i have been buying it since in the teens, i am not a seller however, earnings will come up and they'll have to have some go news on both revenue growth and maus and that's a conclusion you can ride it with the trailing stocks. >> kevin, thank you for being here >> thank you >> pur"power lunch" starts now >> i am tyler mathisen, some busy day in thoval office. he's also turning up the war of words are the philadelphia eagles details on that one straight ahead. fly eagles fly no, it is fly twitter fly, it is flying high. social media is set to join the s&p 500. the stocks are soaring up 60% this year so far how much higher can it go from here or can it the team's addiction to tech

tell me about it apple is taking a major step to tackle it now. does the move go far enough. "power lunch" starts right now >> welcome to "power lunch," i am sara eisen. the nasdaq is trying for a third day of gains in that case and russell 200 is hitting fresh of today's highs today. the tech sector is set to close at a third consecutive set to. amazon and microsoft and facebook and netflix having a most positive impact on the in that case. michelle >> i am michelle caruso-cabrera, the other headlines at this hour, kate spade have been found dead in her new york city apartment, suicide more on this story ahead the extra capital will help

fight off the threat from walmart. hudson's bay is reportedly selling guilt group to rrue lala hudson bay paid $250 million for gilt melissa. >> thank you, michelle welcome everybody, i am melissa lee, we begin with trades and including some critical comments with jaime dimon cayla tausche is live with that. >> the business roundtable conducts the quarterly survey and held by bush 43rd chief of staff, josh bolten and jaime dimon.

the white house did not respond to a request for comment bus defended trump's trade positions in two ways. they're apart of the campaign and business friendly lobbies are apart of the problem here is robert lighthizer testified in march >> we'll have different policies and what have gotten us $800 million trade deficit we'll have a different result if we do exactly the same thing, nothing is going to change >> dimon says the trade benefit m may benefibusiness there is some news in nafta with larry kudlow suggesting that the president may be seriously considering two bilateral deals with canada and mexico the white house says it is something they are considering than nothing has been decided. back to you. >> we'll watch on that one, cayla, thank you.

out going starbucks chairman ho schultz are weighing in on "squawk box" this morning >> this trade war that's engaged with canada and mexico it is important that we should not be in the business of building walls we should be in the business of building bridges with our neighbors and allies and standing in the world today is not what it should be. >> more now on schultz' pli political, ladies and gentlemen, it is good to have you here. it sounds that mr. schultz considers a run for president. he's well spoken and making this company across the world when it come to coffee he describes himself as a full conservative and he's also social liberal, right?

i used to think there was a party like that waited to be created in america, i am not sure anymore does this man has a party if he decides to run for president >> that's the million dollar question, would he run as a democrat i think he's largely aligned with the democratic party. the country is right for an independent candidacy. it is difficult to get on the ballot based on the way our state laws are designed. with somebody with that kind of brand power and name and wealth, it is certainly possible e number of people registered in this country have been on a rise of basically a 70-year high the country is right for it. >> john harwood, what do you think, and to sara's point we are identifying him with the democratic party, is that going to work in the democratic party as we know it today? >> most of the democratic political strategists i talked

to today were skeptical of that. they think it is going to be difficult for howard schultz, he's progressive on racial issue and he recently shuts down all starbucks stores for sensitivity training that he's been it is going to be difficult for him to figure out a way to inspire democrats. he could run as independent as sara said, the most successful independent candidate has been ross perot who was a businessman. he ran and took more from the republican side and the question is, you know, there will be an appetite for some republicans for an alternative to donald trump. minority of republicans. >> how tricky or difficult

practically is to run as an depende independent? >> extremely >> practical challenges involved on getting on the ballot in 50 states and figuring out a way to get to 270 electoral votes is extremely difficult. >> look at mike lindbergh, he wanted to, right >> and ralph nader, often time independent candidate is just a spoiler if the independent candidate may have won >> that's plausible for someone like howard schultz may want to run, they may decide the democrats are better than donald trump and their candidacy could help achieve a democrat or less than an ideal of -- michael bloomberg is rumored to look at the democratic primary and still continue to flirt with this ideas for various reasons. not only do they want to be

president but in some cases they don't want donald trump to be reelected. >> sara an want to get to the big story president trump is rescinding the invitation from the eagles visiting the white house eamon javers is live where the show must be going >> reporter: philadelphia eagles be celebrated here at the white house today. they are not in fact, at 3:00 p.m. this afternoon, they're going to see a celebration of america that the president has put in place of that eagles coordination ceremony the traditionaceremony whereu h champions here at the white house to be greeted by the president of the united states and toasted by their fans. we'll see what kind of an event happens here at 3 ch:00. the white house put out a new explanation why this event fell through. the president have been tweeting about it and suggesting it had to do with the national anth issue that nfl players are not standing for the national

anthem he views that as an affront and they must not hide in the locker room during the anthem s the white s statement that went out a few minutes ago. unfortunately, the eagles offered to send only a tiny hans the great majority of players will not attend the event in d.c. todayst majority of eagles team decided to abandoned their fans. the white house is making it seem like it is less thabt a national anthem and more of a large number of eagle players apparently decided they did not want to be at the white house with president trump today we got this reaction from the players association expressing their disappointments saying our union is disappointed in the decision by the white house to disinvite players from the eagles from being recognized and celebrated by all americans for their accomplishments. this controversy will continue to boil through the afternoon. we'll see what the president has to say at 3:00

with reexpectinexpecting that te president will make some remarks. we have never seen an event like this at the white house. >> so is it about the national anthem controversy or not? >> one of the reasons here was a lot of the eagles were not coming or a lot of the eagles for whatever reasons they have decided they're not going to participate in this event with the president today and it looks like just a small number of the eagles, that's a terrible image and a terrible picture, you don't want to see the president getting dissed by an nfl team. they decided to scrap the event together >> eric chemi is covering the story for us >> reporter: the city hall is always opened for a celebration, and he says some firing word

saying the president is an ego maniac who's upset with crowd is figg between the white house and the team this is what the league does not want theagles' owner, jeff legislature lurie, he told privately by other owners that we cannot tell the league getting divided only ten players were going to come eagles were not the team that had been doing a lot of kneel g kneeling this goes beyond dmeelikneelingh anthem players did not want to go to the white house. president trump told jerry jones earlier, this is a winning issue for me and the nfl is not going to win on this that's why see what the president is doing he thinks he can win as we talk to a lot of people here out on the streets. a lot of them agreed with him.

>> because, if this team could won the chipgs, thampionship >> if they don't want to protest, i think right thing to do. >> i believe that you have the freedom to do whatever you want to do whether you want to go to the white house or not >> reporter: it is usually the city of brotot so much today. >> back to you. >> all right, eric chemi trump has dominated this issue and the anthem played well for him, sara. i am wondering how risky this news is. philadelphia and pennsylvania and is this going to be risky eagle fans they're pretty die hard. i don't know how it plays in

pennsylvania but certainly in philadelphia, they certainly support their team >> you know if you are a white house, there is rarely a better photo than you and the lombardi trophy sitting on the front page of philadelphia, local paper and inqui inquires he missed a big opportunity. whether there is ten players there or 30 players there. it is a tight shot just thinking from the p.r. value from the white house, they made a huge error in my view >> john, do you agree? >> i am interested in hearing sara's perspective, she's right. photographs tend to be tightly cropped. eryo if you have a small number of people, it may not look that bad. i understand it portrays as a president that people n't want to show up for that would be negative this is inevitable consequence of the president picking a fight

with nfl players, african-americans protesting over the racial and justice issues he's in flaming that issue and in a league that's mostly can-americans, the players don't like it. you are going to have players not want to show uth president thinks this is going arouse his base. we can expect him talking about this all fall and going into the midterm election >> a difficult choice for and i am interested to hear what sara said. >> this is not the first time that athletes have chosen not to appear in the rose garden. >> it happens. >> michael jordan did not go tom brady skipped some >> i don't know if there is none all mask like this in the past >> it is not the first time. >> it happens nearly every one of these events. >> yes >> when i was in the white house, i did number of these

sport championship events. there is no more events that rouss excitement noon staffs. the whole thing is sad that it is played out this way >> i think ultimately a lot of coverage today, it is more tively to the white house. >> thousands of people cheering for philadelphia eagles. that's a better play for the president than what we are se now >> tarheels did not show up last year by the way. >> good point there. thank you. sara and john. >> share of twitter rising today as the stock is about to be added to the s&p 500. we'll talk to one analyst who's raising his price target >> tim cook is throwing a bone to parents "power lunch" will be right

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todae so media company is hitting a three-year high, twitter is up 65% in 2018. quite a turn around for 2015 when many analyst are skeptical of twitter and square. >> eric ross is raising his price from target to $45 welcome to the show.

