ubs says they are executing well i think they are at a hold price. >> i mentioned stitch pics. ier this week. there were rumors that oprah was taking a stake those were denied by oprah's people the stock continues higher now about to challenge the spring high. >> where did you get in? >> 26 and change. >> "power lunch" starts now. i'm michelle caruso-cabrera, the dow with its gains today trying to avoid its longest losing streak since the '70s however, as investors keep pulling money out of the market could now be the perfect time to dive in? we'll be the on "power lunch." gm is bringing back the blazer it's building the suv in mexico. it comes as president trump fires another warning shot on trade calling for a tariff on cars. this red hot stock is up 30%

in 2018, up 85% in the past 12 months how much higher can it go? we will talk to the ceo of this mystery company when she joins us on "power lunch," which starts right now ♪ who can it be now >> men at work welcome, everybody "power lunch" is on. i'm tyler mathisen stocks rebounding now on this lastity trading day of the week. finally the do you higher for the first time in nine days. trying to avoid its first nine-day losing streak in more than 40 years. triple digit gains biggest in more than three weeks. all three major arches are on track to post a weekly loss. oil rallying following an opec deal. we will head to vienna for details on that in and the rally in oiling is fuelling energy stocks it is the best performing s&p sector today, led by marathon. i'm melissa lee. what else is happening this

hour >> the supreme court saying the government cannot monitor the movement of criminal suspects by tracking their cell phone location without a warn. we are bafly halfway through 2018 but disney has made $2 billion at the box office. inkrebls 2, avengers and black panther helping to fuel sales. abc is ordering a ten-episode spin-off of the comedy, roseanne it's being called the connors but roseanne bahr won't be involved after her show was canceled following widespread outrage with her racial slur on twitter. the dow is trying to avoid its longest losing streak in 40 years. bob pisani joins us from the stock exchange. >> the dow about to break the losing streak. the bad news is some of the market lead remembers slipping in the middle of the day let's look at what is moving us. at the start was a good day. we had a positive flash pmi for manufacturing numbers over in europe positive over at opec. they are increasing production

not as much as some people anticipated. oil is up. bank stress tests were good. trade talk, rumors of a trade deal with china. semiconductors, a big leadership group. they had a good start. they were up nicely. then they drooped. in the last hour we have had other troubles here. bank stocks were great at the open on passing the stress test. in the last hour they started going into into negative territory. the retailers have been fabulous all month. they drooped her a little bit of a lack of energy the one thing holding things up, the energy companies marathon, high beta ims names. movement in oil, they tend to move up naysly they are holding their gains. summer is officially here. the days are getting shorter now. and it may be the perfect time to buy stocks. bank of america says its bull and bear indicator is

approaching a buy signal these are three buy triggers further outflows from riskier assets s&p 500 below 2650 and a weak june pay rolls number that could take a federate hike or two, so says b of a, off the table. could we see some summer sizzle for stocks let's ask the managing director at morgan stanley. and the chief economist at umb bank what do you think? do you think the stock market is poised to go higher short-term and even in the longer term. >> the market is oversold. we are due for a bounce. if b of a is right the fed won't be raising rates i think the fed's announcement last week was hawkish. that's a much more concerning commentary than really about

trade in my opinion. longer term, i'm not -- look, the market is still up 7.5% from the february low so it's not as if we're -- you know, we've had a good run here. europe emerging markets, they are a lot lower. i think there is bigger opportunities there. but i do think just given the last few days we are due for a bounce, for sure. >> what do you think, casey? address what andrew raised there about emerging markets which with rising rates and a rising dollar have been suffering >> all right he would be very cautious as far as identifying an entry point into risk-based assets today for two primary reasons. one is our economy is in transition mode. we are going from a goldilocks economy with low interest rates, low inflation expectations, stellar corporate earnings to an economy that's full of big bad wolves, higher rates, changing inflation expectations potential military conflicts and a potential trade war.

that second reason that i'm very, very cautious as far as entering risk-based assets today is trade if the current administration is going to do a full-court press on trade it reminds me of the '20s and '30s where you had incredibly punitive tariffs, stifling trade >> uh-huh. >> remember in the tweptsed you had the 1929 stock market crash and a he prolonged depression. >> what are you doing? sounds like you are putting it in the mattress? >> no i'm suggesting as an entry point. right now we think that trade will get to a leveling off point where the president has a number in his mind, who knows what that is, but it will not stifle economic conditions. so we are still overweight risk base aid sets, but if you are thinking about looking for an entry point into equities, i would be cautiously optimistic >> andrew, you like technology, energy, financials you say they are defensive

how are these sectors defensive? i mean they are leveraged to a growing economy. i mean i would think that you can't have it both ways. can you? >> i think what i said is i like technology, financials and i'm getting more interested in the defenses, namely some of the interest rate sensitive because the shortened of the curve has come up a lot in the defensive, which are interest rate sensitive, utilities, reits, consumer staples, they are down a lot. historically when the yield curve flattens to stroh this is when defenses actually start to work i think that's going to happen later this year. it's one of the reasons why i don't think the market is going to have a particularly strong year but that's when those stocks start to kick in and start to outperform i think it is a great opportunity to start to nibble away at some of these groups that are down quite a bit. >> casey, your reasoning kind of lost me there. i'm going to be perfectly honest with you my follow-up question is going to be, are you saying that you

are comfortable holding risque sets but not putting more in right now or what? >> that is correct that is correct. right now our thesis is that cooler heads will prevail on trade. they will get to a leveling off point. they will come to some type of agreement and it won't stifle economic growth. therefore, the fundamentals of the economy remain intact that you have going to have decent economic growth, decent corporate earnings and i would remain long risked base assets. but the question was, what about deploying new capital, looking for an entry point into the market that's where i would be cautious taking cash and just plowing it into the market at this time. >> okay. >> because of the trade risk. >> casey thank you very much andrew always good the see you weekly rig counts out. jackie. >> u.s. oil drilling rig count down one this week at 8626789 it's up 104 from a year ago.

u.s. oil drillers cut rates for the first time in the weeks. one is to the going to move the needle the 5% move we are seeing in wti is because oil was oversold as we headed into the opec decision the first time we are seeing a cut in 12 weeks. it could be a little bit of a trend perhaps starting here in the united states. back to you. >> coming up, the latest shot fired by the president in the trade war of words today he takes aim at european cars and the president plans to combine the departments of education and labor. we will ask the man who was once tabbed to be the labor secretary, former cke restaurants ceo andy puzder. that helps me get clients closer to their goals. flexshares etfs are designed and managed around investor objectives. so you can advise with confidence.

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president trump taking on the european union in his latest tweet on trade kayla tausche has it all for us from washington. >> the source of the president's ire is the imposition of retaliatory tariffs from europe that went into effect today targeting goods like peanut butter, orange juice, cranberry

juice, burr don bond it's only $3.2 billion in imports but it targets politically sensitive states europe says the reaction is in response to the aluminum and steel tariffs that went into effect three weeks ago $3.2 billion is what they are targeting. if trump in response went after european autos coming into the u.s. that's ten times that amount $32 billion wogt of cars came into the u.s. in just nine months last year there sources tell me that an investigation into auto tariffs as a result of national security we should note the commerce secretary leading the investigation was on capitol hill this week he was asked specifically by senator chuck grassley about the impact on consumers were those tariffs to come into effect.

