things are priced. >> one of the thing that could happen, i'm not saying it is, but to watch for is earnings and companies talking about higher input and you could talk interest rates a very fast way to get this market rally to stop >> sarat, thank you. thanks for watching. that does it for us. "power lunch" begins right now >> riding the record washington seems to be making headway on tax reform. from washington it wall street, we've got you covered. developing story at this hour. major lawsuit against the largest suedant loan servicing company. accused of widespread abuse. stock tanking at this hour all of the details for investors and consumers straight ahead. can't afford the deposit on your home? more and more people are asking complete strangers for help. we will explain. "power lunch" starts right now ♪ ♪ our house in the middle of th

street ♪ ♪ our house in the middle of th street ♪ >> welcome to "power lunch." as melissa points out, another string of record highs for averages any gains by dow, as in dam and s&p 500 means a record close check out some of the big movers right now. sea world is taking a hit. reports the company is a takeover target. so why is it higher? we will explain later. constellation brands, company beating east mates and raising the outlook. constellation ceo joining cramer on "mad money. the xlk is at a new 17-year high paypal, apple, microsoft, alphabet all leading the way there. >> we are looking at shares of regeneron. news that we reported earlier he that u.s. court reversed a ban on sales of the

cholesterol-lowering drug, can you see shares up 3.5% tyler, back to you >> thank you very much welcome to "power lunch. let's look at the dow. major move that republicans passed a $4 trillion federal budget resolution. it is the first concrete step to tax reform for procedural parliamentary reasons. but there is a lot of work ahead, obviously ylan is here with more hi, ylan >> hi, tyler passing 219-206, no democrats voting in favor of it, watched house committee chairwoman diane black get high-fives from colleagues after the vote was over senate has been trying to get its version of the budget out of committee. remember, the senate's version that includes that $1.5 trillion tax cut. the house version of the budget is actually deficit neutral. i asked chairwoman black today

whether her members might support a budget that actually increases the deficit. >> i never like to say what my members will or will not do. i can tell you that they are are very concerned about the deficit spending that we continue to do. so i think they will want that to be in some way a part of this final product. >> the senate is in recess next week the house is going to be out after that so you're really looking at early november before you can get the two chambers together to decide on what final version of a budget might look like and that means the time line for getting tax reform done this year is getting really tight, guys back over to you >> it absolutely is. so let's discuss more of that today is the first step towards tax reform as i lan just pointed out or is this just washington process that they are getting too excited about. jim joins us from washington hi, jim. >> hi, how you doing >> how much of a signal is this today that we will get tax

reform done? >> it is a procedural thing. but you have to get the budget resolution through the senate, ultimately approved by the house, that allows for tax cuts. the $1.5 trillion. i think it is misleading to call it tax reform. at the end of the day i think you are looking at rate cuts for corporate rates. individual rate cuts >> i get a but i'm asking you to handicap that something gets done >> i think something gets done all likelihood, done in q1 of next year. but every republican will want to vote for tax cuts i think there hand isful of senate democrats that will have a hard time not o voting for tax cuts, even if you don't offset the cost of them to some kind of reforms or accompanying spending cuts i think it is hard in politics to say no to a tax cut particularly in an election year for those senate democrats up in trump country, that's a tough vote >> i'm trying to handicap here is the market's rallying because of this. is wall street right to do so?

>> it seems like markets have been rallying allier on anticipation of tax cuts, especially on the corporate side if markets are factoring in that there will be tax cuts in q 4 q1, then it should be. it is unlikely it heaps this year i think it is unlikely it is actual tax reform. but what the markets want to see is reduction in corporate tax rate that's what republicans are committed to and it senends up around 25% i think you will see reduction in individual income tax brackets you won't see a lot of deductions on the table that people think they will get rid of like for high state taxes i don't think that goes through at end of the day. but you probably get tax cuts. >> i don't know if you see marcus, and now on to the puerto rican debt issue where president trump is saying it should be wiped out, $70 billion worth of debt that they have, and the governor didn't embrace that suggesting that maybe there is a

deal for bond holders out there, i assume, because at some point puerto rico has to go back to the mark and the borrow again. what do you think about puerto rico's debt? >> i don't know if they even agree with what trump says about the tax debt it was bag problem befoa big prn before the storm but you don't have a lot of republicans rushing to do what would be considering bailout for puerto rico. but they have to also understand this is humanitarian disaster that needs to be dealt with. the fact that they are out next week, i think we are weeks from figuring out exactly what they will do. they listen to trump on this and feel like trump is saying whatever is on his mind at any given day and they hear from the budget director o in the white house who says something different p so they will end up doing what they want to do with probably not a whole lot of guidance from president trump. >> how big an obstacle for the gop is the idea this may not be deficit neutral?

how many votes do they lose on that >> this is a, to me, one of the most fascinating political topics right now have you a party that says listen we are totally committed to reducing size of government that is in conflict with cutting taxes in a deficit enhancing way. you can say dynamic growth will somehow, you have this economic growth over time but history shows that is probably unlikely. at least at the level they are talking about. there are a small number of senate republicans and small number of house republicans who i don't think would vote for a tax cut unless it is deficit neutral. at the end of the day they can put together a coalition i think ultimately in the house that allows them to do tax cuts and probably some democratic votes. it is easier in the senate than it is in the house if you are rand paul or the freedom caucus, you will have a real gut check you have this opportunity to reduce rates and particularly on the corporate side that should have a big economic affect in a

positive way but you're looking at long-term deficits that bob corker and others are saying, this isn't sustainable that's what republican parties are built on >> talking about cutting spending, amazing. jim, thank you as we mentioned, another record-breaking day on the street for major averages. s&p on track to post longest winning streak since bill clinton was in the white house in 1997. there you see it up a half percent. president trump tweeting this morning that quote the stock market hits an all-time high, exclamation point. unemployment, lowest in 16 years, exclamation point and manufacturing enthusiasm and highest level in decades, exclamation point. s&p financials, materials, health care, all up more than 20%, exclamation point where do we go from here, exclamation point. >> mike bell, exclamation point,

jpmorgan asset management. jason, let me start with you michelle just mentioned the market is going up one of the causes could be the prospect of tax reform or a tax cut. do you see it that way why do you think the market is going higher just one day after another as it has been doing >> so like you mentioned, could be six record closes in a row and eight-day win streak as well last six weeks since the bottom in august, i think the move has been somewhat predicated upon this resurgence in tax reform. we see that in small cap and mid cap. and seeing that in more economic sensitive sensors like financ l financials and energy. if you look at the bigger picture for the year, it's been earnings in the economy that have driven stocks higher. and not so much the agenda out of washington or pro growth