>> thank you for having me here. >> this is the next 5% popn the thinking that fund manager index, we'll have to go by it. what's next for this company >> it is a nice little pop but it is not a fundamental pop. we have been measuring fundamentals and pressuring consumer interests in it we continue to see it grows steadily there isransfer there of their strategies so they think themselves more of a delivery content rather than facebook, social media company >> it is easier for them to sell ads that way we are expecting the average avenue for users, t going to go up >> when mething happens out there, you go to twitter to see what everybody is talking about, right? >> what was notable back a couple of years ago, anthony have not come out. >> any of these other big events >> you are starting to see that

change because you point out controversy is driviing activities ef activities well, we h that in the metrics. >> what we are measuring is higher user engagement, the daily use continue to go up and there is less twitter bottoms that we can measure that are going out. >> with more daily cruiseusers,e is more interaction and use of video as well. >> eric, you mentioned you think the revenue for active user is going to go up how much do you think it is going to go up the big knock on twitter that they don't meet much facebook pan natchez managed to get in revenues in users. >> they are not facebook or having that level of interaction or not a social media site like facebook they're different than much more of a content and delivery site >> but, we are expecting it to

move upwar towards the $200. that's in the september court and that's above 200 >>c ross >> sara. >> delaware is the second state after nevada to allow sports betting. we'll talk to the governor of what it means for that steta the latest for you the death of kate spade "power lunch" will be right back with tripadvisor, finding your perfect hotel at the lowest price... is as easy as dates, deals, done!

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world of fashion losing an icon today kourtney reagan is here with the details. te spade is dead at etail as 55-year-old. parent suicide is according to nbc news she launched her handbag brands, kate spade in 1992 the remains taken for 2009 for $59 mill ths only grown is known around the world kate spade is own by tapestry. 11 years after kate spade's last involvement with the company she founded. 25 years ago, kate spade, the brand beginning with six, the brand was a premium american handbag using nylon for its

based materials. two years ago, valentine and her husband launched a new handbag and shoe brand, francis and valentine. she has said in a number of interviews with the times, i did not go to bed and wake up a different person this is the fashion that i like and i am drawn to. >> what has she been doing largely in the times since she sold the last of the original stake to the form that she began this >> 200 for about ten years or so, she really did work on a number of efforts and involved with raising their only child when they stepped away for family reasons, i did not mean that, i wanted to take some time to raise my child and that's what she did and launched this and selling in similar locations as kate spadd

blooming daland on nordstrom for francis valentine and around the world and globally >> the brand is so whimsical and happy and for her to meet this is terrible. >> she changed her name from kate spade to kate valentine why did you do that? that coincides with the launch s new brand. >> if you grew up in the '90s gettin the fashion scene kate spade was the handbag to get. there was a great article at the "the new york times," how she went to the convention center in '93 and sold a few bags to barney's and selling labels on the front. it was a great american

entrepreneurial stories. >> i am sorry that it is medicine today >> how is that brand doing >> we don't they have not given us a lot of information the projections to be so online in sales and 4rs million from the rest of the revenue pot, they have not given y updates. >> kourtney, thank you >> thank you >> thank you >> we'll be right back from farm, to pot, to jar, to table. and serve wifidence that it's safe. this is a diamond you can follow f.m mine to finger, and trust it never fell into the wrong hands. ♪ ♪ thshipment transferred two hun, transparently tracked from port to port. this is the ibm blockchain, built for smarter business. built to run on the ibm cloud.

this is the ibm blockchain, built for smarter business. i we worked with pg&eof to save energy because wenie. wanted to help the school. they would put these signs on the door to let the teacher know you didn't cut off the light. the teachers, they would call us e energy patrol. so they would be like, here they come, turn off your lights! those three young ladies were teaching the whole school about energy efficiency. we actually saved $50,000. and that's just one school, two semesters, three girls. together, we're building a better california.

hello everyone, i am sue herrera. mexico to consider european pork products similar to europe the mexican government is imposing a 20% on tariffs on u.s. pork legs and shoulders, retaliating against the trump's administration on steel and l aluminum products from mexico.

fda warns websites, marking unapproved opioids including ox oxycodon > former spanish prime minister who was ousted just days ago is now stepping down as ahead of the political party that's been embroiled in a corruption scandal miss america, the organization that runs the contest says participants will no longer be judged onheir physical appearance. that's the news update i will send it back to you, melissa. >> let's get to cayla tausche in d.c. with the news alert we are getting a statement from senator mitchell mcconnell that august's recess have been cancelled. the goal of passing the

government funding bill to fund the government an it runs out at the end of september it is also worth noting that this august recess which is multiple weeks and lengths is expected to be or have been expected to be the height of midterm campaign seasons and of course, republicans want to hold onto their extremely slim majority in the senate so interestingly this august recess is being cancellealthoug to be one week off at the beginning of the month with the rest of the work period for the rest of the month. those legislatures will be back in session guys, back to you. >> cayla tausche in washington a check at the market at this hour here at cnbc, we have jumped on the artificial, bandwagon, look, i can stand behind it.

>> exactly >> anyhow, some princess leigh joke in there. murk and walmart is weign the dow. morgan stanley is out with the note today expecting a fourth quarter slow down in the crude sector becausee hurricane season and hide crude costs. take a look, that stock is higher than more than 9% the company owns donna karan and calvin klein apple, its stocks are trading new at its all time high >> michelle, i knew you can walk on water i just did not know you can walkth walk through glass >> one of the big announcements,

with parents giving control of more -- >> it is not just kids we are all spending too much time with our favorite apps. s an issue that tim cook says he struggled with it. >> i have to tell you. i thought i was fairly disp disciplined about this and i was wrong. when i begin to get the data, i found that i was spending a lot more time than i should. >> now the eveloper's show app will -- there is a new call screen time, every week users will get ativity summary, a detail report on where they spent their time and how often they picked up their phones. janet's spokesperson says these new tools look like a clear win for parents. could this impact the company

east 's businesses. a risky -- >> josh, thank you very much >> joining us now, a psychology offic officer, we welcome you back, we had you on back then and we are glad to have you back here again today. are you satisfied with the moves apple is making? >> i think this is a real win. they really gave us almost everything that we asked for in that letter back in january. so, you can now, parents can controthe amount of time that their children spent on certain apps they can have that phone shut down at bedtimes

