electronic arts. options come in every single day. >> all right >> i said my piece on facebook it will go higher. >> you don't think there's a peak >> i'm open over here. >> you're out. >> we have 20 seconds now. >> go. >> tyler, you ready? >> i'm ready now >> you got it. >> thanks. i'm tyler mathison tariff tit for tat gives concerned as china announces big tariffs on american goods in retaliatory. tesla's board what a day yesterday. continuing today they are chewing over the idea of going private and if it happens it's the biggest leverage buy out in history. where would the money come from and why does so many companies now want to be private, stay private, go back to being private? and the biggest wildfire ever to hit california rages thousands

evacuated now. gusting winds, soaring temperatures we're live on the ground as "power lunch" starts right now welcome to "power lunch" i'm seema mo drdmody. not a lucky seven for the nasdaq energy worst performing sector blame oil plunging prices crude down 4%, hitting its lowest level since june 22nd. gasoline prices on pace for their worst day since mid-july but natural gas on higher for its fifth straight day of gains. >> i'm bill griffeth bob pisani is ready.

>> reporter: i've been standing here here's what's important. we had a nice rally going yesterday. i had my new narratives. hispanic highs and then got interrupted because elon musk sucked all the oxygen out of the stock market since noon yesterday we've gone nowhere, drifted lower enough about my complaining. let's look at the sectors. we have some problems with oil they are down. industrials aren't helping any consumer staples were great until a couple of days ago nothing. a little bit of positive on bank of america and citi. tech modest gains. not enough energy is a problem. weak crude draw down weaker than expected oil's lowest levels in a month all the usual high beta names are down 2%, 3%. commodities have a lot of volume today. elsewhere take a look at some other things, commodity stocks in general, all the steel stocks have been horrible the last few

ace. nucor, u.s. steel straight down for a week and a half. a few modest moves google is positive nvidia is positive don't panic. second week of august. vix is sitting at ten, heavens but i have a feeling if elon musk wasn't a big topic of conversation we might have made a new high 14 points away on that i'm still waiting. the tariff back and forth continues today. this time china's move a 25% tariff now on $16 billion of u.s. exported goods. >> reporter: that move is in response the u.s. yesterday finalizing its 25% tariffs on another $16 billion in chinese goods coming here. those have been under consideration since late june.

they go into effect at midnight on august 23rd china will effect at 12:01 it is targeting charcoal, vaseline and other items and looking at $60 billion in new tariffs if the u.s. goes forward with other tariffs on $200 billion you see a trend here at a dinner with business leaders last night president trump said china is faring worse than the u.s. in the trade dispute and relationship with china will work out but it will be different >> we're in a little bit of a fight with china right now i don't want them to go down because i'm a big fan of president xi >> the reports that the president was critical about china's infrastructure initiative and various immigration programs at that

dinner i'm told by one attendee he was asked privately by executives in the room about the next steps in the china stand offover trade and according to one attendee at the dinner the president wouldn't go there. >> and bitcoin in focus. when the market thought it was getting close to a bitcoin etf the sec is delaying its decision on bitcoin other crypto currencies are under pressure the totally value has fallen to $230 billion >> shares of my cole kors hitting their highest level since february of 2015 and raising its outlook for the whole year cvs moving higher. drugstore chain topping

expectations thanks to a boost for more prescription drug sales. i'll be talking more about that later. mylan missing estimates planning a review of its business as sales in north america don't slide. some of our big movers >> we got a news alert in the bond market. biggest ten year note auction ever of all time $26 billion and the results are in and who has them but rick santelli >> reporter: absolutely. $26 billion. the yield at the dutch auction 2.96 that was a smidge below the bid side of the one issue market lower price higher yield the grade i gave it was a c-plus what i described was the most outstanding feature of this auction other than its size. the bid to cover was slightly above average at 2.55, 61.3 on indirect, just tad light and 11.3 on direct was a tad heavy which is always good dealers took a small 27.5% of

the auction and as i said a c-plus tomorrow 30 year bonds for a whopper size package of 78 billion. many eyes will focus on tomorrow's 30 year because that will occur after our first bit of inflation data. back to you. despite today's down day dow and s&p still on track for a sixth straight positive week why is this market rallying to a new record level with a host of headwinds in front of it will it keep going welcome to boston you. david, i want to start with you. this escalation in the u.s.-china trade dispute not having an impact on stocks but it is on the oil market. is that because the latest round of tariffs includes crude oil or broader concern that this trade conflict will have an impact on

global growth? >> i think ultimately oil has been going higher because world demand has been going up at a time when inventories are tight. you're seeing oil stocks go up with the lag the mlps are still recovering. oil is going up more because of global growth than the issue with china what we're still seeing with china today is this playground shoving match that has the chance to turn into an outright bench clearing brawl where it impacts as much as $400 billion of the u.s. economy, especially u.s. manufacturers that's where my real concern is on all this saber rattling with china. >> do you agree? how does this story continue to pull out will markets continue to move higher despite the on going trade dispute? >> a phrase that's ringing through my head is if it sounds too good to be true it probably is and that's what this environment feels like today

4% gdp growth. 20% earnings growth. unemployment below 4%. wages not growing like they should all of this is a goldilocks scenario that's not sustainable. that strong second quarter earnings is driving the market today but i'm concerned that investors are extrapolating this we saw what happened when companies fail to meet earnings expectations with twitter and facebook and netflix market are not going to react favorably. >> what should i do? >> i think you need to start to derisking. can the market continue to go up from here? >> probably. will it? good chance. but as late as we are, as much as we've made in the markets, i think it's time to derisking tech has amongst the higher exposure to foreign sales and if the trade wars continue that will impact on tech growth starting to do risk. looking at lower beta asset

classes makes sense. >> i'm struck with you saying derisking. in golf we never utter the word shank. can you just not sell. is that a euphemism for derisking. >> no. you're transferring to lower risk assets. are you willing to derisk in this environment >> very little on the margin perhaps. but when we talk a goldilocks economy -- we underestimated the tax cuts if we were at goldilocks levels investor sentiment would be morrow bust. it's not that's a good thing. that can allow asset prices to go higher. there's risk in some of the price for perfection price per

sainthood stocks in technology when you take a look around in large cap and small cap we're growing dividends better than 10%. we're growing free cash flow quite healthy. i'm still finding great valuations in small caps like designer shoe warehouse, kearney financial. they are buying back 10% of their shares outstanding i don't think that's an overpriced, overexcessive market that you want to be significantly derisking. >> makes sense thank you gentlemen for joining us so is elon musk trying have his cake and eat it too benefiting from the access to capital from being a public company provides but complaining about the short serls and conference calls that come along with it. is tesla better off as a private company and how will musk pull off which could be the biggest leverage buy out in history. some answers next on "power

