morning, yes. >> it was initiated. do you like bud? >> are we talking as a stock >> product >> yes, all the time but the stock is not bad either. >> josh brown, ten seconds left. >> twitter up 9%, up every day the last seven days. >> joe. >> palo alto networks. thanks for coming to me. >> erin, thanks for being here j.j., thanks i'm michelle caruso-cabrera and here's what's on the power lunch menu your money up five days in a row trying for six are the bulls taking control of this market again. there's a new big call on apple. three reasons why you may want to hit the buy button. and it's on. president trump will meet with kim jong-un on june 12th the date comes just hours after the president welcomed three u.s. detainees released by the rogue state. and as both sides gear up, north korea is still violating sanctions with covert actions. it's a cnbc exclusive you have to see "power lunch" starts right now

and welcome to "power lunch," i'm sara eisen rally on the dow is up for a sixth straight day, now positive for the year the nasdaq is up for a fifth straight session, on pace for its longest winning streak since early march. all s&p 500 sectors are higher, health and technology leading the way. small caps also joining the party, they're on pace for their fifth day in a row of gains for the first time since mid-february the russell 2000 actually trading less than 1% away from an all-time high melissa. >> i'm melissa lee we begin with a rapid update on the u.s. economy steve liesman is joining us with the latest estimates on gdp. >> we have our first look at the second quarter and it is a big one. the medium of five economists coming in this time for the second quarter look. 3.7% with a range of 3.1 to 4.1 which is pretty tight for this early in the quarter this is a tracking forecast in

that it uses actual data, but there is not a lot of data yet. >> there's five you said, right? >> five economists but they use data, melissa, on this 3.7 -- 3.1 to 4.1. you can see that's a nice bounce-back from the first quarter which was 2.3% we've seen that a lot. let's look at who is where amherst pier paunt, 4%, atlanta fed 4%. right now it's a very good start to the quarter and we'll track the data as it comes in to get a sense of we having a really strong second quarter bounce-back from the weak but not all that weak first quarter. >> a four handle, expressive, right? >> a four handle is very expressive what we're looking for here, and i've said this 100 times, we keep looking at the individual quarters the best way to think about the

economy is to take the trailing average and it's very close to 3%. >> i don't want to be a debbie downer, but the atlanta fed has been very optimistic before and it gets lower and lower. >> there's a problem with the atlanta fed. i've written a story about this. you can go back in the archives and find it. when they first come out for the quarter, they use data that's too optimistic and they have to restate and go down and come back up. our cnbc rapid update which uses the wisdom of crowds has been more accurate by about half a point than the atlanta fed. >> but you're just saying. so there >> statistically proven. if you want to see the data, i'll show it to you. but i'm just saying. >> thanks, steve. so president trump welcoming back americans detained in north korea and setting a time and place for his meeting with kim jong-un. we also have breaking news right now on sanctions againstiran eamon javers at the white house with all the details. >> reporter: that's right. the treasury department just in the past minute or two announcing new sanctions related to iran.

treasury saying that it is designating nine individuals and entities that are related, they say, to the iranian kuds force, the entity in iran that's their special forces operation and has been linked with hezbollah in the past the united states is taking joint action with the united arab emirates to break up an extensive currency exchange network that has procured and transferred millions to iran's islamic revolutionary guard corps. so they're saying this is all part of the effort to crack down on terrorism financing, so that's new as of this morning. and then we're seeing this new development this morning with the north korean detainees emotional scenes at joint base andrews this morning as the president and the first lady went there to meet with those detainees as they arrived pack from north korea there you see them getting off the plane in the predawn hours this morning, emotional and warm

welcome for those men. tony kim is said to be an accountant and a professor who was imprisoned in april of 2017. kim hak song was imprisoned in may 2017, and kim dong chul was imprisoned all the way back in october of 2015, so that's a long time in a north korean labor camp here's what the president had to say about all of this this morning. >> these are really incredible people and the fact that we were able to get them out so soon is really a tribute to a lot of things, including a certain process that's taking place right now. >> reporter: that cleared the way for the other big announcement we saw today, which is the president tweeting out that the meeting between him and the north korean leader will take place on june the 12th in singapore. that's where they're going to sit down and hash out the future of north korea's nuclear

program. whether or not the president can achieve that goal of denuclearization of the korean peninsula today was a big victory certainly for those three detainees and their families and also for the trump administration in demonstrating it can make diplomatic progress in north korea, melissa. >> eamon javers from the white house. 30-year bonds up for auction, rick santelli is tracking action at the cme rick, how did it go? >> it went pretty well i gave this a "b" as in boy but there's a back story i want to do real quickly. they got rid of the long bond in 2001, i believe it was august. they brought it back in february, '06. now, since it was brought back in '06, this is by far the largest at $17 million if you go prior from 1977 to '01, my database goes to '93 and the biggest size was $11 billion. i'm 100% sure it's the biggest

auction since they brought it back and i'm 99% sure it's the biggest auction ever having said that, the yield 3.13%. it priced nice the w.i. was trading around 13.5 if i look through the internals, 2.38 bid to cover, 62.7 indirect, very close to ten option average we're a little light at 8.3 on directs. dealers take 28.9. so 3.13. i gave it a "b." it finishes $73 billion in coupon supply. it seems like supply is weighing on the market, but yields are weighing down, a little buying coming in after the auction. >> rick santelli huge auction interesting data point there. stocks extending the rally at this hour, the dow on track for its sixth straight day of gains. bob pisani is at the new york stock exchange bob, it feels like the narrative has changed.

>> it has. three to one advancing to declining stocks just off of the highs. we're getting some modest breakouts in two key groups. tech stocks, not only apple is at a new high, cisco, nvidia, and mastercard and visa. not a lot but some of the e-brokers are doing fine charles schwab, e-trade, nasdaq set a new high even zions at a new high the biggest story, we're breaking some down trends that we've seen in the market see the lower highs on the s&p, this is the full year chart, current year, breaking out of that this is also happening in other sectors. small caps, the russell 2000, look at that, that's even stronger in fact we're less than half a point from a new high, seven points away from a historic high on the russell 2000. semi conductors was a market leader earlier in the year you see how you're breaking out and getting away from that downtrend. same with bank stocks. they're starting to break out as

well here's the key thing, market headwinds, it's a little different, a little more arguing on the bull side people feel it's okay and second quarter numbers will be better instead of inflation picking up, ppi, cpi fairly contained. instead of earnings growth peaking, when you have growth, you can have healthy earnings growth of 10% in 2019 and nobody will freak out about that. sara, back to you. >> that has been the tug of war. bob, thank you. dow now positive for the year joining other major averages is the rally really gaining momentum and where do you want to be? joining us is lisa erickson from u.s. bank and chris zacarelli, chief investment officer at independent advisor alliance chris, is the bull market back on >> i think the bull market never stopped. i mean obviously we had a big sentiment change when we went from the highs in january and we've been fighting back the last few months where people have really been negative. but the positives have been

there all along. you've got earnings growth that was supposed to be up 18%. it was up 23% quarter over quarter. gdp growth has started to come back and you've seen encouraging signs. with the positive fundamentals as the backdrop, it's sentiment that's changed this bull market has remained intact and we have still room to run. >> it doesn't sound like you're so sure, lisa. it says you're nervously neutral on the u.s. equity market. why? >> yeah, we're not convinced that this is a sustainable bull rally. the reason why is because as chris points out, even though you have positive fundamentals both in terms of economic growth as well as what's going on with corporate earnings, we see the reward/risk as really more balanced if you look on the other side of the ledger, you've got sentiment and technicals, which are certainly much more inconclusive i think you've seen that in the responses to the earning beats they haven't been as high as this quarter certainly there's been a lot more volatility in the market and even, again, on the technical side while we've had some nice

uptrend in the last five or six days, basically the s&p has breached that 200-day moving average six times since early february in addition, if you think about it, valuations are still somewhat elevated and so that does create an expectation where earnings really have to come through pretty consistently in order to sustain the market. >> how are valuations elevated, lisa we're trading at 16 plus times forward earnings and the historic average is 16.9 or so. >> yeah, absolutely. well, when we look across the composite measures, whether it's cap ratios to book value or earnings and we look at them relative to 15-year histories, we actually see that on a composite basis, the s&p 500 is in that highest quintile so we wouldn't say that they're extremely elevated, but again, they're on the higher end of normal. >> chris, i see that you like financials you just heard rick santelli

reporting about this massive auction. he gave it a "b. the market ate it. we've been stressed about when all this supply comes to market, what's going to happen how much are you building into your forecast a yield curve that will rise and not flatten in suggesting that people buy financials >> that's a great point. and i like financials not only for the yield curve situation but also as far as the economy continuing to improve. you've got economic activity, more loan growth as businesses continue to spend and to borrow, and you're looking at more mergers and acquisitions activity. >> these are things that have to pick up, though, chris, right? the 2-10 spread is at 40 something and loan growth has been just terrible so we need to see a pickup in these things >> we do need to see a pickup in loan growth and gdp growth accelerating on the prior segment they were talking how it looks like gdp is turning the corner and we're looking to see some expansion from that point of view.