we don't have kids staying up or waking up in the middle of the night and playing with their phones and, i think this is a really wonderful development is giving parents the controls that they want and really need to help their kids manage their phone usage. the >> these are tools that parents can use eliminate the addiction issues my son spent hours of time on fortnight. do these tools go far enough >> well, from the first look, i think those controls for kids in teens instituted by parents looked like they do. they'll actually make the app unusable after that. >> they paralyze paralyze the ao get a warning saying you use 90%

of the time. >> it does not work and after that it shuts the phone down at night. where i think it may not go quite far enough that they have a similar set controls for adults who want to try to manage their own usage. for adults it is only a reminder you are an adult and you have more self control than a kid there are people who struggled more usage it shuts down the app and okay they're adults and they can go in the settingd change that. it ian extra step. i mean, i take thextra step to buy more >> that's when we said that you were last on is there any thinking that there could be other companies where you can demand some changes. if apple is willing to do this, are you going to go after games

to make their games shut off for a number of hours or preventing tyler from binge-watching "the american." where does this end? >> we have to take the reasonable position that let's see what makes sense i think for other phone manufactures, i think it makes sense. people are more apparents. parents are much more willing to give their young kids and especially 11 and 12, giving them a phone if it has good parental controls on it. video games,aybe maybe that's the next step because fortnight is huge and a lot of kids are spending hours and hours a day on it. it is a good compromise position for parents the take you got an hour a day, use it well and then you are done

>> yeah. >> speaking for my family, my son spends h on fortnight anr dpgames. this would be an interesting tool and a strong selling point for their devices. professor, thank you again, jean twenge to t bond market now, rick santelli is tracking the action at the ame group as always. >> the range is at the best part of it, meaning the high yield of the day closely correlated with data we have drifted off a bit. one of the reasons, it is in italy again. looking at two-day italian 10-yr verses bund. that's your night to safety and some of the residual effects are

affecting the u.s. markets especially on days that yields are moving much higher if you look at the response of the currency markets it spiked nicely why you may ask? we have been covering it all day. whether the next meeting, june 14th, they'll be shutting it down and many traders are saying we have to wait and see that one and news of the italian prime minister, the new one, forget e th and we want to stay i am not sure what to belie but whatever the euro is participating in, it certainly has jumped if you open up the chart one year or not that far off levels since we have not seen since last jewel michelle, back to you. >> rick, i was wondering the same question. >> thank you, out of the retail,

survivalers a retails, which stores will survive? our retail expert will weigh in next here on "power lunch. welcome to holiday inn! thank you! ♪ ♪ wait, i have something for you! every stay is a special stay at holiday inn. save up to 15% when you book early at hollidayinn.com

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experience amazing at your lexus dealer. check out some of these names, ralph lauren and tj maxx. and macy's rebounding more than 20%. lululemon and under armour also. what's behind the come back? let's bring in our analysts. simmon, how many of these stocks were you recommending coming into 2018? >> let's go with all of them it is interesting -- when you have the rhetoric of retail dying and you look and everything signals that retail is in trouble and we like to take things too far. when things don't die, what happens to stocks?

that list goes on and on there is a lot of stocks up. it is a stock program and where do thing gs go from here there is a lot of distinctions and everything is working. >> i think one of the most surprising on the list, what's going on there >> they clearly invested in values and names and things that are working or things that are not. they think that they were really left for dead in a lot of ways but they found a way to turn it around and just modestly with comps, there is a tremendous amount of operating language from the model and they can do quite well here. >> it was an interesting point in terms of retailers are not dead

retai retails, the sector may not be the best the comparisons are easy or things are turning around or are we looking at a sector that's showing a littf health >> i think it is a little bit both >> they're under owned >> they need to chase that there are stocks that have not moved mike nikitchael kors when everything and macy's is comping, it becomes harder to see the values of some that are left there we think it is i companies bee the long-term story have not changed comp store sales and sales have been great bs been priced that's okay, that's a good thing. for years we have been pulling back inventories because everything we have been talking about since the recession is 20 off or 30 payooff.

that slowed down because ve inventories are in control all of us are will to spend a little bit more but let's not be mistaken om did not disappear the three . >> they are the third largest retailer online in terms of apparel. that's formable. >> liz, simeon was talking about the ones thadoing wend ones that still have not walmart is vastly under performing the marks what do you think is wrong with walmarespecially when you compare it with some of the targets of the world that are doing okay >> i think it is a tremendous amount of scrutiny of what they are doing. they're trying to drive growth in online and digital business they have to do so with an ion profitable and that's a difficult line to watch. if you look at the headlines from walmart lately, it is tremendous of this jet black program that they are announcing

in that rolled out this week that they are selling lordan taylor online a lot is going on in walmart they are gearing up to compete head to head with amazon quite well and so i would not count them out despite the fact that the stocks have not performed. >> are there any bargains left >> i think michael cokors and tapestry is bouncing back. >> i think it is more >> we han off price, it is an interesting fact people have been knocking the those companies for the past several years that there is not going to be enough supplies. people are working to clean their inventories right now with the full price channel how long does that keep going? >> let's get you guys on another big story.

lord & taylor. are we seeg the shrinking that hud co. are doing >> it is interesting now they're cleaning house and p figuring out how they can improve investment returns closing lord&taylor, closing those ten stores at the same time selling gilt to rue la la it is a shocking development but part of it is because they got themselves into this position where they are a little over >> they still have that prize of the real estate gem.

guys, we g leave it there. >> thank you foroining us. >> coming up, an amazing play from the women's college play. the state of delaware is now up and running with legal running, will it be a win fall we'll ask the governor, john carney next on "power lunch. oh, not so fast, carl. ♪ oh no.chwab, again? index investing for that low? that's three times less than fidelity... ...and four times less than vanguard. what's next, no minimums? ...no minimums. schwab has lowered the cost of investing again. introducing the lowest cost index funds in the industry with no minimums. i bet they're calling about the schwab news. schwab. a modern approach to wealth management. when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time.

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check out this amazing play from the women's college softball world series. florida state's jesse warren appearing out of nowhere to make a diving catch and from her knees, she fires to first to complete the double play >> whoa. >> that helped preserve a lead >> wow >> i can't believe they came in third. >> it gave fsu the first game in the best of three national championship series against the university of washington >> look to the her pop up on to her knees. >> r>> full extension. >> cats g and then has the wherewithal to say, i can get her again on first base, yeah >> that is a heads-up play hope my son was watching just a few minutes ago, the state of delaware took its first sports bet delaware is the first state in the union and the first state outside of nevada to begin legal sports betting since the supreme court ruled on it about three

weeks ago. joining us now from the dover downs casino is the delaware governor, john carney. welcome. good to have you with us governor, can you hear me? i guess governor carney can't quite hear us. ng to bet that we're going to fix that. >> speaking of betting >> i'm going to gbet we're goin to fix that very quickly so what should we do now should we talk about it? figorneaano a quick brk d x veor carney's sound. welcome to holiday inn! thank you! ♪ ♪ wait, i have something for you! every stay is a special stay at holiday inn. save up to 15% when you book early atollidayinn.com

