>> yes you know, we write about it pretty regularly it's become an important focal point of our business. >> how do you think about bitcoin, rob >> listen, i think currencies need to be of store value. i don't think it's proven that yet. >> my bad, we're almost done give me a name >> i brown bitcoin. >> xl retail. >> have a great weekend. "power lunch" starts now i'm michelle caruso-cabrera. tesla's ceo elon musk unveiling the company's first big rig, already has its first orders, but tesla also unveiling another pretty surprise. is it enough to blow away investors' minds owning a home, long the american dream, but it may not help you build wealth. surprising new data to make you think twice about buying a

house. "power lunch" starts right now ♪ welcome everybody to "power lunch. when i buy, it is the peak when i sell it is the bottom. that's my life story stocks, they are down this hour. the dow and s&p 500 both on trek for a second straight down week, but the nasdaq is on pace to finish the week higher watch the bond market, folks yields on the two-year treasury note hitting the beginning of the financial crisis a 1.71%. check out the etf that tracks energy we are on pace now for the first week in more than a year big moves in retail to tell you about. abercrombie & fitch up 25% on earnings ross is up 10% footlocker up 25% on its

earnings more on that ahead the death of retail may be exaggerated. we're watching apple, the tech giant delaying a key launch of a crucial holiday product. more on this coming up melissa? ty, i'm melissa lee twenty-first century fox is reporting that verizon is also reported in acquiring them disney was interested in buying assets now it is at $30 and change-up by 3.7%. verizon is higher. comcast is down by 1.6%. we'll get the latest now from david faber who is joining us now. david? >> thank you, melissa. we'll focus on comcast here because that's the new news. and frankly, verizon not clear to me anything is real there in terms of a real approach made to fox or any talks that are taking place, but that is not the case with our parent company comcast, which has been talking to fox about the possibility of buying

that same set of assets that fox was also in talks with disney about selling to that company. in both cases, fox would take as its consideration for this large group of assets stock, either stock in comcast or to go that route if they were to reach a deal sufficient for both sides, or stock in disney, which leads to an interesting question for fox itself in terms of which currency would prefer, of course, the first order of business would be actually figuring out a deal and the value specifications perhaps comcast might be more willing to do that in the past, brian roberts has certainly been free with money when it has come to actually spending it, even at what people have said is a relatively high evaluation dreamworks, for example, the most recent example of that. but the company has been built to a certain extent on acquisitions at an trkt&t and universal buils into what it is today. but it wants to get bigger

and the adding international assets at fox that includes a significant ownership of sky and star, the distribution network in india, that is important for comcast, potentially, not to mention the studios or the ame channel or the cable networks or the studio or, in fact, the ownership of hulu, which may be nbc universal could be in a position to actually control once the sign with the government, that being comcast did, when it bought nbc universal years ago expire, let's call it this august or so. none of which is to say this is going to happen. either with disney or with our parent comcast any trust question marks are all over this. meanwhile, the potential opposition to at&t's plan to buy time warner, whether or not they will come there, if that is the fact of the matter, if they do actually bring an objection there and go to court, well,

that would certainly have to give everybody pause as to whether the government would ever allow comcast to get bigger in content and so we have these question marks around it, but we also have what are talks going on, low intensity with disney, perhaps a bit higher intensity given the more recent talks with comcast. none of which may lead to a transaction, but all of which point to this overriding theme, which is, fox believes perhaps that it is not simply large enough to compete in a world where scale is so important and the likes of facebook, google, amazon and netflix are the dominant providers tyler, back to you. david, thank you very much let's talk more about this news and what it could mean for the media landscape. our next guest as written for "the new yorker" for more than two decades and authored 11 books on the media industry. we welcome back ken oleda. ken, great as always to see you. you are perplexed, aren't you, by the possibility that fox would want to sell what you see as pretty nice cash generators

explain. >> well -- first of all, i'm confused by why robert murdoch wants to sell this he has control of the stock so you can't sell it for a hostile takeover of fox. but i don't understand, and david faber brilliant pioneered the reporting on this story, but what i don't understand is why they would want to sell the tv production arm they can't sell the network. but most of the shows on fox network are owned by fox, all or in part. that's a huge cash generator and by the way, not just in syndication and sales overseas, but allows them to sell over $250 million a year to places like netflix so why would you sell that i don't -- i literally am puzzled by that. >> so david -- go ahead, finish your thought >> i'm sorry also, when you space this out,

if, in fact, they want to sell lots of assets and are going to keep fox news and are going to keep the newspapers, which are not, are a drag on earnings, actually, then you could actually see other players getting it and they would sell pieces they can't sell the network to comcast because they already own the network and they couldn't sell it to disney because they own the network. they could sell the network but to sony or verizon you could see potentially selling pieces of fox. >> does it -- does it perplex you at all that some of the potential players like google or amazon haven't been mentioned in any of this conversation because they could gobble up fox very easily, i would think >> but i'm not sure they want to i mean, why would they -- fox is not the kind of growth industry. i mean, they have 30%, 40% profit margins, fox doesn't

match that and why would they want to be exclusively fox-related content when, in fact, they can buy content from everyone, which is what they're doing and one of the reasons why content companies like fox are worried as they think about the future, how do they compete against netflix and google and amazon and apple with deep pockets who can afford to pay many times more than they can per hour or half hour of television programming >> well, that's as david suggested toward the end of his report, is that they feel perhaps that they just don't have enough scale to compete when i heard you describe the first scenario there, well, why would they sell this, because then they would have this? well, maybe you could have verizon or sony buy it it sounds like what you are describing is a self-imposed break-up >> well, it could be that, if, in fact, fox is determined to do that i don't know why they would enter these discussions if they're not prepared to do a deal because if they don't do a deal,

their stock is likely to get hammered so i think that they are sniffing around. i would just add this caution. i mean, i remember writing about when time warner merged with aol and they said, we need scale and we need synergy. one plus one equals four, they said you remember what happened with that, that was one of the worst debacles in the history of mergers and acquisitions so i know this is a very common view and there's a fever out there now. where content companies are saying, with eneed scale but oftentimes scale makes you too big and too slow and you can't compete. so i'm skeptical i don't accept as a given that you need scale maybe you do, but maybe you don't. >> the fever's also pushing up shares of viacomm up by 9% in today's session. do you think that this now puts a lot of other content-focused companies in play? that this merge or urge to merge will continue? >> yeah, i think it does

