81, new highw today on the adids growth buy high, sell higher. >> there's a plug for the book >> that's like three we're watching the market, especially the nasdaq going for its eighth strait day of gains well on its way, up about 30 points "power lunch" starts now >> stocks creeping closer to those new highs. the wall street fear index is at a seven-month low. you know what happens when that happens. sticker shock, used car prices have just crossed over a price point few could have imagined ten years ago. even a few years ago what's driving that? what does it mean for the auto business and smartphones, pcs, tablets. it's almost impossible to discorrect thedi disconnect these days. should technology companies play a role in helping you unplug

microsoft thinks so. the man behind that plan will join us in a bit and dangerous jobs our special "power lunch" series, pulling no punches today. how page van zandt went from bank teller to ufc superstar "power lunch" starts now >> welcome to "power lunch." i'm contessa brewer. stocks are trading in a narrow range. the dow swinging between gains and losses the nasdaq trying for an eighth straight day of gains. its longest winning streak of 2018 the consumer discretionary sector set for a record close. viacom, norwegian cruise lines and michael cookoo kors leading group higher amazon, advanced auto parts, chipotle and target leading the market higher. market volatility is at the lowest level since the beginning

of the year. bob pisani is at the new york stock exchange set the screen for us. >> yes the important thing is we're meandering around the last few days, but it's a calm before the storm. that's my impression let me show you what the sectors are. that nasdaq keeps moving up. techs up, even though morgan stanley downgraded the whole semiconductor industry healthcare is flat banks and consumer staples down. consumer staples had some head headwinds last week. we have stocks at record highs volatility, you saw the vix at 10 it has nowhere to go but up. treasuries, people are shorting treasury, betting rates will go up a lot of people are betting the dollar rally will continue this is a tightly wound thing. lopsided positioning u.s. markets have been holding up well because the u.s. is the place to be. people have been talking about strong earnings in the united

states we have been outperforming the rest of the world. we've also talked about the gdp growth the title wave of buybacks, dividends. the impacts of the tariffs being limited. and when they sell tech, they buy value and go back into the technology stocks. that's kept the markets up because we're so tightly wound and have new highs in stocks, big bets on rates going up and big bets on the dollar going up. a lot could go wrong we could get rate hike surprises. tech vulnerability the trade wars could be more serious. margin pressure could happen if we see an acceleration in inflation, decelerating earnings growth could happen. none of this derailed the markets yet. but when we're this tightly round, so many extreme positions, little changes can result in big moves in the markets. contessa >> bob, thank you very much.

so we have these strong earnings, we have the economic growth and the impact of the tariffs has been limited add that wall street's fear index is at the lowest level since the beginning of the year. is this a green light for the rally to hit new highs let's bring in bob pavlak and david katz gentlemen, great to see you. bob, let's start with you. a lot of reasons to worry as bob laid out there are you worried? >> i'm not overly concerned. when i started in this business there used to be a lot of phones that would track the news letter writers. when they became bullish on the overall market, it was time to jump out i think the vix is more a reflection of what's going on in the market at that current time. when everybody starts to become fearful, you start to see a major selloff, the vix starts to really tick higher

when the market is doing well, nobody is trying to get out. then all of a sudden something comes up, it spells trouble for the vix, that is on the big move higher i think sentiment really continues to rise. i don't want to be in that camp. i don't think we're there yet. i think the slow move up to the old highs, eventually to making new highs, that will probably occur, but it's occurring at such a slow pace, i'm not all that concerned with it yet >> david, when you're looking at all of these indications, you have a ratcheting up of the trade war tensions, the vix at its lowest level why aren't we seeing more volatility six weeks ago, two months ago, that's all anybody was talking about. get used to volatility it's the name of the game. is it because people are on vacation >> the fact that you haven't seen volatility doesn't mean you will not see volatility again. we've been bullish this year every time we've come on we say

buy on the dips. we expect the market to have low double digit, high single digit return returns. we would not be jumping on this rally. of all the concerns that bob pisani raised, we're comfortable with most all of them. the real concern is the possible trade war. that's the one that we're worried about. watch out for that that will keep popping up. when it does, the market will pull back. pick stocks you like buy in that weakness the best way to make money going forward is to look at the laggards they will be a better place to make money >> i knew you would say that, david katz bob, i remember all the news letter writers back in the day and getting those news letters in the mail. don't you think we're in a complacent period now? the fed is raising rates, but the long end of the yield curve is lower it's not responding to that. the vix is where it is we keep hearing about the trade tensions with china, but the