agenda we have seen fantastic growth in q1 and q2. we see a synchronized bounce and economic growth and these things have continued to draw stock prices higher. >> mike, corrections can come out of nowhere for any number of reasons. but bull markets typically don't die until one of two things happens. there is a recession, number one. or inflation rates that rise and tip the economy into recession do you see anything on the near term horizon that could lead to the end of the bull market >> the outlook remains very positive we look at risk of recession, and in the medium term, two to four years, then it may be gradually rising but in the near term, it is very little consumer confidence is strong. everything looks good the at moment >> jason, going back to the idea of tax reform, in 2017, i think

stocks are arising or seems like stocks are rising based on their own earnings growth, if you look at the consensus estimate about 145 and change for s&p 500 companies, there is a certain amount imbedded in that according to most strategists in wall street because of tax reform you take that out and that could mean a down side to markets in current levels do you have the view that in 2018 it is crucial to have that reform tax cut, whatever you want it call it in place in order for markes to the at least maintain current levels at record highs snrs. >> i think we're at the phase in the secular bull market where earnings are more important than anything else. first phase based on undervaluation based on early parts of economic expansion based on low interest rates. second phase is going to be earnings driven. to your point i think is some tax cut elements baked into next year's earnings. i don't think it is as much as

some straf gisstrategists sugge. i'm not sure we need to see the bull market continue there are other factors that play low interest rates low inflation and earnings growth as long as we continue it see the economy recovering and global economy in europe and japan and other places where it's bouncing, there is still an upcycle. >> one of the odd things about this year is it seems like every market around the world with few exception says moving higher if i had incremental cash i wanted to put to work for say two-year time horizon, would you recommend i put it more in the u.s. or more in developed nonu.s. markets or emerging markets? >> i think europeanequities across the board have a slight chance to do bet are than the u.s. you see flow into european equities now because margins are coming off

of a lower base, if you have a growth in europe it might be slightly stronger than u.s. next year and greater earnings coming through in europe because of the operating leverage which is higher we think european equities have good upside. but u.s. as well and also an overweight to emerging market. >> stocks, stocks and more stocks thanks very much >> thank you >> one of the biggest in the s&p 500, up about 4% streaming giant raising prices could it hurt subscriber growth? a lot of outreach last time netflix tried to raise prices. the nation's largest student loan servicing company hit with major lawsuit. we will speak with the man leavg athae xtinth crgne

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netflix is one of the top three gainers of the s&p 500, company raising prices that is boosting the stock price. julia boorstin with more julia? >> investors and analysts believe that netflix has pricing power with 50 million plus u.s. subscribers. netflix's first major price hike in two years standard service going up $1 o to $11 and preemmium up $2 to $. basic plan remains at $7.99.

netflix noting that now subscribers can now download shows, robust content including new films. despite growing competition from amazon, hulu and hbo, ted said earlier this week that the company's growing content is worth it and paying off. >> the idea that there is too much out there is silly. a very kind of analog idea of what -- of how to make programming choices. for me, next year our budget is closer to $7 billion for content. >> michael packard, despite a sell on netflix shares, says he expects close to zero attrition from the price hikes a lot of bullishness today on the stock. >> thanks, julia boorstin. let's look at what the latest price hike will mean. senior internet analyst joins us now, rob, great to have you with us

is there any concern people will balk at increases? >> very little i think what we saw last year, last two years, water fall of price increases. i think some poor messaging on the ungrandfathering two years in a row of raising prices little bit after scare of a sca of joining slow down but at the end of the day, the amount of attrition i think ended up being less than a percent, in my estimation. so very, very little >> what does this mean at end of the day is for netflix i assume you raised estimates on the revenue side for kpt >> yeah. >> per user -- >> that's right. and yeah you know, back on to the comment that ted was just making about $7 billion in programming, you know, growing from 6 to 7, and we're talking about a price increase that has been outlined, that's bullish for the margin story. i think they are doing what they set out to do.

mon advertising better great value proposition. a lot more back into investment and content and growing the business at a nice rate. >> does that mean they are profitable per subscriber at this price level >> yeah. they are knocking on the door already before we even roll through the subscriber growth and the price increases. so the profitability story, i expect, has already been up a lot this year and we're at the beginning of what i think is a good margin story over the next several years. >> is netflix the new espn in other words, the must-have that people will absorb price increases. they don't want to be without it because of quality of programming. variety of selections you can have picking up existing shows or movies? >> yeah. i think that it is getting to be a must-buy i think we still have room, you mentioned 50 million u.s. subscribers. it is about half penetration of the total available homes. i think over time it will become

a must-have. because what they are doing with this big budget is they are able to address the different people in your household. whether your kids, teens, wife, yourself, whom ever, and they are better able to service niche interests. i think it is becoming that and will grow into becoming the must-buy >> how high could they go? >> in terms of pricing power >> yes >> if you look at the hours of consumption compared to the dollars per hour, it is a pretty simple calculation they are a fraction of what people pay for cable television service. so you know, less than 40% so there's quite a bit of upside, i think, in terms of filling out that value proposition and getting adequate m montization for it >> 20 bucks, 40 bucks? >> depends on content. but their ability to deliver

more, obviously grows along side that, and one of the beautiful things of the story sun like any programmer in history, they are able to scale that budget globally that's the thing that internet delivery gives you over pay tv systems. can you put it across so many more homes >> that's the thing for am zone as well as hulu and other services in terms of pricing power for netflix, aren't they sort of boxed in amazon, you get that free with amazon prime you might think of a whole other service with video content i don't know what i pay for hulu at this point, 10 bucks or so. aren't they boxed in in terms of what they can actually charge? >> i think the pricing umbrella in this country is set very, very high by pay tv. that's expectations for video services is. large umbrella to grow under so where that ultimately goes is hard it tell it'll be a function of the programming budget and their ability to deliver

things that you can't live without and you have relative elasticity and keep in mind we are talking about the price of about one movie ticket >> yeah. >> movie tickets are pretty expensive. thank you. rob sanderson. >> stay home and watch netflix >> exactly, right. >> all right, navient stock plummeting we will talk to the attorney general who is bringing that suit and with so much student loan debt millennials have trouble affording a down payment for a house. so what do they do get help and not necessarily from mom and dad. we will explain that one next. thank you so much. thank you! so we're a go? yes! we got a yes!

