i may buy more down here ultimately this company is going in the right direction part of the confusion is, by the way, with some of the accounting standards that are mucking with the bottom line. so i like it. >> joey. >> best buyback story in the financials is wells fargo. i think it's going to take out 60, which it hasn't done since february. >> great stuff, guys, thanks "power lunch" starts now. >> i'm michelle caruso-cabrera, not too hot, not too cold. overall the picture looks good are we in a goldilocks economy is wage inflation finally picking up in a meaningful way will all that good news get derailed by a trade war? china is preparing to be counterattack president trump's latest apple's march to a trillion dollars reflecting the rise of mega companies, but do these giants that are dominating the american economy have too much power? we'll debate straight ahead. "power lunch" starts right now

welcome, everybody, to "power lunch." i'm tyler mathisen stocks carving out modest gains on the back of that jobs report earlier today. a little soggy but maybe, as michelle said, goldilocks. nasdaq has been moving between gains and losses all day, right now down about 10 points check out some movers at the hour arlo technologies, the ipo of the day. arlo, shares of security camera maker soaring on its debut, up 27.33% cbs stock trying to make a comeback les moonves didn't address allegations against him on the earnings call yesterday and analysts didn't push him on it we'll speak with one of those who was on the call in a few minutes. and it's jobs day, a good day to have steve liesman with us over the next two hours of "power." steve. >> tyler, thanks

i'm going to begin with a really exciting report here, which is the first look at the cnbc rapid update for the third quarter not a lot of estimates in, just four you can see that we're starting off at 3.4 that compares with the q2 actual of 4.1%. atlanta fed 4.4. mike enguilty lung 3.5 and jim o'sullivan 3.0 on to jobs, weaker than expected july report that is actually stronger than it looks 157 versus 190 with the estimate look at those powerful may and june revisions 59,000 to the upside average hourly wages a tick more, 0.3% than the estimate of 0.2%. and there were several one-off factors that might have biased the number lower one, toys "r" us layoffs of 32,000. that could have been a negative. low response rate to the survey,

and a big perhaps seasonal decline in education we haven't seen a july like this in both private and public education services in a very long time. so here's where the jobs were. leisure and hospitality up 40,000, manufacturing 37, temporary help 28,000. construction, despite complaints we can't find construction workers, up 19,000 there's retail up just 7,000, perhaps lowered by the toys "r" us layoff. economists caution investors have to be wary. it could be the beginning of a trending and tariff troubles in the future could depress job growth take it altogether and most economists see little reason for the fed to alter its course of hiking twice more this year. on track. >> so with that tiny increase in wages, we don't have to worry about them getting more aggressive. >> it's still 2.7% year over year and we're not making much ground up over inflation 3% to 4% is a number the fed should be comfortable with in

terms of wage growth. well, the dow is gaining nearly 100 points right now. let's go bob to bob pisani at the new york stock exchange. how much of this is bought the employment report was not too hot and not too cold. >> three-month average, 224,000, that's amazing for a late cycle. i think that it's a bullish report overall and modestly positive on the stock market it's been a very choppy week here, some winners and losers. we have talked endlessly about the commodity costs. kraft heinz had a decent report. clorox had a decent report this week kellogg -- that's a 52-week high, $72 on kellogg so we bottomed a bit on the consumer staple names. another one i haven't talked about recently is the retail space and real estate investment trusts they had decent numbers overall. they're notably up this week

they weren't all reporting today. last couple of days. that's been a real turn-around for that space not helping the stock market is oil. we can't get above $70 we've had supply concerns. it's been crummy for all the big oil names, anadarko, eog playing the selling on the trade fears did not work we are near new lows on volatility, and tech sentiment remains bullish. we have seen modest moves in some of these names, pharmaceuticals have done well, but tech remains the dominant story. the vix, we're at a new low for the year sitting below 12. back to you. >> all right, thank you very much. a trade tantrum escalating yet again. china hitting back against president trump's latest tariff threat targeting $60 billion of american-made goods. it is a long list of items kayla tausche has been reading it what can you tell us, kayla?

>> luckily i had a little bito help because it is a long list and multi layered. they are targeting more than 5,000 products with tariffs ranging from 5% to 25% on a range of items in response to president trump's upping the ante earlier this week signaling that he would consider more than doubling the tariffs that he would place on $200 billion on chinese imports maybe in the next month or so some of the notable items in china cites 25% tariffs on as per tame, communion wafers, tires and textiles 20% tariffs on crayons, pencils, pens, golf clubs, contact lenses you can see it's a wide range of items that crosses a bunch of different industries in all the items comprise about $60 billion in u.s. exports. so while it is meaningful, it is smaller than what the u.s. is targeting of china's imports to the u.s. the heightened tensions between the two countries come amid reports that the two countries had been engaging as recently as

this week. i talked to a senior administration official and asked him to characterize that engagement, to which he made the shape of a zero with his hand, acknowledging that there had been a phone call in recent days but that that one phone call was the only phone call that was made after a month of radio silence and that that phone call did not resolve anything between the two countries. as for the president's overall impression of china so far as this trade dispute escalates, this official said that the president believes china has unsatisfactory in its response and that its behavior is potentially only getting worse guys >> kayla, thanks very much the fear over a trade war remains a big cloud over the american economy despite that, the market keeps moving higher. let's bring in ron temple of u.s. equities. david lafferty, investment

manager. let me start with ronald ronald, you heard what bob -- hopefully you heard what bob pisani said earlier, that it has not been profitable to play the downside on trade. how have you been reacting to it, to these trade headlines >> i think it's too early to react to the trade headlines it's interesting, when you look at the market lately you've heard a number of companies talk about wage pressures but haven't heard as much detail as it relates to trade part of the reason for that is a lot of the tariffs are just put into place during the third quarter. july 6 was one of the key implementation dates we had steel and aluminum tariffs earlier, washing machines and solar panels, but i think the companies are still figuring out what an impact it would be on their operations ceos are not known for talking down their own share prices. >> david, same question for you and i'm going to put you on the spot because i'm going to do this sometime next week when i get some time with a spread sheet. have you ever gamed out the idea

what if you bought each one of these market bottoms created by trade. would you be richer today? >> you probably would be the reality is, the market has been moving forward in this two steps forward, one step back fashion. i think when you think about the effective trade, it really matters what the overall economic environment looks like. we are not talking about trade wars in a 1.5% to 2% u.s. gdp environment, we're talking about the potential for trade wars in a 3.5% to 4% gdp environment so i think that's why the market, as bob pisani mentioned earlier, has been able to move higher it can hit you in the stomach and knock you off a little bit, but in a world that's growing at a reasonably good pace, i'm not sure the magnitude of these discussions is able to up-end the market just yet. >> ron, david just said we're making two steps forward and one step back. a year from now are we going to be stepping forward or stepping

back a little? >> i think i have a more skeptical or negative view of what could happen on trade i do think this has been a consistent position for the administration, the protectionism or should i say fair trade and free trade basically that we need to work towards a level playing field. i am worried that we are embracing protectionism and it will be a creeping lurch towards protectionism. so i do think in a year this will become increasingly important. i would just highlight -- >> and to underline, that means the market will be lower it was a market question where are we with the markets in a year it's lower because of trade? >> it depends on the path we take if we go full on in terms of the next $200 billion of goods and services and what we do with autos, which it seems we have a truce with europe and other countries on the auto front. if we go down this path, it's important. many of us, our first propensity say how much of the tariffs relative to gdp. what really matters is how much of the tariffs relative to corporate profits and what does this do to corporate supply