market is sitting near all-time highs, and we have come off one of the strongest earns quaings quarters in about a decade isn't that the definition of complacen complacency? >> you are right i think complacency will carry us to 30 or 40 as we get closer to year end, as we see a shift in senatorial or house seats, i think there will be a shift in sentiment. i think there will be a rotation in the market. >> to what >> to things like value. things like more defensive sectors. things like staples, utilities i was last on back in may. i said i thought the market would get to 30 or 40. that's the time you take money off the table. you look at your positions, see your growth positions, and if they become too large you take money off and take initial positions in these more

defensive areas of the market. there's some great names in the staples sector, in the utilities sector that have been overlooked i'm not saying put all your portfolio in it, take an initial position and protect yourself. i think next year will be more difficult for the overall market >> quickly, what's your value play >> we like comcast schlumberger has missed the oil rally. at&t, we would be buying that here get the 6% yield >> all right david, bob, thank you for coming on >> thanks. a news alert in the bond market yesterday's ten-year auction a record, got a "c" or a "c" my ni -- minus. 30 years, how did they do? >> "d" plus. this auction didn't look good and investors seemed interested.

18 billion in 30-year bonds, capping 78 billion for the week. the auction results, 3.09. that's about the best thing. here's where it deteriorates 2.27 bid to cover, well below the 2.41 ten auction average 61.it was smack on on indirects. 8% on directs. you had bid to cover and directs the lightest since early 2018. nothing about the auction showed a sense of adventurous demand. it shows me what is logical, the long end you don't get paid enough to take that extra risk supply is done of course everybody will wait for cpi tomorrow >> a birdie told me a bit ago

that you talking back to the television on qucomplacency. >> i respect the vix, and i respect when portfolio management had that part of pack your portfolios as fat as you can with volatility low. that went awry early in the year i think option volatility with things like tariffs is not necessarily painting a message of complacency i think it's painting a message that the markets are doing great under a questionable time period and it's more of a headwind that could leave at some point more than anything else >> thanks, rick. >> thank you >> right to bertha coombs with a news alert on amazon >> chrissy farr on cnbc.com has a scoop that amazon is preparing to open on-site clinics. the giants in technology had

been talking to some of the providers about outsourcing, but they decided to start air own online clinic. they would like to expand next year to their seattle headquarters talked a lot about the need for consistent care for amazon workers, particularly when it comes to the warehouse if they can scale that for them that would be a real cost saver for them in terms of healthcare. back to you. >> i think that's a rehearsal for something else, don't you? >> exactly it's one of those things, apple is also, according to chrissy, launching its own in-house clinics. it's a way for companies to get better, more consistent care for workers who have issues like diabetes or other chronic conditions they can't get away to go to the

doctor's office or clinic. they could do it in-house and get that primary care that they need >> all right very interesting >> when i worked across the river at 30 rock, there's a medical clinic there you would go and use it. it was a great convenience for the people not to have to leave the office if you needed to be seen for something right away, to run to urgent care. it will be interesting to see how amazon pushes this forward and increases the profit margins or the cost savings when they go into effect. >> thank you, bertha is morgan here yet i knew she wasn't going to be here on time i'll do this the u.s. hitting russia with new sanctions, and it's playing out in the currency market the ruble hitting a two-year low against the dollar eamon javers has more on this story from washington. >> that's right. what this took ultimately was a determination officially by the u.s. government that russia was behind that poisoning attack earlier this year in the uk.

and that involves some input from the u.s. intelligence committee. a lot of that can be classified and complicated. that's why it likely took so long to get to today here's what we know. the u.s. is saying that russia broke the law in essence by poisoning former spy sergei skripal and his daughter he was a russian national spying for britain in russia, retired to britain once he gave up his spying career, was trying to lead a quiet life. the russians allegedly tried to assassinate him and his daughter in penalty now this ban will include a ban on licenses to export sensitive national security goods to russia and electronic components as well. some on capitol hill have been frustrated for the trump administration for moving too slowly on this the attack happened in the springtime frame and we're not getting the sanctions kicking in

until this week. the trump administration said the president has been stronger against russia than any of his predecessors and the trump administration will point to this as another example of that. >> eamon, thank you very much. morgan >> you wished me into being on the set. >> welcome >> thanks. >> ask, and you shall receive. >> thank you check out this mystery chart the stock up nearly 50% this year, but could it soon be caught in the middle of a trade war? we'll ask the ceo. plus the trade war is starting to hurt china ck president xi facing a balash that's coming up on "power lunch. ♪ introducing e*trade personalized investments professionally managed portfolios customized to help meet your financial goals. you'll know what you're invested in and how it's performing.