this was the direct coat quote from the commerce secretary then he said there also has been no decision made as to whether to recommend tariffs at all we will see what the investigation brings about but certainly it seems like the president wants those 20% tariffs to be hit back on europe >> thanks kayla tausche at the white house. president trump not the only one weighing in with heated rhetoric earlier today chinese state media called the trump policy on trade quote self defeating and a symptom of dare noid delusions joining us the former ceo of cke restaurants andrew puzder. >> you were supposed to be labor secretary. if you were in the administration right now, would you be able to defend the trade pool sees that the president is pursuing her here? a lot of corporations are concerned about them. >> i think the trade policies

are defensive. trade tariffs have been used to give americans an advantage. and there is a difference today to level the playing field, to stop the flood of products into the united states and to get our trading partners to trade with us on a fairer basis they have more to lose from a trade war or a trade dispute than the united states does. i think what you see in europe and china right now is they are testing this president's resolve. they are trying to find out if with an election pending where if the house of representatives slips you could end up with the democrats trying to impeach the president. they are trying to see whether the president will stick to the things he said are non-negotiable or weather coming up to an election he will start to negotiate points he said were non-negotiable i think they are testing the president's convictions. >> the president seems to have a high tolerance for political pain but does the population?

do american businesses, do american workers share that tolerance for pain if and when they start to see prices going up on goods that used to cost whatever, and that are now 10% or x higher. >> that's a good question. i think the context you need to look at it in is we all benefit from lower priced goods because other countries send inexsmensive products to the united states. if you are on government benefits or whether you are a multibillionaire you benefit from products being lower priced the problem is the people that elected donald trump, working class people, they get all the pain from those prices being lower. they lose the jobs they lose the businesses so i think that you have to look at different segments of the american economy differently i think working class americans, they noticed, they saw that these trade relationships were not benefiting them. and they elected a president to chain that i think that's that donald trump is going to do. >> is it a miscalculation on the

part of the administration or on the part of republicans to back this policy on trade to try and exact as much as we can in terms of tariffs and trade when you compare it for instance to the chinese population they are very nationalistic. they will do whatever president xi says. and president xi for all constituents and purpose is elected for life there are no elections there i mean, there is a lot to lose on the part of the trump administration and republicans at large. >> there is a lot to lose politically if this doesn't work and if in fact the polling is accurate with respect to this next election where it was so inaccurate with the prior election, i don't see why it would be accurate with this election -- but there is a lot to lose politically. but there is a lot to be gained. if we can stick to the courage of our convictions if we can stick to this policy to try to heavily that playing field. not tilt it towards america. not tilt it away from our trading partners but level it. get it to a point to where we can trade on a fair basis as

well as a free basis with our international trading partners there is a lot to be gained from that you may not gain it before this november there is a risk this president seems to be willing to take risks if you can do what he believe is in the best interests of the american people he firmly believes that with respect to his trade policies. >> if we could move on to immigration. i started my news career in spannic language television which means by default i covered immigration a lot. i'm shocked to see how much immigration haas changed in that time it used to be men coming from mexico now it's women and families. it led to this crisis on the border when the united states changed to change policy here. how do you explain what has happened over the last couple of weeks. >> it is a difficult issue it's not a problem that's been created by republicans or democrats. a problem that's been created by republicans and democrats.

i think you heard the president's frustration this morning when he said look just forget about it. don't work on immigration right now. wait until after the election. i think his frustration is that the two parties can't come together to do something rational on immigration. what i would like to see is number one we do everything we can to stop illegal immigration. we have to enforce our laws. if we don't have borders we are not a country. i think we need to enforce our immigration laws secondly i would like to see a mandatory e verify system so businesses willing to hire people who are not here legally and therefore forced to take lower wages tonight have an advantage over companies trying to do the right thing and hire people legally i think a mandatory e verify would solve that problem lastly, i would like the see our illegal immigration policy change from one based on non-economic factors to what we need as a country to staff our work force that not only looks

to the workers we need to bring in but also looks to the americans who need jobs and need higher wages to balance it i think we are getting to a point with the unemployment rate and the availability of employees. for the first two months in the history of the bls government tracking the data we have more job openings than we have unemployed people. it may behoove us to bring people in legally to fill those jobs but with people flooding in illegally i think government is disabled congress needs to get its act together. >> when you are hiring lots of workers at cke, many of whom were not american born how did you check the make sure they were here legally or did you were you able to really avoid hiring people who were here illegally? >> you know, there is no perfect

solution to this problem let me give you two time periods. before e verify if people came in with a valid driver's license and a social security number you would hire them. it turned out often those were not legitimate documents you couldn't tell that until you checked with the social security administration and that was a long process. you did sometimes end up hiring people that weren't here legally unintentionally. we had a company policy against that e verify improved that situation materially e verify is in the 90 percentile with respect to effectiveness and that made it easier for us to determine who was here legally and not here legally when we did our hiring you would hire people before you got the results but wouldn't allow them to start work until the information from e verify came in. the more we can do with that system the easier we can make of the for american businesses. if we make it compulsory so

businesses don't try to take advantage and game the system i think we could see yochlt in that area. >> he wants to roll the department of education and the department of labor into the department of he had wags and work force people on one side of the aisle are going to be upset. and people on conservative side of the aisle think there are five departments that could be merged what do you make of that move? >> i think it's good to improve government efficiency. i think the government is bloated. we have a fourth ministry of state that's beyond control. this administration reduced regulation and reduced the size of government. there is nothing wrong with looking at the department of labor and the deputy of he had indicating to try to combine programs, particularly with work force development and career education. we have programs on both sides. >> is that a role for the federal government >> is which a role for the

federal government >> work force training, reeducation of citizens. i mean there are so many federal programs you were just talking about it but a lot of conservatives would argue that shouldn'ting done by the federal government at all? >> well, you could have effective programs that help the private sector job training should be done in the private sector but there is nothing wrong with having public education cover for example, skills training as opposed to just preparing people for a liberal arts education you could have programs at various levels of our education structure that would actually prepare people who wanted to go right into the work force to go into the work force. and the government can have a role in that i think the problem right now is you have programs in the department of education and the department of labor that duplicate each other we have skill sets in both departments. if you combine the skill sets and reduce the inefficiencies and the cost of those programs that could be a benefit for american workers and could help the private sector

as secretary of labor one of the things i wanted to do was to work closely with the private sector on jobs training. they know where the jobs are, they know the people they need, they know the sills they need. i think the government could make great strides if it tried to work more with the private sector in that respect >> mr. puzder thank you for joining us. >> thank you. dow on pace to snap a eight-day losing streak. it has been 40 years and several crisis since the last nine-day losing streak. oil and energy the reason that is most likely to end. -here comes the rain.

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oil's rally fuelling the energy names jackie deangelis is tracking them all. >> we are tracking headlines as well that u.s. and russia's top energy officials are reportedly set to meet next week. rick perry and alexander novak opec deals pushed oil prices to their best day since november of 2016 energy names swinging to the upside devin energy and hess. those names are all among the best performers in the s&p 500 finally, take a look at shares of marathon oil. on pace for its best day since march of last year guys >> jackie, thank you oil the commodity is rallying following opec's deal to raise

outpet we are live in vienna. >> melissa lee, if you could make sense of it maybe we should get together and talk about it it was a weird day all around pt it started with a rugby scrum in stare well with 260 journalises jockeying for position and ended with an opec increase, not an increase at all but rather the cut of a cut in custom the market was disappointed. if you followed all that, you are better than i am opec had a cut of 1.2 million barrels per day. everybody was overcutting. overcompliance it was 1.8 to 1.2 billion barrels taken off the market with the opec nations and russia and others that participated in the deal what they announced today is effectively a reduction of the reduction. they didn't say we are increasing output. they were very, very keen on making that point clear. rather all they suggested was they were going back to their

original agreement, custom is what iran wanted that way iran got say to its people that it did not back away from the deal because they have been very critical of president trump from backing away from deals recently either way you can see the reaction the market was disappointed. maybe less oil than they thought is going to come back on the market probably somewhere around a net 600,000 barrels. the market tells the story, up 4%. >> everybody ends up being a winner trump can say hey they cut saudis can say hey they cut. right? i mean there is a lot of politics at work here. >> yeah, it's like -- it's like an elementary school field day, michele. everybody wins now and that's the way it's going to be because the president tweeted out hope opec increases output we need lower prices he gets to say opec raised output i did my job saudi arabia gets to say we are