chains i think that's very hard to assess and it could be more disruptive than many analysts think at this point. >> david, what would you do in light of the concerns about the trade war here or rising interest rates when you say two steps forward, one step back, what does that mean in terms of asset allocation and what you do with money? >> i think we're pretty cautious right now. to be clear, this economic momentum is pushing off the pain of the trade war but i think ron is right 2019 is a much different story you are going to have supply chains get interrupted effectively companies and ceos will begin to pull back on capital spending the fed is still raising interest rates we've been going from very deep negative interest rates to less negative, but money is basically still free that probably ends in 2019 the real fed funds rate is basically breaking through the zero bound right now you have a very messy brexit so we're not bearish, but we see enough slowdown, enough

variables that we think are going to be headwinds. and i think you need to be a bit more cautious. again, two steps forward, one step back is mildly optimistic, but what we aren't looking at is an economy in 2019 or 2020 that we feel is growing nearly as fast as it is likely to be the 4.1 in the second quarter and maybe 3.5 in the third quarter i think we probably naturally fade closer to 2% potential gdp. >> okay, guys. thanks for calling in -- joining us actually. ron temple and david lafferty. apple becoming the first u.s. company worth $1 trillion but it won't be the last several other big tech names are headed that way. which tech stocks may you have missed out on, should you get in on these plus les moonves avoiding questions about the sexual letis t calgaononhebs call. why didn't analysts press the issue? that's coming up on "power lunch. and american express has your back every step of the way-

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a more powerful way to stay connected. it gives you super fast speeds for all your devices, provides the most wifi coverage for your home, and lets you control your network with the xfi app. it's the ultimate wifi experience. xfinity xfi, simple, easy, awesome. apple's market cap hitting the $1 trillion mark but it may not be the only trillion dollar u.s. company for long. dominic chu is looking at other companies. we call them the mega stores or something like that, dom the corporate stores or something like that. >> the indominous rex.

that trillion dollar mark like you said could be attained pretty soon if you take a look at some of these companies they are the biggest ones in america after apple and we want to highlight them because it puts amazon scarily in second place. nearly $900 billion in market cap so about a 12% gain needed alphabet a 17% gain needed there and it hits that mark. microsoft about 21% and facebook given all of its woes over the past couple of weeks here needs in essence a double to get to that trillion dollar mark. you can see the trajectory of amazon.com shares over the last year and past few years, far and above that trend line for apple. it could get there pretty quickly if you look at that measure. if you're looking for specific numbers, when will it get there? take a look at these the share price for it to hit that trillion dollar mark is a

little over $2,050 per share it could hit it in the next 12 to 18 months because there's an average analyst target price north of $2,100. so 2050 is the number for amazon and that's when you'll get the $1 trillion on amazon.com. >> thank you, dom. we'll stick with technology because our next guest says he's looking at the tech stocks he should have bought while everyone else was watching fang. good to have you here. >> thanks, good to be here. >> so you're trying to create an acronym of your own. what is it >> it's raai, robotics, artificial intelligence. >> what kind of names would we invest in? i see here okato group it looks like that's out of london >> it's a very diverse group of

constituents in our index, but ocado is a uk-based online grocery retailer that is changing the landscape amazon recognized it would be great at e mif commerce and fulfillment so they have amazon robotics which has cut down the fulfillment speed to inside 15 minutes. this has brought about a robotics arms race to compete, particularly in e-commerce ocado has technology for warehouse grocery automation and they have partnered with kroger to begin to roll out this technology into their warehouses so that kroger can compete against amazon. >> it's up 175% year to date, so one, that makes me nervous two, do i have to worry about currency risks since it's listed in the uk? >> yes, you do have to worry about currency risks obviously it's been a big move but the network here likes to

cover the fang companies if you want to invest in the fang companies, you've not exactly early. you might be late here there's a lot of momentum in the sector these are great companies. but we think that this is the next -- you know, the new market really is robotics and a.i. >> if we put up that list again of the trillion dollar companies or those that are heading there, one thing stands out for all of them i wonder if they're part of your companies or separate, but they're all consumer facing. they have some kind of consumer facing a lot of the raai that you talk about is business-to-business at the wholesale level. can any of the companies that you're talking about achieve the kind of heft and what's the other word i'm looking for, the kind of story, the story that has captured the imagination of investors? >> well, that's a great question i think what's important to look at when you're investing in robotics and a.i. is catch the companies that have the highest

revenue purity and technology that helps enable their business a lot of fang companies are consumers of these technologies and they're not profiting from selling these technologies so if you're investing in robotics and a.i., you're not capturing this with the fang companies but they clearly are enabling their business for this direction. a couple of weeks ago google just said a.i. is the most important technology of our lifetime back in 2013, bill gates was saying he expected robotics tor more ubiquitous to computers and more with the internet. >> hold on >> i've got you. you're making a very compelling case and i get it. you have ocado group, coyoung technology, brooks automation. tell me what the relative market values of those companies are. because i take your point that to get into the fang stocks now, you may have missed 90% of the move there but the thing that makes people

comfortable is that those are large companies. they are established companies with meaningful market values and meaningful revenues. so tell me the size of these companies. >> the index is close to $5 billion. as it relates to these companies, brooks automation is $2.2 billion market cap, trades at 18 times earnings, for a similar margin amazon has. >> and kohyoung is how big >> 2 to $2.5 billion market cap. and ocado -- >> it's 7.3. i just looked it up. >> these are not puny little companies by any means they're of meaningful size all right, bill, thank you very much we appreciate it very much >> thank you. eight analysts asked questions on the cbs earnings call, but none of them talked

about the allegations against leslie moonves they had been warned off that at the top of the call. up next, we will speak to an analyst who got stuck waiting in the queue, didn't get a question in we'll be right back. you always pay your insurance on time. tap one little bumper and up go your rates. what good is your insurance if you get punished for using it?

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cbs yesterday refusing to discuss sexual assault allegations against the ceo, les moonves, during the company's earnings call. analysts were asked to speak to

earnings questions. >> in light of litigation and other matters and on the advice of counsel the scope of this call and any questions will be limited to the quarterly results of the company. >> our next guest was on the call, didn't get to ask a question joining us on the phone now where he will get questions asked of him is tim nollen welcome, good to have you with us was there a kind of surreal quality that the elephant in the room was not discussed at all on that call yesterday, or did everybody just kind of go he's not going to say anything even if we ask, so why ask? >> i think it's the latter i think it was made clear that this company was not willing to discuss it and i think we treated it as best we could as business as usual in the earnings. >> how much does mr. moonves' situation figure into your view of the stock in other words, how much value is being lost because of the situation he finds himself in or that he created for himself?

>> well, the stock is down, you know, 10 or so percent since this story broke about a week ago, so there's one simple answer i think les moonves has done a fantastic job at cbs in the time that he has been there, and certainly the strategic the company was taken with the diversification and growth that they have achieved i think are largely attributable to him. so it's easy to say that he is valuable to the company and there are actually, i would say, two issues here. one is what may happen to him and the other is, of course, what may or may not happen with viacom i think that these are major factors that are weighing on the stock price. >> did the board handle this well >> oh, i don't know if i have a comment on that, to be honest. i wasn't inside the board. i don't know what the proceedings were i will leave it at that. >> should he have answered questions about the situation? >> i don't feel like they will be able to answer the questions now until they have their

internal investigation sorted out and until the lawsuits between them and viacom are sorted out unfortunately, that's going to weigh on the stock for now. >> if you were able to ask a question on yesterday's call, what would it have been? and if they hadn't run that caveat at the beginning that said, boy the way, don't bother to ask, what would you ask if there hadn't been those rules put in place >> well, to be honest and to be fair, we have to understand this is a legal matter and i don't think they would want to put themselves in any risk on a public forum like this talking about these issues, so i wouldn't have expected any productive response from them. i had plenty of questions about the earnings, about the quarter, about the digital growth, et cetera, et cetera. they cut the call a little bit shorter than usual i don't know why but i think we were interested in the growth story, which was very good. >> tim, when i look at the price of the stock and the stock movement, it kind of goes along straight and then it dips down and it goes straight again there it is. it's up on the screen now, maybe

