ladies first >> boston scientific bsx. we labor the growth. it's beating on the margin expectations earnings and could be a buy ow. >> joe. >> mastercard, lon and adding. >> aller again >> massco. >> pete? paypal it's going higher, scott end of story >> thanks to everybody "power lunch" starts now. >> i'm melissa lee president trump says he is going to sign an executive order to stop families from being separated at the border. disney raising its bid the over $70 billion for fox's assets on thing comcast's bid. general electric getting booted from the dow after more than a century could this be good news for ge's shareholders "power lunch" starts right now

welcome to "power lunch" i'm michelle caruso-cabrera. stocks are holding steady at this hour. dow struggling a bit it was higher by triple digits earlier. right now up nine points nasdaq once again outperforming the other major averages higher by nearly 1% stare of starbucks on track for its worst day. cutting out look and closing 150 stores the ceo spoke today and said the decision is the right one. netflix is up almost 30% in the past month up 115% so far in 2018 amazon and facebook are trading at newual all-time highs facebook is up 25% from its march lows. >> we begin this hour at the white house where the president will sign an executive order to stop the separation of families at the border. ayman javers is there with the

latest >> that's right. a president known here for doubling down is now today backing down at least part of the way here on immigration. the white house suggested ier in the week it didn't have the power to changethe detention policy around children had are detained along with their parents being separated from these parents today the white house saying and the president saying directly the cameras he is going to sign an executive order that would change exactly that policy here's what he said. >> so i'm going to be signing an executive order in a while before i go to minnesota at the same time, i think you understand we are keeping families together but we have to coop our borders strong. we will be overrun with crime and with people that should not be in our country. >> so the president said just a little while ago here at the white house that that action would solve this narrower problem. meanwhile the broader problem continues to move on capitol hill we are told a number of vans

filled withu republican lakesers are coming to the white house from capitol hill at this point to talk with the president alone with speaker of the house paul ryan to talk about where the president wants the issue to go. jeff sessions just arrived on capitol hill talking to reporters. did not answer many questions but said he is working with the president on the family roou reunification laws. >> what are the chances this thing will get through >> democrats have not wanted to give the president any political cover here they wanted him to solve this with an executive order. now if the president is going to do that democrats may be tempted to sign on here. but their political instincts, in a purely political way, democrats will be tempted to allow the white house to twist in a wind here a little bit politically but a they believe that the politics of this are bad for republicans and good for democrats. will they be tempted to jump onto a solution when letting the

president twist in the wind politically a little bit might be good for them politically. now to the latest on the mega media merger. disney upping its bid for fox assets to $71 billion or $38 a share. it's trading near 40 right now of course there are other aspects fofld. >> that's right, fox and disney agreeing to a new deal disney now paying $10 more per share, now a 50/50 submit between cash and stock and $6 billion more than comcast's all cash offer disney's ceo bob lyingo iger saying on an investor call that the company is committed more than ever to acquiring fox's assets. >> it is direct to consumer distribution and it has become an even more compelling proposition in the six months since we announced the deal. there has been not only a tremendous amount of development in that space, but clearly the consumer is voting, loudly, that

these new platforms are very compelling. >> iger saying that disney is confident that it will obtain regulatory approval, saying it has six-month headstart, which he called meaningful disney says this does not change the company's plans to invest in its other businesses but short-term they plan a more conservative approach to share repurchases and will not compete the $20 million share repurchase it announced in december there are reports that comcast is preparing a higher offer. >> julia, i was speaking with larry halferty of ljh on squawk in the street and he had indicated that should disney win, comcast should look into buying sony. i'm wonder what sought of chatter there is on what happens to the party that loses out on the bid. >> there is a lot of speculation about what other assets would be in play. here -- i'm hearing a lot about

not just what the losing party would buy but what other companies like verizon would buy in the wake of their biggest rival at&t just completing the acquisition of time warner one thing people arealking about here is the idea that cbs and viacom could be in play, eat of them could be attractive acquisition targets spreetly sey and not have to be merged first. >> james stewart said this could be one of the most intense bidding wars that he has seen. at the same time shareholders can only put up with so much before they think too much money is being spent debates about how high this could go what are you hearing >> i am hearing this is just the early days of this you should expect more round as to how high it could go, i have heard as high as 85 or $83 billion. there is more room to go there is the question of when

does it become not a reasonable investment the reason why it's already so high is because there aren't assets like fox out there. 83 or $5 billion is the number i'm hearing as the ceiling. >> get back to the party i'm hearing hooin behind you coming up, we will put some of those questions to mario gabelli. dow turning positive trying to avoid a seventh straight losing session bob pisani joins us. >> look at the the s&p 500 the low was this the first hour. this happened the last four or five days. we move up here. the important point is, leadership is back in the sectors. industrials and materials are lagging the overall market look at cummins, 3m. caterpillar, eaton, still to the downside weighing on the dow as well. shows you the tariff issue hasn't gone away meantime, else, his for i high

this is the russel, the nasdaq, the mid cap, even the micro cap at historic highs. big changes in the dow general electric is out. >> i know it makes sense for ge to come out, do you feel that walgreen's was not the obvious choice to go into the dow? >> i think part of that is what has been talked about on wreath as kind the warren buffett problem. warren buffett doesn't want to split his stock and he is being emulated by hundreds and hundreds of other managers the netflix of the world, amazons of the world, in the old days when a stock got to be $100 it would get split four for one and you would get in there the problem with replacing ge i if you put a mega monster in, facebook or smng something like that it would swallow the whole average because it's based on

price not on capitalization. >> teches are underrepresented in the dow there are companies that are not $600 sales force companies like that. out there, nvidia, $200 something. facebook is only $200 for example. it's not like there are in other choices that are out there. >> no. they are going to have to pilled with the divisor to make it work i think the primary concern was not the bring in any tech that looked like it might wind up swallowing or distorting the dow. if the dow began to part company with all the rest of the indexes, you would have people questioning its validity am i surprised atwal greewalgres i i'm stunned. >> the dow is a price weighted index. doeg clobbers the do you when distorts the index and the s&p

doesn't have that because it's market cap weighted. in your opinion, is the dow a less accurate gauge of the u.s. economy than the s&p 500 >> it is a more volatile gauge the success and failure in specific companies and in specific sectors tends to have as you aptly point out with boeing, a disproportionate impact things look bigger look at today. the indexes were up. but the dow wound outgoing south because the moves in some of the stock components were heavy. i mean, everything else paused when powell said we might have some more rate hikes but the dow kind of crumbled. >> finally that one last rule before iet let you go, ten to one. they have tended the remove a stock when it's less than 10% of the value of the highest priced stock. boeing, $is $340.

when it was $34 we knew it was in trouble >> it wasn't completely a shock. people have been talking about this for a couple of months. >> thank you. guys back to you. >> thank you bob and art for more on ge getting booted from the to you check out cnbc.com. up next, more object the fight for fox. an investor who owns millions of shares of fox squloins us. why company does he want to win the bid. "power lunch" we'll be right back greatness of an suv? is it to carry cargo... or to carry on a legacy? its show of strength... or its sign of intelligence?