and some of it is just defensive. you sit there and say, oh, many i god, fox may be sold and maybe i should get in on the action now, either to cash in or because maybe i'm too vulnerable and have to cash in. but it's -- it's a fever and i think it -- cool heads need prevail. >> you just mentioned time warner, a place i used to work for time incorporated. and you're a magazine guy, you must have your eye, at least in part, on what's going on at time incorporated apparently, offers now for a $2 billion price from meredith. they've had flirtations in the past and they even hired a former meredith executive as a ceo a few years ago. it lasted six months and they said, he's just a bad cultural fit. do you think this is a probable deal there that meredith will snap up time and what do you see as the koch

brothers' interest in it >> well, meredith had been rejected by time because they didn't think they could do the financing before the koch brothers coming in with a half billion dollars obviously makes them a very viable financial bidder on the other hand, i would assume that the koch brothers have an interest in the politics of it, in having more of a conservative voice out there than say "time" magazine and the other public cakes publications sinclair has a bid to buy the tribune companies. if they succeed, they will own 72% of all the tv stations and they have a pro-trump view so all this is going on. and then you've got the government and the trump administration presumably would favor moves by these people who are politically allied but government in another administration may not

so they are real open questions, not just about who can afford it or who would want to sell and who would want to buy, but questions about what is the government's role. >> the sinclair role is a good one to look at the government seems to be arguing that too big is too big. we can't let these companies get together but in that case, i haven't heard much about a concern there. ken, thank you very much for your time. we appreciate it, as always. >> my pleasure, tyler. >> thank you turning now to more of the latest in washington as the future of tax reform now in the hands of the senate. elan moody is joining us with the latest >> reporter: republicans are planning to bring a tax bill to the floor of the senate after thanksgiving majority leader mitch mcconnell calling this must-pass legislation. republicans know they have a hard deadline here treasury secretary steven mnuchin was on cnbc earlier today and he explicitly said the president wants to see something

on his desk to sign by the end of the year. >> we are very excited about the timeline yesterday was a huge day in terms of the house passing the bill that's a great move forward. we're going to have the senate, as soon as they get back from thanksgiving, vote on the bill and our expectation will go to conference right away. and we have every reason to think we'll get it to the president's desk before christmas for him to sign. >> this is not a done deal, however. given the individual mandate, that's causing consternation among fellow republicans lisa murkowski said her support is contingent on passing a bipartisan deal to stabilize health insurance markets meanwhile, senator bob corker tweeted this after the house passed its tax bill saying that washington is partying despite the country's $20 trillion debt. so there's still a lot to iron out here, guys, and not a lot of

time to do it. back over to you >> thank you, ylan in d.c. and good afternoon to you, melissa. the number of u.s. oil rigs was unchanged this week at 738 that's up 267 from a year ago. that's according to baker hughes if we get another increase this week, since it is more attractive to pump when oil prices are elevated, it doesn't appear that's the case or that u.s. drillers are being too aggressive here for a fear of depressing prices. back to you. >> thank you, jackie deangelis tesla unveils a design of its semitruck. walmart is signing up to buy them can this drive the stock higher? "power lunch" is come right back the classes, the friends, the independence. and since we planned for it, that student debt is the one experience, i'm glad she'll miss

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elon musk promised to blow our minds with his big tesla announcement fill lebeau is joining me from redondo beach, california. kids th did this announcement blow your mind >> reporter: i don't know if it blew my mind, but the tesla semi, they believe it will revolutionize the trucking industry it will be 20% more cost effective or cost 20% less than a comparable diesel model with a range of 500 miles that's more than some people were expecting

walmart is already on board to test the tesla semi. and they pre-ordered 15. here's elon musk >> we designed the tesla truck to be like a bullet. so as a normal diesel truck is more like a barn wall, this is a bullet >> reporter: all right you want to talk about a bullet, check this out this is the new tesla roadster that goes 0 to 60 in 1.9 seconds. it will have a range of 620 miles. >> if you travel from l.a. to san francisco and back at highway speed without recharging top point of doing this is to just give a hard-core smackdown to gasoline cars >> reporter: not surprisingly, the tesla fans in attendance last night here in southern california, they love what elon musk had to say about the roadster, about the truck, but you know what we didn't hear anything about, guys

the model 3. not a peep was mentioned about the model 3, either by elon musk or by those who work for the company in advance, when you would ask questions, they say, tonight we are only here to talk about the semi and later on about the roadster but you know what? analysts are talking about the model 3 and the number of notes today, they all say the same thing, none of this removes the questions that are hanging over the company regarding its latest model. guys, back to you. >> yep, big questions there. phil, thank you, phil lebeau from redondo beach joining me to talk about the biggest tesla bull on the street, he has a $500 price target thank you for being with us. >> thank you for having me. >> when i hear about the semi truck, all i think is all the money tesla has to build in order to build this truck as well as a super charger or the mega charger network that it promises to have >> well, look, i think what we saw yesterday goes beyond the spreadsheet. i mean, what you're witnessing is classing disruption and tesla, with tesla, there's a

real fervor for the brand. and we think the infinity for the brand will translate into some real dollars and cents. there is obviously an operational piece to figure out, but they are in excellent position. >> you are an analyst and can put this into a spreadsheet, so how do you value that considering we are not sure how much this is going to cost, even though it is disruptive technology and early indications from walmart indicate there's interest amongst the users of the class a, the heaviest classification of truck out there. we don't know how much this will cost them. they burn a billion dollars in cash every quarter >> all that is true, melissa, but scaled we think there's model 3 demand in excess of 500,000 units per year and they can get there by the end of the decade. and if they are, you know,

you're talking about $25 billion plus in revenue and billions of dollars in cash flow that, i think, will take care of the issues around funding and capacity. >> so to underline what melissa is talking about, you just acknowledged everything sub scale. they have to get to super scale in order to get past the cash burn they are going through right now. you are convinced that can happen and when do you think that will happen >> it's going to take some time. there's no doubt that there's an operational piece here that has to get figured out but number one, there is no competition on the horizon they have gone through this before with model x. they put a target, an aggressive target, for march of next year to get production to 5,000 units. if they can get there, you will see volumes scale and the cash flow will follow. >> do they lose money on every car they sell right now? >> yes, they do.

