this is something that i think continues. the industrials have more upside >> amazon after the bell >> that's going to be big. >> excited about that >> yeah. >> thinking about buying it. >> it's important. yes. >> you on track for its worst day ever you bet we are michelle caruso-cabrera. facebook face plant. social media giant getting crushed on facebook's worst day ever how did the analysts miss this disaster why isn't it having a bigger effect on the overall market at these levels is it time to buy? plus the treasury secretary telling cnbc this morning that the president is working to resolve a lot of trade issues. could the trade wars end before they ever get started. >> ceo of american airlines will join us shares are up despite worries about rising fuel prices

"power lunch" starts right now we begin with that jaw dropping plunge in shares of facebook, the stock at this hour still down just about 20% at its worst levels in the past 24 hours. investors saw over $150 billion of facebook's value literally wiped out. to put that in perspective that's more than the entire market cap of a host of blue chip giants, bigger than ibm, mcdonald's and nike. >> despite facebook's fall the dow is not missing a beat. not a part of the dow well can you make a case why would it at any rate, for the second straight day it seems like an odd disconnect as facebook is down 40 points industrials up 93. here to take us inside facebook, 24 hours to forget is domchu and bob pisani >> we got two disappointments,

one from netflix and one from facebook is it time for investors to end their devotion to hyper growth stocks and start considering something else like value names stocks that are neglected and trade for less than their intrinsic value. investors have been obsessed with growth stocks and really obsessed with the biggest growth stocks look at this gap top line is growth, bottom is value. gap wideened i shares up 12%. value etf going nowhere. little wonder since that growth index is dominated by the faang names. maybe that's going to finally start changing can you hope today for the first time in a long time value is notably outperforming growth stocks. names associated with value, oil stocks like exxon, bank stocks like jp morgan, pfizer

it's just one day. it would be nice to see some other names take the leadership. back to you. let's get to dom who is taking how much facebook and faang is owned >> if you look at facebook there's a reason why a lot of people are feeling the effects of it. institutional ownership for facebook overall is nearly three quarters of all of the nonvoting shares the ones that we can transact in 74%. some of the big names in it. vanguard no surprise. index funds. 7% waiting there they own shares outstanding. fidelity investments, they own about 5% of it blackrock also on the etf side of things. 4.5% and state street global advisors 3% for faang we'll look at pure

faang. institutional ownership side of things is interesting. facebook three quarters of its shares traded by institutions owned by them. amazon, less than that 59%. we'll watch for those earnings after the bell netanyahu flicks has 78% alphabet 80% a lot of these names are owned by pension funds, etfs, investment managers, institutional names that own a lot of these stocks. we'll see if that hurts them down the line. >> the analysts community missed facebook's flop. most shaked it off today they are trying to save face ubs downgrading the stock saying the mixed stock brings the debate front and center. barclays saying facebook is shifting to very shaky ground. so what is next for the social media giant?

a bull bear debate our bull is evan kessler he's downgrading the stock to outperform from a strong buy he's lowered his price target by dallas 30 a share to 210 but remains bullish. our bear has had a sell on facebook for a full year and has a price target of 140. about $40 below where it is trading right now. aaron, how surprised were you by this report which highlighted deh ded ded deceleration >> it wasn't so much as a weak quarter. it was about 1% below the street facebook has a history of beating numbers. most of the weakness there was in europe. the bigger issue, i think, was a

weaker guidance for the second half of the year part of it is intentionally inflicted by facebook. other big issue was lower long term margin forecast we're at about 45% margin. those did catch us offguard. that's why the stock is weak today. >> all right brian, how surprised were you by these numbers? obviously maybe less so because you've had a low price target on this stock, 142. you've had a sell on it for a long time. are your dreams coming true? >> wouldn't call them dreams just trying to anticipate where the business is going and then figure out the stock after that. you know, i couldn't have said i anticipated the deceleration in the fourth quarter but the nofgs a wall of growth has been in my model, been a major point i made i was looking at research notes i published and i used the phrase limit to growth 71 times

in the last 12 months. few investors fully appreciate and few seem to fully appreciate that digital advertising has limits money will not come from trade promotion spend to save facebook it might help amazon on the margins a little bit but the reality is that the vast majority of the advertising industry will grow at a 4%, 5% rate, digital rate can grow teens. unless you think google will crater, facebook is constrained in its growth profile. >> he made the case for limits to growth and that's pretty serious for a growth stock >> yeah. everything has limits. we look at the overall advertising industry we agree it's growing 3%, 4%, 5% so far the case that google is sucking up 90% plus of those dollars. there's a point, especially as

google's user growth slows there will be less incremental dollars will go to them. investors are having to do things like with facebook story improve engagement can they be successful, it's too early to tell. near term we'll have a little bit of pain but longer term they are looking to improve engagement which should drive increased advertising dollars. >> would you feel better if they started paying the dividend. all these go growth stocks and everybody was buying for momentum then finally they had to admit it wasn't those stocks any more. all those big names started paying dividends would that go a long way to ease some concerns and if they are not hurting plus growers any more they have to do something else >> i'm of the view that dividends make no difference in terms of the value jays of the company. yes it can change your investor base, but, cash is cash wherever

it comes from. i think the reality is that -- yeah they will produce cash then they have to decide what to do with it. that's so far off at this point. i think they want to hold on the their capital and that highlights one of the risks. they talk about $15 billion of cap x next year. i'm assuming they are only going to marginally increase that over time you know, face valuations, i have to make an assumption about cash flows if you assume cap x rises from those levels maybe it could. then that would be actually quite negative with that said they would want to maintain the ability to do it i have to say, those one of the risks that people aren't considering there still will be fallout from what i call systemic mismanagement of the company. trying to lay out all these different factors. that hasn't even played out yet, right? so there's still more risks to

the down side for facebook that i don't think the market -- >> to that point how comfortable are you in what the company says about its guidance analysts including yourself and many others on the street, 44 others, they are willing to give them the benefit of the doubt in terms of the impact of gdpr and look where he are today. are you comfortable with what the company is saying about the rest of the year when it comes to spending, revenue growth, margins? >> yeah. part of it is facebook is setting expectations low they've done that if you look back in the last few years they've set an aggressive guidance for expense growth and come in under that more in line this year they have a history of setting expectations low and beating numbers. >> except that they let you guys believe that they were not seeing an impact from gdpr or data privacy how can you believe that they

are still giving conservative guidance at this point >> on the quarter i would say say the gdpr quarter was small and they said that wasn't a large factor there's a couple of other factors such as pushing stories more, such as the privacy issues they are going forward with. >> let me wrap it up aaron, you first is this facebook a good investment today, a better investment today than it was yesterday, or not? i'm going to ask the same question, brian, to you. is it a good investment sean it better today than it was yesterday? >> it's a good investment today. company is trading 20 times at earnings there's still growth growing we think about mid-20s next year. ending this year around 26% growth for a company still growing mid-20s, 20 times earnings that's pretty attractive our fundamentals, sure, but the valuation has been down.