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disney raising its bid for 21 century fox to $71 billion? cash and stock deal. are we in for more bids from disney and comcast mario gabelli joins us great you have to with us. >> i'm delighted to be here. >> how high do you think the bid for fox goes >> well, my own sense is, you know, comcast, brian wants to have a opportunity to participate. he's the high bid right now on sky. it's obviously -- fox will have to do something if they want to own sky to buy the balance within the framework of the deal on the table he probably has to

bump it to 3 or $4 a share again, let me highlight and echo the comments that we might have maid in the past that is that spinco -- you are getting $38, combination of 50% cash, 50% days me paper with a collar, which means depending where the price is, whether it is a volume weighted average applies or in other words how they determine i if disney was selling at lets assume $106 you will get 38 divided by 106 as that as your prorated share of the disney stock, .35, without getting too technical. i would argue that comcast now could come back with part stock or part cash but it has to be up to $41 my clients, who own fox, have $10 in public markets and $17 in private market value in what we

call the new fox you add that $10 to the 38 that's why the stock is at 47 and change because you know in hand you have $48 then the question depends on the timing how long will comcast be able to need to get their proposal if i have higher economic value through the regulatory agency? that is a time value of money. the second part is how far along is disney in getting that process started of those are the elements. >> mario it's michelle here. your firm has $5 million of fox b and $5 million of fox a. what do you breerve, a lot of cash from comcast or would you like to hold disney stock down the road >> i will take a coin out and the give to my taxable clients what is taxed at the lowest possible pay, pay less tack, pay later, one of the greatest lines i learn 40 years ago from john

malone my clients want to pay less tax and pay later. inure earnings estimate of disney of 10 dollars out two or three years makes a lot of sense and disney is going to have a strong tail wind and we like comcast. and comcast at $3 a bargain. we will make the determination but at this moment we are doing what we would always do at a great opera, that is applaud the participants and say carry on. >> mario it's scott. >> are you working overtime? >> i am. that's okay. i enjoy it who do you think murdoch wants, all things being equal >> let's assume i'm rupert and i have 300 million shares. tax guys, and they are not as deputily paid as some of the ones that rubert and others are hiring -- assume i don't pay them that much basically, he is going to have to pay a tax on spinco so the $10 i gave you assuming

that's first print, he has 300 million shares times 10 is 3 bl times 35% between federal and other taxes. he is going the pay $1 billion in tax on that however to the agree that everyone elects cash and he gets his stock off, he will have a deferral on his disney stock whereas comcast he is going to have to pay 100% tax if i'm rupert and an economic person in the history of adam smith, i want to take -- you know, everything constant, if i had the right to do it i would take a tax refeared piece of paper, particularly, if the i thought it was reasonably priced >> if you are an ordinary shareholder, mario, isn't there an advantage to the all cash >> listen, i have clients that owned the stock from the days of herb siegel chris craft, and they are ordinary people i don't know what you mean in addition to them, my mutual

funds get hurt by what is not impacted at the etfs they want wash it out through the authorized part pant strategy. totally unfair a different subject ubt. i disagree with you. i think the answer is that you now have an opportunity the take 50% of your compensation in cash and assuming everybody elected 100% standard election, i don't know if that's permissible but that's the deal, comcast coming in with a higher bid has got to move the needle higher the second part. because of the fat -- a good question that you are going the ask me next, and i knew you were going to do is, is hey, whoa, this is going to add close to a lot of debt on the book of business me. i mean, if you took 40 dh times 1.8 million shares that's $72 billion, plus before of that is $36 billion on top of the disney dead on top of that which you have to pay for sky, $30 million.

>> we are seeing the stocks react to a bloomberg headline which says that disney could be cleared by the u.s. department of justice to buy out most of fox in as little as two wooebs. >> i read that about 20 minutes ago. >> we are seeing the stocks react. >> i'm hot going to get into the weed with the justice department and what they are thinking i echo my comments the first 50 pages, if understand wants to be a student this industry and understand what bezos and netflix is doing should understand the role of technology. >> on that note, are these the only bidders out there i think all of these companies that are into buying content could there be another cash laden company out there that wants to get in. >> i'm hopeful that you are right and i hope all eyes are on the big eye of cbs take care. >> do you have time for one more question >> you said i was working

overtime are you leaving or stick, around for more. >> i thought she was finished with me. >> no no, we are not done yet. >> go ahead. >> there any fear that the winner could end up being the loser? that somebody pays too much, there is too much debt how do you view that >> clearly when one has subscription revenues like on cable you have an ability to predict your cash flow more readily than when you hope for the infinity war look at pixar's new movie. incredibles 2 is going to be enormous disney does have scale, some predictability we think they will do $33 billion, but the point that i'm going to make that the cap ex is $34 billion. on $34 billion of ebitda, the question is yes you have a debt of $150 billion and you have to pay interest

aassume they are smart enough to lock it in and you have to work that out. >> mario -- >> debt is a problem at some point you are going to have economic challenges in the world and some interesting times for manaoney managers. >> on the previous question you finished up by saying look at cbs. did you mean there is another bidder out there on this particular deal or they might go over cbs. >> thank you -- >> i wanted to give you clarity. >> give my clarity i in my wildest dreams would love to have a company with a trillion dollar market cap and overbid for my clients do i sign a 1 periods probability? why not. is it likely i don't know about that. on the other side of the coin there is no question when romance is in the air you are going to see a lot of people eyeballing everybody and

starting to say whoa how do we scale up, how do we do this global distribution how did we take advantage of the 7 billion eyeballs in the world not the 330 million in the united states. >> let's talk about that romance. tell us who you think ultimately wins the fox assets. whatever party doesn't win, what should they then do? >> to the degree you want to have a business that has both content and distribution outside of the united states which companies have that where you can reach critical mass or at least a start. china is a challenge it's huge in terms of box office for theatrical movies. the problem i have is that india seems to be the place that everybody is doing business and has a better commercial footing. fox has that set of kmablts. so does viacom. in the uk and germany and italy, with sky you have got content --

look, the world cup is going on today. that's the biggest eyeball gatherer that we can think about. it makes super bowl look tiny. and so the notion of content of both sports, news, and entertainment globally, and leave events and particularly going after millennials and particularly going after the mobile is an important element who else is out there? first of all, my clients are the happiest if there is a continue use of 41, 42 cash coming back by comcast and fox will decide whether they have to up the bid or change the terms. this was not only a higher terms, but it was the terms of trade that changed, part cash, part stock by disney and look this makes sense for everyone then what else is out there. >> zaz love has a wonderful business in europe at discovery. clearly, some people may want to have wireless. but you will have to aggregate a

lot of content producers i think viacom has a very good non-u.s. asset base. i hope less and sherry and bob backus can make love together. if they can't maybe they will go their separate ways. i know, i will solve the problem in other parts of the world later. >> thanks mario. >> glad to be with you guys. have lots of fun take care. >> yes up next, winnebago's ceo michael happy. he must be happy with the stock performance today. how does he feel about tariffs what do steel and aluminum tariffs mean for his binusess is this we will ask him next on "power lunch."