this would be profitable today, but this is sub scale for a lot longer our thesis is that our company can get to the early part of the next decade. if they can do that, you're looking at revenues of $60 billion and a target price well in excess of $35500. >> we have not even talked about the roadster yet that seemed like an interesting vehicle, one more thing steve jobs-like reveal there this seems like a margin opportunity for tesla. if i were a bull, i would be latching onto this car. >> it was a total steve jobs moment and i think it just comes back to what we are saying earlier, that there is a lot of enthusiasm for the brand, for the tesla brand. model 3, model f, model x, the new roadster and the trucks. and this enthusiasm isn't going away tesla is providing customers with a wonderful user

experience and if they can just figure out how to produce this car, they are going to be selling as many as they can make for a really long time. >> asking for the full payment up front could probably help them >> yes, probably >> romit, thank you so much. coming up in our next hour, the legendary auto executive robert lutz has been a long-time tesla critic we'll get his take on this latest announcement. but first, the truth about buying a home, is it really the best way to build wealth "power lunch" will be right back

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

everything you have been told about buying a house is about to be thrown on its pointy little head. a new study says it's not the best way to build wealth and diana is here to explain that. >> reporter: if you are thinking about buying one of these and thinking it will make you money over time, if you live in this, consider this. owning a home may help you save money, but it is not the optimal way to grow your wealth. at least that's the finding of economists at three different universities who collaborated on a study of home ownership. they found that households can make more money investing in stocks and bonds than they can owning a home and waiting for that home value to appreciate. so yes, owning a home is historically a safe place to hold your money, but not to grow it of course, all real estate is local and price volatility varies market to market. so the researchers matched local

markets with comparablcomparabyt portfolios for this to work, the renting must invest the savings from renting into stocks and bonds. if i'm saving $100 a month compared to the monthly cost of owning, i can't spend it on shoes, i have to invest it and owning a home means property taxes and everything that leaks and breaks with that and the renting is looking more attractive you can't renovate a rental, which is my favorite thing to do >> thank you, diana. footlocker is on pace for their best day in 40 years after a big earnings move. is today's move going to be a short sprint or the start of a marathon we'll bring in footwear analyst, sam, great to see you. >> good to see you thank you for having me. >> these results of the third

quarter were less bad off of a very low bar management says for the fourth quarter, it may be able to beat expectations this is why the stock is up so much >> yeah, look, a lot of the numbers that were coming out, a lot of the information coming out from other retailers, was sort of signaling a very bad number so this is moving the stock a lot. the other thing you have to be aware of is that the inventory levels were exceptionally clean from a dollar perspective. they still have some mixed things to clean up, but i mean, on a forward supply basis, it is under 13 weeks, which means they have lots of flexibility and appear to be moving in the right direction. >> what -- what in this quarter really makes it better than it was as a company or as a stock a week ago or even yesterday because if i'm an investor, i remember the last time they reported earnings and the stock had fallen the most it had fallen since 2008. so you're really burned by this stock at this point.

>> yeah, i mean, we stayed on our buy rating because we felt like the controls they had in place were sort of overdone or were overdone. and we also felt like this was much more of a messaging issue than anything else we think that there are targets to stay focused on being a premium multi-branded retailer is very important. and they are sticking to their guns, why they are promotional, it is to clean up inventory and drive sales. they want the premium product, but they need to make sure there was enough of it and change the way they flow it, as to the increase or the consumer's lack of attention span, or the shorter attention span. >> forgive me for not knowing the answer to this, sam, but what is their presence in the digital world, if any? >> well, they are doing just over 10% of their business in

ecommerce/mobile they've had it for a long time and they actually make money with it. big opportunity, though, that the banner, they have east bay, which is their bigger part of the business and thebanner.com, champion, so on, is 10% of each banner's revenue. so there's significant opportunity there. but this is really much more of a finding the way that entices the consumer to come and starting tomorrow they are doing their week of greatness, which there's a bunch of youtube videos, some pretty fun stuff, and now they partner with nike on new initiatives or nike partners with them and it looks to mean a lot of good things down the road. however, we do see coms for the next two quarters to sort of get turned around when they can adjust the flow of product by the second quarter of next year. >> so some folks could look at

this skeptically and say the big move is probably a short squeeze. and once all the guys or women recover, then after that we're back to the stock struggling >> well, look, i think that they really prove, if you look at other retailers and so on who are basically suck coming to, oh, the market is doing this to us, the market is doing that to us, and these guys are holding their own and have commitment from their major vendors both in product and display and marketing and everything else, so i think this was a -- >> sam, what you described doesn't sound like they are holding their own, it sounds like what you're saying is, they've got to become a much, much smaller company with a tighter product line that is very expensive, not as many choices, and very high margins trying to get people into the store that way that sounds -- that's a different business model and it sounds like it will be a struggle. >> that's not what i'm -- if that's the way it came across,

that's not what i meant. what i meant is, for instance, i believe that what enticed a 16-year-old or 18-year-old kid to come into the store a year or two ago from the marketing perspective was that product always needs to get better but the problem is that the shelf life of an item might have been, you know, a month, a year ago and now it is two weeks and now they have a months' supply now they have to adjust the way they buy it. it doesn't mean narrowing the assortment but telling people the way they want to hear about it and bringing in less new product more often so less quantities more often to keep everybody enthused. >> so we have the quarter from footlocker, we had the investor day at nike at tend of october where they gave good guidance, is it too early to extrapolate that things aren't as bad for the sector does this make finish line, for instance, a buy? >> well, no. i mean, footlocker has been a -- or finish line has been a donor

to foot locker for some time could things be worse at finish line yes. but we think that -- finish line or many retailers have the attitude that if we carry it, they will come, and everything is based on product. we believe that, you know, what entices you to go into a store is more emotional. and we think foot locker is better at creating the emotional connection as far as nike goes, nike is huge and they have to -- they have a lot of things that work, but now they have to scale some -- they have to continue to scale other ideas as well as protect big franchises, which we think -- nike has their hands full over the next years to do that >> sam, thanks a lot for joining us s sam, thank you yesterday's gains are fading away right now the dow jones industrial is lower by 88 points we have seen some big moves recently is volatility back also, apple delays the

launch of a key product headed into the holiday season. we'll have the very latest on that coming up the stock, as you can see, is lower by about 57 cents.