if you do have economic activity that goes higher, even with the yield curve a little flatter, that's going to be fine. rising rates will be good for banks. when you look at jamie dimon talking about a 4% ten year, it may be a while before we get there. i think you will see yields start to go higher if you see that growth. a lot of what we're saying today is depending on whether that gd growth comes. >> so far tracking pretty well guys, thank you for the discussion on the markets. lisa erickson and chris zacarelle. shares of apple are on the move, the stock up 15% just in may. up next, an analyst who thinks its market cap is about to blast through that trillion dollar mark what it will take to get there. and the karate kid back. can daniel ruso help the way he

knocked them off ithn e tournament "power lunch" will be right back i am an independent financial advisor. i left a traditional brokerage firm because i wanted to be free of their constraints. at my firm, i act in the best interests of my clients. i can tell them i'm supported by one of the world's strongest, most admired financial firms. fewer constraints, the freedom to do what's best for my clients. that's why i'm independent. charles schwab is proud to support more independent financial advisors and their clients than anyone else. visit findyourindependentadvisor.com pthey don't invest inn stalternativesds. 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

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mr. elliot, what's your wiwifi?ssword? wifi's ordinary. basic. do i look basic? nope! which is why i have xfinity xfi. it's super fast and you can control every device in the house. [ child offscreen ] hey! let's basement. and thanks to these xfi pods, the signal reaches down here, too. so sophie, i have an xfi password, and it's "daditude". simple. easy. awesome. xfinity. the future of awesome. we're picking apple. we've studied the fundamentals, it's a strong company. they have got $200 billion in the bank if they want to buy some other companies up, they have plenty of money their p.e. is only 18, which is low for a tech stock

>> that was buffy from the beardstown ladies during the stock draft telling us why they're all in on apple. the stock is up 15% since the draft, not bad, ladies today shares hitting new highs, up 12% for the year. angela zino is out with a new bullish note raising the price argument to $210 from $195 that would thrust apple over the trillion mark. he thinks it can return annually for each of the next three years. angelo, great to have you on the show. >> thanks for having me. >> what i thought was most interesting is that you were just factoring in no growth in terms of iphone units, right through fiscal year 19 so the number of phones to be sold will remain static. so in terms of what compensates for that being static, what is the biggest driver of that is the asps will be much higher

or service will step in? >> yeah. if we look over the next two quarters of course it's going to be the average selling prices as far as the iphone is concerned we are still looking for a double-digit increase in both the june and september quarters and that really reflects easy comps with the iphone x being included where it wasn't included last year so over the next two quarters it's really going to come from the asps longer term it's really -- it's all services, right? our view is especially with the astounding 31% year-over-year growth rate we just saw, our view is you're going to see at least 20% growth here over the next two years out of that services business, and that alone should allow apple to see some at least low to mid-single digit growth. >> you're also assuming that the average money spent per iphone hand set is going to grow over time since that iphone ecosystem

is not growing in and of itself. are you worried that maybe we won't see that kind of growth, because a lot of the services number is buying apps. apps are sort of one-off things as opposed to subscriptions. >> yeah, no. so it's interesting with the services side of things. if you look at the key drivers of growth here, it has been those in app store purchases it has also been the icloud. but we're actually starting to see some nice penetration coming from that apple pay business we think that's a business that really had a slow start. it came out in 2014. but when you look at the apple pay business over the last year, it's seen a doubling in users, and a tripling in actual transactions so we think that business is actually going to accelerate we think it's also important to note when you actually look at total paid subscribers over 270 million now, that will continue to grow as that subscriber base grows. so overall, i mean we're not that concerned about the

potential significant deceleration in the services business. >> angelo, all the bulls on apple always point to the low valuation. buffy from beardstown did it, charlie munger last week did it. is there a change in thinking about how this company is valued as consumer products versus a service business versus technology business, and what would that do to the valuation >> yes so in our view, you know, we're valuing the company at about 16 times next year's earnings potential of the and re potential. and really the reason we see expansion is because of the services business. it's a recurring-based business and we think as that business grows to a larger percentage of the pie, we think it could grow to 19% to 20% of sales by 2020 at that point you start seeing the multiple expansion so yes, we think the sentiment and the view -- >> to what you're at 16.5 which is what the market has for a full year next

year what do you think that multiple could expand to? >> well, no, we're looking at about 16 times next year's estimate of about 14.5 times fiscal 2020. >> so i'm sorry, then i'm confused because i thought you were talking about multiple expansion beyond what you already had. to sara's point, people have argued this is a software company instead and therefore it should get a bigger premium. so the multiple expands to what? >> yeah. at this point we're not baking in a huge amount of multiple expansion going forward. i do think as you kind of see some of that success story play out in the services business, i do see the potential for that multiple to really start expanding. but at this point in time, it really comes down to execution on services and also becomes execution on stabilizing that iphone revenue business, because i think there's a lot of concern

going into the next cycle with a lower priced phone going in that there could be some asp deterioration. so as long as we think -- as long as they can stabilize that business, and we think they will, over time we think the multiples expand. >> angelo, thanks for your time. great to hear your thoughts. >> thanks for having me. i want to take a quick check on bitcoin we've noticed a sharp drop in bitcoin in just the past few minutes. it is now down by 1.4%, but again we have been sort of -- bitcoin enthusiasts had been hoping for a run at 10,000 we're at 9,151 with this drop. >> the hamsters not pedaling fast enough? if you're trying to sell your home, today may be the best day to list it we'll tell you why and tell you exactly what time to list it, to the minute diane olick llwi have that key data point

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at crowne plaza, we know business travel isn't just business. there's this. a bit of this. why not? your hotel should make it easy to do all the things you do. which is what we do. crowne plaza. we're all business, mostly. it turns out today is the best day to list your home, but what time? diana olick has that and some reasoning behind it. diana? >> look, if you want to sell your house, you've only got about four more hours so hurry up or wait until next thursday apparently if you list your house on a thursday, it will

sell faster than if you list it on any other day of the week why? here are some thoughts from the experts. >> our market is programmed to look at houses thursday and to plan their weekends out. >> thursday because i feel like that gives people that are at work looking online for homes enough time to look at the pictures, plan their open houses and what tours they want to visit over the weekend. >> in this competitive market, most of the agents are sort of abiding by the thursday/friday and then taking offers on tuesday. >> redfin also claims if you list the house on wednesday, you can get slightly more money for it $2,000 more on average but most agents i spoke to didn't exactly buy that. one agent did say, though, it's not just the day but the actual time don't list it on a thursday morning when everyone else does or you'll end up on page two or three online if you list it at 5:00 p.m.,

then you're at the top because most people will start searching thursday after work. so hurry more online at cnbc.com. back to you. >> i'll take a look. thank you, diana. president trump today welcoming home three americans detained in north korea and announcing he'll meet kim jong-un on june 12th in singapore. should be two big steps towards peace. up next, we'll tell you about the sneaky steps north korea is still taking to evade sanctions. that's next on "power lunch. exams in the world. osts demand the best. demand a cfa charterholder. cfa institute. let's measure up. show of hands. let's get started. who wants customizable options chains? ones that make it fast and easy to analyze and take action? how about some of the lowest options fees? are you raising your hand? good then it's time for power e*trade the platform, price and service