>> brian, do you say good investment or bad? >> depends on your time horizon. the business is not going anywhere i just think it's overvalued right now. >> gentlemen, thank you very much there's a news alert in the bond market. 30 billion in notes. rick santelli is tracking the action what's the demand like >> demand was c minus. yesterday was an a minus five year is by far the best of breed for a number of series of options in the rear view mirror. 30 billion as you heard michele say. yield at the auction 2.93. that was priced where the market wanted pretty average 2.49 a bit below average pretty much smack on ten option average. that's the only thing that was 12%, that's the weakest since january below the 14% ten

auction average. dealers take, primary dealers 23.4% of the auction so we finish up with a c minus 101 billion in supply out the door and treasury complex pretty much hasn't really moved in the last hour. back to you. rick santelli, thank you let's get to another big name stock taking a beating, shares of biogen down 9%. alzheimer's treatment came in better than expected but study raising for questions. ronnie, great to have you back with us. it seemed like this study was very messy can you walk us through why you think the stock is down this much right now >> mostly because the hope was that would be the decisive trial that would prove that their drug can treat alzheimer's. the trials was never designed to do quite that. we had additional data

complications. what you're seeing now is a about it of disappointment the stock has been up 25%, 27% since the news was announced the fact it's given 32 half of it is about right what we have hopes for an alzheimer's cure is better than months ago but not as good as they were 24 hours ago. >> the headline result is it reduced progression of the disease by 30% that was only, though, in the highest doses and those highest doses were only given to patients without the genetic predisposition, those that would see faster progression is that sort of the catch to this headline number, which seemed good on the surface >> that's the debate highest dose looked good but had not enough of the patient with genetic disposition. just a bit of complication the second highest dose actually

looked okay too. that one had more of those patients with genetic predisposition and looked better so it's not that the data looked bad but those complication makes data interpretation hard so show what we want to show lower >> is there something positive to be said about the build up of the analoids in the brain being connected to the progression of alzheimer's? can we draw any conclusions about that which has been a debate from these test results >> there's been a debate in this industry for a decade. not going to resolve it with that data presented yesterday. that's the conclusion. but in the next three to six months more data from that trial will be presented, including breakdown of the data to patients with a genetic predisposition and those without. so we'll try to build the proof

wall for the hypothesis, this is a brick but it doesn't complete the wall yet >> does this delay the launch of the drug overall >> no, it does not so this drug and this trial is still looking at early 2020s so another trial here. only question is our confidence this will end up being a drug in the end and lower than it was yesterday. >> ronnie, thank you ronnie gal in the next hour, i on chung will be here live to get his take on the alzheimer's data juice and mexico back at the bargaining table on trade and president trump building on yesterday's progress with the european union and get a deal done with mexico by the end of the summer what about canada? plus the ceo of american airlines doug parker joins us live his stock flying after earnings reports. and we'll dive deeper into why the broader market is shabing off facebook's epically bad day.

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mnuchkin talking about it with cnbc >> reporter: right now we're monitoring president trump who is in iowa at northeast regional community college in iowa. he's taking some questions from a crowd and talking on a panel there about a number of developments he toured some of the facilities there. a reminder no news out of his opening remarks so far at least in that event but this morning as you point out the treasury secretary, steven mnuchkin was on cnbc talking about yesterday's appearance between president trump and the head of the eu, the announcement of an agreement here we listened to steven mnuchkin the treasury secretary seems to suggest that yesterday was more of a beginning of that process than the end here what he had to say this morning. >> we had a long negotiating session yesterday. we concluded an outline of an agreement and now we'll turn this into a real agreement this really started with president trump and his discussions at the g7, making it clear that he wanted with the g7

in europe free trade which was no tariffs, no tariff barriers, no subsidies >> reporter: mnuchkin there saying they will press to put that agreement into a real agreement, put some details around what was announced yesterday between the two leaders at the white house also we got the u.s. trade representative, he's going to be meeting with the mexican delegation at 2:00 p.m we'll see if we get any developments, announcements of a possible deal between the united states and mexico. there's speculation whether we could see separate one track deals between the united states and mexico, the united states possibly and canada even we'll watch for that this afternoon in washington. >> eamon javers staying on top of it. we'll dig deeper now to progress on trade and potential pitfalls with david westphal and our economic policy analyst at american enterprise institute. good to have you here. new phrase out of the

administration no tariffs, no barriers, no subsidies. i first heard it from larry kudlow but president trump has used it now from steven mnuchkin how likely do you think it is that we can get a deal with the eu that has no tariffs, no barriers, and no subsidies >> zero barriers, zero subsidies, zero tariffs, zero chance that's not going to happen listen, europe was squeamish a lot of political turmoil about the previous failed free trade deal between the u.s. and europe for all these reasons. the existing subsidies have a lot of political support france will got give up its agricultural subsidies those will remain in place a lot of none tariff barriers that were a huge hindrance in previous deals such as health regulations. if that's the message going out to people to create some sort of

libertarian perfect free trade zone people will be disappointed >> david, i'm astounded the love of agricultural subsidies not just in europe, but all over the world. that's one of the vested interests that would have to be overcome to get no tariffs, no barriers, no subsidies in place. >> i think jim is absolutely right. this is just a slogan. i think what happened is the president took a step away from a really dangerous confrontation with the europeans, and the change in tone and the change in attitude is the only thing that happened yesterday there was nothing specific in this deal that tells us anything about they are going to be able to get an agreement. >> change in attitude and tone is a positive. >> incredibly important because they were on a collision course. and it looked like the president was about to impose 25% tariffs on european exports of cars to the united states. so he took a step back from the

trade war. wolf at the think tank in brussels said the president's gun is still loaded but no longer pointed at the head of the europeans. so i think this is a big deal but nothing specific was agreed to >> instead of a two front trade war there might be just a one front trade war with china how much credit does the president's aggressive stance deserve or get for mr. jean-claude juncker coming to washington with the outlines of a deal and how much credit should we be giving the president for what seems to be some motion on nafta, most especially with mexico >> well, yeah. i guess if you're saying, you know, you're going to blow something up, that's a tremendous incentive to have a meeting. and i wonder if the real catalyst here was really also terrible headlines coming out in

a lot of local newspapers across america, from small businesses, farmers, very worried about those tariffs. i think that's a huge factor too. >> david, before we go >> i agree with that there's a possibility here if he can get a truce with europe they can together go after china where there are serious trade problems the american business community would be thrilled to see that. they were terrified of this trade war with europe but not at all upset about a trade war with china. >> let's get the band back together >> david and james, thank you so much stocks under pressure about fears of tariff. a ceo tell us how he plans to weather the trade turmoil. his company just releasing earnings stay tuned that knows the weather down to the square block.