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hello, everyone. i'm sue herrera. here's your news update at this hour rex tillerson is calling for a return to civilian rule in zimbabwe he spoke to diplomats at the state department. >> we should work for civilian return and zimbabwe has an opportunity to set itself on a new path, one that should include democratic elections and respect for human rights ultimately, the people of zimbabwe must choose their government the reverend jesse jackson says he has parkinson's disease. he says he's been seeking

outpatient care for two years and plans now to dedicate himself to physical therapy to try and slow the progression of the disease. he's 76 years old. and the highest-ranking officer involved in the 2016 arrest of freddie gray was acquitted of allcharges. that's the update at this hour back to you. sue, thank you very much the dow and s&p on track for the second straight down week. we haven't seen that in quite a while, this despite a big rally yesterday after the house approved the tax reform bill what happens to the market if the bill stalls in the senate or what happens if it goes through and the president gets most of his economic agenda as he would like to see it jason is chairman of the strategic research partners. jason, always good to see you. you have an interesting sort of statement in one of the notes of

yours, and it is this. i would like you to explain it if the president gets a big part of his agenda through the congress, the irony may be that the economy will improve but the market may not explain. >> that has a lot to do with just where we are in the interest rate cycle. the unemployment rate is 4.1%. you're pretty close to full employment and i think what generally creates business cycles and market cycles are interest rates. if you have a situation where you add a lot of stimulus to an economy that is already full employment, you may have a situation where bonds actually start to compete with stocks as far as the interest of investors are concerned. so that is largely what i'm getting at i think it will be hard to repeat this year, simply because it was a goldilocks year where interest rates stay low, the fed was largely accommodative, earnings were up a lot in the next couple of years, i don't think the market's going to weaken dramatically

but i also think that some of the easy gains you got this year will be harder to come by. >> so the basic thesis there as i understand it is that the economy could overheat, right? because that's what would cause interest rates to go up and cause the fed to move if they see inflation, but there are no signs of that right now. >> i would say that's true no signs of that right now, but the unemployment rate is, i would say, pretty close to the level. and i'm not a big phillips curve person, so you can have growth to that inflation still. you could argue that the economy is doing just fine now without a lot of stimulus. i'm all for the tax cuts especially those on businesses and capital spending but by the same token, you a are -- you have had artificially low interest rates for a long period of time the money has been very weak and you could be in a situation where you are lighting a match, maybe at just the wrong time. >> there are some people, i think, out there who say that

the market has already priced in the probability of a major tax cut. but you demur a little bit to say the stocks you have selected based on the fact they would benefit the most from a tax cut haven't really moved >> that's true so one of my partners, dan clifton, who runs the washington office has created lot of baskets of stocks that would benefit from a tax cut or unpatrioted profits. or capital spending or very high effective tax rates, those sorts of things. remarkably, those stocks haven't done particularly well they largely outperform quite a bit after the election, a lot of them peaked around inauguration day and have been weakening since then so it's hard to claim it just based on the imperical data of the stocks that would benefit from the major provisions in the tax cut that it is really priced

in i would think in many ways the market's reform, one could claim, to the rise in earnings, which have been flat for three years. i don't think there's a ton of risk if the tax cut doesn't go through actually i think the economy would do quite a bit better if the tax cuts went through. >> if the senate came out and said, we couldn't get anything through, you know, if tax reform just evaporated, jason, no impact to the markets? >> you know, melissa, it's a good question. first of all, i never -- and i don't know a lot of people really counting on tax reform. the last time you had tax reform was 1986 it took two years after ronald reagan won 49 of 50 states president trump just doesn't have that kind of political capital. so in our view, you're always looking at more modest tax cuts on corporations. and again, i think a lot of what's moved on the markets has been driven by earnings rather

than expectations of big tax cuts listen, after charlottesville in august, most of the questions we were getting from institutional clients were largely surrounding whether the president could finish out his first term. and i'm saying that in all honesty. so the expectations of the president have been pretty low until relatively recently. so i think a lot of the stuff would be an upside surprise. but again, it's the idea that the better the economy does, the more liquidity it could suck away from financial assets. >> jason, always good to see you. >> thank you thank you. and potentially higher interest rates that leads us to the bond market. rick santelli is tracking the market at the cmt today. hi, rick. >> no interest rates are higher. the intraday realizes on the day it is down 5, on the week it is down 7, which means we should look at a month chart of the spread it is getting ever closer to 60.

it's basically a fresh 10-year flat and it really tells us what the 2-year is. 2-year is up six basis points on the week but really the reaction today and a lot of head scratching on it is foreign exchange and dollar/yen at the top of the heat look at this dollar/yen, this is a big move five weeks since the dollar has been this weak against the yen and it certainly looks like it is gaining momentum as it backed away from a key level at 1.14. the dollar index is not going well against the majors. it is at a four-week low and it hasn't been able to do a minimal amount of technical holding to stand-in, even get longs a chance so many traders are trying to pay close attention around that 93.23 level. tyler, back to you >> rick, thank you very much apple delays the launch of its highly-anticipated smart speaker that was supposed to take on amazon's alexa in a steel page match this holiday shopping

season that's not going to happen now it's unusual for apple to announce a delay like this not unprecedented, though. what is going on inside apple and erwhe does this hot stock go from here? opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances. your insurance on time. tap one little bumper, and up go your rates. what good is having insurance if you get punished for using it? news flash: nobody's perfect. for drivers with accident forgiveness, liberty mutual won't raise your rates

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welcome back to "power lunch. we are keeping an eye on apple, the tech giant, delaying the launch of its smart speaker heading into the crucial holiday shopping season. josh lipton in san francisco with the details hi, josh >> tyler, apple has said that home pod would start shipping in december, but now the ship date for the new smart speaker is getting pushed out apple telling cnbc, we need a little more time before it's ready for our customers.

we'll start shipping in the u.s., uk and australia in early 2018 apple is not offering an explanation for this delay, but it doesn't mean the company now won't be able to capitalize on the all-important holiday shopping season when rivals like amazon and google will be busy selling their smart speakers it is very unusual for apple to miss a ship date, but not unprecedented. remember, last year apple also delayed the initial ship date of airpods, the wireless head phones, at the time talked about as a black eye for the company, though mpd now saying airpods leave the category of totally wireless ear phones by a big margin but it is not just the homepod, but another product the consumers have to wait to get their hands on is the new iphone 10 where the delivery estimates are three weeks out. when the company last reported earnings, i asked tim cook when he thought that would come into the supply/demand balance. tim cook said he could not predict a hard timeline. >> thank you for the rundown,

