting lower earnings reportedly lower after reporting

earnings this hour shares are fractionally negative the ceo is going to weigh in on his competition, next. tomorrow, tune in because they're going to speak with lulu lemon's ceo. back in two.

zblncht our sound guy from the future sitting down with jim cramer tonight addressing his competition with adp >> i would say there are competitor and our partner i'm a fan of carlos. he's a good ceo. that's a business that's been around for 50 years. when he took over, he inherited a company with a lot of legacy software and he's trying to transition temperature into the cloud. we have the great luxury of starting with a careen sheet of paper, but we have many joint accounts where they're the payroll provider and we're the hr provider. we do payroll as well, so in places we compete and in places we partner, but i'm fan of carlos >> you can get your full sbe interview on "mad money. what do you think? >> not too many people lining up on the side of that fight there. it's because the performance of the company and the stock, just hard to tear it down

>> yeah, i didn't, didn't occur to me to ask him about that. that was a great topic same way that sales force, we have the opportunity to just build it this way, we didn't have to try to transition the whole thing. >> it's known that the lead frog effect has been strong in technology >> trying to think what else if you're starting from scratch i have all the way home to think about it thank you very much. that does it "fast money" begins now. >> "fast money" starts now overlooking new york city's times square, your traders are -- tonight, president trump kicking off his tax reform tour in missouri. >> the foundation of our job creation agenda is to reform our tax code for the first time in more than 30 years what should you be buying if it gets done, but first, we