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that's confident. but it's not kayak confident. kayak searches hundreds of travel and airline sites to find the best flight for me. so i'm more than confident. how's your family? kayak. search one and done. . welcome back we want to call your attention to what's happening right now with shares of synchrony financial. this is happening on the heels of dow jones headlines citing sources that walmart has elected to go with capital one as their new store branded credit card issuer issuing bank. that replaces synchrony financial which has been its partner for the past 19 years.

so their shares sinking on the news from "wall street journal". capital one shares saw a slight uptick there we'll continue to watch those stocks as this story plays out facebook is on pace for its worst day ever broader market is brushing off the facebook plans and tech fears. let's find out why let's bring in our managing director you know this narrative. we talked about how faang lifted the entire market. if it ever weakens the overall market would be in trouble that's not the case today. why? >> let's stick with the genesis of faang eight years of hyper aggressive monetary policy and that has created inflated asset prices. well, you know, faang or parts of faang have gotten to the point where they are saturated and no longer growing as quickly as they would be monetary policy hasn't changed

bank of japan continues to be hyper aggressive as does the european central bank, sweden, every where around the globe money is being created finds its way into asset pricing. chips will change to a different side of the table. as facebook and maybe netflix go down that money will find its way into otherssets and securities >> the great engineer threat to the overall market isn't the pulling back of these very, very hot momentum stocks akin to what we saw back in 1998 and 2000 but rather when monetary policy finally starts getting tighter all over the world whenever that's going be. >> that's the engine that created faang, it will create something else and as long as these policies remain in place, that dough will find it to go somewhere. real estate, convertible bonds,

it will find some other form to express themselves >> facebook is off roughly 20% today. maybe it's not going to grow at 30 plus percent but it's still going to grow quite fast your tempted at all by this stock, at this point when you have a single day slide like that >> it's not the kind of stock i buy. i look for value even at these prices it's not a value. you may be able to make it a garp argument, growth at a reasonable price but certainly not a cheap stock. wonderful company but still priced pretty high i think there are other areas of the market that are exhibiting value right now that all this money hasn't found its way to. >> steve, thanks for coming on from san francisco >> you're very welcome american airlines flying high despite cutting its outlook. we'll ask ceo doug parker why he called this the most challenging

quarter and why he sees a smoother ride ahead. stay with us here on "power lunch"

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herera speaking in boston attorney general jeff sessions defending his deputy rod rosenstein against congressional republicans who moved to impeach him. he also went on the criticize fellow republicans >> my deputy, rod rosenstein, is highly capable i have the highest confidence in him. you probably know not only did he go to twharton school of business so what i want congress to do is focus on some of the legal challenges that are out there. >> conservative republican jim jordan said he'll run for speaker of the house if his party keeps the majority after the november athletics jordan has been accused of failing to stop molestation by an ohio state university athletic doctor years ago. jordan has denied those allegations. amazon is adding more skills to its digital assistant alexa

that's with a partnership with a company. consumers will no longer need to worry about looking up business hours, addresses or phone numbers because alexa will do that for you i don't know what she can't do that's the news update at this hour i'll send it back to you >> she can't tell me how tall lebron james is. >> really? i'm so surprised >> yeah. >> maybe they never met. >> maybe sue, thanks. american airlines up about 4% despite lower second quarter profits and a cut to its earnings outlook phil lebeau has an exclusive interview. >> reporter: we just talked about the fact that this was a challenging earnings report and you lowered your guidance for the full year. you said something that's interesting on the call today. the most challenging quarter since the mergering of the two airlines together?

>> yeah. we've had a pretty good run. one, we had a service disruption an i.t. outage at our subsidiary which is a challenge to our team and customers. on top of that financially, the run up in fuel prices has our earnings down year to year that's why the guidance is down. we had our earnings were down about $600 million on $700 million on higher fuel price >> $75 or whatever it might be for oil is that the new reality and can you grow the airline in that reality >> we believe -- we're going to run the airline as it is i don't know exactly where fuel prices will be in the future right now, you know, to the extent that everyone was viewing the run up of 45 to 75 as a spike, we probably should dismiss that notion at this point. we certainly are american. we'll build our airline to be as

profitable as we were at $45 now at $75 >> u being more judicious. you're cutting it back in the third quarter trimming it a bit, third quarter and fourth quarter. do you see the discipline that's necessary in this industry overall. i won't ask you to comment on your competitors are we near that area where we're seeing stupid additions to capacity >> i can tell you there's things that make sense at $45 a barrel but not at $75 we'll still grow, but pretty much in line or lower than gdp because we think that's the right growth levels at this level of oil prices. we've heard from other airlines now as they reported earnings and sounds like most others are coming to similar conclusions. >> for you the key is leveraging off your strengths, dallas-ft. worth and charlotte two big ones >> interesting for us, for american we'll grow at a level that will be the lowest in the u.s.

industry in 2019, we had the best growth prospects between our dallas-ft. worth hub and our charlotte hub two most profitable hubs where we'll get some new gates in 2019 which gives us exciting growth prospects. >> we're in a long period here of really sustained demand out there in the market in terms of the flying, that people want to do do you see anything on the horizon that indicates it either plateaus or slows down >> we ask ourselves that question bookings look strong our earnings are not driven by demand issues. demand is strong fuel prices are high we haven't had to increase revenues at the same level while demand is strong, but the consumer seems really quite strong >> which brings up the question, the investor no ceo can answer for how their stock will perform for all the airlines stocks they have been out of favor this

year do you feel as though a floor has been built in there that the negativity surrounding the industry perhaps it was a little overdone >> i don't know. what i certainly believe is, you know, what's happened to american's stock doesn't reflect the future earnings capability of american airlines it feels like a fwoem the extent that, you know, that's what you're asking, but, again, i thought that before and the marketize otherwise. we're going to go with manner for future we feel good our prospects that's what we need to do for our investors. >> doug parker, chairman anne ceo of american airlines on a guys where they reported earnings and lowered their guidance largely because of what we've been seeing with jet fuel prices >> phil, thank you very much so the u.s. is threatening new sanctions on iran and as a result the iran central bank has a new leadership they have a slidie ining curreny

rouhani is facing pressure this is from the main bazaar yesterday that was shut down as a result of protest. former governor of the central bank sat down for an interview with cnbc two years ago was accused by the trump administration of moving millions of dollars for iran's revolutionary guard. the former head of two other iranian funds. >> straight ahead group one ceo on the pressure on auto stocks and how his team managed to pull off second kwaerlt results "power lunch" is back in two ♪