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say you want to buy a house but don't have the money for a down payment, common problem don't worry, though. millennials have a solution and they've told diana about it. what have they told you, diane >> millennials today have high student loan debt, pay high rent and when they started in the work force they were underemployed. add it all up and it doesn't equal enough to save for a down payment for most millennials like so much else, why not crowd fund it? >> this is a product we think is timely we think it is a product that will be main stay probably within the next year or so >> cmg financial and mortgage lender is launching home fund me first on-line platform to give home buyers a way to both market

their needs and receive multiple small tax free cash gifts from anyone to finance the down payment on a home. previously lenders limited asust ins to close family members, employers, nonprofits and religious organizations all with significant documentation. this pilot program has the blessing of fannie mae and freddie mac which finances the vast majority of loans today i asked if they had concern that those asking for down payment wouldn't have any skin in the game for purchase. >> the skin in the game is a confusing concept. if you pay for your closing costs is that skin in the game would you rather have someone have a lot of money in the bank they buy the home or no down payment for the opposite we have a lot of questions and a lot to learn when it comes to the role of down payment >> the idea is to link this to wedding and baby registries and in most cases add to the savings

you already have which could help you avoid higher interest rates and mortgage insurance more information on this always on-line. cnbc.com back to you guys >> thanks very much, diana we are joined by our own marcus lemonis. he spoke yesterday with governor of puerto rico and today out on relief missions. hey, marcus, what are you seeing down there >> you know, michelle, the thing i'm seeing more than anything else is a broken logistics process. if you are in san juan things are moving nicely. traffic is not bad electricity is up, water is fleing two, three miles outside, and let me be clear, roads and bridges in most cases are working, there are people seeing no signs of any relief no water no food. nothing. at the dock? piles of food. piles of water in the small towns, nothing. >> why do you think that is? >> you know what, i'm not sure

that the government right now, and i'm going to be with the governor this entire afternoon and command center, really has their arms around the logistics. i asked him yesterday if he understood or anticipated this level of crisis. i think he is a young governor, very smart, but i'm not sure nobody else knows who is in charge here. i met a number of people from world vision and other ngos, they aren't sure who is in charge either. we know there is not a lack of support or funding or supplies but getting it throughout the island is not happening. >> it is not fema in charge of distribution >> you would think so. but no, that's okay, you would think so, but you can't get a pecking order here or any sort of master plan so the governors agreed to take me he into the command center today and to get a bird's-eye view of what is happening. a small anecdote is we were driving our our way to the airport and we saw a burger kngg with the sign down

they have mobilized their employees. anticipated food they have it logistically under control. [ inaudible they he have their restaurants fully operational. and we look at the island of puerto rico and they can't get water from one end to the other. >> private sector is performing better than the public >> you see water, food, electricity. what about shelter, marcus, as you drive around what is the -- the damage to the housing stock particularly outside of san juan where more of the buildings might be made out of concrete? >> as i flew in the army helicopters, there is clear delineation of structures with concrete that look fine and structures built 20, 30 years ago that in any part of the country, any part of the world, simple wood framework are levelled the most troubling piece now is, you have people in remote areas

and we were sitting on the steps of the senate building today with fema providers and all of the folks filling out forms. no water, no electricity they are told they may not have electricity or shelter for 6 to 12 months. the number one problem i see here in addition to the bond issue that i know michelle wants to talk about is the exodus of people leaving the island. and saying candidly, i don't know if i'm coming back. >> marcus, you just spoke to the governor yesterday and you spoke extensively about the debt issue which is only getting worse by the day at this point. on top of that, puerto rico faces potential government shut down on october 3 /* 1 if it doesn't get funding. is that really just patch work for the next few months and after that they will depend on revenues coming back in, tax revenues and these people may not, as you said, come back to the island at all. >> the government was very bold and confident with me that

government shut down wouldn't happen he's gotten some reassurance that he wouldn't confirm where it came from but he's gotten some reassurance i liken this to the retail environment. as you know, retailers go in with black friday and making money in the balance of the year puerto rico has the equivalent where they bank on tourism starting after thanksgiving and going until the end of april as we visit restaurants today and hotels shut down, they have a very pessimistic attitude about cruise ships coming back that's where the bulk of the cash flow comes from taxes here are 11.5% you rely on that tax base to fuel things. if it's not there, you have it mounting problem of the bonds not getting serviced people leaving, work force leaving, and tourism not coming. >> sure, their capacity to pay has gone down. but you know what, it breaks my heart, marcus, when you talk about the people going to be without electricity for perhaps six months puerto rico borrowed more than

$70 billion and yet their energy infrastructure was never updated. their power plants are average 44 years old compared to the mainland of the united states. they are still running on petroleum. when you look at what's happening there, every single former governor, every single former leader of puerto rico, you have to point to them and say, you borrowed this money and spent it on what because people are dying without water, without electricity because of power decisions that you guys made in the past. >> michelle, i think you have to even take it a step further. bond holders who accepted the fact there is going to be some sit down at the table are asking two questions, how do i get paid and where is my money? that's the first question. second question he is what happened to the money. if a particular bond was taken out, with the anticipation that the electric grid was going to be put up or some infrastructure put up and you see in this moment of crisis that there are electric poles on the side of the road, clearly something

there since 1960, you have to ask be, okay, who am i going after? what is the investigation that needs to happen? who is to understand where the money went separate to where i get it back. fz whole place needs restructuring. you've been through that before, marcus that's your specialty. marcus lemonis >> quite frankly, i asked the governor if i could sit down at the table. he chuckled. i said i wasn't kidding. this government needs help i think the governor of puerto rico, scientist by trade, needs help as well >> i wouldn't think you were kidding either >> thank you for joining us, marcus >> thanks, michelle. >> now, is it possible, a high school basketball player he could be paid $100,000 to attend a school and head coach of that school wouldn't know good question there. plus panthers quarterback cam newton under fire for saying this to a female reporter. >> that's funny to hear a female

talk about routes. it's funny >> what? >> expensive comment he just made we're talking sports and ntvey enpor nch" returns. building a website in under an hour is easy with gocentral... ...from godaddy! in fact, 68% of people who have built their... ...website using gocentral, did it in under an hour, and you can too. build a better website - in under an hour. with gocentral from godaddy. not rebalancing your portfolio. focused on what you love, not how your money will last through retirement.