trying to help the market keep oil prices down. we are going to raise the output really they are the kingpin and iran can even go back and say they kind of won because they didn't give in because all they did was go back to the original deal we call that here in austria, a vin, vin, vin. >> reports are that rick perry is going to be meeting with the russian oil minister on tuesday. to what degree does russia have to be abide by what opec has decided? could there be a separate agreement that could reach. >> next week is the world gas conference, the biggest natural gas conference in the world. it hasn't been in america in decades. it's in washington, d.c. next week there are going to be more headlines on the gas side coming out of d.c. next week. that said, do they have to agree? i think if you want opec's faith

you do here's the bottom line opec -- you know this. opec, some people said, they are not as important as they used to be, they don't have the power theyused to have, america is doing 10.5 million barrels of oil a day. opec had to come out with a unanimous decree to show it remains divided. it has ropec, russia and others on board it is geopolitics at its finest all cuffed in the sheen of oil. >> sure is brian, live from vienna. coming up, gm is bringing back an old favorite after more than ten years away from the market why are we so addicted to suvs that's a hint you are looking at it right there. this stock up is 35% this year the company's ceo is abouto ins. t so no matter what you trade, or where you trade,

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at the marine mammal center, the environment is everything. save up to 15% we want to do our very best fory each and every animal, and we want to operate a sustainable facility. and pg&e has been a partner helping us to achieve that. we've helped the marine mammal center go solar, install electric vehicle charging stations, and become more energy efficient. pg&e has allowed us to be the most sustainable organization we can be. any time you help a customer, it's a really good feeling. it's especially so when it's a customer that's doing such good and important work for the environment. together, we're building a better california. i'm contessa brewer. here's your cnbc news update this hour. in a unanimous decision, the michigan state board of trustees agreed to pay $500 million to settle the larry nassar sex abuse case through a bond offering the bond also voted 6-2 to keep

the interim president. resisting calls for his ousting. lee boyd maflo who was 17 when he weapon on a killing spree in washington, d.c. in 2002 has been granted new sentencing hearings. a judge ruled his four life sentences must be vacated because the supreme court ruled that mandatory life without parole sentence force juveniles are unconstitutional. airbus is warning britain failing to reach a deal on brexit could force to it leave the country and take thousands of jobs with it. about 14,000 people are employed by airbus in that country. hundreds of israeli surfers took to the waves in protest against potential environmental damage from offshore drilling. organizers say 992 people held hands to form this circle off of the coast. that's the cnbc news update at this hour. back to you michelle. >> let's get you a check on the markets. the dow is up triple digits. higher by 170 points a gain of

almost.75. the nasdaq is higher -- s&p is r by 32. the nasdaq is relatively flat. oil is moving higher today after that opec decision we heard about from brian sullivan. exxon and chevron are among the biggest gainers in the dow wti as high as 5%. jim cramer is going to speak with the ceo of red hat tonight on "mad money. definitely want to see that at 6:00 p.m. eastern time here on cnbc. general motors is bringing back an old favorite as demand for crossover suv is strong and likely to stay that way for quite a while. >> did you ever have a chevy blazer >> no. >> i know a lot of people who did. >> i did. >> winner. >> my first car ever, my first and only car ever. >> now you feel nostalgic.

>> a little bit. >> i'm sure it didn't look like what general motors will be bringing back in its new form. the company unveiled it last night in land wlan it is going to be a 2019 model year vehicle it will go on sale early next year it will not be built in the u.s. it will be built in mexico that doesn't sit well with the uaw who put out a statement saying gm employees over 15,000 workers in mexico pays the workers less than $3 per hour and exports over 80% of the vehicles to the u.s. to sell here this is all happening while uaw gm workers here in the u.s. are laid off and unemployed. why is gm bringing back the blazer demand demand it's up 23% for suv cross overs. and the demand is not slowing down

as you look at shares of general motors one last point about this production of the blazer in mexico, gm's exports of vehicles built at its plants in mexico, up 39% this year so they are not slowing down production despite threats about nafta being torn up. they are actually increasing it. guys, the real kick in the gut for some gm workers here in the u.s. is that in lordstown, ohio today is the last day of work for 1,500 workers as they eliminate a shift at a plant that builds a sedan, sedans are not in favor right now >> for more on the suv and crossover boom and what is fueling it let's bring in an executive analyst from kelly blue book. the reason why people like suvs hasn't changed over many years it's convenient in terms of the weather in which you can drive, easier to get in and out of, it can carry a lot of stuff why do you think there is a boom now, a surge in demand >> we are really seeing a continued evolution of cars,

what we consider a car so we've got demographics in our favor when it comes to suv and crossover sales also baby boomers really started the craze. jen x, the next generation, they were always the highest purchasers of any type of suv. and then millennials that's what they grew up with. unlike a lot of generations that will revolt and go to a totally different car they love them they love them because it gives them the utility, the functionality, and it provides them with the life-style that they want to live, which is experience filled. they are also more fuel efficient than ever before so we've got all different sizes. there is really an suv for everybody. and that's what this blazer is going to fulfill as well by the way, i owned one as well. >> a chevy blazer. >> doesn't chevy already have a pretty full lineup of these cars, from the suburban to the traverse -- i can't remember the other one that i see all the

time. >> yeah, the equinox and now this, what niche does this fill that this doesn't fill already >> it's about that expressive buyer, about somebody that wants a different kind of vehicle. i told cnbc last night it's about the cool parents, the one that wants to look cool going to pick up the kid. >> it's to replace minivans. it is not as big as an suv, it's the size of a minivan but is not one of those. >> it's not task oriented. a minivan with its sliding door has a specific purpose, transporting people. the traverse with seven seats has a specific purpose, it has seven seats. this kind of appeals to a wide range of people but just wauns that a very expressive type of vehicle. >> we'll see -- i can be the cool day one of these days who knows. let's switch and talk about some

of the issues that are running in the background here. >> yes >> the uaw has been hurt about the idea this is going to be made in mexico i certainly expect that the white house will have a word to say about this i am amazed we haven't seen a tweet already. the president today saying he is prepared to put tariffs of 20 -- >> 25% on european imports. >> on european cars. as an observer in the auto industry what do you think is going on here? do you think this is going to be damaging to employment in the united states as people say i'm not going to buy a car because they are too dog gone expensive? >> i think there is a couple of things first, as far as the uaw and the union, it's important to remember that general motors is a u.s.-based company at the end of the day the profits end up in the u.s. and this is about making the business case. so they can make more of a business case using a

non-unionized work force in mexico to build this product in some ways it's better than not building it at all because gm can use this product to increase its profits i think they will make money off of it. or else they wouldn't have done it. >> you understand that the workers who just walked their last shift at lordstown or whatever it is -- >> yes. >> the argument that this is going to increase profits for the shareholders and the managers at general motors isn't even going to cut the ice with them. >> it's not just them. the union workers profit from it as well. you know, a healthy gm means a healthy union, a healthy economy for everybody that touches general motors, including the suppliers, the dealers, the restaurants, and the small businesses around that dealership there is an incredible ripple effect so we do need to keep our eye on that and then when it comes to the tariffs, this again will

negatively impact the local economy. it will negatively impact the dealerships. it will negatively impact the profitability of companies like daimler with mercedes-benz and bmw as well. that's where tariffs are just not a good idea. it is a huge tax we can talk about this a hng time. >> we could. rebecca thaunks thanks so much. let's got to the bond market and rick santelli at the cme. >> all the headlines and movements in stocks, not so much in treasuries, one week in two year, down a base i point, in tens, also down a basis point. overseas, boone yields are down almost seven basis points. the spread widened by six. tense minus boones at 257, 258 is the high going back to 1989 from the last week in may. and what many traders are talking about is it's that realignment that is showing some of the uncertainty that's

showing up in other sectors in the marketplace. tyler. >> rick thank you very much. the summer concert season is heating up up next we will talk to the head of the number two company in that space music, sports, much much more with the head aofeg that is next on "power lunch." for your heart... your joints... or your digestion... so why wouldn't you take something for the most important part of you... your brain. with an ingredient originally found in jellyfish, prevagen is now the number one selling brain-health supplement in drug stores nationwide. prevagen. the name to remember. 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.