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all right, let's do this again. just a few minutes ago, the state of delaware took its first sports bet first state outside of nevada to begin legasports betting since that supreme court ruling a couple weeks ago at dover downs casino is the delaware governor, john carney welcome. we are delighted to have you with us and we're happy we've been able to work out whatever audihitch we had there what are you see tlg are people coming and placing sports bets? how busy is it >> yeah, it's pretty busy, actually delaware once again is the first state. we were the state that started the nation back in 1787 and today we'll be the first state outside of las vegas to allow

sports betting legally and we're excited to do that we think it adds thing for people to do when they're visiting our state we have hundreds of thousands of visitors that come to delaware every year and we're delighted to have this opportunity as well >> i grew up going to the beach there. is that a betting slip in your hand, sir? >> it is >> what did you bet on >> that's my bet for the -- i bet $10 that the philadelphia phillies will beat the chicago cubs tonight in chicago. a lot of my friends in philly -- fellow philly fans were wondering whether i'd lost my se been in a little bit of a slump, but this ticket, this $10 bet is going to bring our fighting phils back >> it's so tempting you should have bet the over/under on how many philadelphia eagles would show up at the white house today. but i won't do that. let's talk about whether i have to go to dover downs or your own casinos to place these bets. is that the case and if so, how soon might you be able to place

a bet by another means, either online or by phone >> yeah, so that is the case now. we have our sports betting and our table game betting here atdn racewadover park, the three racetracks the legislation that enabled video lottery gaming here in delaware was called the horseman's redevelopment act and it was designed to reinvigorate the horse racing industry. so i don't expect that we'll take sports betting outside of these three racinos. >> do you think you'll have a first mover advantage, governor? we're expecting lots of nearby and neighboring states, including new jersey, to start passing this as well what's going to draw them to delaware >> yeah, i don't know that it will be a first mover advantage for very long, for sure. i understand that the legislature in new jersey is going to vote soon, but again, for us, it's more of another thing that people can do when

they come to visit our state we're not expecting it to be a big revenue windfall for us. again, just an enhancement to the current visitor experience >> so, let me ask you this i noticed -- i hope my notes are correct -- that the betting is, as of now, restricted to professionalports,ootball, baseball, hockey, basketball, soccer, golf, auto racing. you were a college football player some would say a star. do you expect that at some time the state will entertain betting on college sports, and how do you feel about that? >> well, i don't know whether they will. as you say, we don't have those opportunities now. you know, i am a big sports fan. i was a two-sport athlete as you say in college the older i get, the better i used to be, but i think we do have to be concerned i think we have to be concerned about the integrity of the game and we need to work with the various professional leagues in doing that and be careful if it becomes an opportunity for

college sports as well >> so, you do not see this as a revenue windfall i just want to nail that down one more time. >> no, that's been very clear to us first of all, the margins are much tighter than in some of the other gaming that's available here in delaware we think it's more an enhancement in the experience of the visitor, of the gamer, to our facilities, gives them something else to do it should be a big thing, i think, for sports fans that's the one thing, i think, will be interesting to see how it works out >> all right, governor, thank you for being with us, and good luck with the phillies tonight >> go phils. >> all right, governor john carney of delaware melissa? >> got ten bucks on the line it is shortly after 2:00 eastern time here's what's on the menu. tech on a tear the sector on track for a third straight record close. a number of stocks hitting new highs. we will name names plus, the big reason why this market has been rallying recently starbucks founder howard schultz weighing in on trade, the

economy, and the debt threat is a presidential run in 2020 brewing? our exclusive interview with schultz straight ahead and tesla gearing up to meet shareholders two hours from now. investors hitting the brakes on the stock this year and in today's session. what will elon musk pull out of his hat this time around "power lunch" starts right now welcome to "power lunch. i'm michelle caruso-cabrera. as you can see, stocks a mixed at this hour the nasdaq is trying to hold on to its small gains that would give it a record walmart, merck, and jpmorgan are leading the dow lower which is off by roughly 30 points the s&p call it flat financials, super boconsumer std health care are the worst performers transport's getting hit hard today. american airlines, united continental, southwest airlines, they are leading the group lower, all of them off by more than 1%, including kansas city

southern as well >> i'm sara eisen and here's what else is happening sh of allergan are higher. they released a letter urging management and corporate governance shake-ups after months of regulatory scrutiny, britain's government says it is prepared to give 21st century foe go-ahead to buy sky, providing fox sells sky news our parent company, though, comcast, has submitted a competing offer for sky. and the battle over trade continues to heat up mexico is imposing a 20% tariff on u.s. pork imports tyler. >> >> all right, sara i'm tyler mathisen in case you'd forgotten from just a couple of moments ago. we begin with the markets and another unforgettable fellow, robert pisani. bob. >> thank you, sir. and we have a narrow trading range, but there are some breakouts. take a look at the markets today. once again, two leadership groups, retail stocks, technology stocks, they're the ones that matter a lot of new highs in those particular sectors

we've got some confusion on trade, but stocks seem to be shrugging that off right now ism services was strong up, up for th100tstraight month thank you for that information tech stocks, faang stocks, new highs a whole bunch of them, not quite a whole group, not all five of them, but amazon, apple, crosoft, nvidia, netflix all at 52-week highs, in some cases more than that retail stocks have been market outperformers in the last several days and really the last month or so, new at least 52-week highs in macy's kohl's, tjx, raffle lauren, alph lauren. very odd bifurcation, particularly in consumer staple names. and we've got the cruise lines also hitting 52-week lows. morgan stanley did downgrade carnival cruise line due to a slowdown in cruises due tohurrir fuel costs that's certainly a

and ifinterested, finally, in what's going on with investors and trading in general, watch tomorrow morning, 10:20, we're going to have an exclusive interview with the chairman of the s.e.c., jay clayton. he'll be appearing at the global ange kvs a'll be talking to him and this will be his first live interview since becoming the head of the s.e.c more than a year ago we'll talk about trading and investor protections and even bitcoin a little and what they've got in store for that particular cryptocurrency. >> thanks, bob tech pushing the nasdaq to fresh all-time highs and tech leaders like apple and microsoft just a few of the names hitting 52-week highs. twitter's also on the move so with some of the tech stocks reaching all-time highs, what do you do do you still get in? let's bring in brian white hey, brian, good to see you. >> hi, michelle. >> do you see this article in the "journal" today where they said value investors are just

throwing in the towel and now they're buying tech and growth is there anything about that that makes you nervous because i remember the last time that happened, 1999, 2000. >> you know, i look across my tech coverage, and i look at apple at 13 times x cash i lot facebook at 19 times and google at 19 times also. i think these stocks are actually still very, very cheap in certain cases, so there's a digital disruption happening across a lot of industries uber's a great example in what the do they've done to the taxi industry it's happening in a lot of industries so you can latch on to these winners, these tech winners that i continue to think will outperform or you can try to go with some of these value stocks and some of these very, very difficult industries >> yeah, certainly the metrics are very different from 1999 back then, we were counting eyeballs we weren't even counting revenues so when you look at an apple or, you know, a facebook at 20 times, it is relatively much cheaper compared to what

people were paying back then what's the best idea right now, though do you think, in this space, where people who may be nervous because there's been such a strong run but they're not too late >> well, you know, we continue to like apple, and we went to wwdc yesterday, and i think what we really saw is how they're enhancing the reach and the intelligence of planet apple, and a.r. is a major, major theme. they're a leader they have the best a.r. platform we saw some great demos yesterday. you know, and at 13 times excash, you know, i think apple is the most underappreciated stock in the world right now >> is part of your -- >> continue to like apple. >> is part of your premise on this stock that it's finally going to get some kind of software multiple instead of the hardware multiple? i mean, 13 times isn't very expensive, and yet the market has never given apple a big multiple i don't know why not, but it doesn't. >> exactly right so, you know, behind the scenes, i think we're going to see this

multiple improve, and a lot of times, we talk about the sugar water companies, they've grown 1% a year, you know, apple's grown in the teens over the past five years in terms of eps and s so i think -- and warrent 20 buffett getting involved in apple, it's telling you something here, right? i think this -- this stock will be revalued. it's not going to grow like it did, you know, eight years ago, six years ago. but i think they can deliver 10 to 15% type eps growth and i think for that with -- as important as they are in the low market share that they have, you know, you can see it trade in the upper teens, even 20 times in the future. >> all right, we'll see. brian, thanks so much. brian white. hey, tyler to leslie with a news alert now on allergen. >> issuing a response after an investment group disclosed a letter urging the company to engage in management and board overall.