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hello, everyone. here is your cnbc news update for this hour. nancy pelosi says not having strong gun laws is the equivalent of not protecting and defending the american people. she asked the house speaker to appoint a select committee on gun violence >> we have to act now. and we're not going away we've told the families, we have to pass something. and all of this just blossomed when something occurs and then we have a flurry of comments from the other side of the aisle saying this is not the time. now is not the time. no, now is the time. it is time for a moment of silence. >> the u.s. international trade commission announcing a preliminary finding that u.s. manufacturers of washing machines are harmed by imports from south korea the case was brought by whirlpool which said it was

pleased by that ruling a worldwide increase in liver cancer the last 25 years a new report saying over 850,000 new cases of the disease in 2015 resulting in 810,000 deaths. that is up 75% from 1990 the hepatitis b virus was the leading cause of new liver cancers. you're up-to-date. that's the news update i send it back to you guys michelle >> thanks, sue. a new deal bringing college sports from the pacific 12 to the pacific rim. deidre has the details >> alibaba with all pac-12 sports, for last two years china hosted the opening ncaa basketball games and both years the broadcasting of it attracted more than 10 million chinese viewers. just to put that in perspective, thursday night football last week bringing in 15 million viewers domestically including

amazon prime members that streamed the game. ncaa sports are just getting started in china by joining forces with pac-12, alibaba will have the ability to distribute 175 live network event providing alibaba with new contact for the massive audience as battle for sports content heats up over in china alibaba's rival has partnerships with the nba and nfl for pac-12 this gives them the opportunity to expand its global footprint as commissioner larry fox told us on squawk box. >> globalization is huge priority for universities and sports can be the front porch as it exposes interest and passion. >> the first game, first ncaa basketball game this year is on november 11th. ucla versus georgia tech played in shanghai. this is the latest place of china's big bet on sports content, and in this case, college sports

>> thank you very much. with money literally coming in from china, many people find it hard that ncaa can't figure out some way to pay players. and when a major standal hits like player reportedly getting $100,000 in cash under the table, not from schools, but from shoe people and others, that the head coach doesn't even know about it. joining us now is john feinstein, washington post columnist whose latest piece is called college coaches know everything going on in their programs even rick p pitino. >> let's talk about pac-12 doing a deal with the chinese company alibaba to broadcast games out there. is this what we should expect more of? >> we are already seeing a lot more of it, tyler. not just in basketball there are several golf tournaments. pga tour events now held in

asia there is a couple in china one in malaysia. one in japan next year more and more tennis tournaments being played over there. and you're going to see this in all sports this is a huge potential market. not only for athletes and teams, but for shoe companies like nike, like adidas and under armour at the middle of what you're talking about >> maybe i shouldn't be surprised. but i still find myself surprised. that either the ncaa or universities implicated in this bribery scandal don't just pull the plug on their basketball programs for a period of years why doesn't that happen? why don't some of them get the smu death penalty? >> well, the reason they don't get the death penalty is because when smu got it in football back in the 1980s, it basically destroyed their program. as a result the ncaa has been

very hesitant to give out the death penalty even when major schools have been eligible to receive it if you have two major violations in a period of five years or less, you are eligible for the death penalty. this occurred on several occasions and they have never used it because they don't want these big time schools to shut down and be off television and not being bringing in revenue. >> here with this shoe-related scandal that has cost rick pitino and athletic director at louisville the job, that is a second infraction following on one which had won mr. pitino, i believe, a suspension. a case involving hookers and strippers who were being furnished to the players in their dorm room. do you think louisville should or will get this death penalty now? >> i think louisville should i don't think it will, for the reasons i gave you a minute ago. i have said for a long time,

tyler, that the reason why there is so much cheating going on, and we only know about a tiny percentage of it, this is the fbi investigation is the tip of an iceberg is because cheating pays you make millions of dollars you get to the ncaa tournament you're on tv adidas just signed $160 million ten-year contract with louisville that's how much money these shoe contracts are worth to many of these big time schools so it's worth their while to take the risk because by the time the ncaa gets around to investigating and perhaps bringing in a penalty, they have already got the millions of dollars and usually the penalties are wrist slaps. only way it change that is to give schools the death penalty and make them think twice before they cheat now they don't >> let me turn to one of my female associates here and ask you about cam newton >> so we played earlier the cam newton soundbite where he said to -- wait, let's play it again. >> play it again, sam. >> it's funny to hear a female

talk about routes. like, it's funny >> so today the yogurt company that sponsors cam newton says, they are dropping him as an endorser so i got to tell you a funny story. during the commercial break i turned to tyler and say, what's a route? and melissa doesn't know either. because guess what females are less likely to know. right? i mean -- >> not female sports writers because that's part of their job to understand the sport they are covering the young woman from the charlotte observer who asked the question wouldn't have that job if she didn't know and understand football. the thing you have to understand is that the locker room in all sports, not just football, is one of the last bastions of open sexism if you go into a locker room and there's nobody around, no tv cameras, the sexism, stories told, jokes told, are straight out of 1950s

so what happened yesterday was a cam newton let something come out of the locker room that is normally kept in the locker room that's why they talk about locker room humor. >> we were just thinking it sounds like a trading floor. i'm not sure it's that different. >> i wouldn't know that much about a trading floor. only thing i know about stocks is i pick bad ones >> so the league, neither the league nor the team disciplined, maybe reprimanded or cautioned for what was regarded as an offensive comment, certainly by the woman who was on the receiving end of it. do you expect there to be any sanction or punishment of him? >> i could see him getting fined. i don't think he will be taken off the field by any means, because he is a star but to defend the nfl, which i rarely do, they did come out forcely yesterday and say this is nacceptable behavior and

that cam newton should not have said what he said. i think he may get fined >> thanks. enjoy your books they are really good >> thanks. >> tell your friends >> he he was being cute and charming -- >> if somebody said, if you're interviewing somebody and they said to you, it is funny to hear a female reporter talk about -- >> talk about loan payments. >> i would go right back at them >> you would because it is not acceptable same thing the same thing it is the same thing >> more than 50% of the anchors on this network or females, right? it is not as extensive in the sports world yet we joke about how much we don't follow sports, right >> right but that doesn't -- i know it doesn't exemplify female >> it is overreaction. >> i think because women eat a lot of yogurt. >> could be. to the bond market tracking action, rick? >> hi, melissa if you look at to you can see it

all. what an important couple of basis points are we going to cross the 150 mark certainly looks like it as you see on this chart pr the middle of june. that's what traders are watching lastvolatility in the markets today. let's look at a september start to 10, shall we he this could be the seventh day in a reow of four basis point range let's pay attention. big technical levels as well see what the high is darn close to 94 open the chart up to july. trade above 94 a lot of traders down here say shorts will get out. if that's true, it should go through 94 to the upside traders are watching melissa lee, back to you >> rick santelli, thanks to you. >> shares are getting whacked today. down by double digits. the nation's biggest loan company is getting slapped with a lawsuit. allegations of abuse and deceptive practices. the man spear heading that suit joins us next.