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hello, everybody, i'm sue herera here's your cnbc news update for this hour. house minority leader nancy pelosi leading a group of house democrats in blasting president trump's decision to withdraw from the iran nuclear agreement. >> president trump's dangerous action leaves america isolated in regard to iran. it erodes our international credibility during a critical moment with north korea. it recklessly puts the catastrophic threat of a nuclear-armed iran back on the table. >> a south korean ferry which

sank in 2014 killing more than 300 people were successfully lifted into an upright position today. the ferry was salvaged three years after the accident and has been at anchor to allow investigations and also the search for bodies to continue. it had been lying on its side. and 7-eleven announcing a new online service that will begin in japan in july when a customer orders more than $9 worth of products online, it will be delivered in two hours for two bucks. if the consumer orders more than $27, the delivery will be free just don't order a slurpee because if it takes two hours, that's not going to be pretty. that's the news update this hour, guys, back to you. >> melted mess sue, thank you >> you got it. let's check in on the rally this hour. we are up triple digits on the dow, up about 200 points it's up for a sixth day in a ro and now positive for the year. united health, jnj, exxon all

up check out the sudden dip we saw in bitcoin in the last few minutes. it's been up 35% in the past month. though we should note it's always pretty volatile, so we'll keep an eye on that one. i would have thought maybe sanctions would boost the price of bitcoin, michelle. >> so far, no. this is the image of the day, history in the making president trump and the first lady greeting three american detainees released by north korea. they landed at joint base andrews in maryland just after 2:30 this morning. the release paving the way for the historic face-to-face talks between president trump and kim jong-un and the date has been set. the president tweeting today, the highly anticipated meeting between kim jong-un and myself will take place in singapore on june 12th. we will both try to make it a very special moment for world peace. but even as north korea and the u.s. plan on their high-level summit, cnbc has learned that

north korea is still evading sanctions with covert actions. i spoke exclusively with the chief u.n. sanctions investigator who detailed how the north koreans are violating sanctions which prevent them from importing oil and he wants international assurance and trading companies to help put a stop to it this highly secure and nondescript office in new york is the headquarters of the u.n. panel of experts led by hugh griffiths. they monitor compliance with u.n. sanctions imposed on north korea, sanctions meant to convince north korean leader, kim jong-un, to abandon his nuclear weapons program. recently as north korea has agreed to talks with the united states, it has stopped nuclear tests and ballistic missile launches the most obvious sanctioned activities but griffith says don't be fooled, north korea is still trying to outsmart the u.n >> so while those are clearly not occurring, we have other sanctions violations that are

ongoing. >> such as >> such as ship-to-ship transfers of petroleum product. >> that's when north korean ships buy desperately needed but prohibited oil from other ships at sea like this ship-to-ship transfer caught by aerial surveillance photos. >> one vessel transferring petroleum product to this north korean tanker. >> a key trick they use, shutting off their ais signal, short for automated identification signal. it's a maritime version of gps intended for search and rescue purposes. >> so you know down to the second when the vessel was transmitting and when they went dark. >> the ship's signal was off for a week when it was very close to north korea. >> exactly in every case of illicit north korean petroleum diversion that we've seen, the vessels switch off their ais just before they meet at sea. meaning that they cannot be tracked any longer

so that's an important risk indicator. >> what is the legitimate reason, if ever, to turn off the ais. >> the only really legitimate reason for turning off the ais signal is if you're in pirate-infested region and don't want to give away your location to the pirates. >> and this is where the insurance and trading companies come in. >> we just have to get these guys and them on board. >> the investigators can't force the ships directly to turn on ais, so instead they're trying to hit them through their wallets via the insurers and trading companies that they know will comply. so they have asked these industries to insert clauses in their contracts that demand the ship's ais signal stay on at all times, or else the ship's insurance will become null and void if a ship doesn't have insurance, it cannot go into a port let's discuss more with our two guests who are just joining us

now. a professor of korean studies at tufts university and the director of asian studies at georgetown university. professor, thanks for joining us are you surprised that north korea might still be evading sanctions? >> no, i'm not surprised that's actually a great piece that you just ran there, because it shows the level of detail that the u.n. is now at in terms of enforcing sanctions when i was in government working on these issues ten years ago, we had one u.n. security council resolution and one treasury authority to work with the current administration has ten u.n. security council resolutions and six treasury authorities. the level of detail that you are talking about in terms of getting insurance companies to include clauses on the gps transmitters, that is the level of sanctioning that's taking place in north korea and that is one of the reasons why north korea is so interested in diplomacy right now. historically whenever they felt the economic pressure of

sanctions, the response has not been to lash out militarily but to try to come back to the table to get some sanctions relief. >> professor sung, what do you think? >> that's right. sanctions enforcement takes a lot of time and effort, like domestic law enforcement it's not something that you can just switch on and off and expect immediate results, it's a never-ending process the fact that the u.n. panel of experts has made such efforts to go after to identify and try to monitor all these sanctions-evading tactics by north korea is promising at the same time, i think the political climate today with this crescendo that's been built up, the pageantry that kim jong-un has been able to line up in terms of lining up the leaders of the biggest powers for a series of meetings with him, this all favors kim and the sanctions enforcement efforts could be -- could come to an end

bit by bit and that's certainly what north korea seeks. >> victor, like any criminal activity, trying to pinpoint who is evading sanctions is a little bit like a game of whack-a-mole. once you figure out how they're doing it and you shut that down, they figure out something else in your view, do you think that we're perhaps not even focusing as much as we should be on the use of bitcoin and other cryptocurrencies to evade sanctions and at the very least get money out of a country >> yes that's definitely a possibility. i mean the reason that -- so the reason that your package talked about ship-to-ship transfers, the reason is that north korea can no longer do stuff out of ports because u.n. member states and cooperating port authorities are now all enforcing sanctions. so they are reduced to doing this on the high seas, ship to ship yeah, i mean there's a great deal of concern that north korea in terms of bitcoin as well as other sorts of cyber activities are harvesting hundreds of

thousands of dollars out of commercial accounts and other sorts of accounts around the world. they're constantly hacking government facilities installations as well as commercial facilities and installations in south korea, in the united states, in china and other places so yes, the sanctions have to be as deep in breadth and scope as they can possibly be we're in a good place right now, you know, with ten u.n. security council resolutions, but as sung-yoon said, as this diplomacy rolls forward, the first thing they'll ask for is sanctions relief and the first country that will help with that will be china. >> we now have a date and place for the summit, june 12th in singapore. do you expect any sanctions relief to come about as a result of this historic summit between president trump and the north korean leader? >> well, the trump administration is so far saying all the right things there will be no premature relaxation of sanctions until

north korea makes -- takes meaningful steps toward complete permanent denuclearization and so forth but in reality, north korea will try to draw out this negotiation process not really working toward an ultimate resolution and full denuclearization, but try to engage the united states in a drawn-out, never-ending process, and in the meantime north korea will threaten to walk away, thus painting the united states as the petulant party, not interested in genuine peace and reconciliation so there are many traps along the way, and i think it will be very difficult for the united states not to give north korea some concessions and to relax some sanctions, although the terms for the suspension and ultimate termination of sanctions are very clearly codified in the 2016 sanctions legislation, but the question remains will president trump abide by those conditions. >> so what advice would you give president trump when you say

there's so many traps out there for the u.s. negotiating team? >> don't underestimate kim jong-un. he's such a weird, bizarre, cruel, murderous tyrant. we don't take him seriously. we don't take the regime seriously and tend to patronize north korea. this is a common trap. whoever has met with kim the first, the second and now as mike pompeo has twice in 40 days or so, they all uniformly come away impressed that the north korean dictator is not only not crazy but quite well informed, reasonable, even has a sense of humor and come away thinking they have gained some deep knowledge, understanding of the nature of the regime by virtue of their own charisma and intelligence north korea is very crafty and they will say strangely pleasing things to president trump like we understand the u.s. troops in the south play a stabilizing role so we're not eager for their immediate withdrawal, and the danger is that the trump