a big market mover today, take look. winnebago. shares soaring by nearly 12% on stronger then expected this, earnings what drove the quarter is the company concerned about tariffs? here is michael happene, president and ceo of win bayinga. good to have you here. >> good to be here. >> your sales numbers were great. they beat the street when i look at the accumulation thus far this year you are running on track that's amazing. what is going on that suddenly there is such an increase in sales for your products? >> well, i think first and foremost the rv life-style continues to be popular still with the american consumer so we still see growth into the category

this will be the ninth straight year of growth for industry. specific to win baio industries we are taking the material market share especially in the towable segment. we have grand design and winnebago brands that are doing good things. product lines are healthy. relationships with dealers are healthy and they are able to compete effectively in the markets. >> you high lated strength in the stick and continue subsegment of towables what are those. >> stick and continue is -- it's probably more industry slang for the introductory travel trailer subsegment within the towable category those are the products that you can tow behind an suv or a pickup truck and we have a new product called the grand design transcend which is our first entry what the industry calls stick and continue that is the largest category of towables in the north american rv space we are beginning our journey and getting off to a solid start there. lots of runway in that category.

>> analysts were happy with the towable part of the revenue stream give us color. what does it tell you about what the consumer wants they are more willing to spend a smaller amount on something that is towable versus the bigger ticket item, a full-fledged rv >> certainly the towables category continues the grow faster than the motorized category that's probably because the amount of the drivers and the amount of vehicles in the u.s. that you can pull something behind is growing as well. they are also more affordable. what is great about the rv industry is you can get into a price point that fits you, from $15,000 to half a million dollars. we are increasingly seeing younger generations of rv consumers looking at towables first and being able to escape on the weekend with something they can tow behind a vehicle they already own. >> it's scott. i'm wondering -- for a full size rv what the average price of a tank of gas is how you are thinking about gas prices today?

>> you know, that price varies on the size of the rv. >> full sized. >> the diesel -- boy, those products have, it will take you a couple hundred dollars to fill you know, an rv tank in some categories and it can be a little bit less in some categories the price of gas has risen in the last year. however we don't think it is at the point where both the utilization in the existing markets will vary dramatically nor will the price we think that gasoline prices would have to get much higher for it to impact some of the moment momentum. >> what's the impact of tariffs? you must be aye paying higher input costs. what are your concerns about trade here and what it could do for your input costs.

>> there is a tangible topic a number our products have steel and aluminum in them it could vary from 25% in the bill of materials to 40% certainly the tariffs can be a head wind for us however we source more than 90% of our steel and aluminum domestically we are less impacted potentially than if we had sourced it from outside resources outside of the country. steel and aluminum prices have risen and the domestic sources also raised prices we are seeing head wind. we are working with suppliers at cost reduction activities. and we are taking some price increases in order to mitigate some of the pressures. they are real. they will be here for what looks like a little while. we are going to do everybody in our power to obviously mitigate those. when we have to we will have to pass on select price increases to dealers and customers.

>> are you willing to take a stand on what you think the president is doing right now is it good what's doing, bad what's doing at least in terms of the impact on your country? should he continue to place pressuran china like he is doing or no? >> i think there are some free trade issues that have to be addressed by the u.s our stance within the industry and certainly at winnebago is we would prefer for the administration to use a scalpel as opposed to a broad paint brush when trying to address the legitimate free trade issues going after the allies in europe and canada and mexico seems a little aggressive given that the primary problem appears to be china in many cases. again, we prefer that the administration use a scalpel and be very precise, and we will have to deal with whatever they decide to do but that's probably our stance on the topic. >> i'm not sure that that's their style. but you know, michael happene, very happy today thank you for joining us >> thanks for having us.

trade tensions creating volatility the dow could be down for a seventh straight day in a row. commodities like copper also getting hit. the lowest since the end of may here does this recent selloff represent a buying opportunity the head of double line's commodity fund joins us next

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hi everybody here's your cnbc news update for this hour. president trump says he will sign an executive order that will stop the separation of my grant families who illegally cross the border he addressed what he says was the complexity of the problem. >> if you are weak, if you are weak, which some people would like you to be -- if you are really, really, pathetically weak, the country is going to be overrun with millions of people. and if you are strong, then you don't have any heart that's a stuff dilemma perhaps i'd rather be strong >> homeland security secretary krir citizen kneelel send was heckled by protesters when she was eating dinner last night in a mexican restaurant they chanted, shame, and end family separation.

others yelled f kids don't eat in peace, you don't eat in peace. after 15 minutes, she paid her bill and left. the most valuable car ever of auction, the 1962 ferrari 250 gto will be auctioned off at sothebys at its monterey sale at the end of the august it was one of 36 built and boasts a successful racing history. it's estimated to bring in maybe $45 million. that's an expensive car. probably a nice ride nice and smooth. that's the cnbc news update this hour back to you, scott. >> contessa brew thanks so much. growing trade tensions with china having an impact on commodities. metals and agricultural products taking some of the biggest hits this week. you are next guest says weakness in some key commodities could be a buying opportunity joining us, doubleline cap teas c ceo. good to see you again. >> thanks for having me. >> when i was with jeffy out in

your offices in december he called commodities, and it's been a great trade i'm wondering if it has run its course >> there has been a lot of streb in the market across the oil sector and the metals until the last couple days the agriculturals were hit, particularly the soybean and the grains that being said, we have to question whether the tariff policy is going to hold? we have soon it before, threatening and walking it back. it's hard to say how successful they can be in imposing all of this you look at the fundamentals, look at the supply side, there hasn't been a lot of supply on the industrial metal side of the equation in the last few years there is not a lot of capital investment there no really big discoveries. the demand side of the equation is still there global growth story, the rollover risk through europe in the developed world, even china you still see a strong growth rate for the year it is still constructive what we have been taught over

some of these rhetorics from the president is sometimes it is a good buying opportunity. we still think it is >> there has been a conversation this week and some of the papers have written about that the markets are now trying to take the trade thing more seriously or they are acting more seriously towards it than just taking it as noise. >> right. >> fair? >> that's fair ultimately you have to see what's going to be the pullthrough effect at this stage threatening $200 billion, and throwing behind it if they match, we will do another $200 billion at some point it's going to have an impact on global growth there is only so far you can actually push this it is different. usually you want to put the tariffs on the end product in china they are really attacking it at the seniors level. >> we were showing people soybeans rebounding today 2% what's the trade situation on soybeans right now. >> they gottid hit very bood bad. with the soybean market, brazil can step in here they have had record production

in the last couple of years in brazil if we get the tariffs here in the u.s. the market is still going to supply those. from a trade location standpoint it doesn't lack like the most attractive thing here but the system that we run uses soybeans as a great exposure. it is a reasonable place at these levels to still be long. >> wondering what you think about cryptocurrency, some of which has been named as commodities. if you are looking at trading them. >> we have looked at them. we haven't decided to trade them they haven't really had institutional acceptance from the kmood tee standpoint. >> what stands in your way >> first of all the analysis at the end of the day how do we do a fundamental analysis on the valuation. from a quantitative standpoint, the only way to try to trade it would be a momentum kind of a trade. is it a currency or a commodity? it resemibles a commodity because of the volatility there

could be opportunities there but something we are not exploiting at this point. >> at this time. >> where do you think the dollar goes from here the dollar short-term probably still has strength give the amount of positions in the market but we leave it has negative head winds over the medium term. the fiscal margins are huge in the u.s. we are doing that without a recession here in the u.s. the amount of bund bonds that need to come to the marketplace it looks like there could be pressure on the dollar medium term. >> even with rates going higher. the fed is inclined to raising twoer to three more times. >> what we have got to think about are the expectations in the marketplace. graggi set if paper in place and do it in the dovish manner by the fact that he said we are not going to consider raising rates until the middle of next we are.

