but it's been a relationship that seems to be working, and we'll see how long it continues to work. hopefully it's going to work for a long time. john >> unrelated, mr. president, can you tell us more about your meeting with rod rosenstein and director ray yesterday >> just a very routine meeting as you know, the congress would like to see documents opened up. a lot of people are saying they had spies in my campaign if they had spies in my campaign, that would be a disgrace to this country that would be one of the biggest insults anyone has ever seen and it would be very illegal aside from everything else it would probably make every political event ever look like small potatoes so we want to make sure that there weren't. i hope there weren't, frankly. but some man got paid based on what i read in the newspapers, and on what you reported, some person got paid a lot of money that's not a normal situation, the kind of money you're talking about. so hopefully that would be --

and i think department of justice wants to get town down t and congress does. so hopefully they'll be able to get together general kelly is going to be setting up a meeting between congress and the various representatives. and they'll be able to open up documents, take a look and find out what happened. but if they had spies in my campaign, during my campaign, for political purposes, that would be unprecedented in the history of our country yes. >> can you give us an update on trade talks with china is there a deal about zte? >> no. president xi and i have a great relationship as president moon can attest but there is no deal we will see what happens we are discussing deals. we're discussing various deals we can do a 301, we can do -- where we don't need china. where we can just say, look, this is what we want, this is what we think is fair. that's always a possibility if a negotiated deal doesn't work

out. as i said, we lost $500 billion a year for many years. and then it varied from $100 billion to $500 billion. when you're losing $500 billion a year, you can't lose in terms of a negotiation it's really easy to win. but i want this to be a great deal for the united states and i want it to be a very good deal for china, too, if that's possible it may not be possible as far as zte is concerned, the president asked me to look into it, and i am doing that. and don't forget, for the ones that say oh, gee, maybe trump is getting a little bit easy. zte, we closed it. it wasn't another administration it was this administration that closed it. it's a phone company, for those that don't know. a very large phone company but it's also a phone company that buys a large portion of its parts that make up these phones that are sold all over the world from american companies. so when you do that, you're

really hurting american companies also so i'm looking at it but we were the ones that closed it it wasn't done by previous administrations, it was done by us so we'll see what happens. but as a favor to the president, i am absolutely taking a look at it a lot of the stories on trade were incorrectly written, and i'm not saying that's the reporter's fault i'm saying that i'm not talking about the trade deal i don't like to talk about deals until they're done so we'll see what happens. but that deal -- i will say, that deal could be much different from the feel that finally emerges. and it may be a much better deal for the united states. >> do you have confidence in rod rosenstein >> what's your next question, please no, excuse me, i have the president of south korea here. >> yes >> i have a question -- >> he doesn't want to hear these questions, if you don't mind. >> president trump, i'm a reporter from south korea. how much confidence and trust do you have with the president in

terms of a mediator role in resolving this north korea issue and denuclearization process >> i have great confidence in your president i think that he's brought a different perspective to the talks with north korea he wants to be able to make a deal now, you've had some very hard line administrations, and you have president moon, and you've had others before president moon who also had more or less this attitude i think he's a very capable person and i think he's an extremely competent man. i think he's a very good person, and i think he wants to have what's good for the korean peninsula. not just north or south for the entire korean peninsula. so i have tremendous confidence in president moon. and i think that his way -- the way he is really is helping us to potentially make a deal whether the deal gets made or not, who knows it's a deal. who knows. you never know about deals you go into deals that are 100%

certain, it doesn't happen you go into deals that have no chance, and it happens, and sometimes happens easily i've made a lot of deals i know deals i think better than anybody knows deals. you never really know. and that's why i say to you -- this is a good man, and he's a very capable man and i think south korea is very lucky to have him. do you want to interpret that for him so he can hear it? because, you know, he's not hearing what we're doing here. we'll just let that be interpreted. [ speaking in foreign language ]

you are watching "power lunch," and we have been watching a meeting between president trump and president moon of south korea. we will keep an eye on it for you, bring you any headlines already president trump saying the planned historic meeting with north korea's kim jong-un could be delayed may or may not happen. also left some uncertainty on trade talks, saying he's not pleased with recent trade talks between the u.s. and china, but he did keep the door open for further negotiations let's go back to president trump. >> okay. we'll take a couple more go ahead >> what were your conditions for a meeting with kim jong-un >> i would rather not say.

but we are working on something. and, you know, there's a chance it will work out there's a chance -- there's a very substantial chance that it won't work out i don't want to waste a lot of time, and i'm sure he doesn't want to waste a lot of time. so there is a very substantial chance it won't work out and that's okay. that doesn't mean it won't work out over a period of time. but it may not work out for june 12th but there is a good chance that we'll have the meeting >> mr. president, can you ask u.n. president moon this question in terms of denuclearization, should it be an all in one or should there be incentives along the way? >> all in one would be nice, i can tell you i'm not going to go beyond that. it certainly would be better if it were all in one does it have to be i don't want to totally commit myself, but all in one would be a lot better [ speaking in foreign language ]

>> or at least for physical reasons over a very short period of time. you know, you do have some physical reasons that it may not be able to do exactly that so for physical reasons, over a very short period of time. essentially that would be all in one. [ speaking in foreign language ] >> plump, i am from south korea. will you, for the safety -- [ inaudible north korea? >> i will guarantee his safety, yes. we will guarantee his safety and we've talked about that from the beginning. he will be safe, he will be happy, his country will be rich,

his country will be hard-working and very prosperous. they're very great people. they're hard-working, great people look at what happened with south korea. don't forget, we helped south korea. we have spent trillions of dollars -- not billions -- trillions of dollars over many, many years we helped south korea. and south korea is one of the most incredible countries in terms of what they do. you know that. that's the way you are that's the way you're from same people. same people. so yeah, i think that he will will be extremely happy if something works out. and if it doesn't work out, honestly, he can't be happy. but he has a chance to do something that maybe has never been done before and i think it would be -- if you look 25 years into the future, 50 years into the future, he will be able to look back and be very proud of what he did for north korea and actually, for the world.

but he will be very proud of what he did for north korea. >> mr. president what do you want to ask president moon about his own summit [ speaking in foreign language ] >> all right while they translate this answer, we're going to bring back eamon javers, live at the white house for us eamon, you just heard what the president was talking about in response to that question about what would he offer essentially kim jong-un. and the president makes it clear, he's trying to give him an offer he can't refuse lots of money, personal guarantee. in other words, don't worry about what happened to gadhafi in libya you'll be happy. we'll see whether or not kim jong-un is going to accept that. >> the president went so far as to say he'll guarantee his safety that is kim jong-un himself personally would be safety there is a question of how much latitude kim jong has to negotiate. versus how much are in the hands

of generals and others around him the president there hinting very much the united states would guarantee his personal safety if it comes to that, and also that the united states would help in the rebuilding process economically of north korea in a post deal world so that's an extraordinarily large carrot there dangled by the president of the united states. >> he's talking again, eamon let's listen. >> south korea, china and japan. and i have spoken to all thee. one i happen to have right here. they will be willing to help and i will invest very, very large sums of money into helping make koerk great. [ applause ]

>> what do you want to hear from president moon about his own summit with kim jong-un? what can he tell you >> well, that's what we're here for. he's going to tell me. he's got his own meetings that he's had we're going to discuss that. he may have a meeting coming up. he may not the word is that -- that he may not. it may be directly with us it may go directly to us at s g singa pore >> we speak a lot on the phone this should not be that long a meeting, actually [ inaudible >> he may or may not right now he doesn't know whether he has a meeting but he may or may not have a meeting with kim jong-un [ speaking in foreign language ]

as we hear this korean translation of the president's latest remarks, let's bring in jimmy pethokoukis. what i just heard was the president saying, apart from guaranteeing the safety of kim jong-un in the event of any negotiation, he promised that japan, china and south korea will invest large sums of money to make north korea great. i can practically see the hats >> right right. so tremendous carrot there for north korea. though often it's what the president doesn't say that certainly is as meaningful as to he does say. so let's not forget what north korea is it's a brutal danger at a timetorship. >> we're going to sbro interrupt for a second