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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. welcome back to "power lunch" the tweet that shook up the investing world yesterday. elon muvg saying he's considering taking tesla private at $420 a share. those last two words have some people puzzled funding secured. we look at that side of this story. when you think of buy outs it's largely debt but he's already got a lot of debt. >> that's the big question

these are the after shocks for the tweet that shook the investing world. who would be buying tesla. where are they getting the capital to pay for a $70 billion deal is the funding compromised of equity or debt these are just some of the many questions fueling some of the street's skepticism about this deal a traditional leverage buy out seems unlikely we've been making calls for almost 24 hours now and have yet to find a firm lined up to finance the buy out. not to mention it's unlikely to find a bank that would provide debt to a company of tesla's size with no cash flow and even if they financed $40 billion worth of the deal with debt the annual interest bill alone would be $2.7 billion in cash according to barclays. the deal would be all equity musk tweeted current shareholders can stay investors in a private tesla as well but someone would still need to cover those who would rather sell at the $420 per share

price. and they need about $60 billion to buy out that equity, excluding what musk owns at the end of the day, taking tesla private would be expensive. it would be complicated. it would be a dale structure like we've never seen before especially on that scale now the short-sellers are counting on the deal falling through. in the meantime they are licking their wounds yesterday's 11% spike cost them $1.3 billion in paper losses, guys >> this just points out or highlights what he, the point he's trying to make. ate pain running a publicly traded company especially when you're such an entrepreneurial type who wants to be able to move in whatever direction you want to going. >> that's what we hear all the type especially from visionary founders who run these companies. they never had to appease a boss now they are public. and publicly traded shareholders

are their boss so, you know -- >> you shouldn't be ceo of a public company that's part of the job being able to stomach the volatility >> he's enjoyed a nice eight year run as a publicly traded company. >> i don't know if enjoy is the right word >> in term of the valuation. the markets have been able to afford his cope. >> wouldn't this be perfect for a columbia herb greenberg. >> herb, are you still there >> i am. >> look at that. herb greenberg, cnbc contributor and partner at pacific square research how are you doing? >> i'm doing okay. how are you doing? >> i'm enjoying watching this. >> i'm great >> and bill is good too. >> i'm watching -- bill, bill, how are you doing? i'm enjoying watching this from the sideline >> i'm sure you are. what do you make of this whole thing here

>> i make of it as i think everyone for the past almost 24 hours has said, one of the craziest things you have ever seen you can say with certainty first thing they ought to take away from this guy or any ceo, forget tesla for a second stop the tweeting. there are rules and regulations. you know this when you go public and to suddenly sit here and whine about it, that's after the fact it's sort of like you create this new model we go public, raise the cash and then go private and you hope to go private you do it as a higher price than when you went public so people made money but in this case, you're starting to see the issues of what might happen if corporate counsel hasn't first vetted those tweets >> so, herb, let's talk about -- leslie was talking about the idea that in a typical leverage buy out you got to go to big banks and brother a lot of

money. i wonder if banks have the appetite to lend that kind of money to a company with the cash flow situation that they have. number two, if they don't, then you're going to private investors which would probably include a lot of nonu.s. investors. saudi fund is in there certain chinese investors might want to get in there that poses, doesn't it issues -- in other words wouldn't the purchase of an american cutting-edge technology company past muster? >> i think you're asking the right questions and i wish i had the answer to that question because i don't. we've seen already what happened with the chinese issues and chinese acquisitions and i think we're putting -- we're putting the cart before the horse here we don't know if anyone is ultimately going to step up. saying that, i've seen the craziest deals being done over the years. we always say i can believe that deal is done

somebody did the deal. in private either thing implodes or pulls those people down or goes on to greatness but i'm so fascinated by this whole concept of, you know, companies coming public and not getting it let me tell you guys something over the years i've been on your air, our air, cnbc i've written columns for many years. i've raised red flags over a lot of companies some of them like netflix, intuitive surgical we did a documentary at cnbc. monster beverage these companies have gone on to do great things. back in the day amazon didn't have a workable model. i accept responsibility for raising those red flags. but through it all and i'll use netflix as the greatest example. i never heard a peep from reed hastings i'm sure he's hated me i'm sure he said horrible things behind closed doors about me never heard a peep that's why this is off the

charts, off the baseline the guy should not be running a public company >> herb, could tesla's objective be more easily accomplished, though, as a private company i mean that people monmemo that said being in a private market i don't have to endure the pain watching my stock price every day. >> i think there are oftentimes i say there are certain companies that are in the mix public the greatest example of a guy who took his company private but the stock is battered down and then worked through everything in private was michael dell. he was able to do it without the public scrutiny that can be a distraction. in this case tesla wasn't supposed to have a distraction that's problem this is a company whose ceo has been telling you he's going to do x and then doesn't deliver on x. >> it occurs to me with you saying that in some ways elon

musk is the distraction, right >> he's creating a distraction and i would go so far to say by him engaging the short-sellers earlier on by him starting to tweet and become this big persona in the battle, in the fight he created some of this and became a bigger distraction and caused the shorts and others to then, you know, say wait a second what you're saying isn't right. i don't know if you were on with kelly about two years ago. i remember an interview kelly did on close bell with elon musk i was listening to him in the car. man she nailed him on something where you could argue misled investors and, you know, it just went on and on he's been doing this for a long time >> you know, our friend pointed out, remind herb about the ceo of overstock he didn't like what you used to say about him. >> i would say patrick burn was

perhaps the greatest example of what we're seeing with elon musk since patrick burn they are sort of the same. the interesting thing if social media had been as advanced now we're talking ten years ago that patrick burn lumped everybody in the stock implode. had problems has come back. people are fighting over it again. i think that behavior usually, i don't think stands the test of time i don't think it's what investors want to see. we can talk about it as it relates to the president of the united states and we have ceos you can't. you shouldn't. >> the stock is down 1.6% despite the shorts being capped out at 420 why would the shorts stick in the stock is another question. >> you have to ask the short-sellers about that i suspect many short-sellers think ultimately as you've seen there would be a price to pay for all of this. >> we got to go.

love seeing you. we'll check back with you. >> talking to you guys later >> herb greenberg in lovely san diego. biggest wildfire in the history of california, one of the many burning across the state making this possibly the worst fire season ever 14,000 fires including some from as far away from new zealand coming in to help. we'll gate live report on the fires next on "power lunch". duncan just protected his family with a $500,000 life insurance policy. how much do you think it cost him? $100 a month? $75? $50? actually, duncan got his $500,000