it is the full differe -- >> thanks for spending your layover on the way back to california with us the depth cio of doubleline. >> to the bond market and rick santelli at the cme. >> that was an interesting discussion we will get into something similar in a second. midway was when a lot of things occurred if you look at the ten year note yield. lots of volatility the high and low on your left established a midpoint of 295. we have kind of been hovering closer trying to get back to it. the pattern is same as bund's. 253 basis points separates them. it keeps getting wider and wider. it's like a boiling frog we hardly notice we look at the pattern, acknowledge the relative value trade but the larts is astounding add in the dollar index which the guest was talking about. i agree, except for one thing. do you see the pop on the right-hand side? that was last week, june 13h

do you know what happened on june 13th? graggi disappointed those thinking the euro would be underpinned by more normalizing a. i think that's going to give a tail wind to the dollar. one week of the beans hovering at $9.12 up a penny, hovering on the next turn around at a two year low many say there might be a good buying opportunity they are all watching the german car issue very closely in terms of bilateral-type negotiations michele, back to you. >> it is a big one to watch. thanks rick. up next, the media merger madness heating again today. disney upping its bid for fox' assets gabelli called it a drama. when is the fat lady to siinppg. >> and we will ask i heart's ceo. much more "power lunch" ahead. directv now gives you more for your thing. get all the good stuff about tv without all the bad stuff. yes!

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sthu the big story of the day, the fight for fox. disney, fox, and comcast all spiking on the news that disney offered more than $70 billion, topping off our parent company, comcast. julia boorstin joins us live >> i'm joined now by the ceo of i-heart media. what is relevant for the conversation we are having today bob pittman is the fact that you sold aol to time warner and you know all about media m&a what is going to happen with this latest battle it look like a big classic bidding car. i think there are two things one is the bird in the hand worth a little more money? is disney farther along? i think what is clear is that fox has great assets disney and comcast have

aspirations to continue to build their companies with new assets to get bigger and more diverse. >> what are the chances that deal is close to being approved. >> i am not a lawyer i would have no idea >> what do you think that the company that does not end up buying fox will end up buying? what is the next closestet. >> i don't know. but it's clear they both signal they want to get bigger and they have aspirations to get competitive in more fields and they both said we need more content assets in order to do that maybe we are shifting from focusing on platforms to back to focusing on the content. >> content, of course. i have to ask you since you used to run mtv, which was owned by viacom what do you think about viacom and cbs. >> i was the ceo of mtv network when viacom bought us when we tried to do a ownership buyout i was talking to sumner when he

was buying viacom after i left i think it is an interesting one. i think it signals that people have aspirations for growth and the more content assets you have, the better but i think les has done a spectacular job with cbs the question is do you want to disrupt any of that to get growth going >> i don't think either or both of them are acquisition targets. >> only if they want to be. >> what does all of this m and a mean for the media companies and their ability to compete with the tech companies, we were talking offkreen about mz and google stereo at the end of the day the consumer is in control what does the consumer want to get? where can they get it? google and facebook have done a spectacular job but they are more platform than content if you look at the history of the word, when platforms come along first everybody values the platform then the value really shifts to

the people who are creating value using the platform i think we may be in that moment. >> of course you are ceo of i heart media right now. you announced a restructuring, chapter 11 you are competing against giant media companies that are bigger than ever.they ce date as well n you're competing for ad dollars. does it put you at an even bigger disadvantage? >> where they're selling programs, we're selling companionship. when someone posts together an ad, they need to sell spots to tell people about it, but they need the conversation about the product and radio has historically and still does better than anything else provide that conversation and that's where it got lost for a little while people are coming back to it png left and now back in a major way and i think we, in our position, have this great position in audio whether as broadcast radio or the new platforms. we're in 250 platforms, 12,000 devices.

we're a leader in podcasts, we're a leader in digital. and we even have 131influencersa network. we are able to do stuff that you weren't thinking about years ago. >> thank you so much for joining us bob pittman. >> thank you, julia. volvo is the latest automaker to expand its production hey, bill. >> hey, scott. the robots are running and, soon, the cars will be running off the line here at volvo's first assembly plant in the u.s. what is at stake for volvo and manufacturing in the deep south? that story when "power lunch" returns. whoooo.

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and why it's so important. this is volvo's final assembly plant in the united states they have been selling cars for decades and now start building them here. when they're fully up to capacity in a couple years, 4,000 workers at this facility when we talked to the ceo earlier today he made a point of saying not evenly are we building vehicles to be sold in the u.s., but a number of them will be exported >> we export from the u.s. as many cars as we will inport impo the u.s. it will have a new trade balance thanks to this factor. i think that's a good example of how jobs can be created with exports. >> for global automaker with big aspirations like volvo sweden remains the biggest market, but sales growing rapidly in china where 20% of the business comes from reco

guys, sales up this year are up 40%. a lot of optimism from the folks at volvo and now they have this plant beginning production >> phil, we also wanted to ask you about a report that german automakersant to end all the tariffs between the u.s. and eu on cars. >> and this is significant here is the reason why when you look at the number of vehicles that are exported from germany into the united states, it's just a hair under 500,000 vehicles that's about 3% of the u.s. sales. but the trade deficit for us compared to germany, it's $22.3 billion because of the value of those vehicles those german high-end sedans the reason that the german ou t automakers want to end that tariff, guys if they eliminate it, they secure sales here in the united states they don't have to worry about the prices of those sedans going up even higher this is critical for keeping those plants in europe and

cranking out the vehicles at the rates that they are. >> thanks, phil. >> you bet. president trump says he will sign an executive order to keep families crossing the border together could it lead to real immigration reform plus, the fight for fox. the next move for disney and comcast and one of the hottest, high end markets in america. high end markets in america. we'll take you there high end markets in america. we'll take you there this out. td ameritrade aggregates thousands of earnings estimates into a single data point. that way you can keep your eyes on the big picture. >>huh. feel better? much better. yeah, me too. wow, you really did a number on this thing. >>sorry about that. that's alright. i got a box of 'em. thousands of opinions. one estimate. the earnings tool from td ameritrade.