>> china as an example has made a fortune. i mean, a transfer of wealth like nobody has seen in history. they had the big one they're almost all bad, but china is the big one so no, i'm not satisfied but we'll see what happens we have a long way to go but i wanted to go fairly quickly. you're talking about numbers like that, you're talking about billions of dollars a week, okay so when they say oh, let's meet in a couple of weeks, oh, that's $2 billion, right? i view it that way you know, we're talking about billions of dollars a week that we suffer. we lose. and so we're looking to go quickly. i will say i'm a little disappointed, because when kim jong-un had the meeting with president xi in china, the second meeting -- the first meeting we knew about. the second meeting, i think there was a little change in attitude from kim jong-un. so i don't like that i don't like that. i don't like it from the

standpoint of china. now, i hope that's not true. because we have -- i have a great relationship with president xi he's a friend of mine. he likes me, i like him. we have -- i mean, that was two of the great days of my life, being in china i don't think anybody has ever been treated better in china ever in their history. and i just think it was -- many of you were there. it was an incredible thing to witness and see. and we built a very good relationship we speak a lot but there was a difference when kim jong-un left china the second time. and i think they were dedicating an aircraft carrier that the united states paid for, okay because we paid for a lot that was built in china >> do you think china maybe discouraged kim? >> no, but i think that president xi is a world-class poker player and i probably may be doing the same thing that he would do. but i will say this. there was a somewhat different

attitude after that meeting, and i'm a little surprised now maybe nothing happened i'm not blaming anybody. but i'm just saying, maybe nothing happened and maybe it did. but there was a different attitude by the north korean folks when -- after that meeting. so i don't think it was a great meeting. nobody knew about the meeting. and all of a sudden it was reported that he was in china a second time. the first time everybody knew about. the second time was like a surprise and i think things changed after that meeting so i can't say that i'm happy about it okay >> mr. president >> mr. president, what's -- >> let him go. [ speaking in foreign language ] >> let's go back to jimmy pethokoukis as we get the korean translation there. the president touching on lots of things. most especially north korea, jimmy. but also on his dissatisfaction with the existing state of play with respect to the trade

relationship between the united states and china but it is all balled into one sort of impromptu press conference here. and the relationships and the issues feel more linked than not to me. >> i think they look incredibly linked you had him talking about china. china is the trade deficit you had him talk about china's relationship with north korea. a lot of this seems to really resolve around how trump perceives his personal relationship with the chinese president. how that relationship is going he called the chinese leader a poker player and he didn't like the changing attitude between the two meetings so it's a very highly personalized style of diplomacy. >> yeah. he did seem a little -- >> miffed. >> i guess aggrieved that a second meeting between kim

jong-un -- and now the president is talking again so i'm going to interrupt myself >> do you have an opinion? [ speaking in foreign language ] and i don't want to get him in trouble. he lives right next to china he's not too far away. [ speaking in foreign language ] [ speaking in foreign language ] >> translator: first of all, i'm very much aware there are many

skeptical views in the united states about whether the upcoming u.s./north korea summit will truly be successful, and whether the complete denuclearization of north korea will be realized [ speaking in foreign language ] >> translator: but i don't think there will be positive developments in history if it we just assumed that because it all failed in the past it will fail again. [ speaking in foreign language ] >> translator: there have been many agreements between the united states and north korea previously, but this will be the first time that there will be an agreement between the leaders. [ speaking in foreign language ] >> translator: and moreover, the person who is in charge is president trump. [ speaking in foreign language ]

>> translator: and president trump has been able to achieve this dramatic and positive change that you see right now. [ speaking in foreign language ] [ speaking in foreign language ] >> translator: and i have every confidence that president trump will be able to achieve a

historic feat of making the upcoming u.s./north korea summit successful and end the korean war that has been lasting for the past 65 years. and also along the way achieve complete denuclearization of north korea, establish a peace regime, and also normalize relations between the united states and north korea i have every confidence that he will be able to make a historic turn-around in this sense. and i will spare no effort to provide all necessary support. [ speaking in foreign language ] >> translator: and i believe that all of this will lead to a great thing, that it will also guarantee the security of the north korean regime and also, i promise, peace and prosperity for north korea, as well >> mr. president -- >> mr. president >> do you believe that president

xi is committed to peace >> i would like to think so. i hope so. we're dealing mostly on trade. but, you see, what i'm dealing on trade, i have many other things in mind also. every time i talk to china about trade, i'm thinking about the border because that border is a very important element in what we're doing. it has been cut off largely. but it's been opened up a little bit lately i don't like that. i don't like that. so we have a very powerful hand on trade and what i'm thinking about trade, i tell you folks and you say, well, why does it -- there's a much bigger picture that i have in mind. trade has always been a very important element in my life, talking about other countries ripping off the united states. i've been watching them do it for 35 years i've been watching them do that for so many years. and nothing has changed, other than over the last 15, 20 years, it's gotten worse. and it's not just china. but when i think of trade with

china, i'm also thinking about what they're doing to help us with peace with north korea. that's a very important element. so we'll see how it all works out. but in the end, it will work out. can't tell you exactly how or why. but it always does it's going to work out, okay thank you all. john, do you have one more, go ahead? >> one more, sir i'm just wondering, what is your vision for the long game with north korea? is it two koreas peacefully coexisting, or would you like to see reunification at some point? >> i think what's going to happen is you'll start off certainly with two koreas and then it's going to be largely up to them whether or not they get together you know, that border was artificially imposed many, many years ago, and imposed to a certain extent and to a very large extent by us it's an artificial border, but it's a border that nevertheless took seed, and that's what you have i would say that we are looking,

certainly, right now, at tkoreas you're going to have a very successful north korea, and you're going to have a very successful and you already do south korea. south korea was in condition that was as bad as north korea, many years ago when they started this great experiment that worked out so well for them. now you look at samsung and lg and the ships they're building and what they're doing, it's incredible when i was over there, i flew over plants that are incredible. what they have done is incredible so i see two koreas and then ultimately maybe some day in the future, it wouldn't be now, but maybe in the future they'll get together and you'll go back to one korea. and that would be okay with me too, as long as they boenth wane that thank you all very much. thank you. >> you mentioned that you were looking into zte as a favor to president xi how do you anticipate that ending up? >> well, again, zte buys a

tremendous amount of equipment and parts for their telephones or, as you know, the fourth-largest in the world. and they buy them from american companies. so immediately when i looked at it, it was my administration that closed them down. but when i looked at it, i said, you know, they can pay a big price without necessarily damaging all of these american companies, which they are, because you fknow, you're talkig about tremendous amounts of money and jobs to american companies. so i envision a very large fine. i envision perhaps new management, new board of directors, very tight security rules. but we caught them doing bad things we caught them not anybody else we caught them doing bad things. and we essentially made it so difficult that it was shut down. by shutting them down, we're hurting a lot of american companies, really good american companies. don't -- and i will tell you, don't think that we didn't hear

from them by shutting down this massive phone company. so what i envision is a very large fine of more than $1 billion. could be $1.3 billion. i envision a new management, a new board and very, very strict security rules and i also envision that they will have to buy a big percentage of their parts and equipment from american companies. okay thank you all very much. >> thank you >> let's go, let's go! ma'am! ma'am, let's go! on the way out [ speaking in foreign language ] >> friendly reporter they're friends like you except for a friendly reporter, he kills me.