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welcome back to "power lunch" shares of group one automotive

are lowered despite reporting record second quarter results with auto tariffs not completely off the table. auto stocks were under pressure as of late ear earl hesterberg, welcome back. good to see you. why is this stock not listening to the results >> well, i don't know. i've been watching your show for years trying to figure out the stock market and i haven't figured it out yet >> that makes two of us. i can't figure it out either i can't figure it out either we'll just say it's going be fine if you keep putting up good results. >> i agree with that >> investors tend to follow. what's working is it new cars is it used cars? what's the mix of cars trucks, cars, suvs >> well what's working for us at the moment is used cars. our used cars in the u.s. were up 11% in the quarter sway

number i've never seen before. that's same store number in the uk we're up 4%. so that's an emphasis we put in place at the beginning of the year and it's paid off quite a bit. in addition to that we started the year quite slowly in january and february in fact, we had a profit warning in early march we started major cost production action in both the u.s. and uk and that came through quite nicely >> why are used car sales up so much is it something you've done or buyer's preference do you make more money on a used car sale than a new one >> it's mostly things we've done we've expanded our offering. we focus a lot more on lower priced used cars that we formerly sent to auction we have a value line segment of our business and that's up to 10%. we made adjustment to the money our sales people can earn

selling used cars. i think those are some changes that we implemented that have helped the business. typically you make a little bit more margin on a used car than you do a new car >> interesting >> relative to insurance, finance profits, less than a new car but it's good business very good business and similar to the new car business. >> are you relieved about what happened yesterday at the white house with jean-claude juncker when the president was talking about 25% import tariffs on all aul automobiles coming from europe would that have impacted you >> absolutely relieved, for sure any appreciable tariff that would ultimately increase the price of new cars, and we represent a lot of german brands, for example, also, you know, imports from mexico and canada, we retail cars that come from all those markets, and if prices were to go up, selling

prices, volume will come down. and ultimately that hurts us >> i have to ask you a question about your uk operations which i didn't know this until today about 23% of your total revenues your seeing any impact from brexit or concerns around brexit >> absolutely. for about the past year. same paradigm as the u.s. business consumer confidence is what drives auto sales. and with this lack of clarity on brexit, which i'm not sure anybody understands at the end of the day but the lack of certainty there has really hurt new vehicle sales in the uk for almost a year now. >> what's the product mix? trucks, suvs versus sedans is the sedan toast. >> yeah, it's truck. truck and suv, i should say. in markets like texas for us as much as 80% truck and suv. overall closer to 70 obviously, that's u.s. not the uk >> that's what i'm asking.

>> yeah. but, absolutely. i wouldn't say sedans are dead, but it certainly is a slinging pa -- shrinking part of our business >> sergio was smart about abandoning cars and going trucks >> yeah. absolutely can you hear that from ford too and obviously a lot of talk about sergio this week he was an incredible leader and we are amazed what he was able to do. >> earl, thank you very much always good to see you, sir. >> thank you very much for having me. >> thank you very much one of the stock stories of the day. cyber security firm tenable taking off nae ver 30%. teblceo will lay out his plan next. is

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amit, great to have you with us. congratulations on the debut. >> thank you. >> you sell software that helps business and governments monitor cyberthreats tell us what the environment is these days it seems every day we open the newspaper and we hear about utilities hacked by overseas bad actors effectively giving them access to the infrastructure what can you tell us >> tenable is a company which is the only provider of software that enables you to understand what your technology footprint looks like and how and where the technology is exposed. where are you vulnerable and understand what that means from a risk perspective because today -- today cyberrisk translates into business risk. >> yes and your business operates by subscription, correct? you you migrated to the subdescription model, a recurring revenue some point out that the sales and marketing has increase the in the transition

you have seen pressure on gross margins. can you give us guidance how much more you spend and how you hold to the gross margins. >> tenable has had a fantastic transition from a perpetual based listening mod toll a subscription model now we see almost 90% of the revenues coming from recurring revenue sources, subscriptions, customers on our cloud platform. and we believe that this is a trend which will continue and continue to have that type of visibility and insight into the growth profile of the business going forward. and as long as cyber security remains one of the foundational issues of our time we believe that there will be tremendous appetite in market for understanding what your risk and exposure looks like. >> you raised a bunch of money today. what are you going to do with it. >> well as the company has grown and grown aggressively the last several years we run more and more, larger numbers through our financials and so having a little bit of strength to the

balance sheet is -- is fantastic. we are going to continue to invest in the growth of the company because we see tremendous opportunity. >> what does that mean. >> does that mean more sales people, more servers you are investing in the company? the money is directed towards what. >> yeah, the company is -- and we'll continue to invest in the go to market, the distribution, the expansion of sales team, the partnership with chnl programs we have invested significantly in research and development. we have one of the most beloved pieces of software in the entire industry we want to make sure we remain on the leading edge of identifying the exposures and risks. we have a fantastic customer base we want to make sure we do everything possible to protect them. >> as luck would have it, amit, i wrote on the next to the coveder of the company and the day i was there and it was

ivanka trump you tell jack he is just as good looking as she is. but at any rate i asked him this question i asked you why go public? why go public as opposed to staying private? obviously you have two big vc firms that want to get paid. that's one reason. >> tenable has a fantastic track record as a private company. we have continued to deliver fantastic results. we have expanded, becoming one of the most trusted and beloved brands in cyber security and a fantastic customer base. 53% of the frrn 500, more than 25% of the global 2000 going buc public -- and i believe that only the best and highest performing private companies have the opportunity to go public and that gives us a -- a spot on a much larger stage to be able to tell our story, and to help the market appreciate what we can bring to the table and so we think it's a fantastic opportunity for the company. >> all right

amit thank you very much for joining us appreciate it. >> great thanks for having me. >> amit yoran of tenable. >> facebook continues on track for the worst day ever we will dig deeper and show you the red hot tech names you might have missed when everyone else was betting fang the second hour of power begins t oeridofhisht break. keep your insights from prying eyes, so they won't be used by anyone but you. the ibm cloud. the cloud for smarter business.

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all right good afternoon afternoon. and well to hour number two of power lunch. unfriended, defanged facebook shares hammer on track for the bigds drop ever. other fang names taken down with it is it time to exit or will amazon save the day with earnings after the bell today? tech has been the biggest catalyst of the bug run but the market is power ahead despite the tech wreck we go inside why the face plant for facebook is not taking down the market zbloop shares of biogen battered even though it beat expect ace on the alzheimers study the company that partnered with biogen on treatment. we will examine what's going on. and the second hour you have power begins right now

welcome to power lunch i'm i'm michelle caruso cabrera. it's higher the first third strait day nasdaq however seeing the biggest drop in more than three weeks. a decline of 1% or 77 points because of facebook as tyler just told but. big earnings movers, mcdonald's lower. lower earnings beat estimates by u.s. sales growth off by 2.5%. the parent company comcast is rallying the profit beat specking thanks to growth in the broad band division. hersheys is rallying the chocolate maker beating on the top and bfl and also boosting dividend by 10% and also raising prices to offset higher costs. melissa. >> thanks, michelle. i'm melissa lee we begin a divided market the facebook plunge is dragging the nasdaq down about 1% bob miss missien y

and fang stocks outperformed but this week the pattern reverse add bit. >> just a bit. if you look at essentially the nasdaq 100 the qqq relatively to equal weighted verse of the s&p vastly outperformed the triple q is up 15% on the one year at the very end of the charts coming together a little bit clearly it's a very fresh trend. i'm not convinced it's a whole sale move. but it's impressive the way the accurate mathematic is absorbsing the losses. first netflix and now facebook and essentially remain on its feet in balance. that it is the big take away. >> i have railed against the objection to fang stocks to no avail .equal rated s&p is below the high and there are signs the other stocks are doing ihle well the other question is whether value gets interest?