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here's what's on the menu. the president will sign a measure to keep migrant families together, but congress has to pass real legislation. so, should the business community take this as a sign that immigration reform is finally going to happen? live report coming up. plus, disney strategy for catching a fox is working so far as it outbids comcast for its assets what does it mean for the stocks and is the battle really over? the home of your summer dreams can become a reality. don't move, "power lunch" starts right now. and welcome to "power lunch" we have a mixed day on wall street with the dow moving between greens and losses.

7,407 and nasdaq is gaining by almost 1%, by the way, hitting an all-time high in today's session. bank stocks are rallying today amazon, netflix all hitting new all-time highs instagram hitting a billion users for the first time on base f and general electric lower following an announcement that it will be removed from the dow replaced with ge shares down by 0.5% starbucks sinking after giving weak third store guidance. we are hitting the lowest levels seen since november of 2016. scott? we begin at the white house where president trump announced he will sign an executive order to stop the separation of families at the border

>> we are seeing two major u.s. airlines saying they don't want to both replacing statements american airlines and united airlines releasing statements in the past hour even as the president says he will sign an executive order later today to undo that policy in some way we don't have the technical details of what the president is going to do here in his executive order. here's the statement from united airlines they're saying based on ou serious concerns about this policy and how it is in deep conflict, we have contacted federal officials to inform them that they should not transport immigrant children on united aircraft who have been separated from their parents for his part, the president said today in a gathering with republicans here at the white house that he would sign that executive order, but he said there is a tension here between being strong on the border and also having a heart. here's what the president said >> if you're weak, if you're

weak, which some people would like you to be if you are really, really pathetically weak, the country is going to be overrun with millions of people if you're strong, then you don't have any heart that's a tough dilemma perhaps i'd rather be strong >> so, the president there saying his natural instinct is to be strong, nuonetheless, he i backing off here of assertions by folks in the white house earlier in the week that the white house didn't have the authority to undo this policy and the president suggesting he does have the authority to sign an executive order that would mitigate some of the damage to families who have been separated. also seeing awmakers coming here from capitol hill to talk to the president about legislation on immigration and the attorney general, jeff sessions, up on capitol hill talking about his support here for the president's proposal to back off a little bit where the white house had been earlier in the week i think we have a sound bite from jeff sessions let's listen to what the

attorney general said just a couple moments ago on capitol hill >> we have been working with the president all day. i think we can make some real progress we will need congress to help us, also i think then the president knows what he's doing and we are supportive and working with him. >> so, still, a bit of a moving target the white house clearly backing off in the wake of opposition from republicans, democrats, corporate leaders and others, guys >> stay with us, i want to bring in john harwood now. what is the likelihood of getting something comprehensive on immigration reform? >> very low, scott this is the president simply trying to get through the next moment hour by hour. he believes in this policy he indicated it was announced by jeff sessions a couple months ago, he has defended it reportedly, but this has become a public relations disaster on a scale that nobody at the white

house or the republicans on capitol hill want to sustain so, going to back off, ask congress to pass legislation the problem is, he's been trying to use this policy as leverage to get democrats to come to the table on a comprehensive immigration bill in the past but they're simply not willing to deal and as his backing off shows, they don't have to deal with him on this >> yeah, eoman, do you agree with john? very difficult to get something comprehensive done or a driver for both parties to get in a room and figure something out? >> i tell you what, it's difficult to get something done in this very divided and partisan washington in general it's even more difficult to get it done in an election year and even more difficult to get it done when it's on immigration which is one of the most hot button issues. so, i would suggest that it's very, very, three veries difficult to get this done this year that said, you know, we have seen stars align before where a

public outcry on a particular subject can bring political forces to the table and you saw lamar alexaeneder saying earlie today, he could be the republican who has hardline immigration viewo leads the nation to a solution on immigration because he can provide political cover. he wants president trump to do that, the question is whether president trump wants to do that >> we get through the summer and have the midterms. how long do you think this sticks with the president and his party? >> a very long time. look, this has been an issue within the republican party of increasing difficulty for more than a decade. george w. bush tried to move on this grassroot republicans stopped him. president trump ran on this issue and he was elected now, remember, when you talk about a broader bill, they had a deal earlier on daca that was also an issue on which the public was strongly with protecting the daca

beneficiaries. the president said, well, i want border security. they came up with a deal and then the president backed away from that. his base did not want him to make that deal and that's why you can't get comprehensive immigration reform republicans can't swallow anything that would be acceptable for democrats i talked last night to a republican member of congress who said the only thing that we can do any time soon is an extremely narrow bill dealing with this issue. it's possible that the executive order relieves the pressure from that and they don't do even that if they legislate, something extremely narr >> thank you so much down in d.c. for us. let's get to bob for what is driving the markets. >> i want to show you the s&p for the last four days since this whole imxwragz tariff issue has been there, we have sold right at the open, bottomed within an hour and come back that's the pattern again today an upward bias in the market

just let me show you the tariffs haven't gone away. industrials are still lagging. industrials and materials are still lagging. some big names, caterpillar all to the downside right now. one group beside tech and we noted that that is doing better this week that is helping our banks. lousy performers all year. citigroup got an upgrade over at deutch bank and we'll get the stress test results. they're expecting very good results on the stress test and return more money and more buy backs and dividend raises for most of these companies. banks are up 2% and this so far one of the better weeks they had. melissa is right, if you look at the historic high list talking about big parts of the market the russell, nasdaq, s&p midcap and the russell which doesn't get a lot of attention because it's small companies all at historic highs today we're continuing to get nice

rotation one group moves down another group moves in >> bob, thank you very much. the dow on pace for the worst month in three months but russell and nasdaq and could tech and small caps be the area of the market to be in if tariff tensions continue to cause volatility let's bring in chief investment manager. guys good to have you on the set today. kevin, i'll go to you first. bob uses the word upward bias in the market do you still feel that way the trend is still in tact >> i think more upside potential for stocks in the u.s. and globally tech and consumer discretionary has led the way. on the tech side apple and i think the juggernaut that will spur more upside potential in both areas especially if you look deeper in terms of biotech, as well, to expand the upside potential that we see >> so, eric, what do you think the market has been doing lately is it a rest before the

resurgence of the rally? do you agree >> again, the small cap sector is certainly not resting >> neither has the nasdaq. but more broadly big run up from, you know, like, what is it may 3rd to june 12th. you're up 6% on the dow. 6% on the s&p and almost 6% on the nasdaq and then a pause. what happens now >> i think the broader market will continue to pause because the trade issues are going to be out there. i think the immigration issues are going to be out there. you have the fed tightening. these are big picture issues that are going to put a lid on the overall market but as you indicated, money is moving around into other sectors. so, other sectors are performing >> are you raising cash because you think the markets are going to be flat or redirecting it to different parts of the market? >> we raised a little bit of cash, not dramatic we're incrementalests. we move slowly but mainly we like to continue to focus on the small cap value stocks and it's spreading some to some