allergan writes that it welcomes input from all shareholders and takes into account their views the company seays they have been active in board refreshment. they unveiled a letter to the allergan boardlier today in it, they discussed pushing allergan to divide the chairman and ceo roles which are currently held by presebrent sas and bring in at least two new directors among other changes, guys >> look at the stock and the stock popped around 10:30 or so but now is only up by about 0.5% does this have to do with sket schism surround appaloosa as an activist, formation of the board of allergan and the ability of some outside force to actually ange, because maybe is board is stacked or something like that. staggered, i should say. or is it skepticism about activism overall as a force for change >> i think if you read the analyst's notes, it appears the

different recommendations that they are putting forth are things that will take a long time to really play out and generate an improvement in the stock price. it's all on the management side of things with the ceo and chairman roles bringing in potentially new blood to the board, new blood to the -- on side there. it's not something that they're looking to sell the company immediw assets, which would usually generate more of an immediate pop in the stock price, buybacks, not really suggestingk once investors actually go through and see what they're pushing for, they're more kind of long-term strategic changes as opposedo of those short-term areas that you see activists push for >> leslie, thank you back to the overall market now. while tech has pushed the nasdaq to new highs, the dow and s&p are down for the first time in three sessions where do we go from here let's bring in sandeep, the chief investment officer and ron at hightower good to see you both

ech.re seeing this movgher s&p 500 n't fafrom t march highs. it might be confusing to someone when you walk in every day and the trade headlines go from bad orse with mexico now putting tas on o imports into that country. is it just thall strt thinks that cooler heads will prevail? or that they just think it's not that big of an economic risk >> we know tariffs don't work. history has shown that to us they tend to be more politically motivated than economically justified. and i think the markets are coming to the realization that, look, to get a full-blown global pretty much an act of monumental collective stupidity and they're optimistic that we will exceed that very low threshold. >> ron is -- >> and at the same time, there are some strong fundamentals on the earnings and growth side that are propping the market up. >> right i mean, that's just the thing, ron. we're moving off a higher jobs report, and we continuto look

ta, whng in prettyl. the one big question, i think, that we all have is, the trade tensions, the uncertainty that that's caused for business, the fact that these tensionsy translating into real tariffs going to do for growth >> you know, i was listening to becky quick when she interviewed warren buffett a while ago, couple of weeks ago, and one of the things hen said that really struck me is we like short-term nervousness. we like short-term disasters that's where you can buy that's where you can take advantage. and if you think that tariffs are going to be a permanent part of the world, then you're a fool, i think. i think it's going to get solved one way or the other it will all be okay. and if there's weakness, it's actually a lt of a wall of worry, so i think that's actually a good thing, otherwise, with all this good news on the skeconomy and growth and ism manufacturing --fact, i 12 months in a row was over 60

the only other times that happened in recent memory was 2009 and 2004, coming out of a recession, so the numbers are terrific, and you know, some tension, i thi actually good for us because then we can pick and choose and buy things that we like for the long-term >> like what e more like the jetsons than we are like the flint stones, then chips, you kd wel the actually. you can go buy an etf of chie ne going to be in autonomous vehicles, the number of chips that are required for data centers, the number of chips that are in games. it's just -- if you look at a market, and you want to know where there's growth, it's in technology it's in chips specifically secondly, i heard a ru the fed'probably going to raise rates. i think i heard it on cnbc so, banks. they're not behaving like they're going to raise rates, but that's okay. that's, again, short-term. bank of america, probably the

best of them that are leveraged to making, i think they said, $3 billion to the bottom line if rates go up 1% but they're also a jetsons type compa whe, you know, they're more into mobile apping, they're more -- they're more into the technology, so we think they're going to be real winners. sandipt's wrong with financials, a sector you like? because for all the reasons why bulls are in this, all those reasons have come ab rising rates, better economic growth, trade. still hasn't helped this >> it's the flatness of the yield curve, right and it has been so confusing is this a precursor to a significant slowdown in the u.s. on its way to a recession? we don't believe so. the low level of long-term interest rates in the u.s. has a lot to do with wpening globally you have global turmoil, turmoil and tumult thgerman bond wednesday below 30 basis points on the heels of the italian political crisis

that's what's keepinng-term low and it is the flatness of is yield curve that is preventing the financials from fully exploiting the interest ratepread that is the core of their business model we do think this can correct itself the rest of the world will transitim monetary easing to a neutral position, and then begin gradual tightening, and so much like ron, we do like technology we do like financials. we like industrials that have been caught in the cross fire recently of all these global trade war concerns >> right all right, gentlemen, thank you. sandip and ron >> thanks. from the coffee house to the white house? starbucks founder howard schultz telling cnbc in exclusive interview, let's just see what happens. what else he said about a possible run for office. next plus, women can't do my job. that's what the qatar airways ceo said at a conference how the airle rpointoinisesndg his controversial comments ahead. you the readiest.

because ready gives a pep talk. showtime! but the readiest gives a pep rally. i cleared my inbox! holiday inn express, be the readiest.

even though howard schultz is stepping down as chairman of starbucks, he may have his eye on an even bigger executive in the white house. schultz spoke with cnbc this morning and while he wouldn't say if he'd be running for president, he did share his thoughts on politics and some of the big issues facing our country. listen ugh the lens of t s means to be a great american citizen. i don't know what that means at this poi

my concern for the country, and my concern for our standing in the world, the lack of dignity, the lack of respect, the vitriolic behavior coming from this administration, i think we can do better and i think the political class as a whole, not only this administration, has h regard to $21 trillion in debt and not being as fiscally conservative as we need to be, and we are going to pay for this in terms of the next generation and it's unfair. >> i want to read you, this is professor douglas brinkley, a presidential historian at rice university, says the history of business leaders in the white house has nobeen good. you basically have herbert hoover and donald trump. what do you make of that just the idea, also, of having political experience >> well, i think the rules of engagement for running the united states of america in a global society is very different than comparing it to hoover or the current president. and what i specifically mean by

that is we have serious problems that we have to address.and i te are facing in terms of the dysfunction and the polarization that exist within the government is really based on a systemic problem of ideology, and i think we need a very different view of how the government and thousaho country should be run, and it's been a long time, i think, a long time since anyone within government has really walked in the shoes of the american people and done the thingthat would demonstrate the humanity of what is the values of the country and the guiding principles of the promise of america >> do you think that president trump's presidency, his election, has changed the dynamic with which somebody like you could think about public service in a way that you couldn't before. >> well, i think -- it's an interesting question, because there is a bifurcation and want to say this respectfully and so that no one misunderstands what i'm about to say, but there is a bifurcation

between when you say a ceo i haun a public company for 26 as a fiduciary. the current president ran a private company where, from what i understand, he was running a private company with -- i don't know if it was a board i don't know what responsibilities he had to other shareholders bob iger has run a public company. when you're talking about a ceo in terms of public office, there is a very big difference between someone who has run a global enterprise like myself, who has traveled to china probably more than any other ceo in the last ten years, so understands those issues, versus someone who's running a private company with very little fiduciary responsibility to other shareholders and i'm not saying that as good or bad, but it's a big difference and so i think, yes, president trump has given license to the fact that someone who's not a politician could potentially run for the presidency whether or not that has anything to do with me will remain to be