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welcome back to "power lunch. is the u.s./china trade war starting to backfire on president xi kayla tausche has more on that story. >> reporter: despite president xi's life-long grip on power, some say china has been overconfident against the u.s. on trade issues which has escalated from a dispute to a war. some say within the party that the outlook has become grim. on tuesday, the president praised president xi, but said of china, it's hard to get a deal it's hard for him and his country.

trump demured on next steps with china but talked about good discussions with europe which could gain momentum. the state department has instructed european embassies to source business deals for the two sides. they will discuss those when they pick up negotiations later this month part of the consideration i'm told by a senior administration official is potential u.s. government in germany's nordstream 2 pipeline deal so we'll see how that deal comes together and whether, in fact, the u.s. gets a piece of that deal >> kayla, thank you very much. one of the major u.s. exports targeted in china's recent tariff threat, liquefied natural gas. our next guest is a cfo that refines and transports such gas in the u.s their stock is up 50% this year alone, could they be at risk if trade tensions escalate.

he doesn't look too worried. robert phillips joins us now on set. good to see you. >> thanks. >> what do you make of the relationship between the u.s. and china as it pertains to energy the feeling is they're going lightly on us because we're a source of energy for them right now. >> i think that's certainly true china made clear their plans to increase natural gas usage, decrease nuclear, decrease coal. certainly u.s. natural gas is in the long-range plans the temporary problems are more about trade disputes and the negotiating process. >> is anything going to change in that relationship will we -- if it comes to it, could we see some tariffs that will disrupt some of the production in the u.s. >> not clear probably not disrupt production in the u.s we're hitting all-time highs in natural gas production

still imports from canada. we have an aggressive growth program going across the united states for domestic use of natural gas. we have a significant increase in exports to mexico our lng across the entire globe is starting to increase now at pace we hoped for several years ago. when you add that together, it's a global market. gas is funkiblgible. if we lose the market one place, we will move it somewhere else >> i was struck by the increase in u.s. crude imports into china. less than 2.5 million barrels at the beginning of 2017, to 15 million barrels last month we saw china back away from threats to apply tariffs to crude, instead apply it to the refined product. what happens with lng products in terms of expanding that market if the threat is

constantly there of adding in tariffs. the supply demand imbalance is the same for crude as it is in gas. we hit recent highs in production we still import a lot of crude into the u.s our exports are at about 1.5 million, 2 million barrels a day. a small portion is going to china. if they shut off crude exports, it would not have a big impact on u.s. domestic production? >> if we're not shipping as much lng and crude to china, where else is it going >> europe for sure we have great strategic trading partners there there's a bigger arbitrage, whether it's butane or crude, they still use that for european refineries >> china is not just another market it potentially is a huge market. when you talk about if we don't have a market in china, we can send it somewhere else but that somewhere else is not

nearly with the potential that nine has for you guys. >> the biggest concern for china is the tariffs might increase the cost of fuel products to the chinese consumer slow down economic growth in china. that's a problem for the entire global u.s. -- global and u.s. energy complex we all look to china for long-term economic growth, and therefore the increasing need for fossil fuels it would be problematic if we saw an economic recession caused by this trade war. i think the practical short-term impact is we'll figure out a way with u.s. production to find someplace else to sell the product. >> i want your thoughts on the impact of the other tariffs, the steel tariffs and what those have done to prices in the u.s you're a mid stream company. i'm assuming you're using a lot of steel and other metals as you build out your infrastructure. >> we are. we've seen some price increases. i think for most projects that have been built out over the last couple of years, those

materials were purchased long ago before the increases started. with new projects, those coming out of the permian basin now, to connect the growing supply in the permian to gulf coast markets, there's no doubt those projects cost more 10% to 12% more for steel, when it's specialized metals it's higher than that >> we're still seeing congestion and gridlock getting that crude out of the permian that's ban hugeen a huge issue >> it is the supply comes up. the economics support that pipeline companies make plans for big projects it takes a while to get the permits, regulatory challenges we build it out. the basis differential goes down build out the pipeline, comes back up. the market balancing again >> a whole different world from the wildcatters. >> it is it's manufacturing, bill >> exactly robert phillips, thanks for

joining us >> thank you very much tesla shares coming off their elon musk tweet sugar high of the other day are investors doubting the deal? and what would it take to get you in this car today? yes, we're selling used cars today. the stunning average price of used cars around the country comingp uon "power lunch.

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hello. i'm sue herera here's your cnbc news update vice president pence outlining plans for the creation of a sixth military branch called the united states department of the space force. during remarks at the pentagon he said goals for the space force is to be operational by the year 2020. >> as president trump said in his words it's not enough to have an american presence in space, we must have american dominance in space and so we will >> opioid abuse during pregnancy is a growing problem in the u.s. new government data says the number of pregnant women with opiate use disorder grew from 1999 to 2014. melania trump's parents have been sworn in as u.s. citizens they took the oath this morning in new york city they raised melania in slovenia while it was still under communist rule

they have been living in the united states as permanent residents. you're up to date. that's the news update contessa, back to you? >> i guess if your son-in-law is the president of the united states that makes sense. >> yeah. >> thanks. let's get to california and the latest on the wildfires. the mendocino complex is the biggest, it's destroyed 200 homes and other buildings. scott what are you seeing there? >> i'm seeing a thick haze in the air around us, but despite that it is now sounding like they made some substantial progress, particularly in the last 24 hours. the fire, which is over 304,000 acres, is 51% contained. that's a good thing. they'll get a test today, though, as the conditions continue to get worse for fires. high temperatures, high winds, low humidity that's not good. consider what it takes to get to this point where they are now at 51% containment.