administration, including president trump, will presume that maybe this time around north korea will comply. >> gentlemen, interesting discussion thank you so much. good to have you >> i have a question about your piece. i'm just wondering while i was watching it if that is why north korea for so long was able to endure such tough sanctions from the rest of the world, because it was smuggling in and had all of this sort of criminal behavior in the high seas. >> i think they have done -- it didn't used to be this difficult for them as victor cha pointed out, it's gotten tighter and tighter, the noose, as they added more investigators and more processes, so it's very recently that they really resorted to these efforts. we saw iran do this a lot, by the way, when the embargo was on fi full tilt. they were also turning off their ais signals at sea so they could do the same thing. >> great piece. >> thank you. in a rare interview, the nike founder addresses the

alleged misconduct at the company that he started. we will hear from him. ford holding its annual meeting at the same time that it is halting production on its best-selling model, the ford f-150. those stories and much more coming up on "power lunch. it's great to finally meet you. your parents have been talking about you for years. they're all about me saving for a house, or starting a college fund for my son. actually, i want to know what you're thinking. knowing that the most important goals are yours, is how edward jones makes sense of investing. i am an independent financial advisor. when i meet a new client, i start by asking questions like:

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diversity, corporate culture, gender pay, in focus for two key companies today. visa's ceo alfred kelly will meet with senior female executives they are expected to tell kelly they aren't given enough opportunities to advance kelly reportedly called the meeting after an internal survey found that female svps were less satisfied with their jobs than their male counterparts. meanwhile, nike founder, phil knight, telling cbs this morning that he's been shocked and disappointed about the recent scandal that led to 11 executive departures surrounding misconduct and a bro-like culture at nike. listen. >> overall how nike is doing is we're doing fine sales and earnings are growing but we did have a shock within the last couple of months that a

certain number of managers were bullying employees, and it was a shock to me personally and to a lot of the upper management. it's disappointing as well as a shock. it's very disappointing. but i am proud of the company the way that it responded to the problems that it saw and it's basically cleaning house with those people. >> knight was on to promote the paperback version of his book. it was the first time we've heard from anyone close to the company. he's not really involved day-to-day in the company anymore. used the word "bullying," which i thought was interesting, but there are biases across corporations at a lot of different places companies are having to do a lot of soul searching and take a close, hard look at the way women are promoted and are represented at a senior level. some companies are getting called out and hopefully others that are not are still looking at these practices. >> for nike specifically, though, how many executives have left now more than a dozen. >> 11 high profile departures. >> at what point do investors

say how deep is that bench really how can you afford to lose about a dozen top executives and the company just goes on as normal >> so they have been asking that and yet they have been optimistic because it has not impacted the stock price, to answer your question the stock has been sort of an outperformer and it's been banking on this turn-around in north america. nike has a very deep bench this is a company of more than 70,000 employees and more than 300 vp levels. so yes, losing some key departures and clearly having to figure out what's going on and how high up this goes, all the way up to the number two at the company that left, but they are telling investors in meetings that they are still on track and mark parker, the ceo, says he's committed to staying on for another few years. >> i haven't seen phil knight in a long time. >> he's in his 80s. >> yep. ford holding its annual meeting trying to deal with a factory disruption phil lebeau joining us. >> ford is work as quickly as

possible with that supplier to get the production of these key components up and running again. here's where ford stands in terms of production of the f-150. all of it has stopped in the u.s. that's kansas city, dearborn, the super duty production line down in kentucky as well they do have 84 days' worth of inventory so it's not like you're going to run out of f series in dealerships around the country, but this is a highly competitive market the full-size pickup market, ford is the leader with 39% market share you can bet that gm and ram will be quick to take advantage of any weakness they might see if this extends for a couple of weeks where you start to see perhaps a bit of a dip in the number of f series available on dealer lots. meanwhile, in terms of the annual meeting that was held this morning, ford once again reaffirming its full-year earnings guidance. ceo jim hackett is defending his turn-around plan, including he believes they are making new progress targeting new revenue streams. >> we'll drive new what we call

sticky revenue, revenue that stays during good times and bad times and that creates profit streams for us we see ourselves not just as a provider of mobile solutions, but also as an orchestrater of digital connections from vehicle to street to business to home. >> when those mobility and digital plans kick through remains to be seen likely in the next cup couple o years. take a look at ford versus fiat chrysler and you see the difference in performance. part of that is because there's optimism or hope amongst investors that sergio marcione is looking for some type of a deal at some point remember, we get their five-year plan from fiat chrysler a little later on this month. back to you. >> phil lebeau in chicago, thank you. nearly 35 years after his controversial victory, the karate kid is back and teaming up with his rival, johnny, on a new show streaming on youtube.

up next, the producers of cobra kai tell us how they convinced the original actors to reprise their roles and why they cseho youtube red and not amazon or netflix. "power lunch" will be right back so no matter what you trade, or where you trade, you'll only pay $4.95. fidelity. open an account today. you'll only pay $4.95. this scientist doesn't believe in luck. she believes in research. it can take more than 10 years to develop a single medication. and only 1 in 10,000 ever make it to market. but what if ai could find connections faster. to help this researcher discover new treatments. that's why she's working with watson. it's a smart way to find new hope, which really can't wait. ♪ ♪ this is where i trade and manage my portfolio. since i added futures,

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♪ winner >> you can forget that scene more than 30 years later in the '80s classic, the "karate kid" has found new life on youtube red. youtube subscription streaming service. the new series, "cobra kai," which launched may 2nd, shows the feud is hotter than ever >> wait, is this the karate guy, the guy from the tournament? >> this is the guy who [ bleep ] you kicked >> it was a really close match but if you want to get technical, i kicked his face >> it was an illegal kick. >> oh, illegal, really come on. what about that elbow to my knee >> i got a warning, you got the win. >> no fighting in the showroom, guys >> joining us now are the producers behind "cobra kai,"

john and hayden. welcome to "power lunch. great to have you with us. >> thanks for having us. >> thanks. >> first of all, congratulations. we had some breaking news here, we're just hearing that you were actually picked up for a second season, so good for you. i'm assuming, then, that the episodes that have been released have been received very well do you have a sense as to how many eyeballs have seen the show >> yeah, no, it's been unbelievable we've all been stunned you know, that first episode has over 20 million views already, and it's been about a week, which was, i guess, the reason for such a quick pickup for season two and we're excited to make more. >> it's michelle here. do they do wax on, wax off in the show? i mean, how many of those things that were so fun from the original are in this >> you know, the fun thing about this is we just approached it as fans, and we wanted it to feel like a true continuation, and it tells a story for today's audience, but there's definitely

some callbacks so if you're a fan of the original movie, you'll find those moments throughout the first season. >> yeah, i was just going to ask who your audience is, who you guys are aiming for. there have been a lot of nostalgic re-releases lately, "roseanne", "will & grace," is this the new generation sort of likes the old school shows >> well, for us, you know, the audience is basically everyone obviously, there's the crowd like us who fell in love with daniel and johnny and mr. miyagi back in the day and you know, there's definitely plenty on the show for them. but you know, there's a whole new cast of teenage characters that we're hoping people are going to fall in love with the same way that we fell in love with those characters in the past, and thus far, the reaction has been amazing we are thrilled that people love the show as much as we do, and it's not just people in our age bracket but teenagers have been

really into the show as well >> so you want to target everyone, guys, but you chose the service that has the fewest subscribers, youtube red, specifically, has 1.5 million subscribers. netflix, 125 million, amazon at 100 million. hulu at 20 million i understand that you had sort of your pick of these guys on which to release the series. why did you choose youtube red >> you know, when we first met with youtube red, we didn't know what to expect but they pitched their company to us, and it starts with the people and the relationships that you're going to have when you're making a show and suzann daniels and the whole team at youtube red just were -- they totally believed in this project. they said all the right things >> they paid you the most, sounds like. >> it's okay to say yes. it's cnbc. >> there's no question they paid the most, but i got to say, after that meeting and them selling themselves on their company and their infrastructure and the billion -- >> yes, yes, yes, but how much

more how much more? there is a bidding war in hollywood for product, right >> i mean, the truth is, it was a full season without ever having a script generated yet, so it was like you knew that you had a full season and ten episodes, and they were willing to commit the most >> orders of magnitude, was it ten times more, two times more, five times more? >> it was really the full season commitment before we had even written any words on the page, and i think that alone, you know, we've been in this business a long enough time to know that the ability to make your product and put it out into the world is invaluable and we believed in the story that we were going to be telling we believed in the people at youtube red and it was nice to us to be the big fish in sort of a smaller pond if the smaller pond is google, doesn't hurt >> we'll have to check it out. "cobra kai." thanks for your time, john and hayden >> thank you this bud is not for you, little grasshopper

budweiser's parent company reporting a drop in beer sales in america do americans not like beer as much as we used to and stocks continuing to rally on wall street, the dow poised for a six-day winning streak u' g tt hold yoveoto watch the second hour of "power" to find out.