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moving higher led by citigroup and goldman sachs, the vox on pace for of the best week of the year. brazil is seeing a little bit as well and very little volatility table, the vix is at its lowest level since july 27th. >> shares are down of navient are down and facing another lawsuit. allegations of deceptive practices and abuse. the man behind that suit joins us next.

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shares of student loans are down 10% of navient. navient he leareleased this sta. we comply of the rules there are no allegations that we have violated these rules.

joining us is pennsylvania's attorney, good to have you here, sir. >> good to be with you >> for our viewers that's not familiar with this, this is the old salley may the business model breach is this, this company wants to be the most preferred lender at most universities as possible. they go to the university and say we are going to increase your student enrollment and we give out sub prime loans to people that we know will not pay and we'll use that as a marking thing and you get more revenue and we make money, too >> have you describe what you this i the business model of navi navient. >> i could careless about their stock prices i care about student loan holders in pennsylvania and across the united states who's been victimized by widespread

abuse by navient with a big presence here in pennsylvania. one where we have seen students preyed upon and we have seen schemes that have caused billions of dollars that's been taken out of pockets of students we stood up here in pennsylvania today, we sue navient on behalf of those student loan holders. i appreciate navient trying to reply. their abuse have had an effect on student loan holders across the country and we are going to make sure they'll get it >> one of the things that you want to achieve is to end that practice which is essentially their business model as you describe it, correct >> we want to change corporate behavior we want to make sure that the scale is tipping in favor of those holding the loans. we want to make it where navient

cannot scam these loan owners out of their hard earned money >> the attorney generals of illinois and washington filed suits for similar claims, josh, i wonder if you cooperated with them of any united front when it comes to this lawsuit? >> navient should expect the united force going against them based on their widespread abuse of practices i am filing this suit after a long investigation here in pennsylvania based on the fact that they have a large presence, navient does, they affected thousands of pennsylvania and tens of thousands. the federal government is standing down when it comes to protecting student loan holders and therefore, we have to fill the breach and stand up. that's why i file this suit today. >> mr. shapiro >> michelle has the full complaint now. if you would zero in of what you

think of the most abuse of and why it is bad or wrong just give me the top one that you think is the heart of this case >> there is so many abuses here is one that's particularly horrible when it comes to these student loan holders navient had a program where you can repay your student loans based on your earnings instead of steering these student loan holders towards that, they put them in a risky steep where they jacked up the interest rates and ultimately that scheme costs student loan holders $4 billion >> that's $4 billion they should never had to pay in the first place. because of the marketing practice, because they directed people that way. these student loan holders left paying $4 billion more than they needed to. there is so many abuse of practices and widespread abuse, that one is particularly

>> mr. shapiro, thank you very much amazon is testing its own delivery service, what it could mean for fedex in ups and the world's most expensive coffee, we'll try a cup. the second hour of "power lunch" begins on the other side of this break.

welcome back, welcome to this second hour of "power lun p lunch. >> congress is taking their first step of making their new plan a reality betting big on uggs. deckers outdoors could double the next few years that's a lot of uggs he will make his case on his battle of buffalo wild wings we'll taste test the world's most expensive coffee. "power lunch" starts right now

a check of the market right now, the dow industrials and s&p 500 and nasdaq are up by 3%. goldman sachs and microsoft and apple are down tech select is at a 17 year high is at 1.5% for the week. >> constellation reported better than expected earnings and netflix says they'll raise some of its prices. the house is voting for approve the 2018 budget. we are 90 minutes from house speaker paul ryan. he's in maryland to bang the drum for tax reform. ylan mui is live in washington with the latest. >> reporter: michelle, step one is done. the house is passing its 2018

budget earlier this morning. that's a first step of getting tax reform done. president trump applauded this move and he put out a statement calling it a key step towards making america great again house budget committee chairwom chairwoman, diane black, says it is critical getting through the process being able to pass reform without any help from democrats. >> this is the golden key to unlock tax reform. this is very important that we'll be put into place and are able to do reconciliation >> now it is up to the budget committee and debating a budget resolution, that's the one that calls for $8.15 trillion tax cut. we are not expecting that to happen until early september

republicans are hoping that today's vote will help them build some momentum around tax reform house speaker paul ryan is in maryland today touring a factory. guys, he's trying really hard to keep this ball rolling so they can get it done by the end of the year >> ylan. thank you very much, the house did it job, now it is up to the senate to move ahead with tax reform joining us the former chairman of council of economic adviser of the obama white house and executive adviser under george w. bush two guys are good friends, welcome to both of you doug, i am a little confused, how big is the tax cut we are talking about here, what ylan said is $1.4 trillion and how big is this are we talking about? >> passing a budget solution to

support the revenue reform, that was the oraniginal plan. those don't match so they'll have to get together to have a conference and settle on a final number until then, we don't know for sure it is a fair amount of work left >> forget me for being a little thick there. the 1.5 trillion is the increment of the deficit or the amount of the tax cut? >> it is increment produced by any tax legislation. >> so austin, it sounds loike fo people on the gop side who says i don't want anything that's going to raise the deficit like senator corker and others, they're going to have to getaway on board of what's known as

dynamic scoring which means the volume of the tax is going to create growth compensating for growth revenue or they'll have to find ways to pay for it it is a pickle, austin >> correct indeed. if you are going to run a marathon, you will are to care a lot about your nutrition well, you got to eat a good breakfast if you are going to run a marathon we had a good breakfast today. they have not started running a marathon all they did was eat their breakfast, this was expected and everyone resume that they're going to pass some budget. the hard part is exactly what you said that donald trump has oprah likes it -- you get a car and you get a car, if you add all those up is $6 trillion. how are they going to tell some people they don't get the tax cut is where the rubber hits the

road is. >> let me turn back to doug and you can talk about breakfast or whatever you like. on the one hands, you got in the gop where people don't like the idea where people expanding the deficit or the national debt there are a lot of blue state people in congress, california, new jersey, new york, and massachusetts, who are going to be really resistance, it would seem to me, they plan to deduct the state's and local income tax. >> you can see right away the house and the senate did not start in the same page there is some disagreement on how to structure this. the reality is that. there is no tax plan yet there is a framework that leaves out an enormous number of key details where the tax bracket starts and where does the dividend capital gains rate and i can go on. once we actually get a

chairman's mark in the house when it is chairman brady of ways and means putting something out, it looks like it will do in terms of any deficit it would produce. and regarding the state local tax, the important thing to remember is that nobody should pretend their choice is tax reform or without the deduction. if you do that, everybody has a special provision they want and simply don't get tax reform. the real choice, do we want an economy that's not growing fast enough and a tax break that's broken and verses the reform that's the real choice >> lets get real, it is not a tax reform it is a tax cut. >> austin, you don't know that donald trump released the outline of a plan that's not a tax reform it is a massive tax cut. >> it is a froeamework --