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whether it's sporting events or concerts this center there is a good chance aeg is playing a big part in your experience. the entertainment controls half of all ticket sales at the top live event venues. they also produce global tours for katy perry, taylor swift, bruno mars and dozen of other musicians and artists. our ceo dan beckerman joins us from los angeles welcome. good to have you with us. >> thank you for having me appreciate it. >> music touring -- i want to

drill down on that a little bit, seems to have gotten bigger and bigger and bigger every year, in part, i think, because musicians and artists can't make the same amount of money off of album sales or record sales. am i right about that? >> yeah. the economics have changed over the years recently with the evolution of streaming and what happened to album sales. so you see leave touring and live performances interest in international tours or music festivals is becoming more and more important for an artist's economics. >> what are your biggest and most profitable properties in the united states? i can't imagine it's not l.a. live, which is a wonderful experience if you haven't been there it's cool to go into that neighborhood and see what your company has done what are your most profitable venues in the u.s. and around the globe? >> our business modelis about merging real estate and content. you alluded to the music consent. which is important

sports content is very important as well. we have 165 venues all over the world ranging from small clubs and theaters up to sports arenas and stadiums l.a. live is certainly where our company began. we recently celebrated our ten year anniversary with l.a. live. there is nothing like it as i tour the facilities all over the world it reminds me how unique it is having a 100 acre campus anchored by staples center along with l.a. live, a massive district anchored by a 7,000 seat music venue, restaurants, hotels, l.a. live is really special for us this 100 acre campus along with the convention center which we recently took over management of what we've soon is with this integrated campus we have seen the economics really -- it was a game changer the number of conventions more than doubled since we took over the camp us and the convention center it is the integration of the music, the sports and the real estate that really makes our

business model work. we have exported that model all over the world it started with l.a. live. >> we have more questions -- >> yes i get excited. >> we can tell what have you seen in terms of demand in recent years does your business demand on how the economy is doing to the extent of if the economy is doing well versus very well do you see that difference? >> our business model is predicated on being in the biggest markets. in los angeles, london, berlin in a lot of ways i see that we are insulated from some of the economic ups and downs certainly we feel it in the industry a little bit in the milled market but on our big projects i don't want to say we are recession resistance ant but in the markets we select i think we certainly can withstand some of the ups and downs. >> live nation is public why aren't you. >> i enjoy being a private company. >> you don't want to go public >> i don't see us going be approximate. i think the flexibility and how we can move and nimble and have

a long investment horizon -- we have a big project opening in berlin in october of this year, it is an l.a. live type entertainment district outside of an arena we have in berlin. it is a 15 year project. pwe ha and we're able to do these projects >> when you go down into downtown los angeles, and you see all the construction that's going on down there and refurbishing of buildings, it began with l.a. live thank you very much, mr. beckerman. we appreciate it >> thank you so much praes appreciate it. up next, your last chance to guess our mystery chart. it is nearly doubled in the past year and it's based in maine that should narrow it down, right? the ceo is about to join us next on "power lunch. honey look, your old portable cd player. my high school rethainer. oh don't... it's early 90s sitcom star dave coulier... cut...it...out!

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we showed you this mystery chart before the break, up 87% in the past year did you guess what it is it's a corporate payments solutions company called wex and here's melissa smith great to have you on >> thank you for having me >> wex has got three different divisions, fleet, which is the biggest, travel and corporate, health and employee benefits round out the three. can you tell us in a nutshell what exactly your company does in payments? >> yeah, sure.

so, what we do is all b-to-b so everything is related to businesses, and in a nutshell, for about $65 billion worth of spend volume we take the complexity out of a payment solution to our customer and you mentioned the industries we're in we're in fleet with our original industry and what we learned from that is that we could do more and we moved into travel, corporate payments, and then eventually into health care payments >> for fleet, part of your business is simplifying the payment of fuel, so drivers don't even have to get out of their vehicles do you take on any risk in terms of fuel costs? how does rising or fluctuating fuel costs affect your business if at all. >> so, there's a part of our business where our revenue gets generated based on percentage of what people spend at a fuel location, particularly in the u.s. part of our business, so there's a piece of our revenue that fluctuates with fuel prices when we first went public, that

actually was a pretty big part because it was a big part of our business, about p 70% of our revenue. now it's only about 20% that moves with fuel prices so it's much less sensitive which was in part why we decided to diversify the business >> a lot of folks would be surprise that had you're in maine. a lot of people think you must be in silicon valley how'd you end up in maine? >> well, the company started here, and i think it's been part of the success of the business and we're a global company with offices all over the world, and yet at the same time, the roots of the company came from maine, which gives us a huge relationship orientation a lot of the customers that we have in partner relationships have be there for over 20 years and i think there's a heritage to that, that kind of thought process we have around making sure we're taking care of people over the long haul and so over time, i think that having us be headquartered in maine has become an advantage and it's certainly become an advantage in

recruiting >> and you're looking into new technology to use in your payment systems, namely block chains, so what are the potential applications and in what segment would you use block chain? >> yeah, we look at a lot of different new technologies we have a group of people that are really focused on just long-term trends, and block chain is for us another tool in the arsenal. we think that over time, that that's going to be important and so we've been doing a series of use cases in the background for a while and now we're starting to prototype that with customers, and, you know, while we don't think this is something that's going to happen immediately, we think that having the ability to do any form of payment is really important to us. >> melissa, great speaking with you. thanks for your time >> thank you >> melissa smith of wex in the great state of maine so on the day, our stock draft -- on the day of our stock draft, todd gordon didn't just pick bitcoin he gloated about it and made fun of the kids who didn't pick it well, it's down 30% since then and he's in sixth place.

wait until you hear what he's saying about bitcoin now and a new start-up is helping restaurants and food companies feed the hungry and have those companies save on their taxes. we will talk to the company's founder and ceo on the second hour of "power." you always pay your insurance on time.

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i'm melissa lee. here's what's on the menu. the dow trying to avoid doing something it hasn't done since jimmy carter roamed the halls of the white house. will this rally hold to a close? stick around to find out we'll introduce you to the ceo of an app trying to put an end to the millions of dollars of food going to waste bitcoin bummer the cryptocurrency acting like this tom petty song, free falling down 30% since flash gordon crowed around picking it number one he'll be along to defend this move the second hour of "power lunch" starts right now ♪ free falling >> welcome to "power lunch." i'm michelle caruso-cabrera. the dow is higher for the first time in nine days, trying to avoid its first nine-day losing streak in more than 40 years in today's gains, the biggest in more than two weeks and that's

same for the s&p 500 dow high of 192 points, s&p higher by 13 and the nasdaq composite flat oil is surging following the opec meeting, energy the best performing sector right noug as a result marathon oil and anadarko fueling the gains. shares of med tronnic are also moving higher. this is a medical device maker that stock is higher by more than 1%, tyler >> welcome, everybody, to hour number two of "power lunch." here's what else is happening right now. opec reaching a deal to increase output the cartel agreeing to boost oil production by about 600,000 barrels a day. tesla reportedly making big cuts to its solar unit, closing dun about down about a dons of its installation facilitates and the house has passed the largest opioid bill in recent history in an effort to combat that crisis. the reform package now heads to