seen >> howard schultz says he may or may not be running if he does, i think what we just heard was some of the ideas that would be on his platform and some of the ways that he would go after the current president, calling some of the language vitriolic and saying he doesn't really have a global sense when it comes to dealing with some of these trade issues >> do you think that's a winning formula in this country right now? >> i don't know. sara phagen seems to think there's an attitude for an independent. >> he uses a lot of words, howard schultz i didn't hear a lot of strong me messaging there. running a public company and running the country are -- and running for office are so different. that was so nuanced, so -- >> i do agree that it is different. i mean, herbert hoover and donald trump were in business for themselves right? we all know what trump did herbert hoover was an independent mining consultant, lived in china for many, many years as well but he worked for

himself. and so being a ceo of a publicly traded company, that's probably the closest thing to being elected by a board of directors, serving on behalf of the interests, but the cessarily interests of those shareholders. >> but here's the thing. when you're the ceo of a publicly traded company, you tell people, do this, and they do it, or you can fire them. whereas you tell congress to do something, and maybe they do, maybe th don't >> that's even more true if you're the head of a private company or a family business >> right right. >> where you don't have a board of directors and you don't have shareholders to answer to mr. trump obviously was the owner of his company i think what's very interesting -- what was interesting in that, i hear your point. when i spoke a couple weeks ago with the mayor of los angeles, another guy who is thinking of getting into the race, clearly, it does come down to a question of message eing. mr. trump's genius is tight messaging. he has mastered that and the --

and no one, i don't think, so far, comes close to him on that and certainly not -- and that's the democrats' big problem >> the thing is, though, we've gotten the trump policies and i think there's a lot for schultz to go after there, and i do think there is a message there on fiscal conservatism, which was interesting, coming from a lot of people who thought he ewould run as a democrat >> that doesn't work if you're a democrat >> he's also got the money he's worth $3.2 billion, according to bloomberg billionaires and guess what? that's $400 million more than president trump is worth >> that does not include starbucks stock? >> yes he's got about $2 billion worth of starbucks stock >> genius tax advantage if he sells that stock >> he's also got the story, the job creation, the expansion into global markets >> still he sounds very coastal. >> coastal elite >> yes, i think he sounds very, very coastal >> i think that's the image of starbucks. >> yeah. >> it's a pro and a con all rolled up in one >> let's go to kevin, who's shown up at the white hoto

address the press for the daily briefing >> we've got some charts for you today. i casee. there are a lot of nodding people so, i think that sarah said it best, that we're in one of the best economies i've seen in my career, and that there are a number of facts that have developed over the last few months that are, ink, confirming some of the stuff we talked about last fall when we talked about, gosh, it was maybe november, the tax bill, and the economic impact that the tax bill might have on the economy in addition, the president has pursued trade agen deregulation and we're beginning to see the effects of all this in the data, and the first slide, if we can get it, is one of my favorite ways to just look at a summary of how the economy's doing is to look at the gdp growth over the previous year, and you might recall when president trump ran for office, and when he came in, and when i first started almost a year ago, that we were looking ahead to 3% growth, and everybody said, no, no, no, we've got a new normal,

those blue lines, which you see during the obama years, where we've got growth in the 1s, maybe up to 2% if we're lucky, but we could never get 3% growth again. well, in the latest data that we have, we've got growth year over hat's justs than 3%, and the atlanta fed gdp now number right now is the second quarter gdp will be high enough to make the year over year growth about 3.1% or 3.2% so if you look at the chart, you can see there's been a clear trend break and we've gone from a new normal of low growth to just normal, which is the 3% growth that americans used to expect could i have the next slide, please in this chart, i want to show something that we again talked about in the fall. which is that one the of the reasons why we had such low growth in the previous administration is it was so anti-business, and it was basically discouraging capital formation in the u.s. with inappropriate tax policy and high regulation. and you can see that in the data if you look at, for example, the blue dot from q12015 to q4 2015

business capital spending, barely increased at all. and even in pre-election 2016, it stayed at about the same but subsequently, after the election, already we start to see a big increase in business sentiment and capital spending starting to god now that we've passed the tax bill, you can see capital spending skyrocketing just as we said it would last fall, and that higher capital spending is exactly, you know, one of the key factors driving growth at this time. i can remember way, way back in the fall saying that if we pass the tax bill, we expect to see capital spending this year higher by about 10%. if you look at the last bar in the first quarter of gdp this year, capital spending was up 9.2% next slide, please there are a number of other things that we can look at, and believe me, we can go on all day, but i promised sarah i't a. this is one of thes i find most striking because it has such a big impact on our outlook for small business right now, small businesses are

as optimistic as we've ever seen since we've begun surveying them and i think it's also interesting to see, like, you can see, well, and sometimes people, the obama administration will say, well, we just set this economy up fhe president, but you can see a clear break in this chart when -- at th election and so, president trump promised that he would cut taxes, thahe would reduce taxes on small business and reduce the heavy regulatory costs that were imposed on them by the previous administration and you can see even before he began to act, the sentiment turned around. could i have the next slide, please and that's helped lead to something that is really one of the more remarkable labor markets that we've ever seen the job market right now is about as strong as i've ever seen and there are a lot of different ways to put it into perspective but for me, the easi is ju that it's only seven times back to 1970 that we've had an unemployment rate below 4% and two of those months were the last two months and we expect that will continue as remarkable as that chart is,

i think the next one means even more the next chart shows the gap between the unemployment rate of white workers and black workers and you can see that the gap between the oymentate for black workers and white workers has gone to an all-time low, and it's maybe about a third what it was on average during the obama administration. and of course, we want that gap to get all the way down to zero but we've made a tremendous amount of progress because president trump is working to heat up the economy. the next chart for a person who loves economic data is really my favorite, because you rarely ever see ag that is the best since the second world war in economic data and this chart shows that the initial claims for unemployment insurance, which is those people who have the really bad news that they lost their job and then show up at the unemployment office to collect their unemployment insurance, as a share of the workforce, they're the lowest since the second world war. one of the worst things that can happen to a person is for them

to lose their job. i've got one more chart. the last chart ithat the president tweeted about, and this is just a chart of what's happened to americans' wealt since the president was elected. got in their checking accounts, their savings accounts, what the value of their house is and of course the value of equity markets and you can see that since the president was elected, the americans' wealth has increased by $7 trillion and i would guess that when we see the data over the next coming quarters that we're going to cross the $100 trillion mark for americans' wealth so it's very clear that the president's economic policies are working but i think that the most important thing is that they're working for america's workers, that america's workers are being laid off at the lowest pace that we've er seen and wage growth, which we didn't include in the chart is taking off as well. with that, i'll open up for a few questions. i'll start with robert and then work back. >> kevin, good afternoon thanks for being with us today the unemployment rate, 3.8%,

last month, but the labor participation rate still lags four points behind where it was the last time unemployment was below 4% in this range what can this white house do to increase the labor participation rate >> right, well, this white house has going all the way back to the campaign whether tn the pre was speaking to the forgotten people, the people who had exited the labor force because they were so discouraged, and we said that we don't believe the story that was being pushed by the previous administration that there's no hope for you. we think that you should get back to the labor force. as of -- i did this calculation as of the last jobs report i haven't updated it for this jobs report but as of the last jobs report, 900,000 people -- 900,000 americans who were out of the labor force have gotten a job since president trump took office so, i'll go back to you, ma'am >> thank you two questions. does this administration put

into account that the obama administration had -- they were dealing with a recession, they were coming out of a recession do you take that into account when you talk about the numbers comparing apples to oranges when you're dealing with the economic portion? and then going into black unemployment the numbers have come down but historically, the numbers have always been 1.5 to 2 times or even greater than that ofica. will this administration, since you love to tout those numbers, effectively target in to bring that gap to -- >> thank you for that question so, first, the great recession, that was the targeting point as something we've been working on, t first the t recession absolutely slowed growth in the early years of the obama administration but normally, what we should have seen in the economic recovery is that at the end of the administration, the capital spending and everything else would be getting back to norm and that wasn'happening. and that was clearly in the data as for the targeting, i think that one of the things that we've spoken in this room before that the president talks about