[ speaking in foreign language ] >> all right we believe that is the end of the english portion of this news conference it was essentially an impromptu news conference with the pool camera and the pool team that was in there very revealing from president trump about what he was thinking about zte, why he's backtracked on his decision that would have shut down the company. how he's negotiating with kim jong-un. let's bring in eamon javers, live at the white house. a lot of big headlines there, eamon. i think the headline or sound bite that every other network is probably going to cut is, i will guarantee his safety, he will be safe, he will be rich, he will be happy a reference to kim jong-un >> and i don't have to hear the translation, because -- >> the president speaking now. so let's just -- no, he's kicking everybody out. the white house staff there having a little bit of trouble

bringing this to a conclusion, because the president clearly wanting to talk, wanting to take the questions and explain what his thinking was on this to your point, some brushback pitches there from the president to the chinese on the trade front and north korea front. the president making clear his displeasure with the idea that he thinks that the chinese encouraged north korea to take a tougher tact in their negotiations with the united states the president saying he's not blaming anybody. he might have done the same thing if he was president xi, but saying that the president of shine china is a good poker player and he thinks some of this north korea recalifornia transcript we have seen. he didn't quite say specifically that, so some brushback pitches there, but the giant carrot to the chinese of some concessions on sanctions on zte, the president floating a proposal here for $1.3 billion fine for zte. a new board of directors and agreements to purchase american

parts for zte going forward. and then maybe they could be let out of some of the sanctions as a law enforcement here they white house. so a couple different things going on here. a lot of balls in the air in the impromptu press conference >> it's hard to figure out what happens next on trade. president trump made a direct linkage between his trade talks with xi and what's happening in north korea. he said when i think about trade, i think about the border with north korea and that is president xi helping him. how do we figure that out? >> i think that really further confuses things. there's already sort of this split, you know, that trump trade camp, with mnuchin on the globalist side, and lavar and height hiser seem to be more protectionous. and it's unclear where exactly the president was and what is the end game for these trade talks? is it reducing the deficit or

just having china buy more, or really to get at sort of the chinese economic mod al, intellectual property theft. now you're also adding in the korea talks. does that change exactly what we asked for china? what we'll settle? i have multiple factors in unpredictable ways talk about uncertainty it's very difficult to figure out what exactly the u.s. wants in the end from china. >> don't you think he made it clear what his priorities are? his priority is, a deal with north korea. he made clear in his mind. very pragmatic how much money to we spend defending south korea every year okay we can pay this guy off, then it's less money. >> comes from peace. >> to the region i thought eamon, what interested me, i would like to pose this question to both of you. >> sure. >> because what this whole conversation put in my mind is

that no summit or a postponed summit is a far better alternative than a failed summit when you listen to president moon of south korea, lay out what he saw as the hurdles, the bars in this summit. it was bringing peace to that peninsula after 60 years of war. a denuclearization of the north. looks like we've just lost jimmy p.'s remote. the normalization of the united states between north korea, and a guarantee of peace and prosperity for the north korea jon regime that is a for at the time of seriously high ambitions there and i wonder, coming back to my question, is a postponed summit or no summit better than a failed summit that breaks apart with none of those items, let alone all all solved >> exactly right

the words they are using again and again is historic. they are playing for the history books here they want a big deal that ultimately you heard the president talking about reunification of the korean peninsula years down the line. that's the direction the president wants to go here he wants a big, historic deal and so does moon you heard during the trump campaign, a numberim people sa that american presidents have been negotiating things away from trade in exchanges on geostrategic levels across the world. they have been frustrated with american spreexperience and not prioritized american workers enough that's why the protectionists are frustrated here, because they feel that the president is moving toward a big global, historically difficult deal on north korea and might be willing to trade away trade and zte.

>> the original tweet was all the jobs in china, but now he's saying it was about u.s. job, because zte says the american companies complained to him about the possibility that the company was going to go out of business, because the sanctions were so draconian. >> yeah. it all seemed pretty weird to a lot of people not that concerned with mine cheese jobs. but to get back to what i was saying, how does this really fit into the u.s. trade strategy, which, in my opinion, should really be about changing lining long-term behavior and how they run their economy, making a less sort of government top-down, subs subsidized, industrialized economy. where is that? or is it just about saving some u.s. jobs and more agriculture imports and more energy impacts. >> which to a lot of a tradeoff

and national security people is a profound disappointment. >> not playing a love enough game, otherwise. >> interesting 30 minutes there. the president is the original guy who just one more. >> no, i'm not much of a market man. i was thinking when he said he wasn't that happy with the way trade talks were with driver with you we really haven't seen that much. nearly 1,000 companies applied to be considered, and as the name suggests, only 50 made it julia boorstin with the ceo. hi, julia. >> reporter: thanks, will iter, i'm joined by anthony noto, ceo of sofi. former ceo of twitter, so you've been at nofi for three months. what's the biggest surprise of

running this financial services company. >> >> i think the biggest pleasant surprise is how dedicated the company is, and the people are to building a great culture. there is an opportunity to really focus on car values the first months we've been able to solidify our mission and realize their ambitions. and it's having enough money to do what you want it's not about being rich, it's about having children, buying a house and retiring early in addition to our values, it will set the foundation for the future culture of the company. so that's rewarding around those elements. >> you called yourself a modern finance company. but do you want your members to be able to invest in bitcoin >> we do one of our priorities is to strengthen our core renting problems and make those available through a cycle. so we're investing heavily in

our product. we hope to be in the home equity line of business in 2019 in addition to that, we want to accelerate in some new products that will build out the portfolio, one of which is our weather prod and we want to add brokerage as well as tip crow currency about that. and sofar money, so really excited about both. >> you didn't answer my question how soon will able be able to invest in crypto on your watt perform? >> we hope 2019. potentially sooner >> so back to the checking account. people are pretty baked into their bank, nephthey have a cheg account. how are you going to convince them to switch over and use your entirely new system where there are no banks to walk into? >> sure. we want to help millennials get their money right and one way is having annual access account to

bill pay, people, be able to wire travelers, do it with a debit card, transactions so we'll give you a higher interest rate if you do direct deposit with us. we'll reduce the fees, depending on your level of activity. but ultimately we want a product that have very differentiated. we want it to be fast kwefest, the best product selection we also want to add specific content to make the decisions easier, and last and most importantly, we want it to be convenient you don't have to go to physical locations. >> but there's so many different competitors. even goldman sachs, your old employer, marching markets how are you going to haafter th giants >> the first thing we have to do is build a great value proposition to all of our

members. if we can build the best value proposition for our members by being the fastest, having the best selection, having the bev content and best convenience, ultimately we'll control our own destiny. >> before question fall of time, your president sesser talked about wanting to take the company public. >> our priority is building out this membership experience and building lasting company values and being able to retract and retain the best employees. and ultimately if we do that, our plans will come together so we'll look at it over time, but it's not a priority. >> anthony noto, cfi, thank you for joining us >> for the can't wait for the disrupter day of programming and more and make sure you catch the ceo of 23 and me i'm neither 23 -- this doesn't work which is number seven on our list of top 50 that is coming up at 4:45

eastern time today. >> have you done it? >> no. >> oh, i have. >> have you, really? >> ooh, yeah. >> that's not they are anose, is it >> no. this is bill griffith's thing. s&ps barely hanging on positive. dow is lower home deepreot dragging it down. your money and where to put it to work. next on "power lunch."

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all right. stocks are sitting right around their session lows right now but not all that low bob pisani is at the new york stock exchange, and barry james with the james balanced -- i'm sorry? we're going to start with barry. okay they just said in my ear, we're going to start with barry. barry james with the james balance golden whatever it is fund congratulations on that title, barry. what do you think of the market right here >> well, it's the balance golden

rainbow fund. >> the balance golden rainbow. all right. >> we see that risks are a bit elevated right now in fact, we're a little concerned. we would say the typical person out there, if they have a target, they should be at or below that target, and they should be maybe looking to trim more than to add and why do we think that well, number one is as we look at the market, it is still expensive. valuations are high. the s&p has a price earnings ratio of 21 in spite of the great earnings we've seen. we've also seen a shift, if you will, kind of a tide going out in sentiment super bullish early in the year, and it's the changes in sentiment you've got to watch out for, and they're not as positive as they were. and i guess the -- you know, a third analogy would be the tide going out with the federal reserve and quantitative tightening our research, which we do ourselves find 93% correlation between quantitative easing and the run up in the market and now we have quantitative tightening. and there's one last thing that is probably not anybody else's

paying attention to. there is a new competitor for people's money, and of all things in the world, it's u.s. treasury bills they actually have a higher yield than the dividend yield you get on the s&p 500 so a little more conservative right now. >> so put everything in the mattress you listed all those worries what do you do put it in treasuries and just take it there? because i can get that percentage rate without any risk >> it's a great question as we look at it, the sea change analogy i'm using is coming in full force we have seen it's been large cap and growth for the last five years. about 4.5% higher returns than the value side we're just starting to see in may that shifting back to smaller cap, and more value oriented and so we would say start looking in that arena. things that are cheap on a valuation basis have good historical earnings and prices in a nice rising pattern