the senate we begin with the markets and the rally. bob pisani is live at the new york stock exchange with the latest hi, bob. >> let's take a look at the sectors moving we're being held up by two developments number one, you heard about the opec news, raising production, not as much as expected, that's helping out oil names, they're all up number two is some hope, vague stories floating around about the possibility the trump administration may start to restart the china trade talks. that's helping the two groups most hurt by this, industrial stocks and material stocks tech's been weak i noted this earlier today we noticed weakness in semiconductors, which has been a market leader and notable weakness in cyber security stocks cyber security has been hot for months but in the last few days, all of these stocks have started to roll over some interesting things going on here and this may just be a matter of momentum finally going to have a lot of volume today

it's the rustle sell reconstitu. the 2000, a lot of money is indexed to that, small cap name, about 10% of all the money is in these index funds and when they rebalance, you get a lot of volume big names that might have moves today, apple is having a share weight reduction jpmorgan also have a share weight reduction grub hub is going from the russell 2000 into the russell 1000 that's normally very good news but you see the stock for sale going into the close i'll track all that right, 3:00, back here on the floor guys, back to you. >> we'll be watching thanks, bob. let's talk about today's rally, whether it's going to trigger a second half rebound. let's bring in jim and brian and cnbc contributor ron ensana. jim, let me start with you how you feeling about the second half of the year >> well, one thing that hits me,

melissa, is that you know, over the last couple years, since the election, we've been kind of dealing with rising yields and the fed tightening and higher wage inflation, higher inflation, coming to a head and slowing the rally down this year but we've been doing it against a very good backdrop that is to say, we went from growth around 2% to maybe growth as much as 4% plus in the current quarter in real gdp, confidence has gone from lower levels up to record highs over that period. the unemployment rate has continued to drop. in other words, we've done it against rising expectations, the whole time but now in the second half, expectations are pretty high on synchronized growth and low unemployment and high confidence i think we're going have some decaying expectations or at least not any higher and still deal with some of these same pressures, so i kind of think -- the struggle for the stock market continues in the second half, at least for a good chunk, whether that means it goes down a lot more or just stays flat, i

think, is open, but i still think the challenges might intensify a little bit in the second half. >> ron, i saw you nodding your head in agreement. >> yeah, this isn't exactly a gruden grinder when you get great performance out of somebody who's given that moniker. this is just a grinder the market's been really struggling, really rotating, the small caps outperforming the large cams caps underperformance in emerging markets. you're getting all these things to come together very late in the cycle and you've got the fed continuing to raise rates, you've got the midterms coming up, the trade issues it's hard to see a catalyst that can lift the market above, you know, these increasing earnings expectations and other expectations that the market's just going suddenly come out of this funk. >> you wouldn't be surprised to see a recession, i gather. >> i would, well, within a year or so. >> that's not that far >> we looked at the yield curve. >> and if you get a recession, do you get a bear market >> you get a bear market first >> leading into it right. you get the market predicting

it >> i think a cyclical bear market's possible here and that may be what we're grinding our way into and with the yield curve flattening, not just the ten to twos but i talked to arturo at the new york fed, the ten-year to the three-month has to get down to 40 basis points or zero to kind of guarantee that a recession's 12 months in the offing >> brian, are you a debbie downer too >> no, i'll take the other side of that trade. i think a lot of people are still expecting that the good growth that we're seeing this year is just a flash in the pan and isn't really going to persist into 2019 and 2020 and so i think that we actually have a number of factors at work here if you look at flows as far as mutual funds people really aren't going all that crazy into equities rights now. you look at emerging markets underperforming. unless you're getting some of the confirming evidence from the economic data that you're seeing a slowing, i don't think there's really a good basis for saying that any dip that we get isn't

more of a buying opportunity than anything, and our mid year indicate sights piece that we just put out, we talked about how people need to expand their search for growth instead of looking at what has worked in the past, say the faang names, you might want to expand your search for growth and maybe adjust your expectations for a longer economic cycle as opposed to just thinking that it's going to end just as a matter of time or just simply because we saw a slight slowdown in the pmi numbers. just this morning, we saw the pmi numbers out of europe keeping people off guard >> ron's dying to get in here. >> the pmi numbers in europe are actually rolling over and as far as individual exposure to equities, net davis research put out a chart this week, individual ownership is at the highest level we've seen since 2007 and 1968. >> highest level of ownership, in other words, there's so many people in the market that's often a contrarian cycle >> that could be etfs. >> could be 401(k)s. >> does it matter? >> of course not

>> what's interesting about this losing streak here is that it really started with jerome powell and the fed meeting and this whole notion that, well, first of all, we know how many rate hikes are coming or we think we know this year and also that there is no put by the federal reserve in that they don't care what's going on in other parts of the world when it comes to our economy, and what they do. with monetary policy i mean, do you think that we're really focused here on looking at what monetary policy will do and how it could sort of derail what we've got in our hands here >> well, you know, i think that what's been interesting with the fed is the fed's been tightening in this cycle against the backdrop of, you know, rapidly accelerating growth, the synchronization of the globe, incredible surge in earnings, tax cut induced but nonetheless big surge. what happens to the fed if -- and the market's reaction if the economy slows down a little bit in the second half not recesses but just slows down let's say it goes back to 2.5%

growth rate and the globe is already showing some signs of doing that already, and yet, 2.5% growth with 3.8% unemployment, you'd still get wage pressures you'd still get cpi pressures. that really puts the fed in a box in a way we haven't seen yet. do they continue to tighten even if growth is slow and had if they don't tighten, what does the bond vigilante do with that. the dollar's been rising for the last couple months that's been holding down commodity prices another thing that might start showing up today is the dollar maybe is peaking is oil starts taking off again imagine if oil breaks back do $80 in the second half >> all good points, guys thank you. jim paulsen, brian and on ron, our thanks to you. china's state media slams the u.s. over its trade policy retaliation from europe starting today, and president trump weighing in on the matter on twitter. and eamon javers is live at

the white house with all the details. >> reporter: where else would the president weigh in on it but on twitter as we've become accustomed to. the president today, is the day in which eu retaliatory tariffs against the united states go into effect. that seems to be why this issue is on the president's mind today. here's the twitter threat that he put out saying, today, based on the tariffs and trade barriers long placed on the u.s. and its great companies and workers by the european union, if these tariffs and barriers are not soon broken down and removed, we will be placing a 20% tariff on all of their cars coming into the united states. build them here. when you talk to people inside the west wing, sas i have today, trying to get a sense of is there something coming here, is this a prelude to a trade action, you don't get the sense that anything is planned in coming days and the people here are frankly scratching their heads a little bit to try to figure out what the president is saying here. but fundamentally, when you look

at this president, this is somebody who believes that the middle class of the united states has been decimated by decades of bad trade practices and the automotive industry is key to that. it was the key in the 20th century to so many american workers building middle class lives for themselves, providing for their families, getting an education for their children, all of those things the president feels have been harmed by increased imports of foreign automobiles, so the president has been focused on this for a while. take a look at this tweet from a year ago in which he talked about germany. the president has said for a while things like this he said we have a massive trade deficit with germany plus they pay far less than they should on nato and the military. very bad for the u.s so a consistent throughline here from the president of the united states, even though folks here in the west wing suggest to me that there's nothing coming any time soon in terms of new eu tariffs or something new on eu automobiles, guys. >> all right, we'll see what that does to the stocks. thank you very much, eamon javers another negative headline on

facebook's privacy problems. julia has a news alert from los angeles. hi, julia. >> reporter: facebook confirming that 3% of apps using facebook analytics had their weekly summary reports accidentally sent to their app's testers instead of the list of analysts and administrators facebook started notifying affected apps today, telling us that no personal information was shared and they fixed the problem. this comes after tech crunch first reported that facebook mistakenly shared apps' business information. doesn't seem to be any impact on facebook's stock, which is trading pretty much flat guys, back to you. >> julia, thank you. still ahead, he picked bitcoin in the 2018 cnbc stock draft. taunting other teams for having missed out well, with the cryptocurrency down 30% since then, is todd gordon the one who really missed something? he joins us live to defend his pick next. plus the winners and losers

from last night's nba draft. and faang stocks, how much higher can they go do you want the same tools and seamless experience across web and tablet? do you want $4.95 commissions for stocks, $0.50 options contracts? $1.50 futures contracts? what about a dedicated service team of trading specialists? did you say yes? good, then it's time for power e*trade. the platform, price and service that gives you the edge you need. looks like we have a couple seconds left. let's do some card twirling twirling cards e*trade. the original place to invest online.