the value has been a mess for years. everyone wanted growth stocks particularly the fang names. there you can actually buy value etp and growth etp the growth line is up 13%. bottom line the value that's completely flat that's because the fang stocks in the growth. the energy stocks and bank stocks they are the value stocks have been struggling my only question are female finally going to start paying attention to the exxon or jp morgan the old classic value names. >> that's a big question i think, pete you have to have some rea assurance probably that in fact we are not seeing a cycle peak in the earnings picture pause that's whoa you want to own value when the cycle is on the upswing that might be what it takes. you hear about people tag o talking about the value indexes if not value investing is broken or out of step. >> one problem with the value versus growth it's the definition is squishy.

used to be value is stocks below the intrinic value or cases. it's been underperforming may not be true value in the warren buffett way it gets tough with the games. >> all right within guys thank you. bob pisani mike santelli. >> bob and mike talking about the fang stocks we are talking about them more. if uchb living under a rock facebook, amazon netflix and google now alphabet they get all the attention but there are less sexy tech stocks outperform the prominent cousins. that's what dom looks at. >> i guess is tech really that unsexy if you compared to some of the names like netflix it is. but these are growth like bob and mike have been talking about. they are names forefront in the traders and investors minds the past few years and arguably since the end of the financial crisis if you look at the overall sector year to date the nyse

fang index tracking the stocks you just mentioned on a neertd basis 31%. that's not anything to shake a stick out. it's god 31% upside but of course netflix 1 point more than doubled. pulling back a bit now of course facebook today but check out other names on the tech side that are not perhaps the ones you consider hugely massive parts of what's going on with the overall tech picture. but they are impressive. microsoft shares down today. but you can see they are moving pretty decently to the upside. microsoft doing well there another one semi conductor stock nvidia one of the best performers over the past two years. also look at that and done well. and that here of course is one of the ones we talk about often twitter. it's having a down day today it's worst day since july 9th. but earning earnings one of the stocks that outperformed many other parts of the tech stock market of course working off a lower

base argue bring but tyler these are names traders are looking to see if they can keep the moment up. >> thank you facebook and the fangs have been favorites on wall street a while. but is today's plunge a wake up call are we seeing a transition from growth stocks to value stocks? is this the leading indicator there. let's talk to the facebook investors tim see more and for miller and washington ceo. michael farr, a cnbc contributor. tim, michael you both own this stock. michael, would you like to get longer today or not so much? you are you processing. >> i'm processing. but i would buy it where i don't own it in accounts you know, it's 20 times what next year's earnings and i don't think there is much chance they are going to disappoint the levels that are reset. the thing that caught my off guard, tyler is i would have expected the market to have

really taken it in the next overnight. i leaked at futures this morning, expected them to see them fall apart, didn't happen so there is a message here and that is this market -- i've been worried about it in terms of valuation is giving in a resilient way. >> the damage is compartmentalized. tim the question to you, in the accounts in which you hold facebook would you add today, holding as you -- as you reassess or what. >> i think the story for fischer this is about disclosures. it's a governance issue. so yes i own the stock but, you know, i wonder how they deal with personal data. that to me is a factor that if you think about what is the product, what do they create it's our data. how do they handle that? ultimately think of the way the widget comes off the assembly line yesterday they toll us to have to back to the assembly line things tell telling us the product isn't fully built maybe we were overpaying for the

product. i think this is an existential moment for facebook. >> we could have said that on the heels of the came brain damage fallout yet you held facebook. why now is there a governance problem when there wasn't before when they let the developers have access to data. >> homd on that for a second because i think there is a problem for a rung time if you think about the security aspect of facebook but the disclosure of what management has been telling us about the core product i'm in the sure we have really heard from them. >> it sounds like you are backing away. >> back to the original question what do you do with it today. >> i don't think you need to do anything you don't need to dive in there. facebook tells us we are a community and we are sharing i don't think they've been terribleablily forthcoming in terms of how. >> you are hold going. >> i'm holding the stock for now. >> but tyler. >> it's down 20% today. >> most everyone of these issues about -- and i agree about the concern of the privacy and i agree with tim but every issue has gone away

whether it was the target stores data issue, or even if it was the facebook issue months aig. >> it's different. >> we see this. >> here buff the did he accelerating growth. >> michael that's different. >> you have dekrerlting growth. >> a breach at target data is not the core business of target. data is at the center of ffb's business right. >> that's why i think. >> that's why it's good for target and not facebook. >> as investors and users people on the internet what do they have like two thirds of the internet users in the world are actively using facebook. we are kind of i think getting more acustomed to note our data isn't avenue it's out there it's not a shock at this point. >> what if you saw fewer people going to target? this never happened. >> that matters. >> right people stop -- slowed down going to facebook that's the equivalent metric that's the concern. >> but they are also showing usership up 11% year over year

you remember in december they toned back the engagement model, the formula they used. if they can tone that back they can get people more engaged as well i mean, i just. >> michael, we have to think about this in terms of good companies versus great companies. and the premium or not we g i have to management if they are great they go beyond the scope of what needs to be done does facebook deserve a premium here i'm not sure this is something investors think about when evaluating. >> i don't think it has won the day. >> when the core product is data. >> does sheryl sandberg deserve her job how about mark zuckerberg. >> i'm not sure we're looking at companies it's a major governance issue does management know how they are handling the asset which is data. >> another question is, michael, why wasn't facebook more vocal or nudging -- no nudging when it comes to guiding lower why did we sit there on the fast

money last night and watch the stock plummet 20% because of the unprecedented guide down because by caught everybody by surprise why was it a sacrifice. >> this is so stupid to tim's point if it's not a governance issue -- these people -- i have to have the dumbest sort of pr advisers in the world at facebook. they've kind of boggled every one. >> what about the board? it's a public board on this too michael. >> yes. >> i think we're saying the same thing there is account alkt. >> they bunkled every crisis that could have been you know handled in positive ways melissa they should have been out there should have had guidance, should have transparency they are missing huge opportunities that i would think can take the market cap and i think this is what tim is saying too. the market cap would achieve the premium if indeed they would become like better more responsible citizens thp petition blew it. >> the board, the governance, transparency sharing information they failed on many fronts. >> yes. >> but still holding --