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california right now mendocino complex fire is the biggest in that state's history, almost as big as the entire city of los angeles >> reporter: hi there, tyler firefighters and the equipment you see behind me, the engines are just a small fraction of the massive amount of resources dedicated to this fire fight we do have some new numbers from overnight and they show that the fire has grown the mendocino wildfire complex which is a combination of the ranch fire and river fire is now raging at more than 300,000 acres, but there is good news. winds calmed down. temperatures cooled. and humidity rose overnight. that gave firefighters some leverage against the flames. the ranch fire is now 46% contained up from 20% last

night. the river fire is 81% contained. still 10,300 structures are threatened 116 homes destroyed. and more than 23,000 people have been evacuated you might notice over my shoulder you can see any flames, just whole lot of smoke behind me and that really speaks to one of the central challenges of this fire fight is the bulk of the flames are in the deep interior of this national forest some are high up on a ridge on our mountain really hard for manpower, for firefighters or equipment to get there. >> thank you president trump hosting ceos for dinner at his golf course in new jersey we'll tell you what they talked about and that ohio special election still too close to call is that a moral victory for the democrats or do they actually need to win an election for to it have any real meaning that's coming up

hello, everyone, i'm sue herera here's your cnbc news update

republican representative chris collins as been indicted on insider trading charges. federal prosecutors accusing collins of tipping off his son about the results of a failed drug trial by an australian biotech company. authorities held a press conference earlier today >> these charges are a reminder that this is a nation of laws, and that everybody stands equal before the bar of justice. >> the ncaa releasing its report on changes for college basketball players among the highlights undrafted players can return to school players can be represented by an agent beginning july 1st before their senior year of high school as long as they are identified as an elite player and winnie pooh is being seen across the globe with the exception of china christopher robin has been

denied a release beijing provided no reason but government censors recently begun images of pooh after bloggers were using it to parody xi jinping that's the news update can't make that you want >> thumbs down from china. let's get a check on the markets right now. the dow facing its first loss in four days. the nasdaq trying for a seventh straight day of gains. it hasn't had a stretch like this since early march amazon keeps marching higher the stock hit agnew all time high in retail space michael kors best performing stock on the s&p 500, shares trading at levels not seen since february of 2015 on the back of strong earnings and its raised outlook some key votes taking place across the country last night. at the same time president trump was hosting ceos and business

leaders at his golf course in new jersey eamon javers is covering it all for us >> reporter: that's right. take a look at these results in ohio's 12th district is that house race in ohio a special election offseason because the incumbent had retired. troy balderson, 50.2%. danny o'connor 49.3% this race is still too close to call because margin of votes there is about 1700. still there may be more than 3,000 provisional ballots out there to count this could go to the end of august before we get a declare winner republicans are claiming victory here for troy balderson in this race take a look at this tweet from president trump saying all republicans will do just fine as long as he's campaigning as longs i clinton and support senate and house candidates within reason they will win. i love the people and they certainly like the job i'm doing. he says there will be a giant

red wave in november the problem for republicans and the president's argument here is ultimately is that this is a very republican leaning district in ohio that was the subject of this election last night surprising at all the democrats have been this close, donald trump himself carried it by a wide margin. republicans held this for decades. if republicans go into november defending very, very republican districts like this one, that could be a sign of bad times for them on the other hand, democrats have yet to demonstrate that they can convincingly snatch a lot of these republican districts away in order to take the majority in the fall democrats have some work to do on their side as well. all of that coming after the president had that dinner last night with a group of ceos from around various industry groups, the white house saying simply he wanted to pick their minds on the economy and figure out where things aregoing from here. he's in bedminster, new jersey, his golf course. on a little bit of a summer break but having some meetings

having another meeting with supporters for a fundraiser related events tonight in bedminster, new jersey as well back to you. >> we got 90 days to go until the mid-terms. what can last night's election across the country tell us about the mood of the nation joining us now is sean trendy senior elections analyst steven shepherd campaign editor for licko and john harwood cnbc's editor at key largo let me start because this ohio athletic that we've been talking about is in your home district, what can we infer from those results in that strong gop district that mr. o'connor the democrat came as close as he did. >> well, in politics as in anything you're always glad to have the win and i think republicans are happy for that but i also think you have to put it in the broader context. this is the equivalent of beating the cleveland browns on

a one point last main hail mary pass and then thinking you're doing okay going up against the new england patriots very different context in these races that will control, decide who controls the house and this race was not a good sign for that >> john harwood, the gop gets to declare victory. i suppose the demonstrate in this case gelt to declare moral victory? >> i guess so. look, it hasn't been called yet. it's pretty likely that troy balderson will win given the number of ballots outstanding but generally as sean said he and i were talking about this yesterday over text messages, this is an environment in which the historic boost that the out party gets because mid-term elections vent discontent with an incumbent president is magnified because of how donald trump has polarized the country, has changed the gop, and has become the most unpopular president in a first mid-term

election since jimmy carter. he's minus 13 in the gallup poll this week. no president has had a disapproval rating that high since jimmy carter and that's why republicans have a big burden to carry especially given the way he's changed the republican party in districts like this one that have a large proportion of college educated voters in our nbc/wall street journal poll recently we found 60% of the people who call themselves republicans are now whites who have not gone to college when you have these more affluent, more educated suburban districts republicans are going to struggle. >> steven, what do you think the fact that ohio's district the 12th congressional district, the race is too close to call, is that enough to give democrats some energy to re-energize their base ahead of some key elections in arizona and florida in late august >> if this were the only data point we had it would be easier

for republicans to write off as a one off. it's not we have democrats winning special elections in pennsylvania and alabama over the past nine months you have other democratic near misses in districts in georgia, south carolina, in montana, in kansas all solidly republican district, all were close races you know, one of the -- each special election they tend to be very unique but taken together i think the picture is pretty clear the energy right now in american politics as weaver seen in other mid-term athletics when the party is out of power is on the democratic side. >> sean, i see you point out in the district there, in district 12 in ohio the republican balderson's commercials tended to feature governor kasich where they didn't feature president trump. what's he running on is it a popularity contest or what are the issues he's running on right now >> yeah. you know, it wasn't a very issue

heavy campaign danny o'connor was running on both parties needing new leadership hinting he wouldn't vote for nancy pelosi. balderson was convoying having commercials feature kasich i'm not a trumpy candidate keeping these republican suburbs in republican hands this wasn't a great battle of ideologies this was both parties trying to convince swing suburbanites that they are more like them personally >> steven, let's turn out the washington which i think both you and sean point to washington state that is as very interesting results and interesting contests why and what happened? >> well washington state like california they have that all party top two primary. the top two finish earthbounds you can see the partisan vote sharing. and there are three republican held congressional districts where i think the results will raise some alarm bills in the

gop the 3rd district, 5th district and the 8th republican vote share set ear little under or a little over 50%. if democrats get the turn out they need in november, it's possible that once these match-ups become with all the candidates together a head-to-head battle between a republican and democrat that we might see some races and especially in the 3rd and 5th district that have been held by republicans come on the battlefield and be additional pickup opportunity as democrats seek the 23 seats they need to regain the house >> john harwood -- >> 23 seats to turn the house. john harwood, that would essentially create gridlock in washington financial markets may not actually be happy with that result >> it depends on whether they want more legislation or not look, i think financial markets, if they are making a bet on the basis of what we know now, they need to bet on the likelihood that democrats are going to control the house of representatives. we don't know about the senate

sean recently assessed the odds at 50-50 yesterday he told me he thought that was too high for the democrats. in any case they got a shot. if they take the house that means investigations of president trump, that means road blocking the president's legislative agenda, that means potentially impeachment proceedings. if they take the senate that means that you have a democratic veto, potentially over appointments to the cabinet and to the court so this is very consequential for american business and for everyone who is watching this program right now. and dave wasserman who is an expert on house elections said last night's results reinforced his view that democrats have a two out of three chance of winning the house in november. that's going be a big deal if that happens >> thank you all appreciate it. as malls get emptier and

emptier new ideas are emerging what to do with that unused space. how about turning it into offices. at least you have a food court nearby papa john's founder is not going away quietly what he said about the company's latest resultsnd a his successor as ceo that's next on "power lunch" with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today.