those have not been the place to be in the last three months. but they are this month. and we think that's the shift that's coming. and as we saw in the late '90s and into 2000, when that shift came, you can make good money, and those types of stocks, even if the market isn't going anywhere >> bob pisani, what do you notice about the action today? financials are making a nice move higher. it's the ten year pausing above 3% how does that change things? >> that's very key that it paused right here. we're essentially sideways you notice for the last two weeks we've been essentially sideways we're consolidated remember we were in this downward trading range we broke out of that two weeks ago. we're not going decisively higher we're going sideways, because we're still trying to figure out where exactly the overall earnings picture is. but so far sideways has been really, really good for the market remember what happened today we keep talking about the impact of these tax cuts. look at tjx. raise their guidance for the year a little bit but made it very clear that much of it was

due to the tax cuts. notably higher numbers than in 2017 th then micron, partially influenced by the tax cuts they suddenly decided they want to start returning money to shareholders essentially all of these are stories that come out partially of the tax cut scenario so we're still trying to figure out what the overall effects of these tax cuts are, but by and large, still a positive story. >> barry, one of your picks was micron and look at the nice little move we just saw there. you're feeling pretty good. >> came out with it today. but we still like micron maybe not buy it today but, yeah, it's cheap. i mean, it's got a pe around 7, earnings have just been blockbuster, and the prices rising and we're not afraid to buy at a new high maybe not today, but we think that's a good opportunity to own. >> the micron whisperer. >> not just a new high historic high. the stock was $10 a few years

ago, and look where it's at right now. >> gentlemen, we'll leave it there. barry, thank you and bob, thank you, as well. some unwelcome news for elon musk tesla's model 3 fell short of earning a recommendation from "consumer reports" yesterday their review cited poor braking performance and chair road test found the model 3 stopping distance was seven feet longer more than a ford f-150, a full-size pickup tesla responded in a statement, quote, braking distances with an average of 133 feet when conducting the 60 to 0 miles per hour stops that's what they found their own testing. musk personally responded on twitter, promising to improve model 3 braking distances, perhaps through a firmware update in other words, they do it remotely, over the air with us today is "consumer reports" director of automotive testing, jake fisher jake, welcome. good to have you with us you like the car, if i'm reading between the lines.

some people find the ride thrilling, the handling magnificent. the 0 to 60 on par with a porsche. but the 60 to 0 not so good. >> that's right. it's a very exciting car to drive. there's no question. and the initial impressions, wow, it's a lot of fun it's a really, really great car. the problem is when we finish our testing, we went through the numbers, wow i mean, we looked at the braking distance, and it was quite long. it sounds like the end of the story isn't written, though, with what elon musk says it sounds like he is saying by the end -- well, within a week and a few days, they're able to do something over the air and update the braking distance. if they're able to do that, that's going to change a lot >> is it unsafe right now? >> i would wouldn't say it's unsafe honestly, the breaking distance is similar to a heavy duty truck. and i wouldn't say that a heavy duty truck is unsafe but it's certainly quite a bit

longer than you would expect for a car of that -- in that segment. >> so did you take it from mr. musk's sort of twitter discourse, i guess you would call it, that he tacitly admits that there may be -- if not a problem with braking distance, an unacceptable level of variability? that some cars may take 133 feet, others may take 161 feet and so forth did you see that as a tacit concession >> well, from my readings of the tweets, it's clear they're acknowledging the issue, and they're saying that they have the ability to update the vehicle and fix it >> and it sounds like "consumer reports" is actually putting that in writing, that if those braking issues are addressed, that you guys would be willing to do a retest and would you expect a different outcome? >> yeah, i can tell you that right now. so if they update the vehicle,

and we will be happy to retest the vehicle with the update, the assumption is that all of the vehicles out in the field would get that same update and if we see braking distances along the lines that they're talking about, this will be a recommended model. >> what have other tests of this car shown with respect to braking distances? are they commensurate with what you found? are they more like what the tesla people say >> well, it's interesting, because other publications that do testing, they're really looking for the best stopping distance and if we just looked and found the best stopping distance, this would be a nonissue. the issue is we're looking for repeatable results we're looking for every time that you need to make a stop that you're going to have that safety >> you know what, i'm probably just a luddite i think of braking as something very physical. and yet the suggestion here is that it can be fixed through software is that true i mean, i just -- it's a whole

new world, right >> absolutely right. you're not being a luddite this is quite amazing. i've been an automotive engineer for all my life, and the idea that remotely they could improve braking and distances would be absolutely an industry distances would be absolutely an industry first. and i think it's actually possible he has talked about the fact of the antilock breaking system whether or not you could update the logic and make it stop better it is possible >> this is -- as you said, it's the internet of amazingly fast things, right? it's really the example of what's coming. one of the others nits thatyou all had to pick with this car is the array of interior controls they all run or most of them run through a touch screen in the center of the console, having been in one of these cars. it is a beautiful touch screen it is gorgeous, but it is also, maybe, a little less intuitive and a little more difficult to

use than conventional kind of, i would call them, analog controls >> well, i mean, look. if you have a modern car, obviously, these things are here to stay. but this tesla model 3 really takes it to a whole new level. in that touch screen, obviously, you have the speedometers and other controls even if you want to adjust the events that are putting cooled air into you, you have to go into menus on this screen and pull up the right menu the adjust the vents that way. maybe they've gone a little too far. but this is something they could update over the air, too they haven't promised to, but they've already made changes, even on our car to improve the way this operates. >> jake, last ten seconds. what's a better bet in terms of the category and a competitor to the model 3? >> right now, it's the audi a4, if you're looking for a car in that segment but if you're looking for electric, there's not a lot of choices. >> jake fisher, "consumer reports. thank you. the volcanic eruptions in

hawaii getting more damgs todng today. we'll go to hawaii for a report. and a big interview with the senator mark warner. we're talking facebook and controls "power lunch" is coming right back 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. ♪ ♪

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the situation in hawaii getting more dangerous today, as new eruptions cause more damage. nbc news's miguel almaguer is on the big island miguel >> reporter: even a safe distance away from this fissure, you can really feel its power. it's well over 100 degrees here on the ground, although the air temperature across this island is much cooler this fissure has been breaking out for several days, says geologists, and shows no signs of slowing down. this is actually not far from a geothermal plant in the area it's already crossed on to the property, but so far has not caused any serious damage. it's a concern though, still more than 40 structures have been destroyed here. 2,000 people remain evacuated. officials say they're also worried about air quality, especially in the coming days, as more sulfur dioxide burns off and that hot mag ma hits the cooler ocean water it's a concern all over this island, while in residential communities, this is what they're worried about today. back to you. >> spectacular footage there

all right, that's it for me for this hour. i'm going out to los angeles for our disrupter 50 road show i'll be with you tomorrow, so will julia boorstin. we have a host of interesting guests for you right here on "power lunch" and a big event tomorrow afternoon in l.a., including an interview with the mayor of los angeles, eric garcetti, who many think may, just may, throw his hat in the presidential ring for 2020 >> interesting to is see so many west coast l.a. disrupters in your sharp sports jacket. >> have a good second hour, you guys >> thank you >> coming up, the age-old problem for women in corporate america. how do you get the job if you don't have the experience. how can you get the experience if you don't have the job? that story and the company that's becoming a battleground in the second hour of power. don't go away.