josh for more on what the delay means for apple and its stock, let's bring in edmond lee and brian white, global head of drexel hamilton. gentlemen, good to have you here ed, i'm a little surprised, there's a couple supply chain hiccups here tim cook before he became ceo specialized in controlling the supply chain, right? >> he was the supply chain master under jobs. so yeah, all the delays, the problems with the supply chain, it is surprising that it's all happening under his watch. you know, you figure he's the executive in charge and probably has other things on his plate than he had before you know, it's a big miss. because the homepod, the thing about this device, it's not an essential device, more of a curiosity. it's great for holiday time. it's great for gift-giving it's not an essential thing yet. so the fact they're going to miss that window is definitely not great. >> yeah. brian, so when you look at the earnings from apple, they are still very much a phone company, i can't imagine that this actually shifts your estimates

much, but it's a negative, right, if you're trying to build the whole ecosystem they're talking about, especially if they want to get in the home >> yeah, it is not material to the model. essentially, it's going to shift from being a stocking stuffer to some gift for the easter baskete model. when you look at the numbers, we have a million unit in the december quarter of home pod and 6 million units in 2018. that means 349 millions of revenue. people are still focus on is the iphone 10. we are in a phenomenal cycle here and we have new innovations of homepod >> so many other companies would be thrilled to have it it is only 6 million units >> for apple it is under 2 billions >> it is like the apple watch as well the one thing i know about

homepod, it is a real trojan horse for ai voice that's what amazon's echo is really about and google is working on the same thing and facebook is doing their own version and we have not seen how it manifests yet voice is going to be the key of how operating system work in the future this was one of the trojan horses amazon is known for being basic when it comes to tech hardware apple has not been endangered of that this delay could hurt them >> brian, is there any over lap what so ever that would go into the home pod as well as the iphone 10 or any over laps in terms of where these devices are. we are getting the early data point from team management the other day that supply is much better than previous launch. the supply picture looks a lot

better maybe sacrificing one in order to keep supply for the 10. >> there is a lot of components. they have the aa chip and six microphones. there is a new technology in this device, i would also say this, apple is a perfectionist, a lot of companies would push it out in the market and we'll see happens. apple does not do that the north star's great products. the last call is telling they did not mention homepod at all. i sense that it meant it could be a delay >> early for shadowing >> thank you, ed and brian >> williams-sonoma, hear what analysts are saying about those stocks, up next in "street talk." with objectives like building capital for the future, managing portfolio risk and liquidity and generating income.

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♪ time for "street talk. the recommendation stocks you need to know about we kickoff with williams-sonoma, cutting the forecast for the year credit has gone an under

performing, since so early in the cycle, sacrificing margins to boost sales estimates of flat margins of 2018, that'll need to reset and revising lower >> whharley u.s. sales are down and lingering effects of the hurricanes making shipments down to 2%. they rated neutral third stock here, bank of america is cautious on ea, specifical specifically, that's the new star wars game also, the sale could come under ea's forecast of 14 million units. >> okay.

>> final stock, rbc capital markets are saying look at what victoria's secret made us do made them upgrade the stock to out perform. 58 bucks from 40 l brand makes fundamental improvements to help boost victor victoria's sales l brands product are of apparel and declining traffic. that means people have to buy under wear >> one would hope, tyler. coming up, who's going to win the battle for twenty-first century fox. if that's not enough information for you, i don't know what is. bob lutzays sthe automotive era is ending. buckle up for the second hour of "power." if you have medicare

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welcome everybody. i am tylertyler mathis imagine not being able to feel any pain at all. no matter what it is, it is a

rare condition that exists some pharmaceutical company trying to duplicate modern pain. what bob lutz says about tesla and he will join us to explain and why we are approaching the end of the auto era. "power lunch" starts now ♪ lets get a check on the market stocks are pulling back. dow and poos&p 500 is on pace t end the week lower and nasdaq is finishing the week higher though >> srt on pace for its best day in july. foot locker we talked about that and abercrombie and russell is leading the chart there. gross margins disappointed due

to aggressive pricing. all but three components are down for this week take a look at shares. they are soaring the software company reporting on a better eps in revenue and also raise its guidance, michelle >> big news, i am michelle caru caruso-cabrera according to a new report, one and five households have zero to negative wealth. they owe more than they own. st staggering wages and students with credit card deaths are are -- debts are weighing on americans. nebras big story we are working on. shares of twenty-first century

fox. cnbc wants to buy apart of the media giant. disney approached fox of buying some of its assets what woucould it mean for shareholders joining us is craig moffeit and joining us laura martin, internet and media analyst >> craig, let me start with you, when it comes to buying, and the negative response that we are getting from the doj >> that's right, michelle, knowing what we know now with at&t's bid for time warner being challenged and with the speech yesterday of the american bar

association, i think there is no chance that comcast would try a transaction like this in the u.s. anymore you have to believe these conversations predated the news of the doj of its opposition to the at&t deal. >> what about verizon. do you think that's allowed or do you have to raise the same questions of pipes, controlling content. >> it does not raise the same questions. in the at&t case, if we were to believe what we heard out of the doj, what they requested was a structural separation of either direct tv or the turner network. they did not suggest there was a problem in wireless and the turner network i don't think there is any trust problems with verizon. you have to be skeptical that verizon would go down on this path i can understand them inquiring about it but it would be

surprise deci surprised. >> before of the previous talks that are now aparticipaparently from disney and twenty-first century fox. given the rise that we see and certain players like comcast making it big. is the stock too high now? has it discounted the fact that there maybe few players available to buy these assets? >> i would say no because the stock is not high enough what the government is missing and wall street is clearly discounting that these content players are larger because of who they are competing and it is not where the government is focused of at&t competing with comca comcast, it is amazon, apple, facebook and google are spending billions of dollars this year making contests and those are the competitors these companies now must compoete against going

forward. putting studios together drive margin expansions and cables together driving margin expansions it is like they that fox fox is sell we are finally getting this long over due >> we are seeing a lot of content out there. we share of via come should we put on this sector what sort of multiples should that command and should we put it on these margin players >> what is to say in the studio business of disney bought time warner or time warner bought fox. you shut down one to two billion dollars a year of costs in the studio and you merge the

studios. the players, the strategic buyers have a huge impact. typically company sells it 30% premium to their price. >> these companies have to get bigger in order to compete i wonder if you feel the same way or kennert was perplexed by that is the argument bigger of the one that laura made which i think i heard correctly is allowing larger owners to increase their margins as they compete against the likes of netflix or amazon. >> well, in the very short term, absolutely there are some cost savings. i don't think that's really the larger gain here so i think you have to see the world from the perspectives of

the have's and have not's. the stronger ones are largely being included on all of the ott video services and they're actually benefiting from the transition to ott and the rest most decided will are not. there is at least an argument that says if you can amass enough of the right channels, you have an awful a lot of say of how the future evolves where you can control whether or not ott services can exist based on content. to state the obvious, that's part of the antitrust problem here that makes it harder. in concept of the idea that you may want to have control of the shape and future is the enticing idea to look at. >> you said last night that comcast or some of fox's asset is a non starter and you said it again today. why is the stock down then.