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i'm melissa lee. the lows are holding, volatility has dropped and geopolitical headlines don't seem to be making investors jittery at this point. have the markets returned to normal and in a jittery and volatile market, where the ultrawealthy investing? the area of the market they say could be the growth story. and speaking of the ultrawealthy, ariana rockefeller joins us exclusively from christy's. "power lunch" starts right now welcome to "power lunch. i'm michelle caruso-cabrera. you can see soctocks are in raly mode with the dow on pace for its sixth straight day of gains. the nasdaq on pace for its longest win streak since march the industrials, all higher by at least 0.5%, almost 0.75%. all s&p sectors are higher

united health, dow dupont, exxonmobil leading the dow and two latin american markets are making big moves today mexico opened higher by 2.5% after their commerce minister spoke optimistically about a nafta deal being signed and argentina shot up on optimism. sara >> i'm saraizen a eisen the card would carry the apple pay brand and could launch early next year. airline fares fell 2.7% in april from the previous month after two straight months of gains. the average fare was down 6.9% from the year ago. and third points, dan loeb saying an important shift happened the increases will come in what he calls fundamental single names. we begin today with the

markets, bob pisani, mike santoli. mike, you say the market is getting less agitated, becoming inured to a lot of the geopolitical events and other factors that may have been head winds in the past. >> last couple of weeks, melissa, especially, it's shown a little -- a level of comfort, i guess, with where we were trading, coming to terms with 3% treasury yields and things like that you're seeing it in the sector rotation, the fact that the volatility index has gone below 14 it shows you that the market has pulled itself into this condition where it's not so much of a raw nerve all the time when it gets these headlines so i think that's probably preferable obviously, we made it through earnings season, didn't get a lot of direct lift from it but that's now kind of supporting the markets and i think that's one of the things we're seeing the last couple of weeks, especially >> the market is inured, you say? >> well, melissa said it's inured >> i love it when you use that word >> it's a good word. >> it turns me on when he uses latin words. i'll go with that.

snechlt i think we're at the lowest level since january so look what's happened in the last few days. we were worried about inflation getting out of control, cpi, ppi, not out of control. we're worried about yields going too high that's not really happening. we were worried about losing leadership in technology, and yet the leaders are tech and financials recently. those are the two biggest sectors. yields have been holding steady. the oil rally's been helping a lot of things have changed in a very, very short period of time, really since the jobs report, things have turned around the bulls have regained control of that. >> i do think since the job report and also today's data shows the market was craving goldilocks-type numbers where it doesn't seem like the economy was going to get away from us. i think the fact that we're having this conversation, saying hey, things look pretty good when the s&p is down 5% from its highs shows how we've reset expectations so the three-month period of chopping around has done its work. >> and watch 1615 on the russell. we were knocking right on the

door an hour ago we came off it but like 0.25% from a new high. i think the market's getting inured from small cap pressures. i just want to say that word >> i don't blame you thanks, bob. thanks, mike let's bring in kate warren, principal investment strategist at edward jones and jay jacobs lady and gentleman, good to have you here kate, for a long time, it was a by the dip market and then we had this period of uncertainty when you should have sold the rallies. what do you do right now is this buy the dip or sell the rallies? >> i think it's still buy the dip although there's not much of a dip because the fundamentals are still solid. we've got better than expected first quarter earnings that we're really quite strong and we think we'll see double duigit earnings through the rest of the year as well as a slight acceleration in economic growth. both of those are good news for stocks over time and although we

do think that some of the recent risks have diminished, they'll probably come back that will give you an opportunity in the future when we see more volatility, obviously not today. >> jay, what do you think? you see risks in this market or just opportunity >> there's obviously risks and opportunity. i think the opportunity right now is in the oil space. we're seeing oil really steady, above $70 in the u.s. and that's creating opportunity and energy infrastructure where you see very cheap valuations but just huge oil output coming online. that even creates opportunity internationally as well when you look at countries like columbia and norway where you see benefit in the equity valuations when oil prices rise but also in their counturrencies. >> you like the energy stocks? >> yeah, in the united states, energy infrastructure companies, those involved in moving oil and gas around the country, as well as in the international space, really just a broad bed on norway or colombia. >> we got a lot of f.a.n.g. names recouping all the ground

lost in the past couple months you like microsoft, though you're sticking to old tech. where do you stand on why investors are reaching for technology now prior it had been this notion that global economic growth may or may not be there and you need idiosyncratic growth, the kind you find in technology >> we think technology has still quite a bit of support as companies spend more that's going to be helping not just older line companies like microsoft, which is shifting very dramatically towards the cloud, but we think global growth is likely to stay solid and we think all of that says technology still has room to run. we'd be a little cautious about how much of it we have -- you have in your portfolio, so it's more a caution on constructing the ortfolio, not technology we actually think technology is going to continue to be one of the leading sectors. >> what do you think of tech >> what we like in the technology space is the companies that are really disrupting existing sectors, so one of the areas we're looking at is companies that are really coming into the financial space,

disintermediating banks when it comes to lending, crowd funding, payments, and we like robotics and artificial intelligence. this is the combination of technology and industrials to really lead manufacturing in the 21st century so these really disruptive technologies that are taking over old sectors >> right on the cutting edge thank you, guys, thank you kate and jay. >> seems americans are aren't as interested in beer anymore the world's biggest brewers all reporting shrinking beer sales in north america despite this, mcleary is initiating coverage on bud today, calling it the best large cap grower joining us to discuss is the analyst who made the call, caroline what is bud doing right in a world where -- well, in the u.s. where beer volumes are in pretty steep decline? >> they are suffering in the u.s., but it's about 25% of their global earnings, and they have an incredible emerging market footprint, just dominant

shares throughout latin america, very strong growth and good margins in china and now with the s.a.b. acquisition, which is a couple of years old, a dominant position in south africa and some other countries there. so, you know, the u.s. bud light decline is a major drag but they've got a lot of other good things going for them. >> how do you look at the decline that we're seeing in the u.s. you and i have talked more times about the soda companies, for instance, and the decline which has been going on at least a decade is it the same sort of thing where this is sort of a structuring structural long-time shift away from hard spirits into craft brands or is this just a period in time. >> i think it's that, but i also think big brands are under pressure in home markets and that's a theme across household products, cosmetics, soft drinks and beer so, bud light is in decline. budweiser is in decline in north america. budweiser is growing beautifully around the rest of the globe and you're seeing international brands do better outside of

their home markets the other point, though, is people are moving away towards hard liquor, and that's because it's a more imaginative category people are doing, you know, interesting things with cocktails and even wine. they're just -- there's a huge selection. young people want choice they like to graze among very many different brands, not one >> how certain are you that people are simply switching from beer to another form of liquor or has the decline in beer -- has it been precipitated at all, in your view, by the legalization of marijuana? >> oh, it's very hard to get data on that because i think there's a lot of tourism into denver, for example, so you can't look at that market and say, well, it's legal and therefore have beer sales gone down no, they actually haven't. so it does make sense that that's a risk hanging out there. when they actually get federal legalization of marijuana, that's a while away, i think, but my beer companies are thinking about it if you look at constellation brands they've invested in the largest canadian marijuana company, but