i've got todd gordon here with the number two pick in the 2018 stock draft and that is >> sara, i can't believe i was given this gift of bitcoin

>> that was todd flash crash gordon gloating after going with bitcoin as his first round pick in the cnbc stock draft but maybe the sure thing is crushing him. in fact, it is bitcoin has slid around 30% since the draft at the end of april and is dragging down his portfolio performance. team flash crash gordon is currently in sixth place, even as todd's other picks, netflix and nvidia, soar todd gordon, founder of trading analysis.com and cnbc contributor is now on the phone. todd, good to speak with you now, obviously, you know, our stock portfolios are constructed all along in this competition, but personally, you're actually short bitcoin. you started shorting june 10th >> i am short and as bad as that sound bit sounded about getting the bitcoin, believe it or not, and thyi'm not just saying it, t was part of the plan i did expect bitcoin to drop i thought we were going to drop below 5,000, shake out a lot of longs and at that point the

technicals will kick in. i think around the 4,000 or 3,000 mark so i actually was expecting it to drop i am short i will cover and because there's so much percent -- there's so much realized volatility in this market, this thing on average, mostly trades -- >> hold on, todd bottom line, you think this thing is going to be higher by the sneend? >> absolutely. and i think by the time this contest is over in february, i think we'll be well back above $10,000. >> so it's losing money right on schedule >> well, the great thing about this, tyler, is you can be short in many of these cash exchanges. >> yeah, but not in our contest. >> not in the contest. you got to be long and right now, long is wrong, baby >> this is a trading market, tyler. you got to be long, you got to be short this is a trading market >> not if our contest. you're committed to being long >> i'm not worried i've got them right where i want them >> todd, you weren't the only one.

i mean, you gloated, let's not kid anybody, but you weren't the other one. listen to what all these other people said that day >> bitcoin to me is the one that stands out i thought go number one although when i saw the stephens guys and gals were number one, they had professors in their ear saying, this is how stocks work and blah, blah, blah but bitcoin is fascinating >> i can't believe college kids respectfully gave me bitcoin millennials gave me bitcoin. >> you guys are getting a lot of grief for being the millennials with the first pick. >> yeah, we are. >> why not would your professor have gotten mad at you >> i don't think he would have been too happy with us we think it's a bubble it's going to burst soon >> those kids are looking pretty smart right now, todd. i mean, in terms of the call for a bubble, it pretty much lines up with what you are saying because did i hear you correctly? you think bitcoin is going to go down to $4,000 >> i do. absolutely and if i was right there next to you, i would show you the chart i'm looking at it's a beautiful uptrend

this correction we have seen from just below $19,000, in terms of a percent drop, it's inconsequential. it's very much expected compared to the gains that we've seen since 2015 the correction i'm basing this on was 2014 to 2015. that was a whole debacle and bitcoin took about a 78% hit which right now, we're about two-thirds of the way through that equal correction, so based on a beautiful uptrend on a percent change chart, you can't look at bitcoin on a traditional what they call linear chart, arithmetic chart you've got to go to semilog, which is a little bit more technical but basically equalizes your percentage. >> is it more accurate or less accurate i ask you that because the price data for bitcoin is very limited. i mean, its existence is a shorter time frame than a lot of stocks that we trade >> right but that doesn't change the fact that this has massive percent

moves per week as i said 17% is the average high to low range. there was times when it was 30%, 40% a week so if i'm down 30% in bitcoin, that's nothing it can make that up in two weeks. when you compare that with the technicals and this is a very technically driven market, we're right on schedule, i actually planned on being short i'm going to begin to move out of my shorts, press the long side and if technicals work and sentiment comes back, we should be no problem. >> your netflix and nvidia are doing quite well >> well, thanks. i'm going to stay humble and -- >> i think you should have just gone with any stock that began with the letter "n." >> i promise, i know, i can't promise, i feel very confident where i am and if i'm wrong, i'll take all those college kids at stephens out for a celebration dinner i promise that >> all right >> good stuff. todd, thank you. todd gordon, tradinganalysis.com.

a $6 million miss for a 19-year-old prospect a look at the winners and losers from last night's nba draft. ♪ i got that sunshine in my pocket ♪ 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. get ready, because we're helping leading companies see it- and see it through-with digital. your insurance on time. tap one little bumper, and up go your rates. what good is having insurance if you get punished for using it? news flash: nobody's perfect. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. switch and you could save $782 on home and auto insurance. call

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welcome back to "power lunch. last night's nba draft leaving

one prospect $6 million poorer, maybe even more. eric is here with a look at all the winners and losers >> sports, it's all about winners and losers, right? >> and money >> it starts before you even play the first game so the first winner in nba draft last night, puma, the shoe company, their picks were number one. number two, 14 and 16. they're a company that didn't even have a basketball sponsorship situation two weeks ago and there they are with 4 of the top 16 picks michael porter jr., he is a big loser. there he is being picked 14th. he got injured over the past season, had back surgery, couldn't do workouts this was a guy that could have been the number two pick, would have made $25 million over 3 years now at the 14th pick, he may only make $10 million over those 3 years. >> but they were really serious health worries about him >> very serious. so it's not clear what's going to happen and he may not even play next year but at least he's going to get $10 million guaranteed so that's not bad for a 19-year-old. another winner, donte, went from

a bench player in college, did a great job in the ncaa tournament and he's going to get $7 million over 3 years as a 16th pick. this is a guy that did not even start for his college team so, a lot of winners and losers. the final one, maybe espn. they're the ones that aired the broadcast last night and they had done a deal with the nba saying, we'll not tip the picks on twitter they told the reporters, don't beat our tv broadcast with twitter picks but then someone at the "new york times" started doing it he used to work at espn. they laid him off so he said i'm going to start tipping the backs and all the reporters said, i'm not letting somebody beat me and they started tweeting it out again anyway if you're a big tv company, it's hard to control the message when your own reporters are on twitter. very complicated >> is espn running -- who's running the event? >> it's aired on espn. >> can't you close things on people like "the new york times" >> it's aired on espn. they're a rights holder of the nba so the nba said to verizon, who owns yahoo and espn, you do

deals with us, we don't want your reporters -- >> what about the reporters in the room >> the reporters in the room, if you work at the "times," you don't have a deal with the nba >> and if you've got news, you go with it >> you go with it and you don't worry about embargoes or anything and the guys at espn said, we can't let this guy beat us >> is there any shot those reporters will be banned from the next draft, shut out >> that's a good question. >> because within the credential, there are rules. >> it's not about being in the room you're on the phone with the agents it's the agents giving you the picks. you don't have to be in the room whether you're in the room or not doesn't matter it will be fun lot of drama these drafts are always fun, like a stock draft >> ours is better. >> some of these nba picks don't work out any better than gordon's bitcoin all right. faang stocks have been on fire this year netflix leading the way. that was one of gordon's picks, by the way, up 16% still time to buy or bail?

we're going to take a closer look at that plus a start-up tackling the food waste problem and saving companies money in the process the ceo of an interesting app will join us ahead why are you so good at this? had a coach in high school. really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer free access to coaches and a full education curriculum- just to help you improve your skills. boom! mad skills. education to take your trading to the next level. only with td ameritrade.