>> it is misleading och it is an agreementbetween the house and senate and the white house by a framework where they'll actually draft legislation. when you see that, -- you cannot say anything based on the frame. >> you can say what donald trump administration put out in which they outline details of what the rates would be and all the various tax cuts >> where does the rate supplies? >> those adds up to far more >> you cannot say that >> with a question for both of you, why do we see, doug, to know so little so late in the game about the particulars of spg where it has been a legislative priority of the legislation and the gop and the whole year what is the tactics behind that? >> i think probably reflecting some disagreements among the

principles tax reform is hard it fell behind schedule. i think those are the main reasons. the important thing is recognize that doing nothing is dangerous for america. we really are not performing well we had full-time employee workers in 2016 their real earnings rose zero that's a terrible perform masturbatining. >> what would take it to a tax cut to a tax reform in your view where does it cross the threshold in to reform land? >> if you are doing that in a revenue neutral way so that you are paying for r the tax changes and the reductions of the rates. i think you can get a lot of people on board and a lot of democrats reason board i think what they have outlined so far is overwhelmingly not that if you stand at the edge of a

great leap, do not take a step forward. >> thank you >> it is reform because you disin incentividi disincentivize >> to me, reform is consumption tax. >> here is what's coming up on "power lunch" where he thinks retail outdoors can double >> we'll bring you those details and you heard of electric cars, how about electric planes? >> the new tech that can change the way we fly all that and much more coming up on "power lunch.

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uchlt we showed you before the break. we want to bring in meg terrell of a look on that. >> that's right. it is a review case on one of these kinds of patent challenges the lung cancer drug eli lilly

>> of course we are seeing up of 2.8% there a lot of patent shaping out in the world today. >> that's specifically concerning it is part of a colossal of new pcs canine inhibiter for that class of drugs it is a good question. people are disappointed commercially and how these canine drugs have been doing so far and whether there is been

any concerns among doctors to prescribe regeneron. this term in terms of the decision itself, the drug did not strike down the key arguments of the case this one is not over yet >> cigna is refusing to cover oxycontin. >> that's right, they announced this value based contract of an abuse detergent of oxycontin

they're going to get a discount on the medication if the dose s dosage cig buo cigna is saying in a statement, drug companies don't control prescriptions, of course, guys, this comes through a ton of scrutiny in terms of their role and opioid crisis. last month, the state general wrote a letter of health insurers this is a response there >> meg, thank you. the conference is under way in san francisco one of those managers is nick mcguire. lesley picker is joining us now with nick mcguire, take it away. >> that's right, thank you very much for joining us.

yesterday at your conference, it seems like this strategic review that the company announced back in april is kidney nd of the en and be are, what results would you like to see? >> well, it is glad to be here lesley, and thank you for having me >> of this process, we are kind of the outside looking in and we know what the company has announced. we are still just waiting to hear what if anything comes from the review process our present presentation, we ar focusing on the profit margins in terms of the capitol of that business and using proceeds exiting some of their non-core businesses, the combination of that we think creates a lot of

values three months ago, you sent a letter to the board saying that you wanted to see sales. yesterday, it was more of spinning off some of those non core assets of the brands that they have. which would you prefer and which would you like to say? >> it depends on if a sale is possible our message as a company is that the status quo is one neither we or a lot of shareholders are satisfy with if the company is not to be sold, the direction that we troy to lay out in the presentation is one that we think is important. at the same time, all boards should be, you know, always considering the alternatives available. if there is an opportunity to participate and consolidation in the industry at an attractive price, we'll encourage them as well >> the company says you have engaged a discussion with them,

it is a long process since you nominated the director a couple weeks ago. you think this thing actually goes into a proxy fight of the stage? >> it is difficult to say. i would say it is too early to say. we have nominated a group of candidates that we think are exceptional. we spend a long time of searching those people embedding them and if we find ourselves on december 14th in a vote, we think the strategy that we are asking to pursue in people that we nominated to do that are compelling >> we have seen a wave of bankruptcy and retail basis. and engaging in zombsome buy bas how do you fit in all the challenges that's going on and does that leave enough cushion that ifthey do whine up in som

sort of trouble that they couwo be able to support >> we do make a distinction between a physical retailer that sells other people's brands and products and manufactures and brands and products. in the case of deckers, they are the company that makes the shoes and it is cheerchoice determining how they deliver those products to consumers. it in recent years they chosen to do that at a time when all physical retailers are looking to shrink. we think that has been a big part of what's been weighing on profit margins and returns one of the primary things we would like to see them do is be more aggressive is reducing retail space from a capital structure standpoint, one of the things we scratch our head of the company of a $2 million cap, we think it could have $500 million net cap on the balance sheet

it begs the question why it is responsible and why it is there. >> mick myck guycguire >> thank you, the relationship and what it could mean for the market

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welcome back everybody, i am sue herrera with a statement from the nra, of bump stocks a fairly long one. basically what they are talking about is the fact that they believe that those bump stocks which turn a regular gun to an automatic gun should be subject to regulations they are saying they are urging congress to pass the national rights to carry the reprosperity act from acts of violence. they are saying that banning guns from law-abiding americans based on one madman will do nothing to prevent future

attacks. this is a fact that had been proven time and time again in countries across the world the association is calling on the bureau of alcohol and tobacco and firearms and explosives to review whether these bump stocks devices comply with laws. >> that's the latest statement from the nra, i will send it back to you guys. michelle, i believe i am tossing it back to you >> thank you very much >> at the same time, something they have been pushing for to make it more national for concealed carry regulation to make it easier and more systematic >> concealed carry or open carry, too >> yes, more national system that makes it more of a driver's

license zone >> i believe nevada has an open carrier but not concealed carrying that. >> in the meantime after the massacre, there is been a run as you can imagine on bump stocks they are out of stock where ever they have been sold and on the website for one of the manufacturing slide fire they cannot service the orders as we see with the threat of tighter gun regulation and people going out and buying guns, they're buying bump stocks >> all right, we'll take a quick break tashe dow continues to rally forward. we'll be right back. they don't invest in alternatives or municipal strategies. what people really invest in is what they hope to get out of life. but helping them get there means you can't approach investing from just one point of view. because it's only when you collaborate and cross-pollinate many points of view that something wonderful can happen. those people might just get

what they want out of life. or they could get even more. what they want out of life. well, it'sonce again.eason >>yeah. lot of tech companies are reporting today. and, how's it looking? >>i don't know. there's so many opinions out there, it's hard to make sense of it all. well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings estimates into a single data point. that way you can keep your eyes on the big picture. >>huh. feel better? >>much better. yeah, me too. wow, you really did a number on this thing. >>sorry about that. that's alright. i got a box of 'em. thousands of opinions. one estimate. the earnings tool from td ameritrade. so what else is new? humm..she's doing good. she needs more care though. she wants to stay in her house. i don't know even where to start with that. first, let's take a look at your financial plan and see what we can do. ok, so we've got...