>> well, just because i said it does not mean that everybody has to agree with me look -- >> what's the theory behind? you know you can make the case that comcast gaining national assets and etcetera and etcetera, and some people do not like this. we are not seeing the same as impact as disney had on fox. >> let me go back to what i said before about the speech that was given yesterday at the doj and american bar association, he made it clear that the doj regrets having approved the comcast deal and that the behavioral remedies that they applied in that case are in retrospect insufficient. it makes it impossible for comcast to bring another deal that'll make them getting bigger

in content and given how large they are in distribution and expect they are going to get different answers from the doj.e i cannot imagine they're going to open the can of worm. they'll let this pitch go by >> thank you, craig and laura. >> my pleasure moments ago, it fell below, stitch fix this is after they caught the original offering range, right >> i think what you are seeing now is a lot of people who got in the stock initially and you mentioned the company lower the price and cutting the price of shar shares stitch fix downsized that could happen again with stitch fix

earlier on cnbc, ceo katrina lake wanted to differentiate her company. >> we have been capping positives for years and had consistency profitability. this is a business that i think is proven in a lot of ways and we have strong contribution margins and profitability metrics to show for it >> while she's right about the fundamentals of the business, investors were concerned of the future growth that could justify the $2 billion she was initially seeking. >> absolutely. we have seen that with some. >> when i saw her talking, i was thinking of the business model, this is a perfect just plate for amazon they got distribution to the pho phone. they have to ship these boxes and they charge you 20 bucks and

month and you may or may not buy. >> the return is high. what we see this time and time again is the e-con model and shipment to your house is a fear factor and investors look at this and say i don't just what's going on and therefore, i cannot value or model this out and cannot give it a $2 billion evaluation >> lesley pickers, thank you is the ipo market starting to show some signs of fatigue, lets ask bob pisani. hi bob >> the market is heating up again but some fatigue is maybe setting in at 105 and all of last year, six ipo began trading today, one of the busiest day seen many years. you heard of ecommerce apparent stitch fix, you see they fallen

down here late in the day. the other big name from themselves point technology. they track users of no unauthorized occur they also open strong. but signs of fatigue started four of the six -- now, taking you over the next one here in investors believe companies are trying to price their ipo too high this was a big issue earlier in the year when company cuts their prices, the company traded better after they went public we maybe seeing this again three companies postponed their ipos this week, they also cited market conditions. we see the chinese ipos as well in the last few months everybody likes china. many of the recent, they all traded below the initial prices.

the market is back but they are not will to pay of the inflated price. the issue is maybe disappointed but when you cut the prices, they toeend to trade better in e after market and that's the people who owns this stuff after it goes public bob pisani thank you, here is what's coming up on "power lunch." elon musk is rolling out a sport car as well. a veteran says the emperor has no clothes this business model is doomed. >> the battle royal is brewing in nfl, hitting owners and owners, we'll ll yteou who's squaring off all that and much more on "power lunch.

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big news from tesla with the debut of not just one. the stock pops 4.5% this morning but it is tapering off this afternoon. our next guest says sure, the car looks great but elon musk is an emperor with no clothes with us is former vice chair of general motor, bob lutz.

>> i am going to preface it by saying one of our guests in the last hour says that tesla had such an advantage, it had and i believe i am quoting correctly, "stuff that no other makers can compete with in terms of electric vehicles ". do you see it that way >> it is complete fiction. there is no secret of tesla. they use the same lithion battery as anybody else. there is nothing about tesla that cannot be duplicated. i have said that consistently for the last three years and i will continue to say it. >> i agree with you on a lot of things the one thing that i created you that they created cars that people really, really want to buy. all the thing that is we talked

about all the time of cash burn rate and they'll have to borrow, can they make it to the point where they sell cars forget about electric cars design, they brought design back it is a shame that detroit lost design >> the design is good but business model is terrible model x are flying off the shelves. if you look at sales of the original model s, they are not either, so far, he has not sold any model three which were supposed to be on the market a long time ago. i absolutely, they're hemorrhaging in cash and they're going to have to go to another capital race and that's the semi-fictitious and -- first this and never mind that look at the battery plan

never mind that, we'll go to mars and then never mind that, we'll tunnel under la. >> how do you really feel, bob can you at least see that the cars do look good. >> i would agree i think there is nothing wrong with the cars that other they are being sold below costs that's maybe great for the people who buy or lease them it is not good for the company the company folks is going out of business. at this rate, they'll never get to 2019. >> the stock has managed to trend higher days after that rage as long as the markets are open to them, things are okay until they make that turn of profitability. if tesla has no secret sauce then why does general motors or

others producing what people are excited about and what people want and what tesla could get. >> people have taken the blue pill like in "the matrix" and elon becomes the god-leek figike to replace steve jobs. i get e-mails saying why do you criticize elon musk, don't you understand he's trying to save the planet he's running a lousy -- >> that's interesting and melissa question to some extent. people continue to give him money but what about her second point is -- >> why does general motors do the same thing if it is that easy >> or bmw. >> when gm cannot put a car as desirable as a tesla car margins are very high because as

you say the batteries cost a lot less than tesla's batteries. >> general motors announced the other day by 2021, general motors will have 1 million electric cars on the road and many, many different models and cross overs and sport utilities and sedan and ys and general mo models are as lower. when general motor says they are going to launch something, you can bet it is going to happen on time and with quality and with great design wheres the with tesla, you never know how much it is fact and how much is fiction. people believe him every single ti time people but except for you. you are entitled to. i don't mean that, i just mean that as a throw away line.

if we buy the thesis that tesla is not around in 2019 or at some point in the foreseeable future, who buys them? >> i don't think anybody does. why would you buy a loosing enterprise with fixed cost that are out of control and in efficient manufacturing and no deal network when technology is duplicated in about 18 months time, bmw and vincente fox wag-- volkswagon wl have 300 miles ton the road. it is because they pack more battery into the car roughly at 200 bucks for kilo

watt hour. you are going to have a $20,000 battery. it is just that simple >> bob lutz, thank you very much we did not get to the death of automobile and we'll come back to that >> great talk. thanks gridiron battle brewing which could change the face of the nfl. this one is owners verses flares it is owner on oer tails after the break. to table, helping keep shoppers safe. to table, this is a financial transaction secure from hacks and threats others can't see. this is a skyscraper whose elevators use iot data and ai to help thousands get to work safely and efficiently. this is not the cloud you know. this is the ibm cloud. the ibm cloud is the cloud for business. yours. ♪ ♪ 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. that was just a'ight for me. yo, checi mean,t dawg. you got the walk. you got the stance.. but i wasn't really feeling it. you know what, i'm not buying this. you gotta come a little harder dawg. you gotta figure it out. eh, i don't know. shaky on the walk, carriage was off. randy jackson judging a dog show. i don't know dawg. surprising. what's not surprising? how much money lisa saved by switching to geico. wow! performance of the night. fifteen minutes could save you fifteen percent or more.