they have firefighters here from as far away as new zealand it is a massive undertaking here in this command complex that is away from the center of the fire this is the kind of thing they have to assemble on a moment's notice there are 4 had -- 4,000 personnel fighting this crew, 19 helicopters, the list goes on. it becomes a makeshift city. >> support you can think of, feeding the firefighters, supplying them with hose and equipment that they need, to sleeping arrangements. >> reporter: and as these fires get bigger, the more logistical challenges there are it is only august. we are ahead of the total acreage that was burned last year so we're at about 600,000 acres. we surpassed all of last year when they were fighting fires well into december they're calling this the new normal out here. >> i know they had to call there

firefighters from all around the region they're using members of the military are these guys getting a break at all is there any rotating them off and on the fire lines? >> absolutely. again, that's part of this whole low jooi logistical challenge they are working long shifts, long hours, and they're going from one fire to the next. that's the challenge there's no real season anymore it used to be usually a set fire season in california, but it's almost year-round now. so it's creating all sorts of challenges, logistical, economic, and also just the human toll of people dealing with this. >> scott, thank you very much. when i use the word guys, i mean that to be jende gender neutral. >> i would also note, in terms of economics, you're starting to get early estimates out from insurance companies on the losses, both insured and uninsured. well into the billions with

these fires, despite the fact it's going on and likely to for days as scott has reported >> hopefully gets contained soon. i know when morgan and contessa think of used cars, they think of old rusty beaters. but the real story is the average selling price for a used car is now $20,000 that's the average price for a used car in the country. ph fi phil lebeau has that story lo look. >> look at the rise in average used automobile prices, used trucks, used suvs. it is now above $20,000. compare that with the price of a new vehicle. this is one thing that's driving demand in the used market. the average price for a new vehicle, just over $35,000 that gap is widening, and a lot of people are saying i'll go on the lower end and go for a used

model. at the same time there's been a wave of 3-year-old models coming off lease. this is one of those dealer auctions, where the dealers bring in the vehicles, they sell them to other deerls sdealers e individuals. >> safety features and fuel economy, cars that are six years old are different than newer vehicles you see out there today. >> look at shares of carmax, which has seen an increase in its stock price over the last couple of months as people rotated more into used cars. about 39 million used vehicles will be sold here in the united states this year, about two-thirds through dealerships, the remaining third private party, one person to another going for more than 5$500 and a case of beer >> i want to ask you about tesla. we're watching this stock pull back today, phil

more than $20 below tuesday's musk tweet high. more than 60 bucks a share below the supposed offer price are people doubting elon musk will take the company private? >> i think that's what the market is telling people the longer we go without a filing or more details from tesla, especially with regard to the question of funding secured what is that funding, if there is funding secured for this takeout at $44$420 a share, i'mo surprise we see the stock move lower and lower. >> phil, thank you we all love our twices and phon -- devices and phones and tablets, but sometimes you need to unplug. should the companies tt kehama those items help you some say yes

let's check markets at this hour stocks trading in a narrow range. the dow moving in and out of positive territory currently down 10 points the nasdaq looking for an eighth straight day of gains, that would be the longest winning streak of the year century link, viacom and flowserve leading the s&p 500

higher at this hour. we are above that 2850 mark, right around 2860, which traders have been watching closely bill >> morgan, thank you smartphones, tablets, pcs, we all know about the benefits, but we may not know how much time we are spending on them according to comscore, the average american spends 2 hours and 51 minutes on their smartphone some reports say we're spending as much as five hours a day op our phones our next guest says technology has the responsibility to help everybody unplug joining us is jusuf maydey thank you. welcome. >> thank you >> you just got back from a sabbatical where you unplugged for a bit. >> a year ago i took three months off from microsoft on a

sabbatical i was struck by the preciousness of time. there's so many things you could go during those three months what you pick, being in the moment with friends and family was a big eye opener >> this was the first time -- a lot of people have been saying we're all becoming addicted to the devices. was this the first time it occurred to you that that might be true? >> it was one of these things where it did open up -- i think the epiphany was my best moments were being face-to-face with people, being in the moment. and the digital technology was great to get to that place, but it was in that moment i said, wow, there's something there that i need to kind of take a second look at >> this makes me feel uncomfortable on so many levels. it seems big brotherly to say do you want your computer to encourage you not to love it isn't that our own responsibility secondly, maybe you can answer this, because you work at a company that has some technology, are these companies intentionally trying to get us addicted to devices?