of the consumer stocks on the small cap area which are beginning to perform after lagging for a long time. >> is that tax reform? is it because they're protected from trade issues? what >> both. these are companies that paid 36% in taxes that are now paying 21% or less and they don't have international business so, it's both of those >> kevin, you like small caps. is this the whole sort of domestic installation from global tensions? >> i don't think you have that multi-national risk that you do. >> what concern of valuation. >> not yet i think the corporate tax cuts and i think about some of the sectors that are predominant and that will drive the market forward. i also think opportunities away from small cap and i think the pull back we've seen in international markets because a lot of the trade in tariff tantrum, if you will, has created a very attractive entry points >> all right, eric, let's throw some names because you want to do stock picking for us today,

too. give us some names i assume in the small camp range since that's what you like most. >> we had a couple big winners recently i'll point out bj staffing that is all domestic that provides temporary workers in multiple industries and really good business, growing nicely -- >> looking at some of your picks on the screen. westwood holdings, douglas dynamic. not stocks we talk about every day, but those you think have upside to go >> makes snowplows in chicago in the winter a great stock to own >> you're making a hometown call from experience. >> we know we need the snowplows. they have raised their divdant every single year and made a couple acquisitions and just been a terrific holding for us >> kevin, so, when do small caps get too expensive, to melissa's

question >> still trading below the ten-year average we're midcaps. i think we still have some upside room to run there the thing we also have to factor in is does the fed move two additional times this year as opposed to one do they only move three times next year? at this pace, the fed said last week the economy is growing at a solid pace, that is a very constructive environment for small cap companies and i do agree that is an attractive area >> good to see you guys in person, thanks for being here. >> kevin and eric. coming up, the fox hunt continues, disney raising its bid topping comcast, but is the fight really over? is it going to go another round? more on that and what it means for disney stock, ahead. it's the tiny island everyone wants to own a slice of we're going live to nantucket, massachusetts. german automakers to end tariffs between the u.s. and eu. is this the first sign the president's strategy is working? don'go awhe.t nyer "power lunch" is back in two minutes. [phone ringing]

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a news alert on facebook's instagram. >> right behind us gave us new numbers. said instagram has 1 billion

monthly active users in september they had 800 million. that is a big jump also a product announcement. instagram pushing harder into video. they announced this new video hub that will live within the instagram app and has a stand-alone app. videos can now be up to 60 minutes. right now they can post videos up to one minute anybody can post these long-form videos both creators, p professional creators and users. of course, it also means instagram, the competition heats up with its rivals like youtube and snap guys, back to you. to new media to old media, raising shares $71.3 billion the latest offer topping comcast, our parent company's earlier bid of $35 a share, $65 billion. our next guest says we're in the early innings of this bidding war and the winner, he says, has

no intenti of backing down joining us on the cnbc newsline is porter bibb porter, great to have you with us you think disney prevails. why is that? because comcast seems pretty determined >> well, disney needs it much more than comcast does comcast has the direct consumer cable and wireless systems that are growing nicely they have plenty of content. disney doesn't have any directed consumer facing. they are launching their competitor to netflix and new disney streaming channel in early 2019 they have espn on top of band tech platform with sports betting. they want to expand that and get much more traction than they can get through cable distribution but the interesting thing is that the out of town tryout on this deal is sky

fox owns 39. >> parker: five days to make a bid and disnl back fox and get all of it. probably comcast will win that battle and that will be a really awkward relationship with comcast owning 61% and disney ending up with 39% but disney will take this deal the fox entertainment assets up to the mid-40s at least one more round of bidding that is going to occur before disney walks away with the prize. >> we asked mario when he was on with us in the last hour, what the likelihood was that someone comes over the top and tries to outbid both, comcast and disney. is that a scenario at all? >> i think it's a possibility and i certainly respect mario. he knows this business as well as anybody but my feeling is the fang players who had the cash and

don't have the content are going to go after other targets. they're not going to get into a hand-to-hand battle with comcast and/or disney. think, for example, microsoft needs content. it has nothing in direct to consumer or over the top they could buy netflix they could be cbs, i think apple is a much more likely buyer. but all of those players can do it they have the cash they don't have any experience or management in entertainment and content and they don't want to get into this battle against disney and comcast >> what's the final price, do you think, porter, regardless of who wins >> 44, $45 a share >> in terms of winning the hearts and minds of the fox shareholder base, porter, what do you think comcast could say you think disney is going to win. comcast has more experience in terms of integration, particularly of distribution

assets and then there's also the aspect of which stock would you rather own long term? is comcast stock more relatively undervalued versus disney's? >> comcast f they w, if they wo would be taking on debt. disney's offer is half cash, half stock the debt burden is a lot less. realistically, look disney is the future they are going over the top and streaming and comcast is stuck with old media with cable and they're tip toeing into the wireless area. they haven't really done much. they have five to ten years of the cable direct to customer linear business and then it evaporates, it will all be off the internet >> you use unconscionable the amount of debt that comcast would take on.

i'm sure they'll take issue with that characterization thinking that they're perfectly capable of handling a higher debt load, no >> the market hasn't suggested that what i'm hearing from investors is that they're a little bit trepda about walking away with a win and piling on tremendous amounts of debt. i mean -- i don't know whether it's unconscionable or not, but it's certainly p ll lly not fort stocks >> porter bibb mediatech capital partners. still ahead, summer is horseshoe crab mating season but that is not why diana olick is there. ymg i'm sure you've seen some, but i'm sure that is not the

real reason. >> vacation edition. we're talkin$24 llg miion tear down we'll tell you about it coming up on "power lunch." you always pay

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massachusetts becoming a hot spot diana olick offered to go there to get to the bottom of this story. i'm just shocked she's not doing this on a friday she joins us from nantucket. >> look, sacrifices, michelle. sacrifices the stats are staggering big deals pouring into port at a record rate and the reason why couldn't be simpler. >> when the markets are good, i mean, the equity markets people are, obviously, getting richer and making more money and more inclined to want to spend some of that on nantucket >> with ultra-high end restaurants and retail crowding into the koblstone streets they're reaping the rewards of a robust economy the dollar value of island homes sold in this first quarter of this year was up nearly 50% compared to a year ago the $4 million to $6 million range is the sweet spot with sales up 300% compared to a year ago, all according to great point properties

now, one more stat for you there are actually more homes for sale now listed at over $10 million than there are listed at under $1 million and, yes, we did see a waterfront home, 60 years old. the realtor said it is a tear down listed at $24 million if you want to see it, go to cnbc.com back to you guys. >> any horseshoe crab scythings? >> what is it with the horse shoe crabs >> no, we're looking at high-end homes. >> thank you, diana. >> we wrote it into the thing. inquiring minds wanted to know >> diana, thanks did german automakers just blink at the tariff ff wtiith the u.s. and what it could mean for trade relations. stay tuned

hi, i'm contessa brewer. here is your cnbc news update this hour. fix many immigration problems forcluding the separation of children from their migrant parents. he says the house will vote tomorrow >> we do not want children taken away from their parents.