>> you're both still holders of the stock. >> the numbers are good. yes i'm holding. >> michael you're going to depart good to see you. you didn't say anything wrong. backup pu with we are. >> that was it. >> get him out of here. >> get farr out of here. fafr, out. >> great job, michael fantastic. >> tim, it's been three months to the day i'm told. >> yes. >> it says on the tefl prompter since the cnbc stock we have seen the see more slide. >> you are in the lead for electric. >> i'm announced to come talk about the draft on power lunch i go from first to second place within a matter of minutes so it's a long season. by the way, nick lowry good not only the best kicker of all time but a stock pecker he made a call with amd. he is the pace car which is where i was last year. by the way, i finished second. so. >> 21% is not shabby. >> that's good in three months. >> we are pleased with where we are. >> and a gap between you and o'leary. >> that's refreshing

i'd be lying if i said -- kevin that's a compliment obviously. you're the man on top. >> thank you, tim. >> second quarter gdp out tomorrow expecting a big number but this morning economic data may suggest otherwise. steve leastman here with the rapid update on the economy. >> it's the number everyone is talking about. the president talking about it the treasure secretary talking about it the president just saying that there is a lot of predictions including some with a 5 on it that's correct let's look at the median 12 economists we have appear median 4.1% but it's 3.8 to 5.2% look at the 13 quarter not only interesting we get the outsized number in the second quarter but hold a bunch for the third quarter with an oversized number there too. if you think about the trend 2%. now 3.1. the estimate is what we hold on. here are the estimates barkleys has the highest number. we had data talk about that in a

second but they didn't change amherst. 4.7. moodies does the forecast with bank of america and goldman and 4% and atlanta fed came down a lot at .5% deutsche bank mufg at 4. % the advanced numbers for june were walkerer than expected. this means the gdp growth for the quarter is now less likely to reach 5% but still good there is one-time items in here. let's talk about those bounceback from the 2% number in the first quarter. some tax cut effects those could be permanent but also stock piling, imports, exports ahead of the gchd -- ahead of the tier tariffs slapped on that could help gdp 37 guys there is more on the line than is maybe answerable by the data. >> quarter by quarter. >> yeah. >> where have we been tracking the past 12 months. >> about three. >> no, around 3%. >> around 3. >> tomorrow's number is needed

to get it up to tlie we have been just under 3 over the four quarters. that's a good question, because all the work i've done shows the best way to know what the really the number is because you know these numbers are getting revised threes times, four times over five years. the least err are err prone number is the 4th quarter average. about 2.8 right now. but my point is there is a lot of expectations. the president is saying this about the tax cuts. >> the democrats say it's the one time items it's in the middle. >> what are the estimates for q 3 and 4? >> the average of estimates are 3.1% the overall things we can't actually do 3% this year the question you have to ask is how much is all the additional spending from the government how much of that is sort of disorganization eras o -- disportions from the tariffs i think the if the administration is right the best it can do is half a point to an extra percentage point to

uplifting to problem growth towards 2.5, 3%. >> steve, thank you. >> pleasure. coming up whisky sour about trade. one group calling for deescalation of tensions we talk to an insider. it's been three months since the cnbc stock dropped the kicker taking the lead over mr. tim see more will he hold on? a look at his picks. but biogen giving the presentation now they are confused biogen shares lower the shares in japan also lower we get clarity from them live. but it's not kayak confident. kayak searches hundreds of travel and airline sites to find the best flight for me. so i'm more than confident. how's your family? kayak. search one and done. my dbut now, i take used tometamucil every day.sh it traps and removes the waste that weighs me down,

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plus, get $150 dollars when you bring in your own phone. its a new kind of network designed to save you money. click, call or visit a store today. welcome back to power lunch. it was the day the medical industry and investors have been anxiously waiting for. biogen and the tokyo based partner unvaulg results on the alzheimer's drug the headlines was that the stock was higher but then took a difficult following the presentation the question is why. meg terrell here the answer. >> well, guys at first blush the rmt daft looked good tp it sloped a progression of the disease by 30% more than

investors expected more over the drug significantly cleared amyloid plaque build ups in the brap. but as the partner eisai presented the data yesterday in chicago, a number of questions emerge p. first the 30% improvement por the high does was observe on new measure of cognition over the ability to think clearly and remember things combining several accepted scales pop on a commonly used measure it wasn't stisktically significant secondly the lower doses didn't work it became clear the high dose group performing so well had significantly fewer patients in it with the genetic mutation it raised questions about other groups including the place bo group declined faster with the mutation a lot of questions raised by the data. >> meg stick around now we are joined for the poufr lunch tv interview with the u.s. chairman and ivan chung gate to be to have.

>> you great to be here. >> there are a lot of questions surrounding the 12d how it was carried out and studied. why did biogen why did you go forward with the strd fashioned in this way rather than before. >> eisai has been development for the drug since 2007. and naturally this trial we talked about started in 2013 at that time we do not know what the right doses would be for this drug. at the same time, we also understand there are millions of patients and families waiting for treatment for this dread disease. therefore we created this adaptive trial design which we want to allocate more subjects and patients into the best doses. that's the genesis behind the study. >> i think the core of the question is that, you seem to

have moved the goal posts. >> um-hum. >> everybody has a set of goal posts this is what you measure against. >> right. >> instead you are measuring over here. why. >> now, let's talk about add coms ob the end point. it's a composite of the key elements of three well validated traditional measures why do we do that? because the well validated traditional measures were created to detective improvement in later stages of alzheimer's disease treatments such as the one that eisai introduced 20 years aig. we understand we want to detect improvements now in earlier stage of alzheimer's disease patients because we are looking for disease modifier imagine the patients many yeerps later in terms of on set of more severe symptoms. to detect the more milder changes in earlier stages of

disease, we have to take out the key elements of the well validated measures that are early sense to it earlier tajs and the innovation heres >> when lynn cramer your head of neurology i believe presentlied the data he said it's a positive trial. this is the firts first time we see results like this. but he you see the reaction and universally analysts point out the genetic imbillion. do you think the street is overreacting is that an unnecessary concern or is that a legitimate concern. >> i'm not in a position to comment on other people's opinions but here at eisai along with our prrnlt we are confident about the robust necessary of the results we presented, yes. the data hot off the press and we are committed to do additional subgroup analysis to shed the light on this question you just mentioned and we are very committed to providing clarity as soon as possible because we have

confidence. >> does that additional analysis, the additional studies push out the launch of the drug in your view. >> definitely not. first of all. >> definitely -- you say that 100% certainty. >> yes. >> because we are confident with the robustness of the data -- and actually in any standard statistical analysis like in this trial, we test the results. we verified the results against a number of prespecified factors that's incarpeted in the statistical analysis in april e 4 status is actually pretestified. >> what's did -- what's next what do you do next. >> we have to take such a ground breaking data to the regulatory authorities like the fda to understand the best path forward. what requirements will be there in terms of analysis, clinical trials so we can bring bantu to patients as soon as possible. >> what would you say to people with alzheimer's who may be