we'll listen. we'll talk. we'll plan. baird.

hello once again everybody, i am sue herrera lyndsey graham unveiled a ban, most late term abortions >> we are trying to convince the course that legislative bodies like congress and at the state level have a legitimate, compelling state interest to protect a child at the fifth

month of development from excruciating pain that would come from an abortion. paris officials are investigating a gasoline canister found under cement truck belonging to a company for allegedly striking deals with isis there is no comment from the company. danon parent cutting ties with panther quarterback cam newton >> some people say routes and routes, some people say, none the less, the deal had been cut-off. there you go >> back to you major indexes of the s & p, if it poses high today, that would be its sixth record lows

the dow is high by 94 points and s & p is up by 12.5. >> the oil market is closing for today. lets go to jackie deangelis. >> good afternoon, oil is holding for $50. >> first, the saudis is meeting with the russians today. a continued effort to cooperate on curving supplies second, keep in mind of tropical storm nate after the storms that we have seen so far. that's enough to raise concerns of supply disruptions. today's range is $49.85. to 51 $22. the market is not convinced that the direction is lower just yet. back to you, michelle. >> thank you, jackie >> as jackie mentioned the

historic meeting joining us now is our local commodity, welcome back. >> thank you for having me >> i was struck by the extraordinary pictures the saudi hates the iranian as n the russians they managed to get over that. >> i think we are looking at optionalty when it comes to their friends. this is a first visit by the saudi king after to russia >> he made one of his first trip to russia and he's been looking to upgrade this relationship so they disagree on syria but they can work on a whole host of issue. >> does this mean we'll see an agreement to control the outburst >> what's interesting is putin took charge of the narratives

this week. the officials came out and poured cold water and extending beyond march, we should not extend and putin comes in and essentially says not only we may extend out in march but all of 2018 today the saudi are saying we'll consider extending for the whole year as well i think we are looking for continued coordination >> i see that the oil market did not move so much, we did not seem to believe him. >> it is important when you call afallah out there and the minister is coming out there talking about extensions beyond 2018 that was a new development yesterday when putin came out and said we may go to full year. today is like wow, the saudis are saying it, maybe it is something that we'll look way beyond its march >> if i want wti delivered, what

is the outlook for the rest of the year and into next year? >> we think we are on the low 50 range. we are watching the situation of venezuela carefully. that could push prices higher and we are watching closely what's happening that's potentially of an upside catalyst as well >> got it. sth >> thank you >> thank you for having me amazon is continuing a string of big moves this year. the online giant is planning to extend their deliver drive, that's not good news for ups and fed fedex. >> carrying the losses of what we saw today of an afternoon trade. this is how bloomberg reports

it amazon is testing its new option, two-dictatorshay shippi doing it using their own houses. what does it mean? ups and fedex will still be handling those shipments but amazon will be the one calling the shots. in a statement, quote, "we are using the same carrier partners to offer this program including the ups and fedex. perhaps, the most aggressive response is from fedex that quote, "there continues to be reports relating to our net wondering thwork and demonstrating of a infrastructure and complexity

involved." here is the thing. amazon is building out its network on cost. amazon is only 3% or less of business or ups. this does little to the gross narratives that we are seeing taken place right now. >> morgan, thank you >> lets bring in johnny who covers fedex and ups it is great to have you with us. >> thank you, melissa. >> at that point in time, what was the market discount, i am trying to understand the worse case nscenario for a company lik ups getting 5% or 10% of its revenue from amazon. >> we see that kind of sell off as a buying opportunity. we like the air freights i am sure they face threats and competitive threats from amazon and high fuelling prices that you talked about the big trend is the shift, the secular shift towards ecommerce,

that's growing of 12% a year and that's benefiting both fedex and ups. >> the pie is increasing even fedex and ups losing a slice of that pie is essentially what you are saying >> the second quarter revenue for ups is up 8% fedex had a problem -- >> in terms of their relationships, how sticky is that is part of that contractual, we are going to handle that last mile delivery. they cannot necessarily switch the business off >> and it is all about service, i think fedex makes a good point of the infrastructure involved fedex owns 650 that's going to get packages there on time.

>> the tense when i look at the story, is that oh, those guys are going to lose amazon's business, is that amazon is going to be their business and is going to push into their business and take away their business as they have done in so many other areas >> is that a possibility or it is way too much scale for them to achieve >> it is an enormous scale if amazon were going to do it. amazon succeeds just about anything it does it is going to take years and meanwhi meanwhile, like we said earlier, the overall pie, not just amazon is growing a double digit rate i think there is good growth ahead. they're pretty confident >> we are talk about the risk of ups and fedex here >> what's the risk of amazon in doing this >> in other words, they'll have to spend a lot of money if they want to build that network that

carries extra percentage of its good >> it would be expensive i am sure amazon will run the numbers and they will see if they can get back better sales and service, then they'll probably go ahead. >> when you look out ups and fedex, i am wondering if there is concerns of other major customers who can go that amazon route and of some packages i am only saying that because you got amazon doing that. across the world, you got alibaba making tremendous investment as well do you take a look at walmart and maybe they can handle more and other major retailer >> i think you are always going to see those risks these companies have networks in place and at the end of the day, goods need to get there in two days or less right now, you know as ups and fedex, they can do that best

>> john eade, thank you. all right, we'll take you inside the bigger stories in the skies and we'll taste the most expensive cup of java in the united states. "power lunch," is back in two-minutes. ♪ feel that? that's the beat of global markets, the rhythm of the world. for most, the cadence of today. to us, the pace of tomorrow. it's people and machines uncovering opportunity. cloud computing providing endless capacity. blockchain making transactions safer and faster. new markets born where they weren't before.