>> a couple things number one, i think we are optimists and enthusiasts about technology and what it can do for people we probably have the greatest opportunity we've had to be empowered in our lives because of this technology but as you pointed out earlier we're also seeing interesting effects. average person checks their phone between 150 and 1,000 times a day. 3 to 6 hours there's a couple interesting dynamics in this blurring of work and life where you can do great things in the day and evening for work and life, there's a feeling with our research saying i feel like i'm always on. there's great pressure the second big thing is in some devices you pointed out that any give you these great as far as for free, but the way the business model works, they need your time, attention and data. in a way they're designed inadvertently to kind of hack your attention, hack your data that gets you for the first time this addictive feeling of coming

back and always being on the phone. so there's a bit there of how can we change or improve our products to help with that that's the thing we're in search for. it's an early time and we're in a learning process here. >> it's interesting, you're basically putting out your -- or explaining a value system for microsoft, right it goes back to some of the comments that have been made by satya nadella about a bigger focus on privacy as well there is a bigger, broader debate right now in technology around values. and the value constructs that companies are basically laying out for themselves right now twitter right now is obviously sort of at the forefront in terms of this debate how are you and microsoft thinking about that in terms of future business and how do you think consumers are reacting to it >> it's a super pivotal question i think for us the way we think about it at microsoft, we have a

bit of a unique role we -- satya's mission has been for the company to empower people to achieve the things they want. when we design great software products, whether it's surface or outlook, our goal is to build these products to give you back time, not mine your time a second value for us is to make these things broadly applicable and inclusive to people of all abilities and skills in that push, i think we feel that there's something that excites us but also drives a uniqueness for our business because it's a different approach than other companies have >> wish we had more time we must move on. we'll let you get back to your phone. >> okay. >> thank you >> thanks for the time renting a home may seem easier than buying one, but easier doesn't mean safer, especially with so much of the process online now rental scams are on the rise new ones are popping up because of new technology. diana olick joins us from washington with the details. what have you learned?

>> reporter: more than 43% of renters reported finding listings that seemed fraudulent and more than 5 million say they were scammed of those, more than one-third lost $5,000, all of this is from a new report >> there's a lot of urgency, too, in the rental market, especially in the supply constrained markets out there where you have 10 renters fighting for one available apartment. in reality there's a lot of urgency. i think scammers can prey on this >> the most common scams include the bait and switch. when a different property is advertised than the one actually available. the scammer tries to collect the deposit. then the hijacked ad the scammer poses as a fake lan lord, but changes the contact information. the other scam is listing the property that's already leased and trying to collect application fees or security deposits some scams happen on legitimate

listings the landlord will advertise amenities that don't exist and try to collect higher rent before the applicant realizes those amenities are increasing the best protection is don't rent anything sight unseen and don't send money until you're sure of what you're getting and where your money is going. just call the number that's all it takes. pick up the phone. more on cnbc.com >> great advice, thanks. up next, the latest in our series of dangerous jobs this week, weprofile a ufc fighter, she stands in a locked cage with an opponent who wants to make her bleed and knock her out. >> sounds like "power lunch"ful. >> paige van zandt's dangerous job is next.

. every hacker wants to pak it on the pga tour, now a different kind of hacker has as the pga championship is kicking off today in st. louis,

computer hackers have hijacked the pga's computer servers and the hackers are holding it for ransom demanding bitcoin no specific ransom amount has been requested, but the pga says it will not pleat ameet any extn demands. the pga brought in external i.t. experts to resolve the issue unbelievable >> it is unbelievable. how does this sound for the description of a dangerous job must be willing to get punched in a face. that's career reality for a ufc fighter. this is paige "12 gauge" vanzant, a professional fighter in the ufc, her nickname says it all. >> i like punching people in the face our body is our tool it's our weapon. >> reporter: at 5'4" 125 pounds, paige vanzant is about the size of the average ballerina but she's no sugar plum fairy. she'll take you down and get

paid good money to do it after years of training as a hobby, she got an offer to turn pro, and she took it >> i was working as a bank teller, i got offered the pro fight. i asked for time off, they said i couldn't so i took time off and took the fight. then i was fired >> reporter: it was a career move that paid off paige is no a rising star and fan favorite in the brutal ultimate fighting championship >> a lot of people are frized when they find out i'm a fighter. i don't look like a fighter. i think girls can do anything they want to it shouldn't be a stigma that you have to be manly to be a fighter. >> reporter: paige does get paid for all the blood, sweat and, well, more blood >> ufc takes care of their athletes >> reporter: her total haul so far is reportedly more than $383,000 over 11 fights. that includes huge rewards for