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hi everybody i am sue herrera, here is your cnbc news update at this hour. antonio gutierrez is speaking out on terrorism noting that at least 11,000 terrorist attacks occurred in more than 100 countries last year. >> we must fight terrorism to protect human rights at the same time when we protect human rights, we are tackling the root causes of terrorism bill gates meeting with officials in india to hold talks on tackling problems there he met to discuss disease

controls and the lack of medical supplies if you live in the philadelphia area, you already know about big rivalry of geno and pat's cheese steaks. richard lucille family's buried him with two pat's cheese steaks why no onions you asked? >> because onions may come back and hunt haunt him >> that'll belonger than everything else. >> exactly >> all right, interesting. >> from a cheese head -- >> that's right.

>> perfect segway. the oil market is closing for the day, lets go to jackie deangelis. crude prices are rebounding 2.5% finishing it flat. comments from the saudi energy minister says the oil market won't be full will rebalanced leading the market to believe an extending opec out put cut is in the cards. difficult to say when it will be announced. likely to see support through that meeting take a look at gold prices but no break of the 1300 getting tax reform through and fully and also selling off in equities today being cited as reasons. back to you. high stakes feud heating up with jerry jones and the rest of the nfl owners

all about the contract of roger goodell. >> it is getting crazy now a lot more lawyers are involved now. yesterday, the nfl rejected the request from the dallas cowboys. the owner could discuss the contract in december jones says the process is dysfunctional and the league is threatening to retaliate against roger goodell. cnbc obtained a copy of the letter reflecting conduct detrimental of the league. as cnbc reportedearlier, other owners agreed with jones and in an extreme case, lead owners

could vote to force jones to sell the cowboys or lesser punishment like fines in the draft pick this is bad pr for the league. think how quickly this is isolated since president trump went after players for kneeling and look at what's happening after. >> how does it come to an end? >> either he will sign a contract or not. he could sign the contract and jones makes his life hell. >> does jones want roger goodell out or his contract to be much more incentive or straight salary >> both. >> he wanted both? >> both are options he's going for here if he cannot get him out, that's better if he cannot get him out then try to pay as little as possible if he cannot do either of those.

>> roughly half of the owners wanted to slow track this. are there other owners who'll go further and would like to see roger goodell gone >> it is a mix of thing is what you want is someone to go against the union. everything thinks roger goodell did a good job of that but that's not until 2021. do you want to put up in four years to get to that point >> some people wanted to stay just in that part. they don't want jones to be in charge think about politics it is a smaller group of guys but they are all billionaires. they don't have to get alone at all. it is really tricky. they control a lot of people's sunday nights. >> back to stocks.

what happens if we get a republican tax reform bill sent to the president by christmas. ron, what do you think >> well, it won't be by the rumor type thing stocks behave actually better in the year leading up to tax reform than the year after that's something we have to watch out. that's a number of issues also in 2013. it is a really strong 18 months here >> jerry, what do you think? >> you look at twhat people have put together and not reflected in those kinds of stocks if it is a single vote in the

senate that hold in a balance, no one is going to bet a lot of money that this is happening that plus the fact that i don't think 2018 is really priced inuit in the context of how well the global economy is doing and how cheap stocks are you still have people's position on the short side of things that'll need to flip over and start to take advantage of the typical side of the global economy of the markets. >> i see you are nodding your head, ron. >> i was going to comment in the florida exchange we had conversations of volatile depressing strategies that's being used where effectively long stocks, one of the reasons we have not seen anything resembling 3% is various strategies come piecposed in dit ways >> are officially almost >> and buying every --

>> so this is what worries me about going into next year if there is something that can break that cycle, it would have some consequences of the mark. i am not sure what it will be but having had the conversation and kind of tuned into this, insurance companies do this. >> maybe it is better for the company than the stock market. his argument is it will stimulate the economy and the economy once stimulated will potentially over heat and causing inflation to rise and the feds to move into interest rates the anticipation of that would cause stocks to check. choke >> i am not going to dismiss that if we have not discounted it yet. even that outcome would be that you have a rush into stocks while we discount the potential for significantly higher

earnings and a better economy. there is just so much position in conserve -- conservative way. think of releasing that momentum which is just likely like on the downside that could be a 10% or 20% move very quickly at which point it maybe very possible to see erosions i still see the majority of the risks are on the upside and that's what people are betting against. >> thanks, jerry >> he said it on tv. >> thank you >> a family that's been in chronic pain me

meg tirrell is joining us now. >> researchers are working hard on new treatments with new targets with the help of people with some very special genes >> reporter: growing up, milluis dealt with the pain that nobody would understand >> i went to the hospital and they were like oh, it is systematic and there is nothing wrong with her it was not until her young niece started to go through the same thing that millius did some dete detective work >> pouring through scientific journals, she identified her syndrome >> it is the first thing that sounds like what we have genetic testings, confirmed her suspicion.

man on fire sin drum is excruciating painful the only sign is occasional redness. waxman describing it >> it causes them to shriek when they should be whispering. they are sending a message into the nervous system and the brain that i have been burnt >> reporter: family like milluis have spurted a hunt for new medicine one of the things that's different -- it is expressed in the peripheral nervous system.

the medicines are still in the earliest stages of development milluis who's contributing to research is hopeful. >> if i can help other people like them not having to go through it, would be ideal so it is about half a dozen drug companies are now working on this target for potential new pain jobs. it will be years away. there is a lot of hope there >> how many people are inflicted with this kind of man on fire disease? >> it is extremely rare. only 20 cases have been identified >> that would be dangerous that you cannot feel pain and your body cannot tell you something is wrong >> the person that we identified, he only had broken bones in his body. >> really? >> you never knew. >> oh my gosh. >> crazy >> meg, thank you.

one ceo is looking to reinvent the cinema experience of luxury touches. we'll veou lk eagi y aooahd.