you can see it only one thing has dramatically affected the price of the stock in the last week or so and done so in a way that's kind of stuck. so i'm kind of confused why you wouldn't have a big very aboquen about this and whether or not they were going to put it behind them and some important answer for you about the price of the stock. >> or succession plans. >> we've got plenty of questions, it matters a lot. >> give us one. >> i don't think they're going to address the topic in this forum. i didn't expect them to. i expected that comment from adam townsend at the beginning when you have these things going on that have legal implications, of course you want to know of course it matters but i just don't think they're going to take this opportunity to discuss it. this came up a week ago, less than a week ago before the regular scheduled earnings call. >> you point to the health of the company and say the company seems to be performing well. the numbers were certainly very

defensible and pretty good but do you think the stock can move forward unless and until this matter with mr. moonves and the pending one of the merger between cbs and viacom gets resolved >> no. >> is this just dead money for a while? >> i believe it's dead money this is why we are neutral on the stock in fact and have been for some time, uncertainty over what may or may not happen with viacom and now much more recently, what may or may not happen with les moonves. i think it's very difficult to make a call on the stock when the fundamentals don't seem to matter, and that's unfortunate because the fundamentals are in fact quite good. >> what would be better for the stock, if les moonves stays or goes >> oh, he's done such a good job for the company thus far, you know, i would say investors are already punishing the stock on the prospect of him possibly leaving. so i won't comment at all on what he may or may not have done i will just say he has proven

himself valuable to the company. >> we will draw our conclusion from that and leave it there tim, thank you very much we appreciate it. >> thank you very much >> you bet. apple, as we've said, hitting a trillion dollar market value and several other tech giants could soon do the same. customers like the products, shareholders are making money, but do they have too much power over the economy we'll scs itdius, coming up. you always pay your insurance on time.

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hi, everybody, i'm sue herera here's your cnbc news update for this hour. las vegas authorities are closing their investigation into the deadliest mass shooting in u.s. history saying they cannot determine the gunman's motive. stephen paddock killed 58 people at a music festival last october. the report also said there was no evidence of conspiracy or a second gunman. houston's police chief says the man accused of killing former president george h.w. bush's cardiologist has killed himself. he says joseph james pappas might have within seeking revenge for his mother who died on the doctor's operating table 20 years ago >> this is our suspect the suspect is deceased. he committed suicide when he was

confronted by two members of the houston police department patrol assets here in the southwest division. a new study from harvard university said women who don't eat much fish during pregnancy may have a higher risk of delivering too soon. mothers may want to eat more fish or take a fish supplement. you are up to date i'll send it back to you. >> thank you, sue. all right, what a week it's been for apple the tech giant hitting a new record high one day after crossing the $1 trillion mark when it comes to the markets capitalization is this good for the economy, for workers, for society at large? not necessarily according to "the new york times. take a look at this article on the front page apple hits $1 trillion threshold. at what cost joining us to discuss, jared bernstein, senior fellow at the center of budget and policy priorities gentlemen, good to have you here jared, jared, jared, as i like

to say. >> i like when you say that. >> "the new york times" says economists are starting to wonder if firms like this are contributing tolackluster wage growth, the shrinking middle class. really apple is to blame for all of that >> it's not to blame, it's a contributor. but let me start by showing my new iphone 8x. so i want to be very clear there's a picture of my kitty cat on the front. >> are you getting a discounting on that now? >> no, i paid a fortune for that so my skin is in the game here look, there is now a body of convincing economic research that shows a connection between the concentration of firms like apple, we're talking about a firm that's worth 5% of u.s. gdp. i just think that's remarkable and it's associated with a declining share of compensation in the economy and, yeah, some middle class squeeze. >> is it correlated or is it causal >> i think it is a causal

factor, but i think it's one among many i think you teed the question up right. i don't want to say it's the dominant factor, the only factor, but here i think the causal linkages are particularly important. when firms get to be of this magnitude in an industry like tech, they squash some of the competition and there are monopolistic and monopsonlistic that hurt -- >> jimmy, it's not just in technology where you see this concentration. you see it in finance, the five biggest banks in this country are a lot bigger as a portion of the pie than they were years ago. >> right well, it seems like for over a decade we keep trying to figure out what's wrong with the economy and keep jumping from reason to reason it's too much debt it's the dollar. it's uncertainty in the economy. it's short termism, it's stock

buybacks now it's big companies, in particular big technology companies. i think it's awfully weird to be focusing on america's big technology companies which are the productivity leaders, where the best wages are, at a time of weak productivity and these are the companies we're focusing on. listen, the problem with this economy is very simple weak productivity growth, that began before the great recession. it's continuing. these companies are part of the solution, not part of the problem. and it's all these companies as part of a progressive political revival is profoundly weird. >> it's almost indisputable, isn't it, gentlemen, that over the past 25, 30 years capital has benefited more than labor. do we agree on that? >> yes, yes. >> so let me do the follow-up here that may have less to do with concentration of economic growth than it does with the decline of unions >> well, certainly that's a huge

part of the explanation, but i do think that the u.s. context can't be overlooked here so -- and by the way, i agree with a lot of what jimmy said in terms of the productivity. >> that's a global problem, that's not just the united states. >> of these leading -- no, here's the united states connection, jimmy. we have more pay-to-play politics in this country at the corporate level than any other country. >> have you been to brazil >> hold on, hold on. so when apple pays a 14.5% effective tax rate and saved $1.7 billion in their taxes in the first quarter of 2018, that tells you something -- >> are these companies not spending enough r & d for you? >> no, they're not paying enough in taxes. >> get better, get more innovative. >> they're not paying enough in wages. >> let me ask you a quick question to me this is fairly obvious

we make it a little more complicated than it should be. there's something about the technology that's out there that allows companies to make a lot of money and not hire a lot of people and i don't think this is necessarily apple's fault, i think apple probably pays its wor workers well above other companies. but the idea is that they make an awful lot of money. what that means is a lot more money ends up in the hands of capital. to me this is a global phenomenon in the sense that if you make an app today and it's a killer app, you don't win in new york, you don't win in the northeast, you don't win in america, you win globally and you win instantly. jimmy, it's not necessarily that it's anybody's fault but it doesn't mean it's not necessarily a problem. >> well, there's a few different economic things going on you have network effects where you have companies that become more popular and they keep on winning. you have the issue which you just raised in which you can create an app and have 50 people

be working for you and you can be worth $20 billion and you don't necessarily need to buy a lot of capital or invest in a lot of business. the problem, is this a problem is it a problem to be focusing on the companies which are -- listen, the rise in income inequality -- >> well, it's a huge problem, jimmy. >> the problem with income inequality is between really productive companies who use technology really well and everybody else the issue is not that -- >> you get a global rise in populism, jimmy, that's what you get. >> hold on. >> sorry jared, jared, jared, so sorry, they're cutting us off we have the leader of the girl scouts coming up jared bernstein and jimmy. not yet, first we'll go to rick santelli who's at the bond market. >> but he's a girl scout too at heart. >> hey, rick. >> i tell you what, the bond market has been fascinating.