i'm contessa brewer. by a 396-14 vote, the house passed legislation to help combat the opioid crisis the legislation directs federal agencies to prioritize training, support, recovery centers, and conduct research to address the epidemic senator dick durbin visited migrant children and called for them to be quickly reunited with their parents. >> i'm happy that president trump, two days ago, decided that he would issue an executive order, but the executive order of president trump does not solve the problem. we still face the reality of at least 2,300 of these young children who have been separated. russian officials began spraying vanilla concentrate outside the stadium to cut down on the gnat population swarms have descended on the area dto the annoyance of fans and players. the authorities hope the vanilla

spray will keep the gnats away the bakers nearby might like it too. hey, what's that smell >> good. >> oh. >> somebody had to do it we got green arrows for the dow skbels sweas well as the s&0 chevron, dow dupont, verizon, leading the dow at this hour carmax and charter communications leading the s&p 500. >> thanks, melissa oil rallying into the close, jackie d. is at the cnbc commodity desk >> now, the headline number a million barrels a day but in reality, probably more like 700,000 and mostly coming from the saudis because some members don't have the ability to raise production it was oversold before the meeting. the expectation was that the

additions would be more substantial. still, opec held its cut for a year and a half, bringing that oil back online, represents a sea change, certainly, for this market >> sure does thank you, jackie. all right. check out facebook, amazon, netflix, alphabet, all in the past month up about 10% or more. netflix up 25% after incredible runs already, hitting new all-time highs the returns are even more impressive year to date. so, is this run going to keep going heading into summer and the second half of the year? let's bring in toona from crfa research any of these stocks you don't recommend because of valuation >> we are actually recommending all of them. google is strong netflix, amazon, with a buy as well as facebook so i think right now, given the concerns with the global trade fears, seems like the market is desperately looking for some type of leadership and i think the f.a.n.g. stocks

are well positioned to step into that role as we look at ate next year >> how much of the f.a.n.g. momentum over the past few months is driven in your view by sort of automatic buying on the parts of index funds or etfs that just sort of, as those attract money, they are big constituents in those funds and etfs and therefore money is attracted into those stocks. >> there's no question in our mind that there's momentum that's underlined some of the acceleration that we have witnessed in these f.a.n.g. stocks as you implied in your question, but even beyond the momentum, i think, you know, the question around valuation comes up now and then. if you look at the fundamentals, for example, the f.a.n.g. names are growing revenues, still multiple times above the s&p 500 as well as eps growth if you exclude the energy seshlgt sector so i think it really speaks a

lot to the underlying strength in the core businesses even google, for example, alphabet, which is perceived as the most mature of these names, is still growing revenues consistently north of 20% so it really speaks to what we believe will be the underlying, you know, catalyst that will accountant to droive the shares >> drilling down on amazon, in terms of the online sales rule weg got yesterday, what impact, if at all, do you see it having on amazon and i'm curious to whether or not you think amazon could actually develop a new revenue stream by offering tax collection services to its third party sellers who now have to or could have to collect tax in the various states >> well, so, we put out a note, melissa, yesterday, following the ruling i think on the face of it, the ruling would appear to raise some concerns for amazon being by far the biggest e-commerce player but as you parse down, you know, underneath, amazon, as

a matter of fact, is already collecting sales taxes and its substantial majority of states where it qualifies for taxable status, so i think the, you know, the impact of that ruling will be muted relatively speaking compared to some of the smaller online players and that's why you see the shares have not been adversely affected on the other question, as to whether they could, you know, kind ofw segue into the collection role, that has not been articulate, although we think that is not -- that's somewhat of a distinct longer term possibility at this point >> tuna, how does it all end i mean, so, momentum is tremendous, and you're on this sector that is so, so hot, but at some point, something turns what is it, do you think, that eventually might slow these stocks down as a group is it interest rates is it something else that's hot? what >> well, if i can point to, you

know, one common factor or overhang would be the regulatory risk factors but even that seems to have played out without much damage to these names, whether it's the cambridge analytica issue that investors seem to have shrugged off so far or even the president trump's tweets regarding amazon i think this is a group that just seems to shrug off any type of, you know, major concerns you know the trade fears also as an example where i think fortuitously for the group, seems like they're relatively insulated from all these fears, whether it's china, mix cexico, europe as a matter of fact >> tuna, thank you always good to see you and coming up, the growing concern over plastic straws and what some companies are doing to combat that issue. and if your company is wasting food, there's now an app for that

meet the start-up tackling the leftover problem and saving companies money in the process and distriti fd bungooto those who need it. "power lunch" back in two minutes. are you done yet? does it look like i'm done? shouldn't you be at work? [ mockingly ] "shouldn't you be at work?" todd. hold on. [ engine revs ] arcade game: fist pump!

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welcome back to "power lunch. more and more cities across the

country are banning plastic straws now some major companies are getting on board as well aditi is live in san francisco with more. >> it may be the last straw for those plastic straw companies who are yielding cities and companies as well as consumers are yielding to the call for more ecofriendly options and those options, top contenders include paper, glass, compostable plastic, even metal. the biggest producers of compostable plastic straws with the following. ecoproducts, which sells to restaurant chains, stadiums and universities paper straws are another top alternative contender. indiana-based aardvark straws says its sales have gone up 5,000% in the last two years they can't even meet demand. glass straws are sold by companies like hummingbird, simply straws, they've quadrupled their business since

january. all these ecofriendly straws cost more money to make. one plastic straw cost less than a penny to make, 6 cents for paper straw an50 cents to 60 cents for glass straw. for now, it seems that compostable and paper straws are the most common alternatives mcdonald's is replacing plastic straws in the uk and ireland bon appetit has banned plastic straws at more than 1,000 locations, replacing them and here at blue bottle coffee, they use compostable plastic. these straws have been sitting in the water for five or six hours and the winner is this aardvark paper straw, believe it or not you would think it would get soggy but it's held up pretty well >> who would guess that a paper straw would do the best? >> i didn't. >> i know, exactly >> cool. >> all right well if you're tasting, by the way, the glass one definitely

tastes the best because it tastes cleaner >> how do you wash that? you reuse the glass one, right >> believe it or not, a lot of these companies also sell, of course, these little microbrushes that you can put in the glass to clean them. yeah but some of them are also dishwasher safe. >> aditi, thank you. >> well, it's no exaggeration to say we love food here in america. we also waste a jaw-dropping amount of it around 133 billion pounds annually this according to the epa. each year, $218 billion is spent producing, transporting, and disposing of food we never eat one start-up is looking to help companies stop throwing money and food away. goodr picks up food donations from businesses in packages and delivers them to shelters. so far they've collected 900,000 pounds of food and saved clients