we can't enforce our immigration laws without breaking families apart. the administration says it wants congress to act and we are tomorrow, the house will vote on legislation to keep families together >> macedonia's parliament ratified an agreement with greece to change its name to north macedonia. this paves the way for the country to be admitted to nato and open talks to join the european union the name change resolves decades of conflict over its name. a musical about pop star michael jackson makes its way to broadway announce plans for the musical inspired by his life that's your cnbc news update at this hour. >> contessa, thanks. let's get a check of the markets right now. the dow. look at that basically flat it's down by one point this after being up by more than 100 points earlier in the session. the nasdaq and russell hitting

an all-time high because tech is the leading sector real estate, as well leading within the dow, microsoft and disney are the gainers in travelers is lagging scott? >> the oil market is clong for the day. jackie deangelis has the news there. >> ahead of friday's opec meeting all kinds of headlines coming out from vienna the cartel may not be able to agree on an increase in output if certain members want that increase, those members can walk away from the deal bottom line, no consensus, opec doesn't have to do anything on friday meantime, here in the united states, more than 5 million barrels drew down in inventories and u.s. production was weak 10.9 million barrels a day the market like that even with today's gains both west texas and they're in the center of the recent range around 65 and 75 respectively, guys >> thank you very much, jackie so, there's new data out

today showing that chinese investment in the u.s. dropped to a seven-year low in the first half of this year. that's accorng to rhodium group which monitors greenfield investments in the united states that's when you build it instead of buying it it shows the dropoff in stark form the mergers and acquisitions and greenfield investments fell to only $1.8 billion. a drop of more than 90% from the first half of 2017 when you account for the things that they have sold, negative. by the way, $46 billion for all of 2016. number of transactions also decline marketedly buy annual average of 84 since 2014 and 69 and the second half of 2017 just 39 and the first half of 2018 that's the lowest level in six a lot of this due to pressure on chinese companies to deleverage. probably the less welcoming environment here in the u.s., as well so, the data comes as the president's tariff threats heat up there could be signs, though,

that all these negotiations are working. reports out today suggesting that german automakers abolish u.s. import tariffs. here to help us make sense of it all former white house press secretary and patrick is chief strategist with silver crest asset management and adjunct professional columbia university school of public affairs good to have you here. patrick, are we seeing the germans blipg becau s blink bec let's end the import tariffs on cars into germany? >> this is an industry proposal and it's from an industry that is very negatively affected by tariffs. it hasn't been embraced by the german government, much less the eu but it does raise the question, what can the europeans give trump in exchange for backing off. what does the trump administration want? and it's not just related to the car tariffs, steel tariffs, et

cetera are these bargaining chips that, you know, the europeans or the chinese or whoever can deal, make a deal on p or are these actually the end goal is it actually the goal that is nonnegotiable. >> i'll push one more time on president trump's tactics working because the german -- even if it's the industry proposing it and not the government, the industry has never proposed it before, right? they have been brought to the table because of him, isn't it true >> so the question is, what is the trump administration's objective? is it to actually get -- they are taking him up on something that he said at the g-7 which is, why don't we just not have tariffs. >> at all. nobody jumped up and down, by the way. >> was that something that he was just throwing out there? or is that really his goal you know, what is the trump administration's objective >> i really want to jump in on this because this is, this is

not new. this is not -- this is not even a new european proposal. the proposal to exchange a reduction or elimination in the european 10% auto tariffs in exchange for the u.s. eliminating its 25% tariff on light trucks has been on the table since negotiations this is no pressure brought to bear the europeans will not make a unilateral decision to eliminate tariffs absent something in the prean preante, you know, the prewar, pretrade war standing of the two economies. not the steel tariffs or other tariffs. so, don't treat this as something new. it is a great thing. i hope we get a chance to talk about it us free traders are all in favor of eliminating these tariffs and a great way to restart negotiations and negotiate these

and other things down. >> i think that's a very interesting point because not only tariff reductions with europe, but also tpp with -- >> ttip is the acronym for -- >> free trade with europe. free trade agreement with europe and tpp was the agreement in asia and, you know, president trump has been complaining about the dairy tariffs that canada has on the united states, that is also something that would have been dealt with in tpp which the united states and trump administration decided to quit so, you know, when you ask are his policies working well, maybe, they're kind of getting us back to a discussion that we already had before he walked away from the table >> transatlantic trade and partnership. >> where do you think we stand in this trade dispute, trade war, trade whatever you want to call it with china and which country has the wherewithal to

withstand increased pain in the form of tariffs? >> i think we'll test it to be honest with you in terms of who has the wherewithal to sustain the pain i know everybody, and i think markets keep expecting that someone is going to come and, you know, untie the girl from the train tracks and i don't think that's happening here i think we are going to be in a fully blown trade war where all of these proposed tariffs will be in place before cooler heads prevail. so, i think there's going to be pain i put my bet on the chinese. almost an asymmetric fight for them because they do not have -- they have -- there is political pressure and economic pressure in china it's not the same as in the united states. and, you know, and first order level, you have a president who's leading a party that will go into elections in a few months and on the other hand, you have a guy who just made himself

leader for life. and, so, it's not a symmetric relationship and i think the chinese have more time on their hands and more tolerance for that economic pain. >> do you think the trade war is going to get worse before it gets better, what do you think the markets are thinking right now? do you think the market has fully priced in what could happen >> i don't i think, you know what, i think that they've heard about trade war for a long time and there's a lot of people, in fact, i hear people going on tv and they start sentences like, well, in a trade war this happens in a trade war that happens. the truth is, none of us have ever seen a trade war. we weren't alive before there was a trade, a real trade war. so, there are new things happening here with new players who have never done it before and don't really, fully understand the consequences. we saw secretary ross testifying today and he was talking about speculators responding to the steel tariffs. that's what happens when you impose tariffs a lot of consequences that

happen when you impose these kind of tariffs and i think we're dealing with a lot of people who don't actually know how to use the tools in front of them because we haven't played this game before so, i think there is a lot of volatility that people should be expecting. i think markets have not, you know, priced in that effect and certainly have not priced in a full-blown trade war it is having an impact on a lot of u.s. firms already. >> patrick, what do you think is the message of the market? >> there are short-term effects and possibility of price shocks, particularly on key inputs like steel. we've already seen that. when i look at the ism surveys, you know, the respondents talk about the effective tariffs on their supply chains. on their cost pressure, on their investment plans so, it's already rippling through. there's always the effect on corporate earnings for companies that would be targeted for retaliation. and, remember, we're not just talking about the u.s. versus

china. we're talking about the u.s. versus canada and mexico and versus the eu. so, even if the pain is recip c reciprocal in each case, it piles up in the united states. longer term, the question is, what is the damage being done to the international trade rules that while imperfect have created a lot of opportunity around the world the united states right now is blocking -- >> hasn't china -- isn't that why we're here the trade rules that we thought were going to work to prevent them is not, right i mean, going back to the obama administration >> let's grant that. huge holes in the wto process. we're picking fights and so what we're not doing. we can talk about that with those countries. but what we're doing, instead of isolating china and putting maximum pressure on china about the things we disagree with and a lot of those other countries

disagree with we're isolating ourselves. instead, the coordination is taking place against the united states the longer term issue is when the united states is not aagreeing to put more judges on wto and we're getting down to a point where the adjudiation process may cripple and instead of going as perfect as it might be, they're going to go into trade sanctions against each other. that raises an issue for longer term investors like me what are the equity returns long term looking past the cycle in that kind of environment. >> got it. thank you, guys. patrick, tony, good to have you on >> thank you shares of amazon hitting another all-time high today. is it too late to get in or is the company simply unstoppable speaking of amazon the costco for millennials boxed is being courted by the internet giant. we'll speak with the ceo about that and why they are instveing heavily in automation. lot more quae"power lunch" is