is increasing jobs in goods-producing industries like manufacturing and construction those industries are creating jobs at ttle under 50,000 a month and that pace is about double what it was under the previous administration. it's precisely the thing that the president's been targeting and if you look at the racial disparities across different professions, it's the good-producing industries that are in part responsible for the big reduction in the black unemployment rate. i will let you have one follow-up. >> i'm sorry thank you for that so, but when it comes to construction, it's known more so as a boost for hispanic workers. what specifically are you going to do to target for african-americans, since you are talking about -- you guys tout this >> the president's policies are clearly working. the gap is the lowest in history and his policy is to target goods. >> producing industries. >> let's turn to trade for a second united states as it stands right now on possible tariffs, china has its stance on possible tariffs. have you guys at all modeled at

all if there is a trade war between the u.s. and china how that would impact the u.s. economy and as well, you've had republicans over the last couple months who have said the one thing that can stall tax reform, the impact on the economy, as they see it, is the president's trade policy are they on to something there >> look, the economic report of the president that we put out a few months ago documented something the president has talked about, i think, very emotionally at times, going all the way backe which is that outrade deals are very asymmetric, that our markets are really open to the imports from other countries, but a lot of other countries have asymmetric treatment of us. and so for example, in europe, they have a 10% tariff on cars and we have a 2.5% tariff. the president's objective is to get fully reciprocal trade deals and if you model a future where everybody else reduces their trade barriers to ours, then that's massively good for the global economy and massively good for the u.s. economy. now, the president wrote the book "the art of the deal" we're

engaged in discussions and negotiations and we're hopeful that we reach that positive long-running equilibrium let me move on to another one. >> thank you, kevin. i want tk you about the benefits of the tax cut legislation that the president signed into law in december. a morgan stanley survey found that 43% othe tax cuts savings are going to stock buybacks and dividends. 13% are going to employee raises and bonuses, employee benefits, something like that. are you kis ddisappointed that e seeing that effect from the tax cut, that so much more seems to be going to wall street than to main street. >> not at all. in fact, wage growth right now is the highest, if you look over the last quarter, the employment cost index is the highest it's been going all the way back to at least 2006. we've got more than 6 million people that have been announced to have a pay raise because of the tax bill the average pay raise foem

is little north of $1,200 and the president said again and again and cea said again and n that there would a be a $4,000 increase in pay if we passed the tax bill and people said that number was completely implausible but let's look at the numbers now. walmart for example has increased the minimum wage for their workers by $2 an hour. if you run that forward, that's just a little bit less than $4,000 this year and so if the lowest paid people at walmart are getting the $4,000, the president has promised, then of course we're not disappointed in the wageta >> if it's going to wall street just a follp on the question that was asked earlier. tariffs. do you predict -- and it was the trade question, i guess, that blake was asking, following up there's always a prediction that incrd tariffs will depress the economy. what the president is engaged in, do you foresee any problems with the tariffs that he's implemented and what would be your reaction to it? >> i think that the president is

pushing our trading partners hard to make their deals fair for america's workers and that's his objective and there are onussions right no and i know a lot of other presidents, i -- i was over here at one point as an outside coming to talk to president obama's team about this. a lot of other presidents have wanted to make better deals and failed, and this president is not going to fail at that. he's going to make better deals. >> would that depress the economy, higher tariffs? do you admit that could cause problems with the economy? >> we expect this is going to work out well and we're going to get fair trade deals can i have back there? >> just following up on that a little bit from what you said here and what the president said also, is that talking about tariffs would be more of a negotiating tactic, as much as anything how fa though, can this be as a negotiating tactic with -- you've so far had to pull e trigger asther countries don't do what -- >> i reject the view that it's a

negotiation tactic purely. for example, the steel tariffs were put in place as a national security concern the president is the commander in chief he's supposed to make those judgments in a time of war, we need to be able to produce steel. i think there are a lot of things going on in the 301 space, to use the inside baseball term. we're trying to get china to stop stealing more than $100 billion of our intellectual property every year. there are a lot of of things going on last question? okay >> indication of where we are in terms of the nafta negotiations? right now, theres idea out there that the united states might want to break up the nafta negotiations and do a direct deal with canada, a direct deal with mexico. is that the right approach what do you think is coming? >> i think the president's approach is to negotiate with mexico and negotiate with canada and make better deals and i think that, you know, you'll have to talk to ambassador lighthizer to gepdat thstate of negotiations thank you very much. thank you all for having me. >> thanks, kevin

lastly, one additional update, the president and the administration applied senator majority leader mcconnell and his decision to ca the majority of the august recess and remain in session. there's been historic obstruction by senate democrats, and there's a long to do list, including important nominations and appropriations bills that we hope they can get taken care of. and with that, i will take your questions. >> on the president's decision to disinvite the eagles, he's suggesting this is about the national anthem. is the president aware that not a single player on the eagles through the entire season knelt for the national anthem? >> the president's position on not just the anthem has been clear but let's not forget this isn't -- there were 80 members of the eagles organization that rsvp'd and committed to attend this event as recently as friday as well as over 1,000 fans of the eagles organization, and the eagles are the ones that tried

to change nt at the 11 hour, and the president frankly thinks that the fans deserve better than that, and therefore we changed the ceremony to be a focus on celebrating our great country. >> why is he -- this is about the national anthem? we heard from steph curry and from lebron james, the suggestion that whoever wins the nba championship, they're unlikely to be here. is this about something more than the national anthem something other than the national anthem? >> look, if this wasn't a political stunt by the eagles franchise, then they wouldn't have planned to attend the event and then backed out at the last minute and if it wasn't a political stunt, then they wouldn't have attempted to reschedule the visit when they knew that the president was going to be overseas and if this wasn't a political stunt, they wouldn't have waited until monday, well after 1,000 of their fans had traveled and taken time out of their schedules to offer only a tiny handful of representatives to attend the event. >> to be clear on that point, this isn't about the national anthem, it's about so few

players coming >> certainly the president has been very clear what his position is in regards to the national anthem. we've never wavered on that. the president thinks that people should stand for the national anth particularly when it comes to the nfl, it's not about a particular team. it's about having pride in our country, and about being respectful to the men and women who have fought and died to preserve our country in terms of this, the eagles are the ones that changed their commitment at the last minute. the president felt it was appropriate to change the event to be a ceremony to celebrate our country. >> just a follow-up, sarah, on the statement that you made. you referred us to the outside counsel on the don junior statement that the president was involved the outside counsel did weigh in, saying that, yes, the president did dictate this statement. rudy giuliani was on cnn saying it was a mistake to say that the president -- >> okay, we're going to leave this news conference anted the hear from kevin hassett, council of economic

advisers he was talking about the economic data under president trump and also a few questions aboue eagles and the president's decision not to hold the ceremony at the white house. >> mggest takeaway is he showed all the charts that look good, capital spending, initial jobless claims, job charts that we show on cnbc all the time confidence and then he got questions on trade, and he reallythe question as to whether the tariffs are going to hit what he pod, this very good economy. he says it's going to work out well we have asymmetric trade policies, which is the economist speak for they're ripping us off, which is what the president says and this is art of the deal >> i was thinking about howard schultz. anybody who's going to run against the president, if this economy keeps going the way it is, is going to have to -- >> it's going to be hard but two years is a long time and a lot of the current economic thinking is that by 2020, we may be turning over and rolling over into a much slower growth economy. we'll see. >> and what will happen to trade? i mean, i still think that's a question >> absolutely it is. >> do you shoot yourself in the

foot >> let's talk about elon musk, shall we he's set to face shareholders this afternoon where are you? right there? all right. plus he said women can't do his job. and now he is in hot water for it a closer look he controversial comments made by the qatar airways ceo. "power lunch" is back in two minutes.