going into central bank meetings, everything moved higher in yield. post, everything seems to be moving lower, it's just a matter of calibration may 1st, look at 10-year note yields pretty firm. hovering at the midterm of the high and low close of the year around 2.95. as you look at bunds, they're drifting away, continually lower highs. gilts hovering above 130 basis points it is drifting a little bit. now, one thing that isn't drifting, italian paper hovering right in that 3% neighborhood. many eyes focused on this. remember, if you're nervous about italy, usually sell that and buy a better sovereign which could be why bund yields slipped a little bit steve liesman, back to you. >> how interesting, thank you, rick. coming up, sportscaster lesley visser out with a book about her career in a male-dominated industry. and the quote on the front cover by les moonves

we'll ask her about that 159,000 jobs added but wage growth still poor. we'll debate the latest numbers coming up next (music) maybe i'm a division 1 athlete. or a father of two. maybe i run marathons. or a startup. or nothing at all. maybe what i do doesn't matter. maybe all that matters...is what i do next. peloton.

welcome back the black unemployment rate has come down sharply since 2010 from 16.6 to 6% today and the gap between white and black unemployment is also narrowing, hitting a record throw last month of three percentage points before ticking up to a still low 3.2. it's still three points above the whites and there are gaps at equal achievement levels several things at work, maybe bias, maybe family culture, community, but there's still that gap. >> let's dig deeper into those numbers with mark morial,

president and ceo of the urban national league and former mayor to new orleans mayor and joe, welcome >> great to be with you. >> what do you react to what steve just talked about there on those numbers? >> well, let me say that the numbers, of course, reflect a continuation of a trend that began many, many years ago it's continued job growth on a monthly basis, although this month a little bit down from what the average job growth had been and a continuation of the decline in the unemployment rate the obama years saw the unemployment rate for african-americans cut in half and saw the overall unemployment rate significantly rereduced that trend has continued but i am certainly concerned about wage growth and the ability of an average american to afford milk, bread, groceries, and things for their children.

that's what we need today. i am waiting to see the effect of the tax cut on wage growth. wage growth certainly is a little bit better than it's been, but it's not greater than the rate of inflation. this is what we need to really build the kid of 21st century economy the nation wants. >> joe, why don't you sum up today's report as steve pointed out at the top of the hour, this month's number may not have hit the expectation, but the revisions to the preceding two months i think were quite impressive. >> absolutely. talking about 224,000 jobs per month being added with the revised numbers, that's very encouraging, of course i agree that the jobs added in july were maybe a little less than we expected, but i'm still very encouraged by everything else that i see. i think we're moving in the right direction. i think when you look at all the other numbers that matter, the labor force participation rate is still at 62.9%.

the u-6 number continues to spiral down, now at 7.5. that's a good number that means a lot of these people who have been discouraged workers and people who have been working part-time for economic reasons, those people are going back to work that's a good thing. even within the labor force participation rate, what really excites me is the fact that something like 79.5% of prime wage earners, laborers, workers, are working. that's a good number that's near the all-time high of 80%. >> i just want to ask marc a question here. marc, the numbers are headed in the right direction, especially the narrowing of the black/white unemployment rate but that's not unusual as you get into an expansion. one of the -- it's a terrible thing to say one of the better recession signs is when the black unemployment rate falls low. all of a sudden you're just on the cusp of a recession because

the job market seems to be really tight i did some work and looked at unemployment by education levels and what you find is that over time, the unemployment rate of african-american with a bachelor's degree is closer to the unemployment rate experience of a white person with a high school degree. so i guess my question to you is are you concerned that this narrowing and the declined unemployment takes the eye off of other issues that are out there that are hurting black employment >> you nailed it the presence of implicit and explicit discrimination is still a factor how do you explain -- it ought to be if you have a college degree if you're black or if you have a college degree if you're white, logic suggests that all things being equal, that the unemployment rates would be near each other, close to each other, but that differential still exists we can't take our eye off of the presence and the need to continue to foster, if you will, a climate free of both implicit and explicit bias. the other thing i would say is i

am also concerned about the uncertainty that's been introduced with the chaos around all these tariffs. you can understand strategic uses of tariffs. but it seems to be a chaotic uncertain environment. i see a lot of nervousness i'm here in columbus where we have a lot of business leaders presenting, a lot of community leaders presenting the behind-the-scenes conversation is a great deal of uncertainty whether this growth and expansion will hold or whether the tariffs have introduced a series of chaotic events and the prospect of a retaliatory long-term war is what's being incented by these steps. >> mayor, thank you very much. joe, sorry we didn't get to give you the last word there but we're under a little pressure. appreciate you. when you mention the girl scouts, the first thing that comes to mind is the cookies, and we love the cookies, but the girl scouts are about so much more than that

up next, the ceo of the girl scouts will join us with more on their efforts to get girls into s.t.e.m. education stay with us when equipment is broken, it means lost revenue. trusted choice independent insurance agents offer special protection that could help replace or repair damaged equipment and provide lost business income. they represent multiple insurance companies and customize coverage to help businesses get back to work. announcer: to find an agent, visit trustedchoice.com.

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last month they launched 30 new badges focused in the s.t.e.m. categories of science, technology, engineering and mathematics. girls can earn badges in robotics and with us today is the ceo of the girl scouts of the usa and former you are really a rocket scientist. >> i was. >> i'm going to be careful here. >> names tell everybody her name. >> sylvia acevedo. i thought it was up there for everybody. okay so there is a break point for girls. they're either ahead of or equal to boys in math up until a certain age. what happens and what is that age when there is the break. >> usually we see that in older element and certainly middle school you see a break and what we realize is that girls to learn non-traditional skills or keep the interest that's where girl scouts does a great job and we excel

girls can learn the non-traditional activities like s.t.e.m. in a girl only space. it's okay to keep trying first time sometimes they are afraid to try if they don't succeed the first time. >> part of the reason for the badge system is you create the reward appear make it acceptable and encouraged the idea of studying the issues. >> yes, in fact girls are telling us now that they're very interested in cybersecurity. if you think about it, a large part of their life is in the digital world. they want to protect themselves. their security online. >> how do you get a badge in cybersecurity. >> because, i mean usually the system is in. >> talk to the boy scouts. >> you are in the group and have a den mother or whatever you call them whatever the. >> troop leader. >> she is giving a class on cybersecurity. how do you get the badge >> this is really great. we have a couple of partners,

palo alto and raytheon we work with them as subject matter experts and make sure it's relevant for different age girls. how do you teach daisies, 57-year-old girls in coding. if you say machine language 12k69 1 girls aren't interested. but we are teaching you the alphabet in beads. the first exercise is that you create a bracelet that is in the code of your initials. the girls learn that very quickly. the next thing at the present time to make a neckless with their name in half an hour they learned coding for a daisy that's how you learn that then you learn about cybersecurity basic. >> can i just said for the record michelle has been eating cookies this entire time opening another pack we need to point it out if we could get a close up there. >> i want to get a sense of how wuf the new badges, science, security, robotics announced july 17th. it's early to tell how will you measure success

what is the benchmark here and compare it to what -- i don't know the most popular badge today. tell me that. >> we have -- well the first question is how do we measure success? i'll tell you last summer we introduced 23 badges and space line badges they were incredibly popular. where we died what badges we create is listening to the girls. they want to learn about these topics they see what's happening in the world around them around environment, around design, around cybersecurity so we respond to them by creating bangs incredibly relevant so we already know that because we do so much testing with the girls that they're really excited. >> they're -- there is good uptake here. >> yes. >> what is the most popular badge. >> gosh most popular badge is probably in s.t.e.m. they have to do with some of the coding badges or science badges and then obviously the great outdoors and camping badges. >> how much of in is in response to the boy scouts admitting

girls. >> not at all. >> how do you respond. >> last summer we introduced 23 s.t.e.m. and outdoors. this year science and space badges we are focusing on what we do well. >> are you losing share because they can go to the boy scouts. >> absolutely not. what we see is focus keeping the girl in girl scouts and creating programs relevant. what they see around giving them skills to deal with 21st century. >> cool. >> thank you. >> thank you sylvia. >> thank you very much. >> and thanks for the cookies. >> you bet thank you. >> they're delicious. >> they are good what did you call those tag alongs. >> free food i got it here pay later. free food has been a big perk for the tech firms to offer employees. why some lawmakers want to take away the free lunch. shake shack falling today opening fewer restaurants. have we hit peak burger? second hour of "power lunch" is back after this.