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i'm michelle caruso-cabrera and here's what's on the menu. new era at the new york stock exchange the company naming a woman as its new president. dick grasso will join us to talk about that, the markets, and much more. from zte to tech regulation to banking deregulation senator mark warner at the forefront of a number of hot topics on the hill and he'll join us live on "power lunch." and are you ready for

takeoff? spacex named the number one company in cnbc's disrupter list we're going to get a very rare look at how the company makes its rockets. "power lunch" starts right now welcome, everyone, to the second hour of "power lunch. i'm sara eisen a mixed picture on wall street today. the dow has been in the red, russell 2000, as well. the others remaining positive. financial and telecoms are your leaders in the s&p the banks on top, jpmorgan, ge, and american express are your top dow performers home depot and boeing are lagging. some other names on the move today, jcpenney getting hit sharply as its ceo, marvin ellison, leaves for lowe's micron jumping after announcing a $10 billion buyback. kohl's down despite an earnings beat this morning. and toll on pace for its worst day since 2013 as eps misses estimates.

scott, welcome >> good afternoon, i'm scott wapner we begin with president trump's impromptu press conference with the president of south korea eamon javers has the highlights live from the white house. eamon? >> we didn't expect a press conference from the president today, but sort of got one in the oval office, as the president took an extended series of questions from reporters about north korea, china, and south korea, as he was sitting along side the president of the south korea, president moon the president talked about china and expressed some frustration and real displeasure with what he seemed to suggest was interference by the chinese with the negotiations over north korea. listen to what he said >> i think that president xi is a world-class poker player and i'm probably maybe doing the same thing that he would do. but i will say this. there was a somewhat different attitude after that meeting. and i'm a little surprised now, maybe nothing happened. i'm not blaming anybody, but i'm just saying, maybe nothing

happened and maybe it did. but there was a different attitude by the north korean folks. >> so the president there saying, maybe nothing happened, but suggesting that he thought it was at least a possibility that president xi jinping of china had somehow changed the direction of the north korea talks and caused north korea to be a little bit more recalcitrant over the past week or so, than we've seen early on in these negotiations. the president voicing his frustration with that, with saying he doesn't necessarily blame china. he might do the same thing if it was him. but also dangling a fairly large carrot out for the chinese in terms of these negotiations with the chinese electronics company, zte, suggesting that there is no deal in place now to lift u.s. sanctions on zte, despite some speculation that's been out there during the course of the day today. but also saying that he could envision a deal. here's what he said. >> so what i envision is a very large fine, of more than $1

billion. could be $1.3 billion. i envision new management, a new board, and very, very strict security rules and i also envision that they will have to buy a big percentage of their parts and equipment from american companies. >> reporter: and scott, another comment from the president that will be getting some attention across the media landscape today is the president was asked if he still has confidence in rod rosenstein, the deputy attorney general who is, of course, running the mueller investigation, overall in charge of the mueller investigation into russian collusion the president simply not answering that question, saying "next question" and when the reporter tried to pursue it, the president said, the president, president moon, doesn't want to listen to that question, ask me another question so the president not saying he has confidence in rod rosenstein, the deputy attorney general. >> the president just said, as you played for all of us, that he could envision a fine of more than $1 billion, maybe $1.3.

zte already agreed, did they not, to a fine of more than $1 billion? >> reporter: right, a lot of these sanctions have been rolled out. a legal process has been in place for some time now. so it's not entirely clear who has the authority to make this negotiation with the chinese, given that there is a legal and national security process playing out here and whether or not the chinese would agree to an additional fine, an additional payment, if you will, to the u.s. treasury in order to get those sanctions lifted with the u.s. side. so there's some reconfusion inse this administration over who exactly is going to be in charge of all of this the president weighing competing viewpoints from a lot of his advisers >> because it was congress that was involved the first go-aun go-around. thank you, eamon the stocks off session highs not sure they reacted to what the president was saying >> reporter: it's a narrow

trading range, but that's good and sideways is good take a look at what's happened we've broken out of that downward trend about two weeks ago and now we're holding that trading at the high end of the range. the advanced decline is at record highs all of this is good. rates are still not dramatically going up right now, sideways, we'll take it two big companies talking today. tjx talked about new guidance for the year they specifically went out of their way to talk about the fact that much of the move up for this year in their earnings was due to tax cuts. micron, $10 billion buyback that they announced part of that due to the impact of tax cuts. that's an historic high for them, again, tax cuts still moving the market, still figuring out what the impact is. finally, stacy cunningham, first woman president of the new york stock exchange i talked to her this morning many challenges for her, but she told me, up with of her priorities was getting more companies to go public >> we want to make sure they see the value of the public markets and they choose to access that liquidity.

because if they wait too long, it means that the smaller investors aren't getting that benefit of their growth. >> we see this with the unicorns now. >> exactly exactly. so we're very focused on that and it's certainly going to be one of my primary goals. >> she'll start friday in her new job. higher volume, a little more volatility, that's good for business guys, back to you. >> bob pisani, with thank. let's get more on that historic moment at the big board with the former new york stock exchange chairman and ceo, dick grasso. thanks for talking to us, dick nice to hear from you. >> always great to be with you >> so you led the exchange '95 through 2003 did you know stacey pretty well? >> well, she was a summer intern when i was proposed to be chairman back in 1994. i must tell you that it's a great day for her, but it's an even greater for the new york stock exchange because she has

learned that business from the ground up. i started as a clerk, she started as a clerk she understands trading processes. she understands technology i couldn't be happier for her nor for my former colleagues on the floor of the exchange. >> and yet, bob mentioned some of the challenges that she will have to face fewer companies going public these days those dark pools, which still are a big part of trading. what do you see as some of the biggies? >> well, i think she's got her finger right on the bulls, when she said earlier today that she needs to have a targeted program to convince both the unicorns and the start-ups of the value of the public markets. the value of the so-called lip transparent markets. she's got that right perspective that the purpose of an exchange and certainly the new york stock

exchange has always been to provide a foundation for capital formation, to allow ideas to become companies, to become large companies, and to overall lift the standard of living, both here and around the world so stacey's focus on issuers and raising capital and most importantly, the quality of the market that is provided to those issuers, the quality of regulation couldn't be more excited about the future for the exchange under her leadership. >> dick, it's michelle here. good to have you on. >> michelle, it was -- it was decades ago, right >> when you ran the exchange >> decades ago >> a long time ago i said a long time ago >> same hairdo, by the way >> and we still love that hairdo >> for you or michelle >> probably both >> stop it stop >> hey, dick, in this environment, there's going to be a lot of people out there or maybe some people who say, ah, she got this woman because she's

a woman. did stacey cunningham get this job because she's a woman? >> absolutely not. she got it based on her experience and talent. she worked hard as a specialist. she worked hard at the nasdaq. she was smart enough to come back to the yankees and now, you know, having been chief operating officer, having shepherded the technological innovations that accommodate the new structure of markets as regulated by the s.e.c., i think she's done it all. and that's the kind of a person you want running the exchange. i will borrow from a phrase that was often used about me by my mentor, who said to me one day, when i was about to leave the exchange, because i was passed over for chairman, he looked at me and he said, you were born to run this place just stay right where you are. stacey was born to run the new york stock exchange and she's going to do a fabulous job >> dick, it's scott wapner it is nice to talk to you again.

what do you think the exchange is going to look like in the future under miss cunningham she told us in our interview today, i certainly hope we're still here on the floor in five years. is there going to be a floor in five years >> well, i think she has the challenge. and she understands it, having seen the exchange once populated by 5,000 people, now populated by several hundred people of evolving the market model, scott, to accommodate the needs of issuers and investors i personally believe there will always be a trading floor, as evidenced by the fact that when you have an opening, off closing, you have an expiration, or you have an event-driven transaction, everyone repopulates the floor, because open -- if you will, open and transparent price discovery is the best way of determining fair values of both the smallest and the largest of investors