$2.5 million joining us is jasmine yocrow, founder and ceo of goodr congratulations on this new app. your clients -- you're basically atlanta based and your clients include lots of places that many of our viewers would have heard of like hearts field airport, like world congress center, like turner broadcasting explain how the app works. explain how you make money and save businesses money. >> thanks so much for having me. so, the way our app works is when we bring on a customer, we have all of their menu data in our system, so that at the end of the evening when they have surplus food that they would otherwise put in the landfill, they can request a pickup. our platform will inventory everything that they're donating, tell them the tax value of that food at the time of donation as well as measure the weight of that food so we can provide for them environmental outputs like how many gallons of water they're saving and how much carbon dioxide and methane gas we're keeping out of the environment

and we see ourselves largely as a waste management company so we're making money just like waste management or republic solid do we're charging customers a volume-based fee for service, based on how often we're coming out and how much food we're recovering and drastically helping them reduce their waste bill plus get valuable tax donations to get this food to communities in need so we're really excited >> so that's an interesting thing. you hit on a couple things you've saved about $1.2 million for companies. that is partly because they log a charitable donation for the value of the food that they donate it is also because it reduces their waste bill and also because you uses block chain to help companies understand where they may be overordering food so that in the future, they don't order surplus that then goes in either the trash or to you >> exactly so, by giving the customers this data, they're able to see trends and things that aren't so

popular to their customers and they can actually stop the source reduction but number two is actually feeding hungry people and that's really where goodr comes in and we're using block chain to ensure the delivery of that food to a nonprofit organization and why that's important is because if the irs ever comes to any of our customers and says, how is it that you're writing off $1 million in food donations, we have the secure ledger that shows every time they entered food for donation, when goodr recovered it and when that nonprofit accepted it. >> haven't you also set up a system where you're actually going to get less food eventually i mean, you're going to -- your customers pay you to take away the food, right? >> exactly >> eventually you're providing them data that in theory means they're going to -- you're going to take away less of it. >> you know, our hope is definitely like most social good companies is that we're able to work ourselves out of business but one of the things that we do see is that there's really not a lot of predictability in large scale food service so if you

take, for example, the convention center, 15,000 people may buy a ticket so they're going to prepare lunch for that many people. because they have to but that doesn't mean that all 15,000 are going to show up to lunch. so there's always an excess amount of food that we're helping businesses find value in and repurpose. >> so your revenue comes from fees or charges that you collect from the donors of food. you go to the places, whether it's hartsfield or turner and package the food and take it to organizations that can distribute it either in a pop-up fashion or they have a food kitchen. am i understanding that right? >> do those charities pay? >> you're understanding it perfectly. duo n we do not charge the charities >> do you have national ambitions, jasmine, in terms of rommi rolling this out to other cities >> absolutely we do. we're looking at several cities right now including chicago, washington, d.c., los angeles, and miami and we actually are looking at market, which

customers that we believe we can service the best are there and then of course need. how many people in that city are actually experiencing hunger that we have the power to help >> you know, the data application is very, very cool, but i wonder if, in this day and age, it's almost the easier part we've seen here in new york city, for example, food distribution companies that are very innovative with their apps and being able to -- and then the distribution part is what gets them in trouble what's harder for you, is it creating the concept and the app and the digital backbone or is it the managing the trucks and the people and the -- actually execute the plan >> yeah, the logistics is definitely a challenge but it's one that we're working really hard to overcome and we're building a very robust enterprise software solution that actually follows these tric trucks and creating a route logistics system that makes sure that we're taking the most efficient routes one of the cool things about the goodr is we keep the food very

centralized to where we pick it up from so we're not passing a hundred nonprofits to get to one. we're finding nonprofits in nearby areas that we can get that food to immediately >> so jasmine, my notes say that you once experienced food insecurity you and i didn't talk before this i don't know what that means what was your experience were you hungry? >> yeah. my experience -- i did not grow up hungry or experience hunger myself but one of my very close friends did and i think having experienced that firsthand and really shifted perspective for me, because for years, i was feeding members of our homeless community and i didn't understand that the face of hunger was readily changing. and so when i experienced it with a friend of mine that was college educated, married, had really defied all the odds, had worked a successful career but just couldn't make ends meet, was struggling with hunger, i think it changed everything for me and it made me become way more focused on solving these problems >> jasmine crow is the name and goodr is the game.

the company. jasmine, thanks. >> i like that thank you guys former starbucks ceo howard schulz says the stock is cheap and undervalued. is he right? the "trading nation" team takes a look next. let's begin. yes or no? do you want the same tools and seamless experience across web and tablet? do you want $4.95 commissions for stocks, $0.50 options contracts? $1.50 futures contracts? what about a dedicated service team of trading specialists? did you say yes? good, then it's time for power e*trade. the platform, price and service that gives you the edge you need. looks like we have a couple seconds left. let's do some card twirling twirling cards e*trade. the original place to invest online. 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!

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time now for trading nation, a look at starbucks, in rally mode after former ceo, howard schultz, said, quote, the stock is cheap and undervalued stock still basing for the worst week after two years it's higher now by 1.5%. dina and larry are here. what do you think? is howard right? >> well, remember one thing, when companies go through restructurings and closing down stores, a lot of times, most times, investors have to realize they bleed out the truth one drop at a time it's very difficult for a cfo to gauge store closings most of all, you're talking about a company with a 24 times

earnings forward pe, but true earnings growth over the next two, three quarters is going to be single digits that's a bad combination in a situation where you have to come clean with the restructuring over the next two, three quarters i see 10% to 20% downside from here >> wow, what do you think, gina? >> there's more in peeling the oni onion. it's more than the store closures theoretically that should be net positive over time, however, you have the issue of rising labor costs. that's another piece of the story. you have growth in china stumble that caused a morgan stanley downgrade. those are two additional pieces of the puzzle here sort of leading or explaining some of the, you know, single digit growth larry is talking about, so i think it's going to be challenging going forward. >> okay. two negatives, got it. technicals or fundamentals,

thank you, ladies and gentlemen, larry, gina, for more, go to tradingnation.cnbc.com and follow us on twitte twitter @tradingnation when markets are volatile, resist the urge to use too much leverage leverage is a double-edged sword, and when markets are calm, it's easy to forget. when volatility picks up, losses amount quickly when you are forced to close out positions, it's likely to be at the worst time and price

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check, please. >> phil lebeau said they are bringing back the blazer coincidence? i drove a chevy blazer, my very first car i actually owned my dad bought it for me for $1,000 it was a 10-year-old car, red blazer, full of rust and all that >> over there is my first car. i don't know if you can grab that that's a chevy malibu 1969 i had not the ss version, which was the souped up version, but one that my aunt has owned, which was hard ly -- >> i had a a monte carlo from 1980 my dad let me drive it >> all had chevys. >> all of us >> shows you the dominance of chevy in that a period from the

'60s into the early '80s, and, obviously, a different world now. i was given -- we had fun with todd gordon and beat him up and mocked him a little bit as we are one to do, but i found myself thinking he has the courage of a trader to hold on and says, now, he may just be making this up - >> he has to hold on >> he has to hold on that thing is going down the way he thought it was going to go down and will come back. time will tell you know, there's been a lot of people who held on through shorts -- remember in the financial crisis who was that guy eisman >> in the "big short." >> held on, held on, lost money and lost money, but then amazingly it worked out. >> the negative was painful for a long time. >> absolutely. meg has a market flash >> reporter: a look at retail r specifically the etf doing well in june. up 8.5% for june, its best month

since november the leaders month to date are rent-a-center you have 66%, conn's up 5%, and camping world up 40% month to date, guys, performing well, continuing for the third straight positive month. back to you. >> watching the dow, of course, about to break the longest losing streak since the mess earlier this year. i think it was eight down days in a row up 144 points. the dow will finish in the green, but certainly a down week for all the major market barometers >> grinding right now. >> we are. >> trying to figure out where is the market going >> through the summer. >> trading ranges get interesting. they got to break out at some point. never know what it's going to be >> yeah. >> a lot of uncertainty. >> i think the thing to watch is technology and ability to hold on to leadership yesterday, it did not, today, challenged that's key for the market.

we depended so heavily on the leadership and technology. energy is a small percentage of the market >> not a lot of movement in interest rates, actually, such a driver, so that's probably where we see flatness. >> relief there. >> thank you so much for watching have a great weekend >> "closing bell" starts right now. ♪ . it's friday, time for "closing bell," and today could be the highest volume days of the year we'll explain why. >> i'm brian sullivan, opec strikes a deal, but enough to curb crude to the recent rally >> we're in chicago, the president turning up heat on european auto makers, telling them build here or face steeper tariffs. what it means for the global auto market coming up. and i'm kelly evidence evens. is that a plastic straw? you may not use them muc