watching in and out. >> let us do the work. we are committed to bring the disease modifierer treatment to these patients and families. i urge a bit of patience and we bring you the results. thank you. >> houpg do we have to wait until we get the subgroup analysis of the april e 4 patients. >> i can't provide a time line but i can say the team is working hard since yesterday on this specific request so very soon i would say. >> those are the patients with the genetic predeposition to allison heim zbleers very briefly i know we have to go some people point to studies showing the patients do see a faster decline in olson heimers progression than people who don't have the jenn et he can mutation does say xia agree with the studies. >> it's well-known that's a risk factor for the on set, the age on set of alzheimer's. progression, i don't think interests a clear answer out there with our partner biogen, the trial, the biogen team did a

similar analysis and did see essentially no difference between the treatment effects of the april e 4 care for us the other in the biogen previous study. >> that's interesting. because that's what a lot of analyst pointed to thank you for joining us processes i van chung, the chairman and ceo of eisai. meg terrell. >> thank you meg, facebook taken taking down the fangs but will amazon save them the company out with earnings after the bell how to tradehastk xt tt ocne

time now for trading nation. let's look at amazon falling nearly 3% and tracking for the worst day in a month this ahead of the earnings after the bell how do you trade amazon into the marc david is with cowen and mark with strategic welt partnering mark what are you doing. >> amaze isn't a must own in any portfolio. we like them ahead of the earning. industry trends are strong company fundamentals good. consumer welt has never been higher household des is service is below the historical average

the consumer has the ability to spend and amazon will be the primary beneficiary of that spending tp it looks like prime day was jet yet another success. estimating 3.2 billion in revenue up from $2.4 billion last year. they have now over 100 million prime subscribers and they spend as much as five times as puch and then awk owe s, the main operator of revenue. q 1 was up. >> aws stands for amazon web services cloud business, making a ton of money there it's been a plus for them. >> yes. >> obviously you're bullish as we see the stock move lower ahead of the numbers why is it moving lower is this in sympathy with facebook. >> the whole group has had little quirks during the reporting season it's a must enown. you buy the stock. it's all about the revenue the number be and the revenue estimates for next quarter i think, you know, the only

thing the street care base with amazon right now is they have top line acceleration. they see tom line growth for the investments they are making in laying out capital for and this is notan earnings story it's growth. and that's what people are betting on $53.5 billion have expected for this next quarter. next quarter is 48 billion hopefully we see guidance above the numbers or we'll hit the above the 53.5 billion it the stock should work well. i'm not concerned. for a long term perspective you buy any dips like this this is a long-term play. >> two bullish guys on amazon. of course you can suffer if they miss a big way as we have on facebook for more trading nation head to the website or follow us on twitter at trading nation. coming up, the whisky industry taking a shot at the white house over trade what they want the president to do coming up next you always pay your insurance on time.

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. hi, everybody. i'm sue herera here is the cnbc news update. bipartisan support for deputy attorney general rod rosenstein by the house leadership. this after a group of conservative house members moved to impeach rosenstein. we begin with house speaker paul ryan >> do i support impeachment of rod rosenstein no i don't we shouldn't be cavalier with this process or term number one, number two i don't think that this rises to the level of high crimes and

misdemeanors, from a really high standard. >> rosenstein is a republican appointee. he is appointed by the president of the united states and the attack on rosenstein of course is an attack on the mueller investigation. >> about 80 oh migrants stormed border ens fesses separating northern spain from morocco to get into europe. they cut holes in the fence as threw skin irritants at police officers trying to hold them back 132 migrants were hurt in the charge. you are up to date that's the news update for this hour. back to you guys. >> thanks much, sue. the oil market closing for the day. let's get to jackie, at the commodity desk. >> crude provides catching a bit of a bid on the news the saudis temporarilien suspended oil shipments because of the attack by yemen iran aloan rebels in the index wasn't higher traders think the report would have taken it through $70 a barrel but this that didn't happen.

the high at 69.92. while crude dame came down it's under 70 up more than 2% a we can still seeing a 15% dane year-to-date. >> let's talk about like are today in louisville several whisky related trade groups call for the deescalation of trade tensions immediately because last year you a lone kentucky exported $450 million worth of bourbon. but now it's become hit with tariffs from china and europe. 25% in europe. mexico has 25. china has 25 ktd with 10. joining from us the meeting is eric gregory president of the kentucky distillers association. good to have you here, eric. >> thank you good afternoon. >> you give this meeting a pretty cheeky name you call it the w 9. i assume that's a play on the g 8 or the g 7, right? >> g 8 or g 7.

we are now the whisky 9. >> what's the point of the meeting be the message >> we pass add resolution today unanimously that did two things. first of all, it applauded the announcedment yesterday from president trump and president juncker that they were engaging in talks to deescalate the tariff situation, welcome news for everybody here secondly to call on them and all the countries impacted continually timely dialogue to remove the tariffs as quick as possible especially those on spirits exports. >> the tariffs are in place right now. they recently went into place, right, 25% tariffs from europe we it that hit and what impact. >> 25% from europe -- well, our larger distillers haven't seen much impact yet because most of them had the privilege of stockpiling products overseas because they are large exporters really giving them a cushion weather watcher already heard in fact today from the american crafts spirits association that

it's having a short-term effect on the smaller craft distillers in the united states they are trying to get into the export markets and kind of open the door for themselves. and some of them are having things cancelled on them they are -- they have been investing a lot recently, especially with the gains they had in the -- the excise tax reduction in the tax bill and now they have no where to sell the product and really expand the model. from a long time perspective we were concerned about escalation of this trade issue. so we are very happy to see that that appears to be moving towards deescalation. >> what% of kentucky whisky is sent overseas just as a general% what does that translate to in terms of dollar volume is this up in one. and number two you must be pleased that it looks like there is a truce with respect to tariffs in europe and that those tariffs will be suspended at least for now. i note that the uk, germany and

spain are tlae of the biggest markets for kentucky spirits >> that's absolutely correct and, yes, there was a lot of optimism in the room today when we met from all nine oranges kentucky exported about $450 million of bourbon last year and almost half to eu countries. it's been rising more than 10% over the past five years in fact from 2016 to 2017 it rose about 23% that's really been a growing market for us. and it's part of the reason why we are in the middle of the $ 1.2 billion-dollar building boom building tour imts centers and boltsing line to meet the growing 30s for global bourpen. >> at what point do distillers decide i'm not distilling as much whisky because i think the future demand is dented by tariffs? >> well, each distillery has to

make the decision on their own the blessing and curse of kentucky bourbon is you can't make it overnight. the bourbon that's in the shelves right now was produced six, eight, ten or 12 years aig. each company will be looking to see how much inventory they have in kentucky. how much was designated for the overseas market and make a determination you know sometime in the next six months to -- whether or not they have to cut back on their production, which really then starts a trickle down effect that could impact the hard working farm families, the cooperages, the hospitality industry and you name it we have been building a great market in kentucky production is up 250%. we have heady to see this unexpected twist come our way. because it's kind of, you know, be a cold blanket. >> we love it here all arthro. >> bourbon with a wift. >> sounds good. >> eric, thanks. >> eric gregory. >> thank you. >> i used to king a football for a living now he kicks everybody

else's you know what. >> behind. >> in the cnbc stock draft the question is will it reign last from kicker to picker joins us next live. -omar, look. [ thunder rumbles ] omar, check this out. uh, yeah, i was calling to see if you do laser hair removal. for men. notice that my hips are off the ground. [ engine revving ] and then, i'm gonna pike my hips back into downward dog. [ rhythmic tapping ] hey, the rain stopped. -a bad day on the road still beats a good one off it.