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"justice league" is expected to be big this weekend fans may want to head to i-pick, casual dining being under pressure and the box has been lousy this year. >> that's true, this summer box is not as strong as previous years. you cannot look at this as one quarter. we had a billion dollars box office exexpectations. >> a lot of great reasons. because when you go to theaters, it is a total destination. it is a night out and a place

where you go to get pampered. those seats, service comes to you and we have gourmet food and great drinks >> is that a private wall right there? >> yes >> the seats are positioned in inside the pod you cannot see anybody else. you have an intimate experience >> so where do you make your money? >> we make it in two areas >> on beverages. >> more on beverage, i would expect >> the balance of it we do about 18% of our revenue comes from membership, which is significantly larger you have to be members to go to theaters we have 1.8 million members.

they love the concept and they are there. we have a free membership and paid membership. it allows you to earn points and buy tickets ahead of the general public we range from anywhere from $14 to $30 >> what's your average check >> about $24 a person. this is going to sound like ocd. i look >> i looked at the tables, the tables are small and won't it get messy? is that the experience that i want >> you know what, our experience is the fact that every dish that we serve, you can pick it up with your fingers to eat it is deseigned it will not

crunch in the audience or smell. >> how much is your average food item costs >> dishes running anywhere from $12 to a high of $24 it is affordable but great food. the food that we serve in the theaters, each item is made by a named chef at the food network she's an incredible talent and she brings all her friends and they make items that we serve in the theater. >> are you the one that did the smell experience >> no. >> would you ever do that? >> no. those are sensations and sensations are really not memorable. we are all about experience. >> how much more does one of your locations cost to open them than a typical theater >> how many seats are in a typical viewing area

>> a total seat count in theaters bring anywhere from 240 seats as high as 700 feet. that's for the entire complex. auditoriums are 40 seats up to 130 seats on the biggest one. >> talk about the cost of opening one of these got have a kitchen, have these seats -- >> liquor license. >> got to have a liquor license. >> right really you're putting two -- you're putting a restaurant together with a movie theater and the seats you're looking at over here, it's not your traditional theater. these are all custom designed patented pods and chairs we built -- >> how much, how much, how much? >> well, typical complex, you know, i'll give you a little qualified answer we typically build in shopping centers, not shopping -- basically in lifestyle centers and lifestyle centers we get building laws from a developer typically when we go in. if you leave that out, $11 million to $13 million per location. >> okay. one of these days i'm going to

go to the seaport and try it out. >> you have to try it out. >> i love the movies. >> don't listen to what i'm telling yoo u. co come and try for yourself. >> thank you so much. there's one payment stock up 225% this year, alone. we're going to tell you what it is and whether it's too late to buy in more "power lunch" ahead let's begin. yes or no? do you want the same tools and seamless experience across web and tablet? do you want $4.95 commissions for stocks, $0.50 options contracts? $1.50 futures contracts? what about a dedicated service team of trading specialists? did you say yes? good, then it's time for power e*trade. the platform, price and service that gives you the edge you need. looks like we have a couple seconds left. let's do some card twirling twirling cards e*trade. the original place to invest online. ♪

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go home safer, then i'll drive it every day of the week. together, we're building a better california. shares of mobile payment company, square, rising more than 6% today after evercore isi upgraded the stock double its price target. square up 13% this week. after getting a boost when it said it would test bitcoin transactions on its app. lets trade square, math tepper, matt maley math, i'll start with you, what did the stocks look like for square >> the stock is getting very extended here. michelle mentioned before, it rallied poey eied over 220% sin beginning of the year. look at its isr chart getting close to 90. that's very, very extended but you also if you look at the chart and look at the 200 day moving average, it's at a 90% premium to its 200 day moving

average. look at a company like facebook in its first two years as a public company, it didn't get to a premium of even half that big. so it's getting very stretched and unless you think this is the next facebook, i think the stock has to pull back a little bit before it goes any higher and i question if it can go any higher from here at least over the near term. >> mark, is it the next facebook >> no, no, it's not. i agree with matt, we're steering clear of this one the valuation is way too high and square has a good track record of losing money there's really no career path to profitability in the foreseeable future they got good technology but it's not just disruptive and that's what you need in this industry and i'm really not sure what their competitive advantage is what's their mote? what's to prevent the big boys like paypal from encroaching on their turf which is already happening? you know, they're pretty expensive. we're looking at a fee of about 2.75% per swipe which is on the high side. you couple that with a low

profit margin, and when a competitor does enter their space, how are they going to lower their fee s to compete >> mark, matt, thank you for more, head to tradingnation.cnbc.com up next, "check please." >> and now the latest from tradingnation.cnbc.com and a word from our sponsor. >> traders short stocks when they think they're going lower the number of shares sold short is called short interest short interest is often used to gauge market sentiment a rising short interest can mean investors are becoming more bearish on a company however, when short interest reaches extreme levels, it can oftebe ctriy din aonarincator because traders are often forced to buy back their short stock and that can drive the stock much higher. who do you work for?

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big interview coming up on monday, i'll be live in auburn hills, sitting down can anand mahindra cnbc exclusive interview u.s. administration concerned about jobs being outsourced overseas in india. he's opening a factory in michigan to bring jobs here. >> look forward to that. i thought today, sort of speaking about the auto business and industry, tesla, the battle joined between bob lutz and our first guest who has one of the highest points of stock price targets on the street. lutz goes the other way, says it's not going to be around in a couple of years.

there's flawed business model, and that elon musk has no clothes. the question is, two you bdo yoe horse, bet the jockey? i bet the jockey. >> tesla was in the high 100s, 200s now 300. take it for what it's worth. thanks for watching "power lunch. >> "closing bell" starts right now. hi, everybody. happy friday welcome to the "closing bell." i'm kelly evans at the new york stock exchange. >> happy friday from me as well, i'm bill griffeth. talk about media madness now we have as you heard comcast and verizon also apparently approaching 21st century fox about selling some of its assets this, of course, coming on the heels of disney's reported talks last week. we're going to break down the latest on this fox hunt. i love that thought. we'll talk about who could be the best suitor for the fox assets cin