paige's ruthless fighting style. a $50,000 bonus for fight of the night. and another 50,000 for knockout of the night during her ufc debut. >> the girl i fought probably technically was better than me, but i wanted it more than she did i fought more than she did it was the biggest thing that changed my life. after i won that fight, i went from not being able to afford gas to getting a $50,000 bonus >> reporter: but it was her fourth ufc fight, one that she lost, that really sent her career and bank account to new heights. >> i got cut open. i was bleeding profusely everywhere so i fought through five rounds of total war that's where i go noticed. i got more fans off of that fight than my opponent did, and she won. because of that i got "dancing with the stars.. >> reporter: she kicked it on the fandance floor, too >> the thing with fighting you never know how long you have in the career it's all about setting yourself

up for the successes outside of the career as well >> reporter: brave, beautiful, business savvy, paige vanzant is one opponent you don't want to underestimate. coming up next week, we profile a dangerous job of a mountain climber one of the most notable things to me. she's gorgeous she's taken all these hits to the face and just holding up really well. really impressive. >> hits to the head. i could be curious what her parents have to say about this, right? you know, it's hard. those hits to the head, i don't know >> plus she made $345,000 on "dancing with the stars" for second place i shouldn't have said no >> i think you'll have to get on "dancing with the stars. >> too late. railroad stocks have a strong rally this year thanks to a strong economy will the run continue or is there a stop signal ahead? that's next on "power lunch.

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let's get to leslie pick we are a news alert. >> larry robins glenn view

capital coming out in support of cigna's acquisition of express scripts as carl icahn took the opposite stance. in a 14-page letter. glenn view wrote that while we have great respect for mr. akahn we believe that analysts feeding him information to lead the fight against the deal may be argument him with informations that's less than correct he lays out a case why the merger will save the investors billions annually and why the long-term growth prospect are stronger with the steel. glenn view says it has a $1.3 billion investment in cigna appear express scripps split evenly between the two glenn view letter says goes on to say that we believe it supports a transaction of in magnitude and we hope the vast majority of the shareholders will reach the same conclusion glenn view says voting down the

deal would be backward looking and brings risk. back to you. >> leslie thank you. well full speed ahead for the railroad stocks. csx up over 32%. norfolk southern up 20% year to date en and both all-time highs will the strong economy drive the railroads to new heights or could economic factors did he rail the rally. >> let's bring in scott, our onlts. >> thanks forring having me. >> we have strong economic growth here in the trade head winds. where do the rails go from here. >> there is a few factors driving the rail stocks higher this year. first, you point out the economy picked up. 4.5% volume growth for the rails in the second quarter, better than expected, best growth in about aier capacity is tight appear country think it's accelerating. third, big management changes at

csx last year leading to massive margin improvement this year modelling around 600 basis points of margin for csx we think the implications for the rails are positive we don't think we are close to peak margins yet largely for the rails they are generating record free cash flow and version and buying back record amount of stock and dividends. we continue to like the rails here. >> certainly they've been the biggest beneficiaries of tax reform in the u.s. as well what do you see as the potential risks. >> obviously, with the trade war, if we have an extended trade war, big impact on demand, that's obvious ohly a risk for the rails. the trade war is bad we are not seeing that yet rail volume starting the third quarter about a third of the way track in up over 5% quarter to date better than expected. any time we are talking about eastern rails, coal is always a

risk met coal, though at 180 a ton. gnat gas price is high 2s. near summer not a near-term risk for coal keep it mind longer term but right now the risks are moderate. >> one of the things we have been reporting on is the truck driver shortage and the fact you are seeing congestion in goods being moved by truck right now are the railroads benefitting? >> yes, first thing i would say on the truck side. we think the truck driver shortage is more cyclical than structural or permanent. that being said it's clearly tight this year. truck load pricing in the second quarter was up 15% year over year that's the best we have seen in 20 plus years in the models. that's a good thing for rails. rail pricing tends to lag truck load pricing by two to 3/4s. it's why we have confidence rail pricing accelerates going forward. rails the only place in freight where we think price something

better for 19 over a 19. >> the scottle wolf from research thank you. >> thank you. well the jobs market so tight right now that some people are accepting jobs, then finding something better and never telling the first employer they won't be coming in it's called ghostings. it's happening more and had more these days is the increased access to gambling around the country and on the phone a threat to las vegas as we know it? the mayor of las vegas joins us the second hour of power

i'm morgan brennan and here's what's on the menu. trade tensions rising. is the fed getting concerned and what does it mean for the rate hike. >> another retailer announcing with working with amazon, not against them can't beat them, join them is the company unstoppable. >> heading vegas last week the casinos slumped on fears. we will talk to the mayor about what it means for the city and the second hour of power