the kayak explore tool shows you the places you can fly on your budget. so you can be confident you're getting the most bang for your buck. alo-ha. kayak. search one and done. >> shares of pa john today. the co-founder john schnatter the battle with him isn't over any time soon. >> the stock hit a new 52 week low after the pizza chain reported a disappointing second quarter with misses on the top and bottom lines and a drop in north american same store sales 6.1% founder and former ceo john schnatter resign as chairman of the board last month after admitting to using a racial slur on a current call. he sued the company over documents due to his ousting

the company says negative publicity has impacted its sales. north american sales are down 10.5%. the "forbes" article about john schnatter posted on july 11th. john schnatter who is the company's largest shareholder and who still sits on the board criticizing the currents management and said he's not going away any time soon and said results under my leadership demonstrate that i know what works and what doesn't >> kate, thank you very much so, how would you like it if your office were inside a mall well, real estate giant maserich is turning unused stores into shareable office space both companies are hoping this synergy will help drive project. could this breathe life back into some american malls joining us now for a "power lunch" exexclusive, co-founder

and ceo of industrious i'm fascinated by this whole trend because we all know there has been an over capacity of retail for a long time what do you do with these large malls that were built up over the last 30 to 50 years. you got a possible answer here you think. >> we think that the best sort of way to deliver a great day at work is not to sit at a desk, you know, eight, nine hours a day. move around different type of spaces >> i agree with that but why does it have to be in a mall could it be in an office space in another building. >> we think a mall provides the type of setting that enables you to move around more different type of space, more amenity, great food and beverage, et cetera to start off i would say i think mall is a great place to work independent of whether you have space to fill in the mall or not. >> you said recently you want office spaces to be more like hotels

i cover hotels for cnbc. what do you mean by that a rooftop lounge, a gym? >> a lot is amenities you're spending more and more time at the office you need things to have a great day at work. but also about service to be taken care ever at the office is an amazing feeling and i think the best workplace providers are doing a better and better job of providing sort of hotel style service at the office >> when you've done these kinds of projects what kinds of malls have you occupied and whose stores have you taken over big stores, small stores >> this is the first this is the first time we're doing it. >> up replaced a barneys >> yes a barneys in scottsdale, arizona. >> certain malls work and others don't. >> one thing we feel confident about is urban malls this one is in the heart of

sco scottsdale, santa monica places like that we feel confident about but excited to experiment with more suburban malls. >> spl >> employees are who >> average age of a customer is about 38 years average age of a company is about 13 years not all start ups. all across the reng of industries about big fortune 500 -- >> what do you provide for them? is it split cables with plug ins where you can set up your laptop >> everybody has their own private office or suite of offices but they share a bunch of amenities coffee bars. relaxation lounges deep focus rooms where you don't have to worry about other people milling around >> what space wouldn't work. there are some malls around here where a j.c. penney went out that's a huge space. that wouldn't work, i imagine. >> we have likes that would be

as big as the biggest j.c. penney but you need a lot of natural light. you could run into trouble if there wasn't enough exposure >> barneys has light inside >> yes there's a ton access to -- >> a sledgehammer does wonders. >> yeah, demolition. determine e-m-o. >> fascinating about the business mall coworking in general, there is one big player, we work. they are dominating the space, $5 billion valuation a cast cash injection from soft bank of $5 billion how do you deal with that. >> we love rework. we go to companies and we say if you let us create your workplaces for you we are going to deliver a better day at work for your employees than when you do-it-yourself anyone is out in the market evangelizing for that transformation is our friend

i think we see over and over again when we are markets with we work we do better for the time being we are the premium provider in the market we have to be out there with a great workplace product. and that's our focus less on competition. >> all right good luck. thank you for joining us today appreciate it very much. >> thanks for having me. thank you. coming up on the show, women in hard hats, the evidence to find more skilled workers for construction projects by bringing in women. contessa brewer is live in massachusetts. contessa >> seema, the construction projects are going up in the eastern part of massachusetts. this is the encore boston harbor mgm is getting ready to open in mid august all of the construction workers required to make these buildings come to life a growing nber umof them are women how it's happening, ahead on "power lunch." are you ready to take your wifi to the next level?

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. we have heard a lot of stories about construction companies being unable to find skilled workers. now a major project in massachusetts aims to close the skills gap and the gender gap at the same time by putting more women in hard hats contessa peruer joins with us that story >> reporter: encore boston harbor is less than a year away

from completion. among the thousands of workers helping ing ting to erect the are women. the massachusetts gaming commission set the bar high. 6.9% of the construction work force has to be women. that's double the national average. the commission is tough on enforcement. >> we go union by union, contractor by contractor do you have -- have you met the target if you are at outlier, someone sells doing 8% woman and you are only doing 0% women we call you out. >> reporter: to meet the goals the commission partners with unions, the casinos and other advocates to recruit more women into the construction pipeline >> as a journey worker, once they reach that level they can make $90,000 a year. so it can be a life changing experience not only for the individual, but the communities in which they live. >> reporter: now the statewide

initiative is really focused on its next lofty goal. 20% women on the construction work force by 2020, guys >> contessa, interesting story i wonder, do women face any discrimination on job from those you have spoken to on the ground there? >> reporter: they told me two things number one that the critical mass of women has made a real difference when you look around and you are working with other women when you see other women doing other jobs there is less discrimination and more of a team spirit camaraderie, and they are getting opportunities to network with other women with weekly events and bimonthly events that are sponsored by the advocacy groups. they say what they feel -- >> i love it, closing the gap. >> rocking the hard hat. >> absolutely rocking that hard hat. contessa in everett, massachusetts. snap, facebook, twitter all reporting disappointing user growth in their quarterly reports. have we hit peak social media? we will discuss that one.

and from first to worst, defending stock draft champion kevin o'leary is currently in last place in this year's contest. >> what? >> a little humble pie we will ask him if we can turn it around or should he just hand ov t tpherheroy right now? i don't think he is going to do that the second hour of power begins after this 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.