i don't think that's what's causing the decline right now. >> should they diversify into pot? i mean, it seems like it might be this similar -- >> hedge >> a hedge in the portfolio. >> if they could, they should, but it's illegal federally in the united states, so public company can't do that right now. i think they are going to diversify aggressively into nonalcoholic beer. you've seen anheuser-busch talk about having 25% of its global volume in nonalc apparently that's gaining in popularity, although it hasn't been popular to me >> i hear it's more popular overseas than it is in the united states. o'douls, for example >> i'm from overseas, but okay >> isn't it millennials? i don't know it used to be that beer was sort of the introduction to alcohol you had it in high school or in college. i skipped right to the cocktails, but it seems like millennials aren't going for beer first

is that what's happening here? >> i think that is part of what's happening i have teenaged daughters so hopefully they're not drinking anything, but i certainly don't hear sort of the 20-year-olds just drinking beer if they're drinking beer, it's often craft and a.b. does have a very strong craft portfolio in some really fast-growing big brands like michelob ultra >> i was just going to ask, would it be possible that the reason people aren't drinking beer is because they've got a lot of carbs and michelob ultra i don't know, has one of the lowest in the market >> it's definitely seen as a healthy alternative but you have corona growing very strongly i think old brands are struggling with millennials. i think that's the bottom line >> we've seen that across the space. nice to see you as always. you think it's pot i think it's whiskey >> i think it's carbs. >> i think it's both >> anyway, it's bad recipe for beer coming up on "power lunch," an inside look at where the wealthy are investing right now,

including the one area they think could be the best bet for the next ten years then, don't be fooled by the headlines, more on michelle's exclusive look at how north korea is trying to outsmart the u.n. and you've seen the art, the jewels, and the many other pieces in the rockefeller collection now, hear from the woman who grew up surrounded by it all ariana rockefeller joins us live for an exclusive interview that and much more coming up on "power lunch"ment. i'm not a bigwig. or a c-anything-o. but i've got an idea sir. get domo. it'll connect us to everything that's going on in the company. get it for jean who's always cold. for the sales team, it and the warehouse crew. give us the data we need. in one place, anywhere we need it.

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welcome back to "power lunch. the market's on the rebound this week but it's been a choppy year so far our next guest has a unique insight into what some of the wealthiest peek peop wealthiest people are doing with their money. mike michael is the founder of an investment club. let's remind the audience what you do you're not a hedge fund. >> we're not a manager at all. >> you have 600 members worth roughly $100 million each. they pool money and invest >> no. they meet once a month in confidential settings all across the globe now, five countries. they meet in groups of 12 to 15

people, and they have a confidential meeting for a day to explore the issues of wealth, preserving it, the impact of it, children, family, philanthropy, but mostly they're people who have had liquidity events and once they go from being an entrepreneur to an investor, they want to learn from one another. >> we all dream of liquidity events that's when somebody gets to sell their business and they have a lot of money. you have an asset allocation report so you survey your members. what are you finding >> right now, our members are what you would call fully invested private and public equity each at about 22%, 23%, so risk assets, totally about 74%. interestingly enough, cash has come down a little from 12% to 10%, meaning people are not heading for the hills, they're not worried, but this was the first quarterly allocation where allocations are rema allocations remain fixed we're holding our breath, looking at mixed signals coming out of the economy and saying

where are we going >> which asset class are they worried about. >> hedge funds have had the lowest recorded allocation, 5% they were twice that a decade ago, so hedge funds are not doing too well >> what about widely held stocks >> so, in the widely held stocks area, it's the f.a.n.g.s, apple is number one and perennially, berkshire hathaway is five or six and now they're like the same stock >> that's their largest holding. >> those five stocks, the f.a.n.g.s, apple, and down to berkshire. >> 38% of the members own amazon >> no. 38 -- 23%, those are the largest holdings >> that's year to date performance as it says right there at the top what do they think about buffett's apple purchase >> obviously, it's gratifying for buffett to follow. it's been three years we've been having apple at the top. it has a competitive mote that's just amazing, perfect for buffett.

it's not just a hardware company. it's the entire system of products that interoperate with one another and the services business is just exploding, so they have a long way to run. they have a competitive mote and a long horizon, and that's what buffett has made his success on. >> how do they view the public equities portion of their portfolio? do they want -- are they willing to take on more risks, seeing that they're mostly invested in real estate, per se? does it tilt more towards f.a.n.g. stocks for a reason >> yeah, so, our members are some of the greatest entrepreneurs in north america they created their wealth in private equity, small companies, and real estate. those categories outperformed public equity, so the reason why public equity is only 23% for our members is they actually can do better in private equity and real estate. so, this is risk gone, it's just that they're sticking to their knitting they're doing what they know best >> how much risk on? anybody buying bitcoin >> we had a survey a month ago,

first survey on crypto currency. the only way we can compare that is we know that only 1% of our assets are in commodities or currencies, so that's a huge amount of interest it's almost in every group we have 40 groups around the globe. in every group, people want to learn about bitcoin. we're putting speakers in, experts. >> but do they own it? >> a number of our members do. >> but the 20% references the interest in it >> exactly >> terrific. thanks, michael. good to have you on. still ahead, more on our exclusive look at how north korea is trying to outsmart the u.n. on sanctions and what the u.n. is doing to try and stop them

welcome back to "power lunch. in a cnbc exclusive last hour, we told you about new evidence showing that north korea is still evading sanctions by conducting ship to ship transfers of oil and petroleum product at sea the u.n. investigators tasked with monitoring compliance of the sanctions say the ships involved are turning off their automated identification signal or a.i.s while they are at sea, so they can't be seen by software designed to track them

multinational company was named by the investigators in their most recent report as having been involved in one of those prohibited trades. i spoke earlier this week with an executive at that company who is cohead of market risk and he explained that the commodity supply chain is long and complicated and they had no idea that a deal with north korea had happened and they do not want it to happen again. >> there is a gps system on any of the vessels that are operating in these waters. you might be surprised to hear that on occasions, these are turned off we are precluding anybody who deals with us from turning these systems off. secondly, we've demanded or required documentary proof of the discharge of the goods in the location that we are told they have gone to. >> in other words, they got to prove they delivered the commodity to where they said it was supposed to be going he is going to work with all of their competitors within this industry to see if they can also convince them to put these clauses in, in an effort to help the u.n. >> wow so it's coming from the

grassroots sort of >> to some extent. here's how the process is going to work. the panel of experts is going to send letters to all these companies and then wait to see what the response is and then put in their report that's read by everybody what the response was. so there's going to be a lot of pressure on them to comply >> yeah. for them to do it themselves as opposed to regulations from some place. >> exactly >> how big of a team do they have on this >> the u.n. panel of experts is about 12 and then there's overseers from a lot of different countries that also weigh in on the final report >> all the stuff happens behind the scenes >> right they never let any cameras into their offices. >> it's very cool. fascinating. coming up, we continue to take a look at commercial real estate today, a firm that's up 11% so far this year, the ceo and where he sees the opportunities. spotify announcing a new policy that is putting it dead in the middle of a hot button time's up debate stay tuned need a change of scenery?