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well today marks three months since the cnbc stock draft on power lunch the current leader is former kicker nick lowry up about 27% overall led by choice of amd up 66% since the draft. amazon up about 20%. amd earnings beat yesterday and amman reports after the bell today. we are joined by nick lowry who is in scottsdale, arizona with where it must be about 115 degrees, right. >> almost as hot as amd. >> almost as hot don't count your chickens. because last year amd was a pick of another nfl player, charles whey it was noway for kmarls.

why do you think amd holds the gains. >> i was thinking about the nfl analogy kevin o'leary andy that on stock draft day amd is like the place kicker for the san diego chargers last year that missed a couple of key field goals early in the season, confidence lost, regained some confidence and now this guy is coming back. he is more muscular, confident the analogy is the amd was the promised of graphic processors and now the graphic processer has come out and fulfilled all the promise. thefr great with the back to cool new notebooks 27, 25 different types of notebooks amd is fulfilling the promise at lyssa sue would say they have a game plan for dominating for years to come. you'll see acquisition of ai

like invite individualia. >> the notebooks appear chrome books are hot. my son has one let's talk about amazon and then to goldman sachs, the last pick. what are you looking for from amazon you must be happy you don't own facebook but very happy on amaze zbloon very happy. facebook and the other technology- -- social media apps have a limit and upside in terms of advertising amazon has almost no limits. every business has limbs don't get my wrong but amazon can help so many types of businesses. and they've created a new model which i hope the post office can look at and order from when i orders the nfl footballs to stay with nfl in the new season i can get through amazon a bunch of footballs to sign for charities that ask for them. that day or the next day amazon has a culture of service, has infrastructure and technology that's innovative and is the standard. it will come nature.

-- i use the word can't balancize at the stock draft he will can't balancize other industries because they have something everyone needs. >> what's is going to take to get the financials like goemds moving. >> they have a new ceo it's like adding john gruden back to the raiders. we wonder whether he is ready. but he is he is going to innovate, particularly with technology and while goldman sachs and that sector is not doing well that's my conservative part probablyfare the last part of the last couple of months maybe back in december january, february before the super bowl to win it out. we have to have that i think he is innovating in erms it of the workforce with women and in terms of technologies itself so i feel like it's a good conservative thing to equalize and balance the portfolio. >> how is your old team the chiefs going to be under the new quarterback patrick mahoney. >> he is going to make mistakes but so many unbelievable plays

those will counteract. i think the chiefs will be great especially with sammy watkins. speaking of great investments in your attention i mention ken life sciences i'm biased as the spokeman but we are close and poised in the process of going public. may have something announced next we can. and we are the only and very first pharma company with already patented molecules in the cbd space for opened oids and cte. for me and brothers and mike clark and other players and the future of the best game in america in nfl this is so important. i'm grateful to be part of it. >> we look forward to more nick, thank you. and hang in there. keep up the good work number one in our contest. >> more to go. >> one of the largest operators of outdoor shopping centers in america out with earnings. the stock is off well off session highs and struggle for the year the ceo gives us the pulse of the pulse of the consumer and

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our next guest has a good pulse of retail and the consumer kimco reality is one of the largest operators of outdoor shopping malls in north america. after earnings beat estimates this morning the stock is up by more than 1% some of kimco's top tenants include tj max, wal-mart, and khols to name a few. conner, good to see you again. how would you characterize the trend going through the quarter versus the beginning of the year stronger whereby weaker, as we're anticipating possibly a 5% fringe tomorrow morning? >> when you look at tax reform earlier this year, retailers have taken advantage of that they told us they've been putting that money back into their stores as well as expanding their retail presence. >> the tax cut is helping the

retailer's bottom line is it it bringing in more traffic, though? >> when you look at tj maxx and what they've been able to do, their texting their customers with the trucks are coming in with new merchandise >> did you see the parking lot is full when the texts go out? >> look at what tjx is doing >> love going to home goods. >> home goods. i sit in the car >> my wife is a huge fan of home goods as well. it's a phenomenal concept. >> well, we can have a support group. >> and millennials are coming into their peak spending to boost retail sales we're seeing already. >> what are small shops compared

to smome we mentioned earlier >> it's true, there's demand for the small shop as well health and wellness is a huge growing category services is enormous when you think of hair salons, nail salons, medi spas. you see a lot of medical, too. urgent care facilities these are growing trends and we're seeing more demand from nonretail users so coworking facilities, apartments, hotels, they're coming to the shopping center as a location they think they can create a live, work, play environment. we've been aggressively transforming the portfolio really to meet what with we think is going to be the future of retail real estate. we've sold out of the northwest, really the coastal markets, that's where we see the pop jlulation

growth, the jobs are continuing to grow. >> so if you're selling, who's buy [what do they intend to do >> there's actually been a lot of capital formations growth in our shopping centers they're strong anchored by typically a tjx or grocery store. so there's a lot of capital out there on the side lines looking for high yields, and when you layer on top of that is depth financing that's available it's really an attractive investment especially if it's a stable asset. it's really assets that are very stable they're just markets where we don't see the population growing or potential redevelopment potential. loat's what we look for to unck the best in our real estate check please is next don't move oh yeah. no.

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the kwgsed documents to mr. snatter demonstrates the board instead of standing by the chairman did just the opposite to explain to the news media of what occurred. again this is after the board adopted that poison pill plan on saturday you can see the stock is slightly lower right now and we'll go through this. >> time now for "check please. >> 1$115 billion becomes the single biggest drop for a stock in market history. basically september of 2000. that's the bar chart right there. if you want to get an in-depth closer look, you can't read those numbers on there, go to cnbc.com >> how much less rich is mark zuckerberg today

>> $15 billion >> when you show those numbers there's some really scary dates in history the financial crisis >> all right, thank you. thank you for watching "power lunch. >> "closing bell" starts right now. afternoon and welcome to "the closing bell. so much on the uh-agenda today a market initially barred by positive trade reaction and then of course falling off the back of those facebook numbers. >> down 1% with the dow remaining positive, 0.5% doesn't have any of those faang names in there in case anyone was