>> all right dick, we certainly appreciate you change us. great to catch up with you on this historic day for the new york stock exchange. >> my thanks for the invitation. always great to be with you. >> he's the former chairman and ceo. >> stocks are off session highs after reaching their highest level in more than two months. omega advisers lee cooperman joining me on halftime earlier today. here's some of what he said to say about this market. >> i've got to say mildly constructive i think the conditions for a bear market just aren't present. and the one thing everybody's got to recognize, after the fed fund belongs 1.5%, you're not supposed to make 15% a year in the stock market so maybe we're up 3% year-to-date, multiply that by 2, maybe make 6% for the year. that's about it. the market's priced, "x" the fed crunching the system, "x" some

political event, the market is to give you 5 to 6% a year >> let's bring in chief economic adviser the alliance and joe durant is with us. chris, what do you think about lee's prediction he said topside for the s&p would be 2950. so you can get back to new highs. >> no, i mean, it's hard to argue with lee cooperman he's such a famous investor and he's done so well over the years. and i think his point is exactly right. you know, on average, you should expect that 6 to 7% a year obviously, each year is going to be different from the average. but i think the fact that we can do to new highs from here, i absolutely agree with. and i think a lot of positives are in place and there are not a lot of external shocks that we have actually seen happen a lot of things we're worried about that could happen. but so far all the positives are in place doesn't seem to be any signs of recession. and if you look at the

fundamentals, staying the course and expecting new highs seems to be the right course of action. >> so what's the biggest risk? the dollar, which is on an uptrend, seemingly interest rates, which have obviously risen. north korea, the summit may, may not happen just not sure. so geopolitical factors into this as well what do you see? >> well, it's big surprises, usually. and i'm not as concerned with trade. that's pulled back but what i am looking at is if we keep having this slow, steady increase in interest rates, rather than these big spikes, then we'll be fine the biggest concern will be, we get a big jump from this 3, 3-1 level up to 3.5. and that happens in a more compressed window. we've seen no signs why that would be the case, but that would be something that would scare the markets. also, when you look at what's happening with small caps, they're telling you that the dollar move is not good for big caps and that it's probably here to stay for a little longer

it's actually healthy to see interest rates and the dollar going up together, which we weren't seeing earlier on, but it's not necessarily good for the big cap names. so for me, it's really interest rates. do we get inverted the 30 and 10-year very close together that would be a bad sign secondly, do they muir quickly and that would affect the dollar, obviously. they're all linked, but big, jerky moves would be a problem for the market >> within the market, do you want to be in the cyclical groups like industrials, financials, which are having a nice day today and just stay away from those yield-sensitive sectors, like staples and utilities? >> yeah, i think that's definitely the right way to go with the expanding economy, you want to be participating with the cyclicals and also looking for places where you can find growth i think that's exactly right i like financials, i like industrials. i would be avoiding utilities, would be avoiding staples at least for now, just based on interest rate moves, but also in terms of valuation and

possibility for profit growth as well i think you want to take all of those into account >> guys, thank >> thank you president trump weigh in moments ago from the oval office on trade talks with china and a potential deal to lift u.s. penalties on chinese telecom firm, zte. >> so what i envision is a very large fine of more than $1 billion. could be $1.3 billion. i envision new management, a new board, and very, very strict security rules and and i also envision that they will have to buy a big percentage of their parts and equipment from american companies. >> here to speak with us on zte, tech, regulation,backing reform and a lot more, senator mark warner good to have you here, sir >> thanks for having me. >> we want to talk to you about zte, because you're one of 33 senators who have written a letter to the president, upset

that he had backtracked on the original punishment of the company, which was to deny them the ability to sell stuff for seven years, which was essentially going to put them out of business. what do you think of what the president just said here >> with this president, i don't know what to believe i know originally, he had been in favor of tough sanctions on zte, a company that has repeatedly violated sanctions in sales of north korea, iran, other nations. then he talked about trying to save chinese jobs. now he's trying to lay out something in between and candidly, that's not where we are in kocongress today in the banking committee, we came up with a unanimous amendment that basically said in the scfius process going forwar, that a president couldn't arbitrarily pick out a company that had been subject of national security concerns and use it a s a trading chit, as h appears to have done

so i get very worried when he's backing off on this kind of firm and i also think it's important that the intelligence community, and i'm the vice chair of the intel committee, but the intelligence community, the fbi, cia, and others do a better job of informing american businesses at the sea level, how problemat problematic, particularly these chinese telecom firms and how disadvantaged americans are. >> is that your response when the president says, they buy a lot of products from american companies, so that decision was beginning to also hurt american companies, that's your response? to say to them, well -- >> my response is that candidly, china does not allow american tech firms in many of the areas, particularly social media. i have not seen evidence of zte buying lots and lots of american equipment. i do know this, that zte has

violated not once, but twice american sanctions rules and that it is the unanimous agreement of the intelligence community, that they don't think we should be buying zte, and for that matter, huawei equipment. and the president, who seems not to be informed of what his own intelligence community's conclusions are, one day he's talking about being tough and the next day talking about saving chinese jobs and now has this in the middle position, i don't think that's how we should be operating >> he changed the script on that, now he says it's about american companies >> but hold on, last week the script was about chinese jobs, saving chinese jobs. the fact is, this is a company that poses a national security threat and if that threat is real and if we're going to listen to the intelligence community, this is a company that has violated american sanctions rules for him to arbitrarily, depending on which day he gets up and which day he wants to tweet, decides whether this ought to have the kind of

sanctions that the law implied or is he going to arbitrarily show another route, i find that very dangerous and not the way we want to send a message against a company -- a country like china, and if somebody had a telecom and tech background, i know they operate on a different set of rules. >> and i know you do and national security, which is very serious issue aside, why do you say that we are losing in terms of the trade negotiations? i mean, the president has managed to secure, i mean, at least we've heard, a equipment from china to buy more agriculture exports from the u.s. >> excuse me, excuse me! >> to lower tariffs for cars i don't know that we want to see a reduction to have the deficit commitment >> let me say this the chinese, whether it was not just with trump, but with obama, with bush, they sometimes make these promises it's rare that you ever get a number commitment. and this president went in, guns

ablazing, said he was going to bring down the trade balance, $200 billion, i believe, over a year or two. you know, what you got was a bunch of diplomatic speak at the end, with no specific goals. i mean, this is a company in terms of china that does not allow our most significant american tech companies to even penetrate the market this is a country that requires those tech companies that do enure to china give up their crown jewels, basically their source codes, to be able to access the market. and i think that's irresponsible of a lot of the american companies. but we also have now, china dramatic investing in adventure, a lot of intellectual property theft. these concerns around companies like zte and huawei. this is a real challenge and the kind of rope-a-dope that i think he's received from the chinese diplomats so far, every analysis i've seen says that china totally outfoxed him in this

last round of negotiations >> senator, let's stay on the topic of technology. mark zuckerberg, facebook's ceo, before europeans a s we speak, answering questions. he's in the hot seat, just like he was in the hot seat before your colleagues on capitol hill. lee cooperman, the famed hedge fund manager who you may know was on my show in the last hour, loves the stock, but worries about government overreach on regulation does he have something to worry about today? >> he should have something to worry about, because we're still trying to grandpple with the misinformation and disinformation that the russians used with facebook in terms of interfering in our elections and they used the same tools in the french elections we're still trying to get our arms around something that where somebody posts, as if they are lee, but it's actually boris in st. petersburg that's today's technology. tomorrow's technology will allow somebody to put an individual's face on a different body and have a live video stream of

someone appearing to make comments that they're not making that has affects on politics, it would have the effect if jay powell suddenly appeared on your screen, saying information that was factually untrue and candidly, facebook, google, twitter, they have been slow to understanding the extent of this problem. >> they've admitted that they've admitted that, senator >> they've admitted that, but let's look where we're at. >> but how severely do they need to be regulated, then, in your mind >> let's take this, because one of the reasons why we want them back before our committee, because clearly, when he was before some of the other committees, there was a lot of folk who is didn't understand even how social media workers. it was a little bit embarrassing for some of the senators my concern is, let's just take the data point that they've only identified 470 accounts, intervening in our elections in 2016 they identified 30,000 accounts in france. something in terms of scale is off. so i think the areas, and you know, the gdpr, new privacy regulations go effect in europe

on friday. there's some interesting areas there around data notification, about the ability to, in effect, leave the ownership of the data with the user. there's questions, as well, around content we've already had some content regulation around sex trafficking and child pornography. could we or should we go further in that area because over half of americans get their news from facebook not, unfortunately, from cnbc. and there's also areas such as, should we look at, you know, country of origin. that's got some real problems, technically. should there be some requirement to look at identity validation, because of face. and then there's also, should we at least have the ability to realize that when we're being contacted by a bot or an automatic account. and i don't have a story to answer yet i think it's the complicated area but my hope would be, not only zuckerberg, but all of the social media companies would lean in and help us, because if

not, we're going to have some action, where something, you know, bad happens, particularly with this new deep fate technology and live stream video. >> i like the appropriation of lean in, senator that was clever. it's good to have you on >> we've got to have that happen or we will overreact and get it wrong. >> senator, thank you so much, mark warner. >> thanks, guys. facebook under fire, like we were just talking about. mark zuckerberg is meeting with european regulators, parliamentarians, in fact, about the data scandal did he do enough to ease their doubts shares took a dip on some of his comments we'll have the details, straight ahead. also, take a look at this plaque any idea who this is here's a clue, it's a world cup champion and olympic gold medallist. answer's straight eaahd. "power lunch" is back in two minutes. >> and you won't believe it. (indistinguishable muttering) that was awful. why are you so good at this?