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here's what's on the menu, the unfriending trend. the latest results from facebook and snap showing that less people are joining, and many are leaving. have we hit peak social media? plus, is elon musk's desire to go private a sign that it's not worth being a public company and being under constant scrutiny we will speak with kev o'leary. with the midterm elections just 90 days away we will look at how real election hacking is. "power lunch" starts right now welcome, everybody to "power lunch. i'm tyler mathisen a mixed picture in the markets right now with the dow the only index lower. there is a low pressure system

moving across the great lakes. i will be coming into the pennsylvania area lather to the. biggest gains, on pace for a seventh straight day of gains, that would be the russel down here technolo technology, financials the leaders, oil sinks 4%. stocks on the move match soaring on an earnings beat and strong guidance disney down as eps and revenue miss and the "new york times" lower after adding fewer paid digital subscribers than expected. bill. i'm bill bill. here is what else is happening this hour. china slapping 25% tariff on $16 billion worth of u.s. goods. the 333 goods being targeted include certain cars, coal, greatest, plastic products, and recyclables. u.s. mortgage applications meanwhile hit their lowest levels since 2016 last week. applications for refinancing following a several week respite

fell to the lowest level since 2000 rates go up, refis go down my and ford is launching a new suv in china next year as it attempts to revive slumping sales there the company is working with a local partner to build what they will call the new ford territory. catchy name, seema. >> bill, and we begin with the markets. bob pisani, mike santelli are at the new york stock exchange. mike, let's kick it off with you. it's not looking that great for the market's winning streak. >> maybe not for the streak. we are just about at the flat line the market really seems to be dozing right here, just about half a percent on the s&p from its all-time highs it is up 6% in six weeks. >> amazing >> it's been quiet and orderly, kind of a trudge instead of a sprint but we have gotten up to this level where it seems to make sense. maybe the market is going to rest a lyle while. a lot of offsetting action below the surface of the index we have been talking about the fact that it is not all stocks

going up that's what is keeping volatility low, it's below 11. >> a lot of my friend who are bullish are unhappy that their scenario towards new highs on the s&p has been interrupted because elon musk essentially sucked all the oxygen out of the room since yesterday at noon we have essentially gone nowhere but it is the second week of august the volume is crummy moving sideway is typical in this particular time of the year there are a lot of things that are wound tight right thousand the vix at 10, it has nowhere to go but up. an awful lot of shorts in the treasury market. that could get a little weird. there is a lot of longs in the dollar that could get a lot of weird. there are a lot of things that are wound tight right now. it's not like nothing could happen. >> earnings season is halfway through. it creates a base for valuations what's the trigger point beyond that unclear, i don't know if cpi on

friday is going to be that. >> it's contained. so is the ppi. i think all the basic narrative is essentially the same. we are going up in earnings numbers in 2019. so the whole peak earnings thing has gone by the wayside. we have feds generally accommodative. we have the tariff thing still under control. look at what happened today in china and how muted the reaction it is today overall. the narrative hasn't changed. >> mike is bob, thank you. >> despite today's move lower, and new tariffs from china, the s&p is still just about half a percent away from an all-time high can anything stop this march to new records. let's bring in the fixed income strategist with merrill lynch and u.s. trust we talked about the stocks but you are a fixed income guy i want you to talk me through the flattening yield curve, what it means for me and my bonds that i own now what should i be doing >> it is an important question

the flattening yield curve is nothing to be concerned about. a lot of investors are worried about it if you are worried about it, don't. relax. it's absolutely normal. >> because. >> no matter what happens -- as the unemployment rate continues the lower the fed raises rates and the curve naturally flattened. we have between 0 and 50 bips for a while. in the '90s it stayed at almost 0 for five years into the late 90s. >> if the economy is strengthening the long rates should be going up as well they are not that's why we are at the timing a flattened yield curve. people worry it will be inverted >> we are getting a flattening 2s 10s curve where we are is not unusual with the unemployment rate at 3.9% and trending lower if we keep going at the rate we are in terms of unemployment claims, jobless claims we are back to lfls we haven't seen since johnny cash was the radio with a boy named sue in 199.

the economy looks fantastic. flattening curve looks really good mid. ten year around 3% you have 100 basis points of curve between the policy rate and the ten year rate. that is much more important for forecasting a recession. again the shape of the curve rate now not to be concerned about. >> tim courtney, chief investment officer with extension wealth advisors. what do you think? is an inverted wealth curve a reason to sell stocks? >> i don't think so. we are still in a positive slope. a couple of things that i think we need to take into account is the fact that the interest rates -- the previous times they have inverted -- if we look at the last seven recessions we were at much, much higher levels so it's very unclear why at this level of interest rates, why that would really portend or why the fed's actions in raising the

shorter end of the yield curve would be enough pressure to kick a really strong economy into recession. so i don't think so. it is a measure that we look at. but with so many other measures flashing strength it's just one you want to watch but not act solely on that one measure. >> last night on "nightly business report" we talked about late cycle investing and inflation is usually something that crops up late in a business and economic cycle and maybe you start thinking about some inflation hedges. would you be thinking about that at this point, tim >> yes certainly. you know, you are seeing that ripple through and looking -- you know, reading a lot of the earnings reports you see that's a topic that comes up again and again with the mentioning inflation and rising prices and so i think you are never quite sure where the interest rates are moving. you think you take a diversified

approach things like tips can protect against unexpected inflation moving forward other assets like floating rate notes you want to include. diversification has been practiced on the equity side for a long time of it's probably god to do that on the fixed income side as well. >> matthew, tim mentions a couple of products there that are fixed income products. let's say i want to follow the advice of one of our prior guests and that is to derisk my equity side of my portfolio. i want to put it into fixed income want to do it over the next six months what should i be looking at? what kinds of fixed income products. >> as an equity diversification play, even though rates aren't good right now, 3% treasuries. you still want to be long treasuries, slightly underweight but not totally underweight and not too short of a duration of it if you are looking to diversify your equity exposure if you go too short duration in your bond

portfolio. >> what is too short. >> whatever your target duration is, if you have eight or nine years duration you tonight want to be more than a year short of that duration target, if you are looking for a place where there is better risk/reward in the markets right now. short-term corporate bonds look relatively attractive. you could put together three year corporate bond portfolio. less than three years duration at 3.5%. that's 50 basis points more unanimous the ten year treasury, six points less in terms of interest rate risk, half a point above the fed's inflation rate not that sexy -- >> better than cash. >> and not a bad place to. >> tim court me, matthew, thank you very much. appreciate it. elsewhere, shares of mylan lab down more than 4% after earnings miss. and news that there is a strategic review of its business is being planned we know what that means, meg

tirrell is there with the details. >> it was a big nis on earnings and wretch the problem, the u.s. market for generic drugs, a continuing theme we have seen not just for mylan but also competitors mylan saw a 22% decline in america sales in the quarter and tel aviva also saw declines. it is working to fix manufacturing products at a plant. quote, this business model looks broken avoid. mylan's board also said today it formed a strategic review committee to explore a range of strategic alternatives no timetable three options, a classic restructuring, a leveraged buyout or an acquisition or merger of equals. also, president trump said there is going to be an announcement next week on lower

prices is this more of his blueprint that's coming. >> we don't know it is a familiar thing from the president. we always makes pronouncements n week or two weeks we are going to see massive changes in drug prices >> right. >> there was in new jersey with business leaders where i was thanking fizer and other drug companies for rolling back prices we have a clip of what he said. >> the office of president must be very powerful to be able to do that because thee drug companies are very -- okay, thers great. but their prices are too high. and we are announcing something next week which is going to get them down really substantially. >> we did of course see the president introducing his drug pricing blueprint back in may. we actually saw one of the rules of that come out last night. its going to start to be implemented and may change things however, what he is talking about here, we don't know. one time back in may he said drug prices were about to come down in two weeks. we saw nothing but during earnings companies

made these pledges >> will they consolidate >> cole date i don't know we haven't seen that he so much even with tax reform i think a lot of people are waiting to see whether bigger m&a happens but it hasn't happened so far. thin skinned and short te temp tempered that's what has been used to describe elon musk and he picked blue apron in the cnbc stock draft now he is in last place. kevin o'leary is here to defend his pick, his take on tesla and fewer companies going public "power lunch" will be back this two minutes. and everything into the cloud. it's all so... smart.