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two-week losing streak, and some names that are hitting 52-week highs here in technology, apple, adobe, nvidia and visa now to sue herera. >> here's what's happening at this hour. detroit lions head coach holding a news conference. he is addressing a recent news report about an allegation of sexual assault leveled against him in 1996. the detroit news says he and another man were accused of sexual assaulting a woman while on spring break in texas >> i think what's important here what happened 22 years ago is what didn't happen as i said, i was innocent then and i am innocent now. i was falsely accused of something that i did not do. missouri governor eric greitens is in court on charges he took a nude photo of a woman without her consent and threatened to make it public if she spoke about their affair his trial begins with jury

selection today. russian president putin taking to the ice, scoring five goals in a hockey game which was played in sochi in front of a packed house putin was there to help promote russia's amateur hockey teams. his team won 12-7, no surprise that is the news update, guys. i don't know anybody who would block a goal by mr. putin. >> yeah. i don't either, sue. >> could be dangerous. >> very. thank you, sue the real estate sector has been one of the worst performers this year but not all real estate is created equal. marcus & millic up they offer everything from hotels to medical offices to student housing and golf resorts. let's bring in the ceo great to have you with us. real estate's getting painted with a bad performance because a lot of those firms are reets

you don't have this head wind of rising interest rates but explain your business model to the viewer who might not be familiar with your firm. you go out, procure the real estate and sell it to people who are looking for that specific kind of property >> sure. we're the largest broker of investment real estate in the united states. we have 1,800 investment professionals and financing professionals who specialize in the marketing of commercial real estate assets on behalf of the owners and secure the financing from various types of lenders for those and we represent a lot of buyers so we're the intermediary that makes a market for commercial real estate, and we have really observed a lot of improvement in market sentiment over the last year about a year ago, we saw a lot of uncertainty, people going to the sidelines in anticipation of the direction of the economy and early the tax reform package, which had a lot of question marks as related to real estate. >> sure. >> all of that came out very positive >> there are a couple of impacts

on your business from the tax reform first of all, the impact that your business itself feels because as i understand it, your corporate tax rate went down dramatically but also the tax ramifications of actually investing in real estate can you talk us through how it's benefitted your business >> sure. for a lot of our clients that predominantly are private investors, small partnerships, the favorable tax treatment for pass through entities with a 20% tax rate reduction is a major compelling reason why more capital is forming and more people are looking at investing in commercial real estate. and all the different advantages interest rate deductibility, for example, and accelerated depreciation of the asset, not to get too technical and a 1031 exchange rules which allows a property owner to exchange an asset they've had for a while for a like kind asset without paying the taxes immediately and deferring the taxes. all of those things stayed intact and of course on the corporate

side, not only are we benefitting from a lower tax rate, which allows us to invest more in our business, we're seeing that across the united states if you look at first quarter corporate investment, it was up 9%, so there's evidence that lower tax rates are going stretch the economic expansion that we're in. >> can you talk about the unemployment rate, which is now below 4% and what that tight labor market is doing for demand for office space and how companies are thinking creatively about attracting talent when they're having trouble finding the workers that they need. >> sure. that's definitely an issue on a lot of companies' minds, as you can imagine. from silicon valley to new york to florida to austin, we're hearing more and more about the labor shortages for a lot of the tenants that normally would take office space the irony of it is there's now so much more demand for office space than there was in the last four or five years and office has been the laggard in this recovery so as a value investment, it really is a value investment opportunity now versus three or four years ago

apartments and industrial warehouses led the recovery in price appreciation and office was the laggard so it's now the opportunity. >> hold on we're running out of time and i want to ask you one question i bet you are sniffing around a lot about amazon's next headquarters you got any intel? the question that sara asked about location and getting supplies of employees, it's crucial to what they're asking about, right >> not just amazon but all the other major tech companies >> yeah, yeah, but what do you know about amazon? >> i cannot speculate about what's going to happen there but what i can tell you it's not just amazon but a variety of tech companies that are driving the current generation of office demand, and it also is resulting in the reconfiguration of office work space that's another very important category of adding value to an office building to attract millennials and attract the kind of companies that are expanding in this economy. >> food trucks >> yeah. >> put a food truck in the

office >> thanks for playing along. if you're looking for an r. kelly song, you won't find it recommended on spotify julia boorstin is live in los angeles with more. >> spotify has removed r. kelly's music from all play list and recommendation features, this on the heels of time's up launching a mute r. kelly campaign, calling for them to stop supporting them in light of reports of sexual coercion and abuse. now spotify just today debuted a new hate content policy, saying it wants its editorial decisions to reflect our values, and that it's, quote, thought long and hard about how to handle content that is not hate content itself but is principally made by artists or other creators who have demonstrated hateful conduct personally spotify also pulled the rapper who faces charges, including aggravated battery of a pregnant

woman and witness tampering. but we found a number of artists with violent records on the platform, including chris brown, pleaded guilty of felony assault. kodak black is on the platform he's in prison gucci mane was convicted of assault. spotify says it will evaluate artists on a case by case basis. >> there's a distinction in that the music that's already on the platform remains on the platform but they simply will not pop up in the spotify, you know, the spotify list that suggests that viewers listen to certain songs. >> yes so, spotify is really known for and appreciated for the fact that it has a range of play lists and also recommendation features and that's how a lot of people, including myself, find music or figure out what song to listen to next on spotify. so, you're not going to find r. kelly now and that could have a real impact on the revenue he would get from his digital music ventures so i think it will be

interesting to see what happens. this is really them taking a big editorial stand but it's interesting because it doesn't apply to some people who you think they might want to remove, like chris brown >> and the why now is what their new hate speech policy >> they just announced this new policy today, which is the broadest policy we've ever seen from a company like spotify. saying they're not just going to remove music from white supremacists, which is something they've done in the past, but now they're -- which is sort of hate speech music. but now they're removing music from people that have the moral values they don't agree with >> there's been this grassroots campaign all over social media, #muterkelly so i guess it's a hard editorial stance to take because it's not like everyone who's committed a crime is banned from the platform you mentioned chris brown. we have a whole list here. phil spector, rick james, ike turner and it's not like their

music is taken off >> it's a complex issue. i think one of the issues here for spotify in particular is that by including someone like r. kelly in a play list n, in a way, spotify is endorsing their music. we think you'd like to listen to this and i think that spotify, my sbern interpretation of their new hate speech policy is they don't want to be seen as endorsing an artist who they disagree with their actions. >> it's a slippery slope, though, julia, right >> complicated issue i mean, based on some lyrics, you could ban a lot of songs. >> oh, for sure. >> right i mean, it could go on and on. coming up, robert frank has taken us behind the scenes of the stunning rockefeller auction. well, today he's back at christie's with a very special guest. robert >> hey, michelle we are already up to $762 million with a whole other day to go here at the rockefeller sale at christie's

we have a very special guest, ariana rockefeller, the equestrian athlete, the designer, and the fifth generation rockefeller she's going to talk about what it's like to be a rockefeller and to see all these family heirlooms sold off right after this break now you can, with shipsticks.com! no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines. sending your own clubs ahead with shipsticks.com makes it fast & easy to get to your golf destination. with just a few clicks or a phone call we'll pick up and deliver your clubs on-time, guaranteed, for as low as $39.99. shipsticks.com saves you time and money. make it simple. make it ship sticks. at ally, we offer low rates on home loans. but if that's not enough, we offer our price match guarantee too. and if that's not enough... we should move. our home team will help you every step of the way. still not enough? it's smaller than i'd like. we'll help you finance your dream home. it's perfect.