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where 20 six and seven year olds were slain, this would never happen again. it has happened more than 200 times in 5 years. dianne feinstein and a new generation are leading the fight to pass a new assault weapons ban. say no to the nra and yes to common-sense gun laws. california values senator dianne feinstein all right. want to welcome you back and bring you up to date on a story breaking out of atlanta. you are looking at david tepper with nfl commissioner roger goodell, because david tepper, moments ago, has just been approved by the nfl owners at

the meetings in atlanta to be the next owner of the carolina panthers the deal still has to close, of course, but he is one giant step closer to being the owner of the carolina panthers. david tepper is $2.2 billion, the purchase price there's some deferred capital down the road, as well he's going to have to sell his minority interest in the pittsburgh steelers, but david tepper, the new owner. >> so this was a hurdle, he got the other owner's vote >> this was expected they always have tote on ownership. they were expected to give him the approval >> he's got a few million? >> i don't think he's going to come up short on the cash. >> a huge day for david. all right, mark zuckerberg wrapping up his testimony before the european parliament moments ago. josh lipton joins us now with more hey, josh. >> michelle, facebook tea's mar zuckerberg telling eu lawmakers, a as he did with u.s. lawmakers, that he is sorry for that data

debacle with cambridge analytica. >> but it's also become clear over the last couple of years that we haven't done enough to prevent these tools from being used for arm as well and that goes for fake news, foreign foreign interference in elections, and developers misusing people's information. we didn't take a broad enough view of our responsibility and that was a mistake and i'm sorry for it >> now, zuckerberg was asked is cambridge analytica the tip of the iceberg? he said, listen, we've investigated thousands of apps we're going to investigate thousands more and if there's misuse, we'll take them down separately, he also did address this issue of election interference on his platform take a listen. >> we weren't prepared enough for the kind of coordinated misinformation operations that we are now aware of. so since then, we've made significant operation -- investments to protect the integrity of elections by making these kinds of attacks much harder to do on facebook and i have more confidence that

we're going to get this right going forward, because we've already done a better job in several important elections since 2016 >> now, zuckerberg did also take the time to remind those lawmakers how important his company is to their economy, noting that there are 18 million small businesses in europe that use facebook and its tools to hire guys, back to you. >> josh lipton, thank you very much let's go to sue herrera now for cnbc news headlines at this hour hello, sue >> hi, sara. hello, everyone. here's what's happening right now. at least 16 people were killed when a container full of explosives went off in the afghan city of kandahar. 38 more people were wounded, including five children. no one immediately claiming responsibility for that explosion. here in the u.s., four teenagers are in custody after a baltimore county police officer was killed in the line of duty monday three teenage boys involved in area burglaries were arrested this morning another suspect, 16-year-old

danta harris was arrested on monday harris is being charged in the death of officer amy caprio. the kilauea volcano hurting terrorism on hawaii's big island volcano bookings have fallen almost 50% since the volcano began erupting last month. the closure of volcano national park, of course, is one factor it's costing about $166 million in tourism dollars alone and mcdonald's is considering a proposal to do away with plastic straws later this week, shareholders are expected to ask the company to look for alternatives mcdonald's is testing paper straws in some restaurants in the uk this month. it will join a growing list of restaurants that are doing just that that's the news update this hour i would like to chew on that not good for the environment, though >> right still ahead, elon musk's spacex giving cnbc a rare look inside its facility. we'll take you there live next with the dow here down about 58 points

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welcome back to "power lunch. elon musk's space start-up spacex taking the top spot on the cnbc disrupter list. and the company is giving cnbc a rare look inside its facility. and that's where we find our morgan brennan she is live in hawthorne, california take it away, morgan >> reporter: that's right. it's the second time spacex has topped cnbc's disrupter list i want you to take a look at this facility behind me. that is spacex's rocket factory. i toured this with ceo and president gen shotwell and and lambert. and shotwell stressed it's not

just the product designs that make spacex so innovative and so capable of cutting launch costs so aggressively. it is also the way this company approaches this manufacturing process. how many rockets are under construction in this facility at any given time >> for the keen observer, they tend to see four to five tanks in production. that's when you really start to see it take shape. but from engines, there would be in the region of 30 to 40 at different levels of assembly >> how many are being turned out and i guess ready for delivery in a given month >> so we have the capacity for engine production at one a day we flex our engine production dependent on the needs our customers demand currently, we're producing a vehicle every 14 days. >> in theory, one of these engines could be an engine that as soon as next year gets flown and re-flown within 24 hours >> that's correct. elon has given us that goal. it's a tough goal, but i think

we'll be -- >> i think we're well on our way. >> yes >> reporter: and of course, so much of your supply chain is actually in house, right >> that's correct. we build the vast majority of both the rocket as well as the spacecraft components and do all the integration. >> what's the upside to doing it that way >> you have control over quality, more control over timeline timeliness, and more control over cost. you can imagine if you have a supplier that has 20 or 100 customers. their priorities may not match up with your priorities, which makes total sense and you don't blame the supplier but it's important for us to have control over the timeliness, the cost, as well as the quality. >> in case you're wondering why we're out here across the street from the rocket factory, spacex has another launch scheduled for today. this will be the tenth launch of 2018 it will mark the 12th time that a rocket booster, a first-stage rocket booster, that's previously been to space, will

be reused again. we're going to be covering that launch live in just a little over an hour but in the meantime, security is tight. and inside this facility, which also houses mission control, everyone is focused on this next launch back over to you >> all right morgan, thank you so much. still ahead, have you figured out who this is yet? take a look? >> no. >> here's one more clue. it's not, i repeat, it is not gary busey you won't believe who it is. the reveal is coming up. many small businesses, from kitchens to factories to contractors, rely on their equipment to serve customers every day. when equipment is broken, it means lost revenue. trusted choice independent insurance agents offer special protection that could help replace or repair damaged equipment and provide lost business income. they represent multiple insurance companies and customize coverage to help businesses get back to work. announcer: to find an agent, visit trustedchoice.com.

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this tech stuff is easy. [ whirring sound ] you want a cookie? it's a drone! i know. find your phone easily with the xfinity voice remote. one more way comcast is working to fit into your life, not the other way around. all right. welcome back technology has chanlged the way people apply for home loans. our next guest processes nearly one quarter of all u.s. mortgages and is using technology to make it simpler and quicker. with us is the ellie may ceo, jonathan kor his stock is up more than 15% year-to-date welcome to "power lunch. >> thank you great to be here >> why is the market in love with your stock lately >> because we're fundamentally in the middle of this big change in which people are really embracing technology to create a better consumer experience and really take out so much of the inefficiency from the consumer touch point, through the actual

asset delivery >> who are your customers? you're selling your software to who so they can do what? >> so we sell our software to about 2,500 different lenders across the u.s it's an enterprise, software is is a service up in the cloud and they run their entire residential finance process from initial consumer touch point all the way through the entire process to close to loan, and ultimately sell the asset. whether they're selling it off to fannie and freddie or ginnie or holding to it portfolio, that's kind of the entire process. and across that platform, those 2,500 lenders do about 35% of all the loans in the u.s and then they're connected to all the different service providers that they need to engage with to get a loan done for a borrower, credit, flood, et cetera. and we facilitate that entire process. >> so the strength of the housing market is -- >> the strength of the housing market is, on the purchase side,

moving in a steady, positive direction. demand is far outstripping supply right now, so that's the one thing that i think is holding back the housing market, residential finance, from really taking off, because you've got such demand from -- >> even with mortgage rates now nearing 5% >> even with rates nearly 5% rates have really cooled down the refinance side of the market no question, once rates go up, you're not going to do that. but interest rate s movement fro 4 to 41.5 to 5, that's not what makes people decide whether they're going to buy a home or not. it might affect how much they can afford but once you make a decision to buy a home, off life event, married, significant other, kids, you go ahead and do that >> i was going to say, there's, by and large, most of wall street is positive on your company. however, there are a couple of notes. wed bush has a sell on you guys.

and their price target is way down from where you're trading right now. they're basically saying that you've peaked. that it's going to be a much more difficult environment for originations they say it's going to face severe challenges for this year and next are they wrong >> we don't see that what we look at the projections from, you know, all the major economists, from fannie mae, freddie mac, national association of realtors, the mortgage banker's association. yes, refa yes, refis are down, but it's projected to grow for years into the future our growth is not a function of volume, but rather continuing to pick up more lenders, more volume on the platform and drive more efficiency across the -- each and every loan. >> what percentage -- you said 25% of all mortgages right now are done on your platform. are the rest still done by hand? what's happening how do you grow your customer base you compete with somebody else or just get people to modernize?