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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. tesla shares are slipping one day offer the surging on the tweet from elon musk saying he wants to take the private company. we all know that is the market having doubts that musk's twitter tantrum will come to fruition and if he does follow through could the way he might finance a potential deal raise red flags in washington? joining us my brother from another mother, shawn tuly, senior editor at fortune and henry blodgett, the ceo and editor in chief of business

insider. no relation. we were talking about this during the commercial break. it's been very quiet no elon musk tweets today after that twitter tantrum yesterday. >> he had a storm yesterday. >> what do you make of this? is this an entrepreneur that is so frustrated by what he sees as being the ceo of a publicly traded company. >> this is not a normal lbo. most lbo you have lots of cash for coverage of high interest debt there is no way he is going to borrow money to take this company private. i think this is a join ganic equity play on his part. >> the raise the price of the stock equity. >> to raise equity, and to bring in enough equity investors to buy out the existing equity that goes up for sale we don't know how much that's going to be. plus raise additional equity because he is burning over $3 billion a year in cash.

>> henry, what do you think? why haven't we heard from the fcc, should we expect to hear from them at this point. >> i would expect they have to be looking at it it is startling to see this, especially with the comment at the end of the tweet saying financing secured. this is a public announcement. it immediately had a big impact on the stock price and on cnbc you had the chairman of the scc saying maybe it is okay but maybe it is securities fraud. i assume the scc will look at it startling. very in the world of elon musk but confused when he is focusing on the stock price which is doing very well. >> we all know musk is an unconventional ceo, to say the least. do you think as the ceo of a publicly traded company he has a fiduciary responsibility to be more effective in communicating his desire to take tesla private? >> what he is really offering is

a tremendous premium to his shareholders this is something that may kill this deal because the stock was at 300 now it just jumped to 370. you have a 24% premium because of the saudi investment and the good earnings investment for q 2. >> right. >> plus the tweets yesterday now he wants to go from 370 to 420. and a lot of investors think that's too low >> why hasn't the stock gone to 420 then >> lots of doubts about the deal ever getting done. >> even happening. where are you going to get the money? >> who is going to buy in at 420. maybe they have to come in at 500. now you are talking about a 65% premium over what it was selling for ten days ago. >> a stock that doesn't have a profit yet. >> right. >> what do you think where would he get the additional funding, if it is not the debt market, is it the saudis or the chinese. saudi already has a 5% stake in

tesla, ten cent does >> i think there are institutional investors that could take a piece of it to do it with debt would be a tremendous amount of debt even if you take existing shareholders rolling into it there could have to be an equity piece. to shawn's point, the other thing is, tesla needs money. there has to be a primary component of this at some point. if in fact this falls apart but where the stock is now enables the company to raise capital, much less equity at a better price than it would have, ultimately it hks lick a good move for the country again it's a strange way to go about it being a huge fan of what elon has accomplished on the product side and everything else. >> right. >> i look at this and say hmm, stay aside from the stock market. >> a brief thought henry about the relative shrinkage in the number of public companies in the marketplace. is that a good thing or not a good thing. >> i think it depends how you look at it i think for united states as

whole economiwise and investors who are willing to take risk to have potential reward i think it is a bummer. i think if you go back to the 1990s when there were a lot more ipos -- sure there were many disasters but there was also the opportunity for investors to get in very early in companies like amazon and e-bay and others and to extraordinarily well. from the viewpoint of investors it's too bad that companies aren't becoming public at a smaller phase and you have the greater and greater concentration of power within the market that said, going back to tesla, i understand elon's frustration with being a public company. it's tough the quarterly lock is tough. it puts pressure on you. there is a lot to say being a private company out of the public eye as well. >> thank you, guys. and coming up, recent food

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welcome back to "power lunch. it is time for trading nation. check out chipotle heating up the stock rising every day this month for its best streak since january. shares up nearly 70% this year can you still buy? matt mayly with miller day back and boris loss isberg with bk asset management good the see you both. the stock is up. is it going to hit its all-time high is that what the charts had telling you? >> it's interesting because it's up 70% this year and up 90% from its 2018 lows back in february it has had this unbelievable move right now it's coming up and testing its second key resistance level of the year the first time it tested a key resistance level it was back in april when it moved up and broke above its trend line going back to 2015. when it broke that line it took off like a straight shot higher testimony question now though is that we are going up against a

new resistance level, the $500 level, the 2017 high if we can break that, it will give it a key higher high. the stock is much more overbrought than in april. and more importantly the short interest in the stock has come down dramatically over the last six to nine months you don't have the same kind of buying power we had. if we get a break above 500 i think it's positive for the stock but i think the easy money has been made. be careful. >> boris, what is commendable about the rebound in shares of chipotle is it comes amid news there is another illness at a chipotle in ohio where are investors overlooking the news >> last year when they had the first food concerns i channelled my best warren buffet and i said the stock was a buy. i continue to believe it is still a bye. the food issues are a process issue. they will be able to ultimately rerad kate it. the core value proposition,

taste and price remains in place. now they are adding convenience. they have created a very, very strong well received app that makes it very simple to order. they are putting in these to go places in all of their boxes which means they are going to be able to do better turnover during lunch, better turnover during dinner, which is music to any retailer's ears. the stock long term very much remains a buy, it has good execution going forward. >> higher today as much as 2%. >> for more on trading nation go the our website or follow us on twitter @trading nation. still ahead, with 90 days to go to the mid terms how real is the threat of election hacking we will look at that. plus three signs that we have reached peak social media and then kevin o'leary on tesla, fewer public companies, and why in the world he is dead last in the cnbc stock draft can he make a comeback "power lunch" is back in two minutes.