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$75 million, and you're out, francis gives the signal, ladies and gentlemen. thank you for that tremendous bid. you have it. sold to you. well done. >> and that was a gavel coming down at christie's for a monet painting which is part of the massive rockefeller auction happening right now. now, so far, the auction has raised $765.3 million, all for charity. with everything from a napoleon tea set to a louis xv clock, it really makes you wonder what it was like growing up as a rockefeller. so, who better to ask than our next guest, ariana rockefeller she is live at christie's with our own robert frank robert, take it away >> thank you, melissa. and ariana, thank you so much for joining us today so, your family has always been so private and so under the radar. they have always chosen to speak through their philanthropy what is it like to have this

much exposure and to have people paying so much for your family's stuff? >> well, i think there's a time for private life and then there's a time for public life and to step forward, and this was really my grandparents' vision, and so it's an amazing time and it's so exciting to see the public's reception and appreciation of this incredible sale, and christie's has done just an amazing job curating it and, you know, protecting our family's privacy, but putting it out to the public in just a spectacular way. >> everyone's wondering, what does the family think about, especially the younger generations, that so much stuff is being sold off, didn't they want that stuff. all the family members, including yourself, were allowed to choose some items of your grandfather, up to $1 million. what did you choose? >> well, i was very happy to keep a beautiful bracelet that my grandfather had picked out

for my grandmother, and i was happy to wear it to the met gala on monday and honor my family's legacy and tradition and to be able to keep that sentimental piece, among some other things and it's been wonderful to see my grandfather's vision come to life for the collection. >> and you are an equestrian athlete, very, you know, have won so many events you also have your own design company, you're very entrepreneurial. do you think some of your great-great-grandfather's entrepreneurial genes have been passed down to you >> i think so, you know? there's such a value of having a work ethic in my family and of working at working hard at whatever it is we choose to do and focus on so, i definitely try and honor that, and i love to work hard, and i'm excited to have founded my own business and to carry on in my grandparents' tradition. >> these prices that we're

seeing, even today, are sometimes five or ten times the estimate what is it -- are you surprised by some of those values, and what does it feel like to see your family name have such a premium on these things? >> well, it gives me great pride, because i thought my grandfather had such amazing taste and he really cherished beautiful things, and so to see the public also be excited about things that he and my grandmother chose and loved is a wonderful thing. >> now, i know our anchors, tyler and michelle, and myself, are all obsessed with the picnic basket hopefully we can show that did you guys use that? did you ever have a picnic with that picnic basket estimated at $5,000 to $10,000, probably going to sell for a lot more >> we did, yes my grandfather would use it. we'd take -- he would drive the carriage around upstate and we'd often have picnics on sunday and he really used every -- almost

every piece in his collection and loved it so, yeah >> michelle? >> ariana, it's michelle here in the studio i met your grandfather at the council of the americas quite often. he was a big supporter of that institution and was a fine gentleman. and he's very missed he was famous for having a huge rolodex on which he wrote down everybody's name, the first time he met them. what happened to that rolodex and did you ever look through it it must have been amazing. >> it was amazing, and he really was meticulous about recording his meetings and the names of people that he would meet, and so it was wonderful. it was in his office, and it had its own room, and it's an incredible -- it has incredible history in it. >> you're right. it would need its own room, right, because it was so big >> where is it now >> yes, exactly. and our amazing family

historian, peter johnson, has, you know, been working on preserving it and so, you know, it's in the process of being preserved and it will, of course, go to the rockefeller family archives. >> fantastic >> michelle, we're going to have to get access to that rolodex some day that must be amazing and one of the things about the rockefeller family that so fascinates people is that most families lose their wealth after three generations. rockefeller family is now in its seventh generation, still together as a family, still preserving their wealth, still incredibly philanthropic david has given away up to $2 billion in his lifetime what's the secret to being such a successful family? >> well, i would say that it is incredibly important to be close as a family and to work hard and to budget wisely >> yeah, because you were saying as a kid, when you got your allowance, you had to record

every dollar that went in and everything that you spent. and that's something that started with john d. rockefeller himself. >> it did. yes. i think the message was a dollar is a dollar, and to value that and put a lot of value on hard work and the enjoyment of life, of course, and to give back. >> all right well, there's a lot of giving back here, guys, because as you said, we're already at $760 million with a full day to go so this is already by far the single largest auction of a collection ever. ariana, thank you so much for joining us congratulations on the auction >> thank you >> guys, back to you >> robert frank, thank you for bringing us the interview. speaking of the finer things in life, rolls royce is unveiling the most expensive suv on the market. it's called the rolls royce, named after the largest diamond and the price starts at $325,000 it's the first rolls royce with four wheel drive so you can take

it offroading if you really want to offroad in a rolls. but it has a table and chairs that fold us from the back tailgate it's perfect for watching polo games, horse racing or watching your kids play soccer or maybe tailgating at a football game if you're going to take your rolls for that too >> i see the place where you keep your flask there. did i miss the video of the part that comes out the back? i keep waiting for it. >> it's about to fold over that's going to be the deciding factor for you, michelle >> oh, definitely. tailgating experience. chip stocks higher ahead of nvidia's earnings. will the trend continue? you know, i used to be good at this. then you turn 40 and everything goes. tell me about it.

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nation," and today let's look at chip stocks soaring ahead after the bell nvidia with a new al-time high today. does the rally have legs matt and mark with strategic wealth partners. ma matt, it's been a moon shot, up 113% over the past year. high expectations. does it deliver? >> well, it's going to be important that it does because we're at a key technical level for this stock and the whole group. i mean, you look at the stock semiconductor index, there's been a nice rally, jumping off the 200 moving day average a week or so ago, and it's now moved up, above the short term trend line, and slightly above the 50 day moving average, however, it needs more upside momentum to show things changed. it has to move above april highs. if so, it shows the short term trend changed from down to up. similarly with nvidia, like you said, sarah, the stock has been unbelievable stock over the last year and last couple years even, big momentum name, but actually,

it's trending sideways lately, and just this week after 11% rally, slightly above that range. if the earnings are good enough and the stock rallies higher, it's going to track a lot of momentum money and be positive however, if it tradesdown, it falls back within that middle of the range, and that momentum is not going to be there, and it's going to be a tough group to ral rally. not just stock trades tomorrow, but the next few days are important. >> mark, how's the group look to you? big wins today for micron, applied materials, and, of course, nvidia ahead of earnings >> yeah. in general, we don't like the sector in fact, we're a high conviction underweight on the sector in general. i agree with what you said about the moon shot. i mean, all the bitcoin hype and global m&a activity shot prices through the roof no way they'll hit their expected growth forecasts of 25% annually over five years, so we deaf in t feel it's time to dump the chip names on smart phones because the demand has matured and not

accelerating anymore however, with nvidia, they are heavily dependent on gaming and they have a different customer base, and gaming is key to their growth making up over 50% of the revenue, and we are bullish on gaming when you look worldwide, pc gaming is growing 10% annual rate, and by far, nvidia has the best gpus to offer in the industry, much, much better than amds, and they are competitively priced, so, you know, we like that particular stock. >> an exception there, and also in a sweet spot in terms of technology and ai. leaving it there, watching for earnings tonight thank you. go to tradingnation.cnbc.com for more." check please" is next. and now, the latest from tradingnation.cnbc.com and a word from our sponsor. >> volatile markets are a good time for longer term investors to review asset allocation plans on core holdings if you are overly concentrated

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and it's also a story about people and while we make more e-commerce deliveries to homes than anyone else in the country, we never forget... that your business is our business the united states postal service. priority: you check please, there's a treat own "power lunch," oz pearlman, will be here he mailed us this envelope on tuesday, with a prediction of the stock market he's the picture of tyler when it was taken tuesday when delivered. all four of us have signed it to prove it's been sealed we can assure tsa it's been in

our possession the whole time. we are going to find out tomorrow what is inside with this - >> wow >> if he's correct >> do we know a time frame for the prediction 12 month price target or - >> we have no idea >> we know from the producers, he's a magician. he makes predictions, and they come true. >> wow, magic. >> magic >> all right we were talking about spotify removing r. kelly music from the promoted play list 50 cent tweeted an hour ago, spotify is wrong for what they are doing to artists like r. kelly and xxxtentacion they are not even convicted of anything >> it's a good point >> it is but as we have seen in movements, it does not take a conviction for people to be outraged by behavior that then gets that person who accused of doing something removed from whatever position they are in, or, in this case, removed from

playlists. >> you said earlier, it's a sliply slope >> it is >> could be a lot of other demands. you could say, you can't carry any rap because it's really offensive and mean to women. >> but people feel empowered to call people out and call out companies for supporting them, it's a moment right now for that >> thank you for watching "power lunch," and "closing bell" starts now >> stocks are rally mode, apple hitting a fresh record high. did big tech drag the rest of the market higher to the new fresh highs? >> on the floor of the new york stock exchange, i'm mike santoli. a shock and drop, is the market stabilizing? >> reporter: we're in washington, why this is the best day to sell a house. >> reporter: we're in san francisco where i have the exclusive interview with dropbox's ceo as the company releases its first quarterly report since the ipo plus, a top institutiona