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we have talked a lot about electric cars. now, seattle think they have what it takes to make planes electric >> it just does not make sense right now. we are starting to see the equation turns a little bit. take a look at this, this is zunum aero, because of lithium battery is lighter and greater

range, cthey believe by 2022 thi hyper electric planes will be cheaper for companies to operate. >> our cost is about 60% or 90% lower. these shorter lengths they are below of what a regional jet would be >> they are targeting those shorter lengths and small hops between smaller cities within the united states will seat up to 12 people, at least the first model will again, there is a guest turbine assist engine on this plane. 80% of lower emissions and noise level. the funding coming in part from boeing and jet blue and boeing today announcing that it has brought a rural flight sciences. they are specializing and have been specializing in developing autonomous aircrafts and

aviation robotics. air bus and executive over there saying in the last 24 hours that in the next year or so, they'll have the first flight of their robotic air taxis. >> now they'll have pilots at first but eventually the idea is they can be autonomous a whole new world is coming at us in terms of air draft >> autonomous planes >> they are basically autonomous now. >> i know, i know. >> a lot okay all right. >> i am going to own that. >> thank you though. >> i like autonomous cars i don't know why i cannot wrap my head around autonomous planes. for the ultra wealthy riding a 12-seat jet is so last year. a converted of all luxuries. robert franklin speaking in the secret lives of the super rich >> this is the private jumbo yet.

it comes with our own mixolo mixologyist and a price tag of $55,000 an hour. >> the fancy flight kicks off with a glass of champagne handed to you by your own sky butler. >> if you want to continue, somer up to social lounge where your favorite cocktail will be made the plane houses a wine cellar custom custom inspired meals all inspired by executive chefs. >> that's about $375,000 and the vancouver hockey team took it to china about half a million dollars. >> i don't know what they'll

serve in terms of coffee we have the world's most expensive coffee there is a place in brooklyn called the extraction lab. they make the special machine. >> they have the beans and the ground they used this stuff cost $500 a pound >> what? >> it is grown in panama >> it is called geisha >> can we taste it >> check it out. >> it has a wonderful aroma. >> it is delicious >> it is floral and flowery. >> no bitterness >> what do you think of the finish >> it is delicious >> this coffee actually won the world's brewer championship in europe scoring 97% in coffee

you are drinking the best of the best >> what makes it expensive >> it is the rarity of the beans and where wheit is grown. >> they have the variety they don't make -- when these places get these beans, they sell out at $18 a cup me immediately. >> that determines the price the most expensive, it used bow in indonesia where they feed coffee bean to a cat and the cat digests it and after it passes through, -- i did not serve it to you today, thank you. [ laughter ] >> there is no after taste to this, either >> it is beautiful >> it is really, really lovely

i will have this every morning every morning since i was the second grade. >> what? >> i remember watching captain kangaroo and having a cup of black coffee >> your parents gave you sugar. >> your parents gave you -- >> i came home one day, i said i'm having a hard time staying a a a awake in class said have a cup of coffee. >> somehow i can never imagine tieier not having enough energy especially as a kid. >> you're nice to say that fourth grade, it was the cigarettes catch a new episode of "secret lives of the super rich," tonight, cnbc, 10:00 p.m. eastern time >> all right netflix announcing it will raise pur amg y 10% on its most polastreinplan what does this mean for the stock? we'll get the reason from two top traders straight ahead on "trading nation.

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its most popular plan to $11 let's bring in the "trading nation" team eddie, what do you think >> yeah, it's impressive move today from netflix i got to tell you, you know, they're raising the price not

because they want to, but really because they have to this content business, which is what they want to do, it's a costly business. requires a lot of money. having a hit show is a great business to have, but getting those, you know, to market, costs a lot. the great one from netflix, i think, this is a good opportunity to sell the stock. it doubled in a little over a caree year, i'd take prophfits on it right now. >> what do the charts say about where the stock is right now >> i disagree with eddie, melissa. here's why if you look at the chart with e pulled up on the screen, we've broken out of a nice consolidation range starting a whole other leg higher i get it the stock is up 50% year to date, best performing name in term of the faang stocks up 27% since july. the stock is breaking out again. looks like the measured move could take the stock up to 215, maybe 220 over the near term here, so we continue to be buyers of the stock at this level. >> eddie, i'm curious, views of netflix, did they change based on the price hike or did you

also think that prior to this price hike, prior to the 5% pop, you should sell the stock? >> no, they haven't changed. basically comes down to the economics. i mean, this is not going to be their only price hike. they're going to have to keep doing this really what we're going to find out is what kind of pricing power net flflix as a company h. >> you think customers will bolt if they raise another buck twor two s two? >> not yet you have disney competing with them at the other end. >> all right, guys, going to leave it there thanks, craig and eddie. for market insights, go to tradingnation.cnbc.com. "check please" is next and now the latest from tradingnation.cnbc.com and word from our sponsor. >> a double bottom is a chart pattern that suggests a down trend may be ending and ready to reverse. sometimes called a "w" formation because it look like a "w," a double bottom occurs when prices aund wo distinct low on a chart

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what's critical thinking like? a basketball costs $14. what's team spirit worth? (cheers)

what's it worth to talk to your mom? what's the value of a walk in the woods? the value of capital is to create, not just wealth, but things that matter. morgan stanley lunch. i'm seema mody want your attention to the shares of ka secasino operator, in conversations with pinnacle entertainment based in las vegas, owns and operates 16

gaming properties. penn national up nearly 5% should there be a tie-up between these two companies, we're looking at an enterprise value of about $12 billion tyler? >> seema, thanks very much. folks, i spent yesterday in the cyber summit in boston very fascinating place edward m. kennedy institute. our main venue was a scale replica of the senate chamber. >> really? >> first and only time in pie life i was able to walk into a room and say the senate shall come to order. and that we began the day. but my takesayway there, a day where most of the stuff went right over my head, because it so many high-level individuals here, was the idea that decades ago, years ago, not that long ago, so much of the cyber security and computing science knowledge resided in the government but there was the cia, the nsa, the defense department now even the government officials who were there acknowledge that most of the talent, the cutting-edge stuff

in cyber security, the engineering talent, resides in the private sector not to mention that the private sector knows a lot more about us than the public sector does. >> and they monetize it. >> and they monetize it. >> yep. >> exactly all right. thanks, everybody, for watching "power lunch." >> "closing bell" starts right now. i wanted to go back to tyler drinking coffee as an 8-year-old. >> in the second grade, yeah. >> that was the news for me today. welcome to "the closing bell," everybody, i'm kelly evans at the new york stock exchange. >> didn't start cigars until the fourth grade early bloomer. i'm bill griffeth. here we go again another record day for stocks. the s&p on track get this, for its sixth consecutive record close and that would be its longest streak in 20 years >> yeah. >> believe it or not. >> to keep hitting those records right in a row, day afte