hello everyone i'm sue herera here is your c nbc news update at this hour at least 16 ebola cases have been confirmed in the most recent outbreak in the democratic republic of congo the country's health minister approving the start of vaccinations today more than 3,000 doses remain in stock in the capital allowing authorities to deploy them quickly. more security measures will be in place at marjorie stoneman douglas high school when school starts next week >> we have been focused on safety that's our biggest priority. we will continue towork to mak

sure that every student, every teacher, every staff member here at stoneman douglas and throughout all of broward county that they not only feel safe but that they are safe at each and every single school in broward county. a major milestone for an american classic ford is celebrating production of the 10 millionth mustang. mustangs from 1964 to 2018 forming the number 10 million at a mish plant ford also unveiling that putty, a special 2018 mustang it is a convertible finished in white. you are up to date that's the news update at this hour ty back to you. let's check the markets. the dow industrials down 27 points or .1%. the nasdaq and the s&p 500, they are a little bit higher, as you see right off my left shoulder. disney, caterpillar, chevron they are the weights on the dow. pfizer, mcdonald's, american express are going the other way,

and helping it bill, over to you. >> the oil market is close informinger the day. let's go to jackie deangelis at the cnbc commodity desk behind me. >> good afternoon. crude prices lower a little more than 3% today. here's why three reasons. today's inventory draw it was small, a little more than a million barrels. why was it small. >>r? we are coming to the end of the driving season and weather wasn't great the third reason, iran, saying that the u.s. can't stop it from exporting oil. it was priced in that a million barrels of iranian oil would come to off line as the market waits to see and reconsidering that notion prices are correcting just a little bit. the question we are pondering right now, have we reached peak social media? three things point to yes. julia boorstin is live in los angeles with that story. >> reporter: this quarter we saw three companies' user growth hit

a wall yesterday snap reporting daily active users fell by 3 million between the first and the second quarter, its first-ever user decline, thanks to its app redesign twitter also reporting a decline of one million monthly active users between the first and second quarter even as the company says daily users continue to grow and facebook shares plummeted on its slowest ever growth. monthly active users were flat in the united states and canada and fell by one million in europe partly attributed to european privacy laws. it's not all bad news. facebook's instagram continues to grow very fast. it hit one billion users in june up from 800 million use terse september before facebook and others, though r limited by the fact that china blocks their app that prevents billions of users were from bow tensionally bolstering their growth. back over to you. so does this quarter's declines and flattening growth mean social media is peaking let's bring in mike isaac,

technology reporter at "new york times. mike it's good to see you i want to start with snap's dismal report. it follows similar trend at facebook and twitter, which does raise the question as to whether social media has reached a saturation point your thoughts? >> i think there are a few things on snap in particular for one, evan speigle went to china to sort of look at how people use social media over there a -- i guess last year and he had this great vision for a redesign to get people outside of just millennials to start using the app. frankly it just didn't work right away and i think also there's an issue with comparing social media apps to facebook which has this sort of enormous growth snap by design is a more niche product of it is a harder to use. it is not inthai thieutive controls i think it's just going to grow a lot slower than other

companies that we have been used to in the mast. >> this is the first time snap since going public has reported a decline in users it seems like it's too soon for a young company like snap to see a slowdown is this a cause for concern? >> yeah. i mean, the thing that they are sort of caught in right now is backlash against social media in general. facebook is obviously going through the controversy with cambridge analytic and data sharing and how much privacy users should expect. and snap has kind of always had this reputation for sending like lascivious photos and nakmake selfies and things like that there is a question now whether tech good. that's going to trickle down to all the apps out there, not just facebook. >> look at some point mike we are going to run out of people to subscribe to the social media platforms. have we identified who hasn't signed up yet?

how far do we have to go tyler is not in there. >> actually i am on instagram. >> how will we know when we have hit social media peak if we are not already there? >> i mean, no, that's a totally great -- i mean, besides getting you three on board i think that's a good point. in that, look, we are not -- we are already hitting some ceilings in the u.s. i think facebook in its last earnings call said we have basically topped out in the u.s. snap chat has a lot in the u.s., but they are starting to hit ceilings there i think that's also why you are seeing everyone sort of have a renewed focus on entering china where there is a billion people that google, facebook, all these companies really want access to. and they are starting to ben so of the western value transitions of free speech and no censorship that they haven't in the past. >> youtube and a social media platform in many ways. i wonder whether the issue here is less to do with the field of

social media writ large and more with the largest companies in social media that may be they are peaking out and tastes are changing and the social media user is waiting for the next big thing that may come out of california or it may come out of paris. or it may come out of beijing. >> see my space. >> yeah. that's totally right there was a movie i saw the other day called eighth grade that focuses on kids in eighth grade. and one of the best lines was nobody uses facebook him in. it's all zbrap or snap chat or something else so that's possible. >> mike, thanks for joining us. coming up -- >> wlaes the pick. >> ready >> yeah. >> blue apron. >> oh. >> he would look good in a blue apron. >> he would, wouldn't he. >> he would look good w. the hat. >> yeah. >> he picked blue apron in the cnbc stock draft it hasn't worked out so well so

far. can he make his way back from last place look at the face he is going to be a happy man had he we talk about it. >> this is kevin at rest here. g tk oue gointoalabt tes tesla, fewer companies going public, blue apron and more. "power lunch" is back in two or built to last? etfs are only part of a portfolio. so make it easy to explain. give me a quality fund that helps me get clients closer to their goals. flexshares etfs are designed and managed around investor objectives. so you can advise with confidence. before investing, consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully.

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the tesla saga continues today with six out of the nine tesla board members issuing a statement saying that ceo elon musk approached the board last week with the idea of taking the company private. and the group is currently evaluating the decision. six out of nine. i wonder who the three who were not consulted were or maybe they didn't sign onto the statement let's bring in cnbc contributor kevin o'leary. you said in the past you like your model x but hate the stock. what do you think of this move, possibly going private can it work? >> i was in my model x yesterday driving when the financial times story broke with my young son who is an engineer he is the person that forced me to buy that model x. i was dead against it but he brainwashed my wife. i love the car. >> you love it don't you. >> i love the car. i hate the stock. >> okay.

>> before i preface what i think about the situation is there has never been a stock or a story like this one. i know this because just last week when i left "fast money" and walked into times square i got acosted by two muskonians and they are more aggressive than the old tazonians here's why i think the story is brilliant. i am going to assume that the legal issues swirling around that tweet probably have no merit. twitter has been used as facebook to disseminate information for other public companies and it went nowhere in terms of public claims let me put that aside. i'm more fascinated with the timing with the ft release there is a put on the stock with the saudis on their first two billion. let's assume they want more and would buy more if you are a short in this story -- the first thing i did when i her the ft story is call

desks that i know are short tes tesla. some of the hedge guys are three times levered. they are really really hurting now. >> right. >> if i'm elon musk and i want to finance i'm doing it on a stock that's up 40% from its recent lows. this move is brilliant. >> i know you are setting aside the potential legal issues but that one stoentence in there, t words, financing insured what if it's not here is a ceo making public information -- and essentially telling us something that's not true the scc should be all over that, right. >> i grew up in the private equity world what that could mean is that he has gone to institutions that own this stock already and they are going to roll into the private deal it takes the requirement for a lot of debt out of equation. you don't know what percentage of institutions will stay through the private holding of this we don't know. here's the part i find so fascinating -- look, i'm just