begins right now snp ♪ >> and we welcome you back to power lunch. i'm bill griffeth. stocks in a narrow trading range. the nasdaqs leading the gains. index now on the eighth straight day of gains with the dow the lagrd. materials and telecrom leading energy and staples lagrds. the xrt's on pace for the best week since early july. fossil, lands end and michael kohrs among the best performers. it's been a good day for food stocks, like jack in the box, papa john's and wendys seeing gains. >> thanks, bill. let's dig into the markets inchesing closer and closer to the all-time high for s&p. mike santelli from the new york

stock exchange. >> and inching toward the old highs is the right way to put it back in january when we came to the levels we reached right now in late january the market was up more than 7% year to date it burst through the highs we are inching there in an orderly way and no hurry what's changed between now and the levels last january. >> sexton are more expensive corporate profits are up more than 20% in the first half of the year that's made the valuation of the market look less demanding from 18.5 times toward earnings back then to 16.5 timesed in now. investors a little bit less excited about tp not as much enthusiasm or greed or speculation. you see outflows to things like stock etfs that's fshl probably a good thing. but momentum is lacking. it's not that impressive in terms of how fast the market is going up or how much buying power is behind it this time around that's why i guess where going

slowly that's probably okay maybe it's more sustainable path of increase. i would say we are up 6% in six weeks which is not bad right now. but it's nothing like the 7% in three weeks that we did at the beginning of the year. that's the compare and contrast right now as we said, sort of very tantalizing close to highs. >> as we sit in the summer days. mike santelli thanks from the new york stock exchange. this week china escalated the trade battle hitting the united states $16 billion in tariffs. as the conflict grows the federal reserve is taking notice steve leastman with the latest. >> there is concern and uncertainty. in the first place the fed looks for the impact of tariffs. the government releasing data this morning for july. today's ppi unchanged but remains high year over year at 3.3% just a 10th believe the 6 year high last month.

>> food and energy hit agnew six-year high or darn close of 2. petros and rising steadily. oxford economic saying we look for businesses to exercise prietsing power where possible and pass on some of those rising costs to consumers but diane says she shes is going the other way. she says food prices will put a crimp on farm income the fed is watching growth and inflation numbers to see how tariffs affect the economy here a cheat sheet looking past one-time price rises second maren effect on inflapgs expectations. do we change our view of what it does in the future it's seeing offsetting economic drag and watch the flow from producer to consumer prices the big worry is the president's tariffs could weaken u.s. growth more of a growth concern, less of an inflation concern. >> never easy being a fed official >> quick question here in terms

of worry about weakening u.s. economic growth? do we have a time line when they think that could happen. >> no. they are looking for it. they looked at the producer prices to look for it. here a good example. you know the washing machine which went up huge increases in washing machine prices that's going uppen and that's not an interest. they want it to know the next month, does that continue. a one-time rise in price level is not inflation which measures the rate of growth of prices >> transitory. >> transitory that's one of the terms of art used by janet yellen. >> thank you steve. >> sure. >> let's get to leslie picker for a market flash on tesla. >> i want to draw your attention to shares of tesla falling over greater skepticism of about the prospect of actually taking the company private as well as the potential for the s.e.c. looking into the company and the tweet in terms of securities

violations there now you can see that tesla has actually paired back all of the gains that have been made this week after news broke that the saudi sovereign welt fund was taking a stake in tesla shares, down about 3.5% there. become to you. >> interesting thank you leslie let's zero in on what steve was talking about with the fed and tariffs. if policy -- where am i going in right here if policy make remembers looking at tariffs as a factor in economic growth should that change the way investors are looking at the market. are they missing a threat. joining us eric is a strategist at russell investments and with us, kevin coron ob the senior portfolio manager at washington crossing advisers. good to see you both the market doesn't seem concerned about this should it be. >> it should be and likely will

be going forward. but in the moment it's backfiring in the glow of tremendous earnings report you have revenue up something like 10% year over year are more for the s&p 50 oh earnings up 23%. you have to go back to after the recession to see that number. >> but you got guidance from many companies warning about the possibility of higher prices or squeezed margin whatever the impact on their company from tariffs. >> so tariffs are a wild card. and no one knows the answer. the big question is how much of this ultimately translates into actual impacts on the economy and how does it impact the economy? because it's very unsure whether or not they're going to happen, how much they are going to happen ultimately and stick. and then what the impact would be on the economy. if it turns out we end up producing more here in the united states that could shift growth here to the united states, even though it's a slippery slope and if you had a global problem with trade that