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run? craig johnson and what do you think? >> i read all the reports from all the analysts saying it is wildly enterprise value to free cash throw and i can't agree more amazon trades on one simple variable, which is growth. most importantly, trading on the amount of prime memberships it gets because the key thing with amazon is it's an incredibly sticky experience. you could live a month without facebook and a year without microsoft and maybe even a decade but you can't live a week without amazon that is what investors are valuing. as long as amazon continues to execute, basically, very strong chance here it will go to 2,000 before we see a correction >> it tells us the number of prime members these days we're getting some data on craig, what do you think >> boris and i must be reading the same analyst reports a lot of risk of of overreading the stock.

amazon is extended above its 50 and 200-day moving average you can see on the rsi at the bottom and you have to stick with it fundamentally from piper, we're look at 1850 as a price objective on the stock right now. so, another 6% from here still seems reasonable >> all right two bulls, thanks, guys. want more market insights head to our website tradingnation.cnbc.com auto nation usually comes at the expense of workers but one company has figured out how to balance the two. ceo of boxed is next on "power lunch. the latest from trading nation and a word from our sponsor. >> daily price fluctuations can offer trading opportunities, however, if you're unhappy with your returns while trading

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hi, everybody. tyler mathisen here in manhattan today for a cnbc event called talent at work part of a series of events that we're doing called at work that explores the future of work and how things like automation may change the workplace over the next decade or so. here as one of the panelists today and here right now is chieh wang he is the ceo of boxed a company that many of our viewers, i'm sure, have used to get big at-home deliveries of wholesale size quantities. and businesses as well use it. >> especially here in new york city and the tri-state area in general is a strong market for us >> if i want 400 rolls of paper towels delivered to my house, you can do it? >> in two hours. in new york city we have an express service. over 50% of our customers get

overnight delivery for free. >> tell me about the growth trajectory of your company it is five years old >> going on five still 4 1/2. but we started in my garage not far from here in 2013. we did $40,000 in sales that year we were going to take over the world. then timing it right and timing the market right and the evolution of grocery right, we were doing, trailing over nine figures in revenue 36 months later. so it's been a very torrid pace. >> i would let that linger nine figures you can decide what it is. one of the reasons we thought it would be so interesting to have you here is your use of artificial intelligence. namely robots. how are you using them and how much more effectively do you think you will be using them over the next five to ten years? >> so, we really find ourselves at this intersection between retail, grocery, and technology.

so from building the website ourselves, the software ourselves. all the way to the robotics we're starting to deploy are all built in house we're about as vertically integrated as it gets. just a couple in terms of amazon or alibaba from hardware to software all integrated, we do ourselves. >> what do robots do best for you? >> robots are best used right now because the dexterity of our hands in the human hand hasn't been replicated yet. they're best in augmenting what me and you can do in a fulfillment center not so much replacing workers in a center maybe instead of you picking a hundred items per hour maybe we can do up to 600 items per hour but without the dexterity of the hand, you still need humans. >> you need humans to put things

on the shelve the robots can then go get? >> exactly right now folks manually put the items on the shelves also the shelves that move or the totes and the shelves move to the picker. the human then picks from the shelf to another tote. >> do you think you will employ more human beings five years from now because of your use of robotics and artificial intelligence or fewer? >> i think we'll employ more because of the growth trajectory of our company i think more importantly we will retrain and we'll employ more skilled folks. so folks right now that service the robotics in our facility, a lot of them don't even have a college education. n't going to lay anyone off we just because of automation we retrained a bunch of folks to work with the robotics instead of saying thanks for your service. >> quick thought on how you're using blockchain and how you're going to use it. >> it's fascinating. we have a great membership

and so the latest innovation we've partnered with them on is bonusing on the skew level say shop with box and you get three extra rewards. shop with box, if you buy a specific skew you get rewarded on that skew it's never really been done before we've powered that kind of -- >> blockchain is powering that is the motor running behind it >> exactly >> we'll see you on stage in a few minutes. >> thank you >> thanks for coming in. folks, back to you >> thank you, tyler. check please is next i'm very proud of the fact

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dates, deals, done! tripadvisor. visit tripadvisor.com my digestive system used to make me feel sluggish. but those days are over. now, i take metamucil every day. it naturally traps and removes the waste that weighs me down. so i feel... lighter. try metamucil and begin to feel what lighter feels like. and try new metamucil fiber thins, made with 100% natural psyllium fiber. a great-tasting and easy way to start your day. anyone can get you ready, holiday inn express gets 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. let's get to courtney reagan with a news alert on apple >> hi there. a source tells cnbc that apple is going to partner with sesame workshop to create children's programming on apple's new streaming service. this is not going to be sesame street, but remember they are -- sesame workshop is the nonprofit behind sesame street again, a source telling cnbc that apple will partner with sesame workshop. this comes after the news that apple had secured some content deals with oprah winfrey as well back over to you >> thank you time for check please. my favorite joke from sesame street which started the year i was born

>> big buildup here. >> bert, why do you have a banana in your ear ernie says because i'm trying to keep the alligators off sesame street well, there are no alligators on sesame street. see? it's working. >> all right that was pretty good. >> is that it? >> that was it come on. >> that was good >> i just put a banana in my ear. >> the picture will live on. >> it's going to go viral, for sure i'm watching cryptocurrencies today. real stability even though we had that hack in which $38 million of cryptocurrency was effectively lost and some say that is a very good sign in terms of the reaction or lack of reaction in relationship to this hack we're going to ask the founder on "fast money" tonight about this as well as all the things that happened in the world of cryptocurrencies in the past week or so >> i was going to bring up i have nothing after the joke. right? let's go out on a high note. >> come on >> why don't we tease wilbur

ross he'll be on "squawk box" tomorrow morning and we'll show this iconic photo of him holding up -- now he's got the beer cans and soup can >> guaranteed he'll be asked about those cans and the cost of those cans thanks for watching "power lunch. >> "closing bell" starts right now. it's time for "the closing bell." i'm wilfred frost at the new york stock exchange. the leader of the committee that decided to replace ge with walgreens in the dow will join us to explain that decision. i'm julia boorstin at the cannes festival. disney raising its offer but is the bidding war over? i'm phil lebeau in south carolina where volvo is opening its first u.s. final assembly plant. those details coming up. and i'm kelly evans. amc is out with its own movie subscription service the ceo will join us in a cnbc exclusive. "the closing bell" starts right now. ♪