when my hot water heater failed, she was pregnant, in-laws were coming, a little bit of water, it really- it rocked our world.

i had no idea the amount of damage that water could do. we called usaa. and they greeted me as they always do. sergeant baker, how are you? they were on it. it was unbelievable. having insurance is something everyone needs, but having usaa- now that's a privilege. we're the baker's and we're usaa members for life. usaa. get your insurance quote today. good afternoon, everybody and welcome to second hour of power lunch. i'm tyler mathisen the employment report falling a bit but the jobs picture continues strong manufacturing strong inflation seems to be under control, seems like we are in a

kind of goldilocks spot in the economy. but will a trade war cause goldilocks hair to go on fire. >> we will take a bite out of restaurant stocks this hour. shake shack among the biggest looser are we at peak burger or is this a buying opportunity. >> retaining and recruiting the labor shortage is forcing companies to incentize employees to stay. what are they doing and what's the most effective way to do it. hour number two of power starts now. ♪ everybody is working for the weekend ♪ ♪ everybody's wants a new. >> lover boy hit from my childhood. michelle caruso cabrera. positive day for the dow and s&p. nasdaq unable to eek out gains at the moment. despite the loss the nasdaq is on pace for the weekly gain firps in three weeks consumer staple bes, utilities and real estate leading the charge you can see the sectors higher

roughly 1% or more energy and industrials lagging but not much take two is soaring as sales for key games came in strong higher by 9.5% ibm adding 30 points to the do you up 30% sonos is high ner the second day of trading the speaker maly 33% and higher by 6.5% today. >> i'm steve leastman let's dive deeper with bob pisani at the new york stock exchange. talking about your comment in the last hour it's not profitable to sell the trade story. >> it hasn't and i think that's one of the reasons we are holding up so well and the fact that the jobs report put the three monthly numbers together, 224,000 pretty good growth for lake soim economy. it's choppy this week but some remarkable winners remember we gave up consumer staples for dead

look here process kraft heinz has a generally good report. yesterday the problems with commodities yesterday problems margin erosion color ox mentioned that but the stocks are up. and turned around. the whole sector up 10% in the last month after selling off the entire year. oil unfortunately below 70 we have all sorts of problems here with the iran issues with production being too high it's been an ugly week for energy overall this is a problem after energy was briefly a market leader about a month ago. taking to paul finding out his take on this i said generally technology bullish sentiment. but remember apple is such a monsters when you have apple up 10% and facebook up a little bit by microsoft down twitter is down a lot of other stocks generally down in the tech sector. as steve mentioned selling the trade fears hasn't been profitable more any other time volatility near new lows

tech remains bullish but some cracks out there watch social media like twitter that's been a problem this woke. and the momentum, still some of the momentum in the value names like transport banksen look at the vicks down almost every day. now below 12 right near the lows for the year back to you. >> bob thank you very much so what do you get when you look at the today's market axe in the context of the weaker than expected jobs report let's bring in senior analyst ron and sanna and our contributors. >> you are italian. >> i am. >> and my father-in-law would be proud of that fact to you, joe, first you predicted a 3% economic growth for this year i'm asking to you spin forward to 2019 and tell me what you see for 2019 in terms of economic growth and what does that imply for how i might invest smart for

the next year or two >> a lot of questions there, tyler. thank you. the economist in me is going to say it depends in large part what the fed does over the next six months if the fed goes slower than what they're currently telling us, tyler, then 3% growth next year is certainly feasible. if that's the case, then growth will probably do best because rates i'm going to say will be low and they'll continue to perform well however part of me does think the equity market having a record string of what will be now likely nine straight years of positive returns with dividends is sort of running a little bit too fast. but generally risk assets sudden do well if you have growth this year and '19 >> joe pinpoints the fed. >> you look at the today's number and didn't come in that far below expectations when you add in toys "r" us jobs puts you

back at estimates. the one thing i found interesting was the trade numbers were revised upward towards a larger number in june which means you could see second quarter gdp revised downward which might surprise some. that's not just the fed. but i think the trade war is while it hasn't bitten the stock market hasn't shone up in economic numbers 3.5 billion pounds of meat in kohl storage $1.5 billion pounds of cheens are kidney means stacked to the ceiling in the midwest with other kids thap that's a build up of goods invite net pfd for gchd that's unresolved. that's a slow moving train wreck problematic. >> joe when you look at the outlook for growth, is the third quarter a snapback downward from the fourth -- from the second quarter or can you continue at above potential rates. >> certainly, steve above potential rate but whether it's five now 4 and 44 from atlanta fed or 3

to me 378 something makes sense. it's so early in the quarter the inventory build should be positive this quarter after a drag in q 2. and some of that will be as ron suggested. but, look, the labor market as you know steve is healthy. generating job growth year on year at arndt 1.51.6 eye i'm optimistic at productivity growth up to a similar pace some evidence it might be accelerating a little bit final lyn whether it's 3 or 3 something 3 seems to be the near term number. again, what happens with rates and financial conditions dictates what happens beyond this year. >> do you change those numbers if the $200 billion of tariffs. >> no. >> at 25% kick in. >> why not. >> over retaliation. >> why not. >> i'm of the view as some of up other guests said this morning that the trade issue isn't a big concern. today that's been my argument all along. again, i look at this as a negotiation tactic it makes sense to do in the when the unemployment rate is low as much as people keep pushing it

the markets are telling you it's not a problem and i agree. >> what is the president negotiating is that clear to you. >> not this which. i know he is -- they want to talk about intellectual property theft. they want to talk about forced technology transfer. upgrading and updating the world trade organization rules something that's very difficult to do without europe, canada, mexico and others at your side even if you are fighting with china. where i would take issue with joe is that you know the strongest markets go last. we have seen china plunge rather precipitously. did he valleying the current oi on a daily basis it may one day stop buying treasure bonds and globally see download slowdown in the economy overall exthe united states. the blowback could take time. >> ron makes good points but these trends i would argue have been in place well before about we got concerned about trade issues and it's going to be very hard to. >> not the devalue of the yuan

would be surprising given the past years of excel fright that the yuan would weaken. >> i we -- i want to say this wung thing which is this which is that the president -- if wants to protect industries, those tariffs have to remain in place. you don't just put up tariffs. >> yeah. >> for six months. so this idea that tariffs are a negotiation is at odds with the idea of protecting industries. i think the market thinks the tariffs are up to go away. they wouldn't go away process the objective. >> unless the market -- unless the market thinks he is quite cleaver and he is hard to predict which is his intention i mean, he might actual -- he actually might know what he is doing. it may sound crazy but i might know he is the president. >> ron clearly disagrees >> steel jobs out of the whole thing i'm not it was worth. >> ron, joe, thank you. >> i wasn't joking we got to talk about food. shares of shake shack are getting charred today. get it after the company said it

would delay restaurant openings which weigh on revenue growth. it becomes the latestest casualty in a week of wreckage for cheese cake factory, texas roadhouse bowing of which said they have higher expenses. let's dig in with our straunlt analyst. >> good to see. >> you when i saw the news with shake shack. did we hit peak burger and you can't get more out of the once hot sector >> you know, across this group, you know there is no doubt that generally speaking restaurant sales are strained, having come in as well as expected during the course of the quarter. and in a period of time where we have labor costs that are accelerating and you know, costs of sales have kind of bailed some of the guys but for the most part margins are under pressure and it doesn't look materially better into the second half of the year. >> i can't see any good reason to buy into the sector you look at the three-month chart of s&p it's down while