speculating here with everybody else i don't have any insider information. but i look at it as a stock. if i were short this stock right now, i would be sweating bullets for this next piece of news. let's say he has dinner with cook or he has dinner with zuckerberg, or he meets with cheryl sandberg, which could easily happen in the valley and i was short this stock, i would be screwed because there is a scenario you may call it small, but if apple wants to be in the car business this is how you do it you step up -- doesn't have to be 420 it could be another price. i think elon musk has made a really good chess move here. i do not own the stock. >> with you buy the stock now. >> i'm not long or short. >> you said you hate the stock is this enough to get you to buy it i think you made an interesting point. tim cook to buy this company for cash, couldn't he? >> yes that's the whole point what he has done here is formed a speculative aura around a

position that is at a ridiculous valuing a. >> manipulated the stock at the same time. you have the convertiblend bo. >> no, no. >> you have the saudi investment there with the put all of this, it smacks of the possibility of stock manipulation at the same time doesn't it. >> i'm going to assume that he is going to survive that test. but what i find so fascinating here is, this is the dilemma he has been talking about becoming cash flow positive in the next two quarters. my advice to him, do not do that never become profitable in the near term. that would be a horrific mistake of the i would make people like me apply a normal multiple, 15 to 17 times earnings this stock would get crushed it would have to play in the same universe as all the other automobile companies you have to keep the dream alive. never make money be an amends for the next five years. never make profits. >> you have start-ups with the

hope of taking the company public the fact in a musk wants to take the company private. is this a wakeup call to regulators >> i love where you are going with this. you are absolutely right the reason these holdouts like uber stay private as long as they can is they have easy access to capital, they would much prefer not to report, the reporting has done nothing but inflate inflate in every asset class that is public somehow as society or as a country or a regulator we have to ease that to allow more companies to become public earlier on elon musk is pointing something out. and he is in a story stock the whole world is willing to follow him down this path. the reason which is so unique, the product is fantastic i love my tesla. i would never buy this stock

never. never, never never. >> really interesting stuff, kevin. >> yeah. >> let's talk about blue apron. >> yeah, let's do that. >> it's not doing all that well. you are going to turn my apron blue here. you have to turn my red apron blue. >> here's what i say to all of you, look, every batter, every batter has a slump in the mid dog days of summer that's happening here. if we keep with the baseball analogy, look, this -- it doesn't matter what is happening this part of the season. what matters is when we get to the super bowl and what the price of blue apron is what dragged me into the slump is blue apron but i spent a lot of time in this space. blue apron has a lot of longistic output it knows how to meal kit it has facilities in many places, which someone may find interesting. it has hundreds of thousands of active users

they are valuable. my hope, my guess, and the reason i will make you eat my last year's number one trophy when i win the second one, it is going to be that somebody acquires this company for those assets. >> okay. >> and that has to happen before december 31st. so stay tuned. ye of little faith in. >> the buyout price keeps going down. >> up today, 6.5%. >> the problem with kevin is he lacks confidence. >> he does, i have always thought that about him. >> great to see you, kevin o'leary. >> thank you. >> coming up just 90 days until the midterm election how worried should we be about election hacking and if you are worried about that, how about this hacking humans pacemakers specifically. oh, boy. osstiecongp.

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. welcome back to "power lunch" t-minus 90 days until the mid-terms. how concerned should we be about election hacking josh lipton live in las vegas with more on that story. josh >> reporter: as mid-term elections approach here, election security is front and center here at black hat,

election center expert walked us through how vulnerable our voting machines can be so, carson, walk me through how we're going to hack a voting machine. >> the first thing we do is connect to this machine. when we press join we're connected to the machine >> is that it? >> that's it do not use wireless access points of voting machines. don't do it. if you doubt this is the window machine, you can just look and list the directory until you see there's a directory called win vote then i'll have control >> you successfully have broken in >> you could at this point you would actually have access to the voter database and change the votes? >> that's correct. >> now the win vote machines you guys saw in that machine have

been decommissioned. sherman tells me there's voting machines out there that he would be concerned about like win vote machines they don't actually produce a hard paper trail. if you don't have that, he says, it can be very hard to sell whether a cyber security attack actually happened. >> yikes now you're there at that black hat conference you reported about a different hack and tell. hacking pace makers? >> this is wild. i caught up with two security researchers. they showed me how they were able to actually hack their way right into a medtronic, a device that kolls pace makers they use a laptop they could, for example, hop on a hospital's network and compromise the programmer and do whatever they want in theory that means they could change patient therapy if they

chose to there's 33,000 of these specific programmers out there. we did reach out to medtronic. the company saying they have existing controls in place to mitigate the issue we strongly believe and found the therapeutic benefits of our the therapeutic benefits of our products far ♪ hawaii is in the middle of the pacific ocean. outwy risks. >> check please. hawaii is the first state in the u.s. to have 100% renewable energy goal. we're a very small electric utility. but, if we don't make this move we're going to have changes in our environment, and have a negative impact to hawaii's economy. ♪ verizon provided us a solution

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check please >> it's time for check please. and i'm watching booking holdings formerly known as price lynn the big travel operator it reports earnings after the bell big competition in this space. marriott ceo on the conference call yesterday said that more consumers are booking hotels directly on the hotel website and no longer using travel operators like hurricane irma a -- like expedia and booking >> my wife uses it but i go right to the hotel. >> sometimes you get better rates. >> do you >> many times. >> if there's a problem with your reservation, let me tell you, from painful personal experience, you are better off having made that reservation

directly with the hotel or directly with the airlines >> i don't need a middle person. >> great use them as a search engine to help you maybe find things, but then use the, make the deal with the company itself that's just my opinion, okay >> all right >> that's just my opinion. >> doesn't make you a bad person >> we've all had these expersonences. >> oscars are three hours now as opposed to -- >> sure they will. >> as opposed to measured on a sun dial three hours. they will cut the ceremony and add a category for popular movies i'm not sure exactly what that means, whether it will be the best popular movie like fast and fourous. >> they expanded the number of nominations for best picture but most people haven't heard of those pictures terrific movies but people don't go to see those movies they go see the titanics and

avatars. >> i wonder how advertisers will respond that oscars are less shorter. >> it does go on and on i do have to say i realize you want to give everybody their moment in the sun. best lighting director >> my story, i'm fascinated by this transformation with cvs announcing a partnership with teledoc. video doctor visits in your local cvs. this is an example here with a patient consulting with a doctor using teledoc. will customers at cvs willing to be patients at cvs and will cvs be able to convert patients into customers because they want them to buy more when they come to the store. >> we talk about the role amazon

is playing in disrupting the pharmacy business. cvs with an innovative move. >> walmart doing the same thing. and walgreen's >> i'll be off for a couple of days of vacation you'll be here thanks for watching "power lunch" time for the closing bell. trade war still brewing. one guest says china will still rely on the u.s. for one particular export. he'll explain coming up. >> tesla's board says ceo elon mu musk discussed taking the board private before yesterday's tweets i'm josh lipton in las vegas. one of the largest cyber security conferences i'll introduce to the man who hacked into windows computers through cortana. >>