>> no, we can copy with other folks that are on legacy systems. you know, so people that are on old systems or technology that just doesn't address the challenges that lenders have been facing over the last five or six years, both from a regulatory standpoint and now from a standpoint of, every lender wants to have their, you know, quicken-like experience for consumers. and you know, we're in a very good spot to facilitate that so we just keep growing. >> millennials are getting off the couch and buying houses? >> they are. it's pretty amazing, actually. we have a millennial tracker, where we -- it sounds a little strange, a little creepy, maybe, tracker. but it's a website where all the loans across our platform, we give the industry insight into what's happening across different msas across the country. and you can see it although on the coast, where affordability is much, much tougher, it's only maybe about 30% of all loans as you move into more affordable

parts of the country, the midwest, it's getting up into the 40s. and that part of the population is still not yet at their peak buying time. i think the average right now of millennial buying is about 30. the biggest part of that population is 26, 27 right thousand >> good to have you here >> great to be here. >> straight ahead, what i corporate boards remain a boy's club and what we can do to fix it and micron shares spiking. is it time to jump in or iits just too late? we've seen the stock run up so strongly "power lunch" will be back in two.

the new york stock exchange is about to be run by a woman for the first time in the exchange's more than 200-year history. so while strides are certainly being made, corporate america still remains a boy's club today, there are actually 12 fortune 500 companies that don't have any female directors. and at s&p 500 firms, women hold just 4.6%, less than 5% of all ceo positions. for more now, janice alec joins us, a corporate head hunter that is focused on bringing diversity into boardrooms and the c-suite.

so while it's a big deal and great to have a woman lead the new york stock exchange for the first time in 200 years, that's the headline, that she's a woman, which i think just shows you how major it is and how underrepresented women are in finance and technology >> so, i think he would be so pleased after 50 years there's a woman running the nyse, but it's been glacial, and as you pointed out, you know, we have maybe less than 5% of women running fortune 500 companies, and when you look at the board rooms, we have 21% board seats held by women, and that's been just really slow progress 1995, when catalyst started tracking women on boards, it was, like, 9%, so we've gone to 21%. that's less than 1% a year over a 20-year period that's very, very slow >> i mean, some people will say, you know, there's progress being

made what i don't understand is all the research suggests having a more gender diverse board leads to higher performance. this is not just touchy-feely. >> financial performance, but it's also your employees, your shareholders, your consumers, and the communities in which you operate, so why wouldn't a company tap into that talent, which they are not doing plus, the financial performance of peterson institute, credit suisse, they are all women two make a difference. why ignore half the population >> will this illustrate how it gets solved? she started as an intern, held so many positions. if you go back 30 years, there was not any cunninghams out there, right it takes time. we're getting there, aren't we is she an example how this will change that there's a woman who was on the bench, was brought up through the system, and now has

all the qualifications so nobody's sitting here saying, oh, she got the job because she's a woman. she got the job because she is deserves the job >> same week a woman is now running the cia. the institutions so important in the history of this country. >> corporate america's going the other way. denise dropped from campbell 23, i think, in the s&p 500. why are we going backwards >> she stepped down, but men step down too. there's a turnover going on, but when it's a woman who steps down, it's noticed much more because there's so few women, so we need to fill the pipeline, but the pipeline is there. i think what boards need to do is be intentional looking at where is the pipeline, how do we bring women up look at a censure. they game out last year and said 50/50 by 2025, saying 50% gender

equality at the board room level, c-suite level, and all the way up to ranks. you have to be intentional about growing your women and your diverse candidates and building that pipeline, so that you can promote them and get them into this c-suite and get them, as you pointed to, into the board room that's what we need to do. the supply is there. i place women on boards, and for the first time, on a board, so when you look at the surveys out there, last year, 42% of women that were placed on boards were first-time directors >> that makes sense. >> are your personal searches up that's what you do for a living. are they up for female board members? >> yes, they are up. >> janis, we just strachcratchee w surface. we'll have you back. now straight to "trading nation," and shares of micron on the move today, soaring over 8%, leading the s&p 500 after the company announces a $10 billion

stock buyback. that's its largest ever. larry mcdonald is here, and, matt, the charts look hot. a moon shot. how much more can it go? >> well, there's more upside interesting, we were pounding the table on the stock when it broke above $50, and it's up 20% since then, so when the stock came back down in march and april, it made a very nice higher low, and now it's moving back up trying to make a higher high above the highs we saw in early march, and if it can do that, it has a lot more upside here on a technical basis, and the research partners are talking about how it's not just the buyback here i mean, the derim situation is not just a -- the demand is not just the old pcs and iphones, but it has to do with, you know, data centers, so this thing could go a lot higher, a $70 price target, breaks above $61, it gets there quicker than a lot

of people think. >> larry, fundamental case >> nothing real on micron here, but technology as a whole. you look at the technology sector plus amazon, it's now worth $7.3 trillion. 7.3. the entire emerging markets globally are worth $5 trillion, and all the european stocks are worth $5 trillion. if you're in tech, you want to be lightening up here, it's late cycle, percentage of the s&p 500 over ten years is almost tripled. you're talking about a crowded trade that could last another six months, but you want to move out of tech here, get into value, staples, and really the parts of the market that have really underowned. >> that's nonconsensus i like it. larry, matt, nice to see you, and thank you for more, go to our website, tradingnation.cnbc.com, and, of course, follow us on twitter as well @tradingnation, and on the stock story of the day, micron,

don't miss the interview with the ceo tonight with jim cramer on "mad money. best performer right now in the s&p 500. up 9%. check please is next now the latest from tradingnation.cnbc.com and a word from our sponsors >> in volatile markets, unless you're a short term trader, it's best to avoid buying or selling in the first hours of the trading session because that's when volatility is the highest when that picks up, the spread between the bid and ask price increases, never a good environment for buying or selling.

check, please. >> waiting to see a decision on interest rates by the central bank of argentina. already at 40%, yes, 4-0 we'll see if they feel compelled to raise them more to stem off lower capital in the country >> all right well, mine is u.s. soccer legend, brandy chastane, a two-time olympic gold medallist, and when the bay area hall of fame unveiled the plaque, the focus was less on her goals. >> no. >> much more on the plaque's resemblance, not to brandy, but gary bussey. >> that's the wrong person it doesn't even look like a woman. >> this is only the woman who scored one of the most famous goals in the history of u.s. soccer you guys remember, 1999, woman's world cup, penalty kick, scores

the goal, top off, huge moment everybody remembers that she had a sports bra on, but it was the most iconic moments in the history of women's sports. >> it was. >> redo the plaque redo the plaque. #redotheplaque >> ridiculous. oh, my goodness. >> thank you, scott, thank you for watching "power lunch," and "closing bell" starts now. the policy moving markets today, and facebook's mark zuckerberg is in europe's lion's den taking questions from eu lawmakers in brussels. at the cnbc headquarters, a major shakeup at jcpenney has them facing a more uncertain future details as the company's ceo heads for the exit i'm seema, rivers of lava and clouds of toxic smoke engulfing's hawaii's big island. the financial impact is just starting to be felt. we have a live interview with the governor of the