most of the market is up, right. like you said, their costs are going up people are not eating out as much because the menu prices are higher maybe they don't see the value proposition will there. >> if you look at the business models remember if you are oar pure franchiser like a mcdonald's for example you have a defensive business model now is not a bad time to lean towards the more defensive business models going into the second half of the year and the the nieskes year the likelihood is the mrjen pressures rice if you're a peer company operator you have risk of greater deleverage versus the franchisers. >> i'm confused. because if i created a menu of the very items you would want to order up for the restaurant business, economically, i have 200,000 job growth i got decent wage gain of 2.7% economy growing 4.1%, how is it possible that the restaurant business is struggling under these circumstances. >> costs. >> well there may possibly be

too many restaurants out there at a period of time where we have too much supply in the marketplace these restaurant brands are bleeding. they are fighting each other tooth and nail there is the old axe i don't mean when mcdonald's sneezes the rest of the industry catches cold guess what that's where we're at and it's getting more competitive moving into the back half of the year. >> if you bought one what would it be. >> i like mcdonald's i like the defensive nature of the business model it's global same store sales trends are well diversified. it's a more resilient business and 2.6% dividend yield. >> even though it's down year to date you're getting paid thanks, bob. >> you bet. >> bob daring ton from tell c advicery group. >> form bill richardson on trade. the economy and his advice for the president for negotiating nafta. plus, recruiting and retaining talent what companies do to lure employees and the perks they

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you'll only pay $4.95. are you ready to take your then you need xfinity xfi.? a more powerful way to stay connected. it gives you super fast speeds for all your devices, provides the most wifi coverage for your home, and lets you control your network with the xfi app. it's the ultimate wifi experience. xfinity xfi, simple, easy, awesome. mcindicating they are prepared to impose tariffs on up to $670 billion worth of goods doesn't seem to impact the

markets much the s&p higher by 9. and the nasdaq right now lower by 4 points. the white house is firing back at china saying in part instead of retaliating china should address the longstanding concerns about the unfair trading practices. the battle with mchappening as the future of nafta still hangs in the air let's bring in bill richardson former governor of new mexico and former ambassador to the united nations under president clinton. good to have you hear governor i'd like to focus on the nafta and new president of mexico because you know mexico well and governor richardson used to appear and speak in spanish when he was in congress what do you think will happen as a result with nafta, as a result of the new president of mexico. >> well, i think if president trump is smart he should try to make a deal on nafta now, a skinny nafta get rid of the sunshine requirement. this president is going to be in

for six years. yes he is a leftist. but i think he has been pragmatic so far the vibe be has been good. if i were the president i'd stop talking about the wall and immigration. focus on issues like narcotics, commerce where we're close but strike a nafta deal now. i think that concessions have been made on all sides it's a much improved native aif. but don't make it broad so that you have to go to the mexican congress, the u.s. congress. so make a deal now on what is called a skinny nafta. it's good for our country. god for mexico good for canada. that would be my advice. >> do you think the president has brought the immigration question into the trade negotiations i haven't really heard that. i thought they'd been kept sort of separate. >> well, yeah, i believe the

president since pena nieto left office -- well he is still in office -- but since the election of the new president july 1, the president has been restrained. he hasn't link the immigration issue. he has been gracious with lopez obrador the new president. so i think keep them separate. make it quick, make a quick deal with nafta pch i think all the ingredients are there, the sunshine clause, energy, digital, a lot of new issues cropped up i think have been resolved make the deal now and start a relationship. >> does he have to give the new mexican president something? or is there going to be a political price for the new mexican president to pay if he -- or is the idea you sign the idea you sign with the old mexican president and the new guy doesn't have any of that baggage with him. >> well i think it gets off a very important relationship. mexico is our third bigges

trading partner. we have immigration issues, cartel issues. a lot of violence at the border. i think you make a good start. i think lopez obrador is going to say, you know i can deal with president trump. they're both kind of populist they talk to the base. the replace with mexico has been in at that timers the last six years. if i'm president trump i invite lopez oshd to the white house mool pena nieto never got there. i think a combination of symbolic diplomacy with real diplomacy make a deal soon. >> changing topics respond to that earlier this week i asked secretary of state mike pompeo if kim jong un had ever expressed a desire to change his economy in a fundamental way,

are we going to roll the sound bite >> we have spoken to him about a brighter future for north korea. we have spoken to him about the importance of allowing private dollars to come in, not just dollars from the united states, although i'm confident that there will be americans who would want to invest in an open and rules-based north korea. but japanese, south korea and chinese too will all want to be part of the economic opportunity that there is in north korea >> governor richardson you've been to north korea. maybe you're not the person who has been there most recently but you're certainly up there when it comes to americans. have you ever seen any evidence there they want to go away from the stallonist economy beef they've been for decades. >> you know, when i went there with eric schmidt of goingle they were interested they didn't the internet in obviously. i've had american businessmen call me since the summit saying twoept look at north korea maybe there is potential i think kim jong un wants a

pri private sector economy evenly as a prize for nuclear weapons. he is not wanting handouts, foreign aid, food. i think he is more pragmatic the problem is ke keep his word. >> right. >> he is not keeping his word on denuclearization is building fuel, new missiles we really have to keep an eye on him. >> governor, good to have you on thanks so much. >> thank you. >> governor bill richardson. >> health care stock leading the s&p 500 over the past month or so what to expect from here. well tackle that on trading well tackle that on trading nation which is nextarly twice . ♪ higher ♪ ♪ higher and higher ♪ but with everything out there, how do you know what to buy? well, i think my friend victor has just the thing for you. check this out, td ameritrade makes it easier to find the investments that might be right for you. like our etf comparison tool it lets you see how etfs measure up to one another.

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>> welcome to power lunch. time for trading nation pl let's look at health care stocks today. the top performing sector the last month up near lip 7%. is there more room to run in the space? matt mailly with and this is a mix of hospital stocks and insurers and biotech >> well overall they look good i mean it's funny. ever since the president came out with the drug price

initiative back in early may with had a lot of bite in it the groups have been rallying nicely he makes a sweet here and there that gives the stock a little bit of a pullback. but he focuses on one or two issues at a time right now it's trade. and more interested in energy prices than drug prices. so anyway, you look at the charts you look at the xlv and it's making nice higher lows and lowerer lows the is a thing in the ibb tech chart. if the etfs take it one step further and move above the january highs and the ibb is close to that. it's more momentum if you see areas like the fangs and some other the other draft down that money will flow to the health care names. >> gena, do you agree are you as bullish. some wonder if there is a broader rotation from technology which has been so popular into health care. we have seen the flows move that

way. >> absolutely. what really what we see right now is a general rotation not just from technology to health care but really from growthy stocks to sort of more robust stocks and health care is a very non-cycle secretary are. it wouldn't surprise me in the expansion we're on the back- dsh our view is that peaking out it's getting more defensive. you are seeing values become more attractive. and you're seeing staples, health care, these kinds of sectors becoming very attractive but health care on it's own has yun pinning faster m and a, drug approvals. there is a positive story underlying it. you have the combination of a rotation plus positive story as long as you don't see any kind of surprises in could be a very strong story. >> all right guys thank you so much for weighing in gena sanchez. matt for more trading nation head to

the website or follow us on twitter. coming up recruiting and retaining top talent what companies offer to make their workers want to sta stay power lunch will be back in two minutes. >> announcer: and now the latest from trading nation.cnbc.com and word from the spoenser >> when you own a stock going higher lock in profits by raising the stop order as your stock moves mier the risk reward ratio may fall out of balance so consider raising the exit point to under a snicaigfint support level. allowing you to ride the trend as long as possible.