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read it carefully. minute welcome back to "power lunch. the qatar airways ceo in hot water today for some controversial comments he made phil lebeau is live in chicago with the details what is the deal here, phil? >> reporter: sara, these comments come from akbar al he is not a figure that many people in the airline industry look at and say, well, he's kind of shy and demure and doesn't say much he was asked at a meeting in australia about a woman running qatar airways. he wrote, of course it, meaning qatar airways, has to be led by a man because it is a very challenging position apparently after he made this

statement, there were groans in the audience he went on to later say that about 33% of the stafft qatar airways are women and that he does not believe that there is gender inequality at qatar airways. but in this day and age, guys, a statement like that is going to get a lot of attention, and that's what's happening today. i should point out, when i talk with people in the airline industry, especially those who deal with international carriers, they're not surprised at almost anything akbar al baker says, whether right or wrong or whether it comes off as tone deaf, this is pretty much in keeping with how he is. he will say what's on his mind, whether or not it is going to be met with groans or with cheers >> #noqatarairways on twitter yet, phil? is there any blowback from people who might take a qatar airways flight >> i don't know, melissa my guess is, probably not. look, this is the same ceo who commented on flight attendants for u.s. carriers as being

grandmothers and that the attractive flight attendants work for qatar and other airlines so, when he makes these statements, people say, are you crazy? what are you doing and it doesn't seem to have long-term effect in terms of people saying, hey, don't fly qata >> but ie also know the chairman of the international agency >> air transport and we reached out to them to see if they have a comment or some public admonishment for the comments he's made we have not heard back from the international air transport association. >> all right, il, thank you. tesla ceo elon musk is gearing up to meet shareholders later today. let's get an analyst's take on what investors should watch. rob is managing director of equity research with guggenheim securities he's got a buy on tesla. rob, great to have you with us at issue is a composition of the board and whether elon musk should be chairman what is up for vote today? technically is whether or not to dump three board directors which are seen to have very close ties

to elon musk himself i don't think anybody thinks these three are going to be dumped but could the -- could the no vote otest contingent be high enough that tesla's got to address these issues? >> i mean, i think it's worth thinking about, but i don't expect a lot of change myself. i think at the end of the day, elon musk is inextricably linked to tesla, as ceo, as chairman, and to try and, you know, parse that, i'm not really sure what the point is you're investing in elon musk when you're investing in tesla and that is what it is, for better or worse. >> why should shareholders vote for what could be seen as crony board directors in terms of an to -- antonio, kimble, and james those are in question today. >> i'm not suggesting they should or shouldn't in terms of how people vote. i'm just simply saying i'm not expecting a change in the board. >> is corporate governance a

concern of yours, rob? you're optimistic on the company and clearly a believer in elon musk, but could the board be better to make this company even better >> i think a lot of boards could be better, and tesla's probably one ofm. gus i'just saying that i think that, you know, the board make-up is not really what think, when you're investing in tesla. >> yeah. >> i mean, i was going to say, the -- this gets some play, but quite frankly, i think it goes without saying, the biggest focus of the shareholder meeting is going to be model 3 production >> are we going to get anything today? >> i honestly don't know if they'll say anything new. i actually do think they are generall track to actually finally ramping up production of model 3 and it's so meaningful because it's not just symbolic of what tesla's all about, which is making a high volume electric car but it's critical for the financial lever. so, you know, i think they are making progress at least, even

though let's call it six months late but that will be, to me, the biggest focus of the meeting is how is model 3 ramping. >> thanks for your time. >> great thanks very much coming up, netflix set to join the s&p 100 and that's set to start the stock higher. how do you trade it from here? that nt.'sex because, when you really, really want to be there, but you can't. at cognizant, we're helping today's leading media companies create more immersive ways to experience entertainment with new digital systems and technologies.

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>> look at netflix rallying over 1% hitting an all-time high as they are set to join the s&p 500. netflix now up 90% in 2018 matt, if you are looking at the chart, it's a moon shot, just how much more can it gain? we asked years ago if there's money to be made in netflix, and look what it's done. >> well, it's funny, you know, the chart looks very good, i mean, if you want to play devil's advocate, the one thing i point to is it's getting a big premium to the average, 175% premium to that moving average, and that's getting extended. however, thing is one time it got higher than that, it got to a 200% premium, giving that a

10% upside from here, but more importantly, look at the stock in recent months, you know, pulled back a couple time, and each time it held a 50-day moving average that's rock solid sport, andfoly took it to meaningfully new high, and that's the momentum, the people, technicians like to see. overbought near term, could have a pullback, but the chart looks quite good >> stacey, fundamentally do you like the story for netflix, and it does not seem to have been bothered before, and trading 250 times earnings >> absolutely. we don't cover fundamentally, but what we see from the options per sspective is they continue o be bullish that's important, but not as bullish as it was earlier this year to matt's point and your point, what's interesting about netflix's option, look at price percent of spot, typically when a company rallies, stock price

rallies, that spot decreases as the companies consider fundamentally sound and likely less risk coming out of it that's not happened here in netflix, so when you look at the price of the option, there's a percentage spot, you're looking somewhere in the 50 to 60th percentile over the past year. that makes the options fairly expensive to where they have been formally. we like options and prefer spreads at this moment versus outright options >> got it, thank you for more, go to tradingnation.cnbc.com and follow us on twitte twitter @tradingnation check please is next on "power lun lunch. one way to manage a winning trade is to place a trailing stop order when the target price has been reached a trailing stop order is an order type that moves your spot loss higher as stock moves up, but when the stock moves down,

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captured lightning in a bottle. over 260 years later as the nation's leader in energy storage we're ensuring americans have the energy they need, whenever they need it nextera energy. check, please. >> we are just talking about tesla with the analyst, we note that tesla share hholder meeting is in the 5:00 hour, and phil lebeau will monitor the meeting. eyes on model 3 production when they are in line with the latest update, but we'll see, 5:00 hour

tonight on "fast money." >> my check please is on the this is a y of the day, right? the philadelphia eagles no longer invited to the whithouse. president trump i don't knowns l right now. he's hit this hardnd continues to hit it, and what it shows, actually, that the nfl botched response from a pr perspective >> going way back. >> i think it speaks to the gulch of the owners and players union not being on the same page on the issue, and, therefore, cobbled together this response, and this new policy, and they are fighting against some of the players, and i think it's enraged a lot of people, and - >> and presumably the ownership said we'll all be there and show up without, i guess, checking with the players to see whether wanted to go. >> look what's happening in the nba, lebron james so much more outspoken, and there's no backlash there coaches as well. >> steve kerr. >> big consequential story

>> talk about the tomatoes >> wendy's changing how they source tomatoes. rather than the green ones in the ground, they are going to get them from greenhouses vine ripened. this is a dramatic change in the way fast food sources tomatoes one tomato, two tomato is my handle >> exactly appiate for "power lunch," isn't it >> thank you for watching. "closing bell" starts now. i'm wilfred frost, the strength of the economy could be a risk to equity markets, and we are live to explain why. >> reporter: in chicago, i'm phil lebeau counting down to the shareholder meeting of tesla >> repor the united states reportedly asked opec to increase supply. what that means for oil prices coming up. i'm kelly evans. trade talks hit home how th