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hello, everyone. i'm sue herera here is the cnbc update larry nassar asking the judge rose marry aaquilina to recuse herself from the appeal of his sentence they claim the social media proves the judge can't be unby as the nasa announcing the astronauts taking the first commercial trips into space. the crewed test flied using the spacex dragon vehicles and bogey vehicle are scheduled for 2019

for the first time since 2011 we are on the brink of launching american astronauts on american rockets from american soil and the new england patriots presenting tom brady with a cake to celebrate his 41st birthday in the shape of his number 12. fans on hand at training camp signing birthday greetings on a number 12 sign brady about to begin his 19th season in the nfl. happy birthday. >> is it chocolate or vanilla. >> probably a little bit of both. >> oh. >> i know. >> i want a slice. >> excellent. >> got it. >> all right let's get you a check on the markets at this hour the dow and s&p are higher dow industrials triple digits higher only 1.4%. s&p 500 higher by 10 the nasdaq composite in positive territory, in and out of positive territory throughout the session.

despite the gains the dow is on track to end the four-week win sfreek the snch on track for a fifth strait weektly gain. nasdaq on pace for the first weekly gain in three weeks worst performing sector energy consumer tapele real estate best performers and a good week for real estate look at this chart up 3% looking at the s&p 500 real estate index. tyler. >> thank you very much michelle. the oil market closing for the day. dom covering it. >> oil prices are lower again today. perhaps to michelle's point that makes energy the worst performing sector. making it the third down day out of four for the west texas sbrd intermediate prices and brent crude. you can see wti off by two-thirds of a% ice brink crude off a third of a% trade concerns seem to be a bigger factor as questions over demand from china give the latest barbs exchange between it and the trump administration on china tariffs overly back to

you. >> companies these days increasingly find going difficult to hire and retain top talent a new perk slowly makes it to the mainstream or back to it across the country eric here with more. >> companies have been adding more benefits to employees these days increase the parental leave. flexible hours working remotely but more companies add sbaticle as employment perk we headed to nba headquarters to hear how the perk has been paying off. >> while lebron james is vacationing in the caribbean there is no off season working for the nba league office. with the wnba, nba 2 k league, the draft olympic bub, it's a 24/7 operation all year rung for kerry, senior vice president of global marketing partnerships that means constant travel, meetings, late nights. for other employees, it could mean burn out that's why in 2015 a the league created benefit offering employees with 10 years of service a fully paid four

weeks sbaticle at 20 years they get eight weeks off. >> i call working at the league a way of life. you have to love it have to be part of it you have to accept it that's a way of life. but at a ten-year point it's good to recharge. >> for some it's been meant quality family times for others travel. but for everyone it's a rare chance to turn off phones and unwind knowing the job will be waiting for enemy upon return. >> we wentz to europe for three weeks to germany and to italy. we did the quick turn around and ended up going to western massachusetts for a we can and i indulged in camp drop off and pickup making lunches, cooking dinners being there every night for bed time for the kids. and it was as extraordinary as the first part. >> nike mcdonald's and intel also offer similar programs. but the nba is the first proflgsle sports organization to offer this benefit experts say it's being increasingly used across all

industries to retain highly valued employees in increasingly title job market. >> sbaticle is a bay to do that to reward people for long term standing with an organization. we have seen it not a ton did you certainly see going more and more. >> in recent survey in from robert hath and office team. they said the generation vacation time or sbaticles achieve work life balance. >> sign me up. >> we do this study part offer you are all america survey would you want extra pay or vacation or it was 50/50. some people want the money some the time. >> i would take the time, right. >> i would take the time. >> you would take the time. >> i would take the time. >> i've been here a long time. i don't ever take all my time. >> i usually figure out a way. >> i usually do process could i have next thursday off, everybody. i need it. all right. >> ngs that eric. >> thanks. >> from the nba to small business everyone wants to recruit top talent but how can company retain employees, especially in a tight

job market joining us to tom gimble and recruiting staffing and recruitment firm are people offering up the sbaticles. >> the amount of turn overafter ten years is so much less than the first five years you are offering rewards to people staying no matter what. it's wonderful to offer and great to take kir of employees but it doesn't decrease the attrition rate. >> interesting huh. that's one way to look at it i'm surprised. >> it's a good productivity thing. i can tell you a story i think it was american express back in the 1880s that offered the first two-week vacation. am i wrong about this they said taken all together because more time together enhances the worker's productivity. they knew it in the 19th century we appear to have forgotten in the 21st. >> the problem is we are too busy as a society trying to tell them the best way to recharge. if somebody needs a three-day week and do that two or three

times a quarter and somebody else wants a week off a quarter if you have four weeks of vacation who cares let people do what works for them if people motivate themselves by working more and harder and faster ner a shorer period of time and get prompted that's a plus. >> tell us some of the stuff they throw at the younger workers. >> what do millennials. >> what are they getting i want to know. >> cookies. >> it's -- listen all the perks are neutral. you go to silicon valley, above the on the east coast and new york you can bring your dog food to table gourmet kitchens all of these things. if every perk is offered by every high-growth huge valuation company then it becomes neutral. the real question is if it's neutral, how do you keep the people and that is through teaching them more investing more in training and development holding them accountable and giving enemy career paths. because after two or tlae years of the perks it's how people stay emotionally engaged in the work. >> right they don't just stay for the

free lunch. >> if you're getting it everywhere why do you need it. >> right. >> tom how tight is the job market right now where are you seeing the most tightness. >> steve the it's the best job market i've seen in the industry almost 25 years, and this is the best i've seen it is becoming the quits rate is the highest it's ever been meaning people are quitting jobs without having another one bus they feel they can get one very easily it's a very strong indicator what companies need to do is make sure they have a training and development program. i know i'm hitting on that a lot. but to have that to hire workers and train them on their way of doing things. >> what is the quit rate what's the measure what's the number you use? >> oh, well, i actually get it from bls and other reports. >> a data report. >> job service. >> just so people understand the quit rate goes up when people feel good about jobs they're like i'm out of here what did i just say. >> i can get a new job tell me about where i can take my dog to workday and flip-flops

and shorts and so forth. are those workers more productive or less than in places where maybe there is the -- a stricter dress code as the norm or do you know. >> i don't think -- i don't think the perks are about productivity the perks are about attracting people if you have two jobs and all things are equal, money, location everything else do you want to work at a place you spend a couple thousand dollars on dress clothes or wear shorts and bring the dog. when it becomes election then it's right there. >> no one wants to see my toes >> i don't think 80s productivity issue i don't think that has any relevance -- we canside all you want and get the phbr review but it's not productivity. >> are there any signs of to a top when there is a signal you can bring your dog it strikes me when things get silly. >> are we at peak -- peak ha hamburger before we said peak jobs is in. >> ths it is peak job.

>> i'm waiting for the lawsuit by an employee allergic dog. >> that's a tell we're watching that. >> i think. >> then we'll know that the perks have tipped over on reality. >> there are things when -- things get crazy that tells you we are near a top. i don't know if bringing the dog is it but could be thanks, tom. >> it's getting sued for bringing a dog that's what it is. still ahead a pioneer in sports broadcasting leslie visser here to talk about her career, time working with leslie moonves and closing the gender gap glad to have her here. "power lunch" is back in two minutes. wow! record time. at cognizant, we're helping today's leading life sciences companies go beyond developing prescriptions to offering subscriptions with personalized, real-time advice for life-long, healthy living. honey? you almost done? nope. get ready,

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if you watch sports as long as i have -- and that's a long time -- you know our next guest, leslie visser, covering just about every major sporting event. she is the first woman to report from a super bowl sideline and hand over a super bowl trophy trophy when my beloved redskins won in minneapolis 199ish. >> 1992. >> first and only woman enshrined in the football hall of fame maybe you watched the game from canton and the first female analyst for cbs sports.

she is still with cbs also out with a new book how she succeeded in the male dominated broadcasting business. and there is a quote from leslie moonves, the trail blazer, blessed with both members of the jury and heart enjoy this rofrp through the 40 years of covering sports. >> and the book says sometimes you have to cross when it says don't walk. >> that was advice from your mother. >> it was process. but i have to tell you i gobble you guys up. concept when you projected kate uptonen was marrying rupert murdoch you miss on her that. >> yeah. >> she married a guy who won with the houston astros. >> i saw them on a plane once. i know who you are talking. >> advice from your mom. >> living in cincinnati. my family moved a lot as a kid great for sports not good for a marriage but great for sports. and when i was ten years old --

this is in the 60s, early mid-60s and women at that time were four things, nurses, teachers, home makers. >> secretaries. >> or secretaries. exactly. and my mom said to me what do you want to do when you grow up? i was ten years ol i said i want to be a sports writer which was like saying i want to go to the moon it didn't exist. and instead of saying forget that, my mom you know how all parents who change somebody's in one sentence my mom said to me that's great sometimes you have to cross when it says don't walk >> so shall i ask the moonves question. >> do you want to ask the moonves question i'm happy to. >> i wish i could go on and on. >> i'll ask mother you know him, worked at the network he has helmed for a long -- more a long, long time what do you think of the allegations that have come up about him? how would you describe him to viewers? and how do you think the company handled it and specifically how

has it handled it with respect to women working at cbs as you do. >> oh, it's all a cigarette question. >> it's a lot. >> i want to ask everyone. >> i have one still. >> i'll try to unpack it i think in no way do i want to disparage or demean the women brave enough to come forward because that takes courage but that was not my experience with less moonves. and i have my own truth about it and. >> he never hit on. >> you never i have known him 30 years when he was at warner brothers. i've worked for him for 25 and my truth is just different from other women and les has a record of supporting and promoting women joanne ross runs sales leslie aen wade was vice president of communications for 15 years you know nancy tellum ran entertainment. some of us have a different truth, a different experience

which is not to diminish their words. >> does the fact that the board did not ask for him to go on leave of absence more did they suspend unlike the ohio state with urban meyer in a different set of circumstances, what is the message that sends to women working at cbs right now >> i think all of us as journalists you don't want to rush to judgment i think all of us are waiting for all the facts to come in as you know cbs hired independent counsel. i think everyone should wait for the investigation which is not to diminish the bravery of those women. but i do wish somebody on the earnings call had asked -- as journalists you wish somebody asked them but they didn't. >> analyst are very different than journalists >> i did not know that. >> they tread more carefully than we do so here you are, surveying the whole situation where with women made so many advances in the

world. is there advice given out to young women who want to be what you are. >> thank you for that. absolutely with regard to les and cbs everybody wants a safe workplace. everyone deserves to be safe in the workplace. and whatever the investigation shows it will -- we'll see the results. but in the meantime i personally have never experienced either professional, economic or sexual harassment from les moonves. >> have you experienced it from other people as you came sign-up you came up in a male dominated field. >> if you tell me no, i will not tell. >> you i will not tell you no. why are you such a good journalist. >> i would say -- my career was shaped by four men because i was always the first woman opinion and i was blessed that none of them vince story at and the other three at cbs but that is. >> ted shaker worked here. >> yes. >> he is great. >> we loved him. >> ted sen me the fall of the

berlin wall. i've had great experiences but that's not to say many players along the way coaches along the way. i have scar tissue. >> who helped you more in the career men or women. >> i was always hired by men those four vince story was my editor at the "boston globe" then cbs under ted and then sean and les. so i have sort of had to be the mentor to other women because there were no women. there were no ladies rooms when i started imagine that, michelle. >> no when i first started the new york stock exchange it was hard to find a bathroom for women. >> i timed itky get down the press box across the field and patriots were terrible then so i used to say they had the ball first and 10 on their own 20 can i get back up there before they punt and they were not that great. i was like usain bolt. >> when you book it seems like there is nobody you haven't met. you have met practically everybody in sports. everybody in sports broadcastering you need around the world. let's talk a little bit about the nfl right now.

and its overall the health that's where you grew up basically. there were a couple of things. ratings are down there is the controversy over the national anthem. do you think the league has handled it well? ho anthem do you think the leak has handled it well and how do you look at the health of the league >> those are great questions in terms of the rating decline you have to put that in perspective, two elements there. david tepor, he just paid $2.3 billion for the panthers. these are not major markets, not your kind of markets, the television markets so i mean that shows some health of the value of a franchise. also the ratings while they have declined a little bit, the combined ratings for the nfl are larger than major league baseball, the nba and the nhl

combined so, you know, on balance it's a healthy industry as for the anthem, they should have resolved it by now. and just because no one -- last night it's a good sign the play squrz the league are talking but as someone who is a native b bostonian i believe in civil disobedience peaceful demonstrations have been going on in this country for 200 years. i think if they want to peacefully protest, i believe they should be allowed to. >> thanks for coming in. sometimes you have to cross when it says don't walk thanks so much you'll enjoy the book if you read it. coming up there's a food fight between san francisco lawmakers and tech companies hey, d. t. >> hey there some local lawmakers want to ban

cafeterias we'll tell you about that food fight coming up.

there's no such thing as a free lunch unless you work for a

tech giant in san francisco. some local politicians want to put a stuff to that, though. >> it is a big park enjoyed by companies like twitter all of which are a block away from where i'm sitting right now. a couple want to ban workplace cafeterias the manager at the restaurant where i'm sitting right now he tells since they've opened in 2011 they have seen their rent doubled but they haven't seen a whole lot of extra profit coming into this space and that's really the heart of this issue those lawmakers say that these businesses, the tech companies enjoy tax benefits of being in this area without really seeing that extra business trickle down to the neighborhood. there were about 40 office cafeterias in the city many of them are inside tech firms. firms that were lured to the city by tax rates. he asked people what they thought of the proposal.

>> but i think it's a little too regulatory to tell people they can't eat in their place of business it's kind of getting pretty specific with rules and regulations. >> i actually going out in the community and taking a break and breather from work and supporting local business. >> reporter: every other friday they shutdown their cafeteria and neighboring businesses tell me they see on up tick in front traffic on the days the squares cafeterias are closed. i reached out to a bunch of tech companies. no one wants to go on the record, but they do tell me it helps build company culture and morale by having the free food at these cafeterias. it keeps people productive because they don't have to leave the workplace. >> check please is next. let's begin.

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need a change of scenery? the kayak price forecast tool tells you whether to wait or book your flight now. so you can be confident you're getting the best price. giddyup! kayak. search one and done. sometimes you have to cross when it says don't walk. i mean you got to break rules sometimes. especially times when females started -- >> there is something to that. >> you have to be a pushy broad.

ask me how i know. >> and leslie was a -- is a real journalist, a writer's writer. and not just a tv side line. your band is playing tonight >> celebrating jerry garcia's birthday this week three shows this weekend >> go see steve's band "the closing bell" starts right now. i'm sara eisen in for kelly evens. it is time for the closing bell. we're going to debate how long the job search can actually last i'm lesly picker at cnbc headquarters i'm kate rogers in salt lake city utah and the u.s. economy keeps adding hundreds of thousands of u.s. jobs but there's a massive shortage in trucking we'll tell you why and how companies are trying t