would be a negative. so there is a lot of pluses and minuses hard to figure out. >> eric, we heard steve talking about the eye that the fed is keeping on inflation, on growth here what's your calculation when it comes to figuring out where to put your client's money? >> well, first of all, i think inflation has upward pressure on it regardless how the tariffs shake out. you are seeing companies demonstrate and talk about the fact that they have providesing power. you are seeing consumers starting to pend more particularly on the lower income end of consumption their balance sheets are good. we actually think within the u.s. market consumer discretionary looks like a good place to be. valuations are reasonable versus some of the other sectors out there like technology for instance we also like financials because even though we are not expecting a massive steepening of the yield curve or rates to rise dramatically we still think the consistent economic growth and the valuation of banks make them attractive that's where we look in the

united states on a multiasset basis we are looking outside the united states. we think the trade tariff less dp -- the impact will be less than expected and we think we are getting close to resolution on that and that will take the pressure off non-u.s. stocks. >> in light of that what's the biggest risk in the market is it the fed? >> i think the biggest risk out there that people need to keep in mind as investors -- this is a ways off -- we are seeing the fiscal impulse probably dwindling in the u.s. economy in the second half of 2019. we see potentially a recession looming in early 2020. so you're going to want to be careful about what you buy because if you buy something that's superexpensive now if the recession scenario manifest itself you are taking bigger loss than if you bought cheape >> especially if you bought it leveraged. is inflation inevitable since we are so late in the cycle at this point do you think. >> the i'm not convinced it's

inevitable and coming back in a big way i think we see some pressure because you have tightness in the labor market and those kind of other areas of tightness in the economy. but i don't see a big breakout of inflation because we are not seeing global credit creation. it's modest but mot problematic. but i agree with what eric is talking about. we are late in the cycle we have to be careful. with you you want companies without debt consistent cash flow basic things will go a long way. >> kevin, eric good to see you both thank you for your thoughts on today's market here. >> coming up on power lunch, as amazon hits highs another competitor partnering with them, if you can't beat them, join them is amazon unstoppable? it's not you it's them. we'll tell but work ghosting, how you can avoid being left in the lurch. marilyn goodman on why they she

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welcome back to "power lunch" and to leslie picker for

a market flash. >> i want to draw your attention to shares of tronc up about 4.9% upon a report by reuters saying the company is in talks to sell itself to an investment firm led by will wyatts, a former executive at the activist fund star board value. the report citing people familiar with the matter said his firm secured financing for the deal and is in advanced negotiations with tronc. we are checking with the company and will hit you know if we receive comment. back to you. >> thank you leslie. shares of amazon in party mode the stock hitting an all-time high outperforming the fang years the past months. and bringing party city into the followed. >> i see what you did there. >> if you look at the list of retailers that threw in the towel that said if you can't

beat enemy join them it's hard to see what stands in the way of amazon growth where does the company go from here. >> let's bring in our panel. you have the buy rating on the stock and a price target selfie 2150 explain the rationale for that price. >> it's pretty straightforward you mentioned earliyer that even the largest brands out there are finally deciding to just -- join the party so to speak. and use amazon as a distribution platform on the ecommerce side it grows 1.5 to it times the late of the competitors, online competitors. they do wonderfully in the two new aires they've been traded in the aws, air cloud business, extremely well in the advertising business both of these are multibillion

dollar and accelerating. all the while last quarter what really got us excited is that the first time in a long time they showed dramatic margin leverage which we have been waiting for for the last ten years. honestly, outside of regulatory -- potential regulatory rick and potential regulatory headlines we think this is a -- you know still a very attractive with very long run ahead. >> the problem with becoming goliath is that you make an easy target of yourself does amazon have an achilles heel not to mix metaphors. >> a lot of other retailers have been partnering, best buy partnered earlier this year to smell smart tvs. one area where they are growing and seeing challenges is on the voice shopping alexa has been touted and sold about 50 million alexa devices in the last couple years of all of the people that have the devices only 2% have used

them to shop this year that's a low percentage. could that grow? there is room. but it's a challenge for people to grasp the strategy they've been hoping would take off. >> yusuf, we have seen a number of deals hit the bricks. rite aid's deal. the amazingen opening clinicing. they've been moving further into health care should the traditional retailers, pharmacy players, health care companies be concerned right now >> absolutely. i think if you are a commerce. >> you don't think it's overdone. >> i don't think it's overdone i think amazon has the potential to grow in tangential areas. as i said earlier advertises was not an area where they had focused investor's interest. it was only in the last couple years that emerge. they are in the process of nurturing the series of new

areas, voice search being one. and it's way too early to be worried about amazon on that regard no, i think -- they have the where with al, the depth and balance sheet to pursue other areas either organically which is the prefer mode of operation or threw acquisitions if they find it hard or fail to do it. they will do it through m and a. >> preeia, contessa was talking about possible achilles heels for amazon what about the issue of them doing battle with the president of the united states there is no love loss between them and they've got their cloud services and some of the technology services that they're trying to get on contracts for the federal government are they likely to get the contracts given the relationship with president trump. >> well, the thing is in addition to president trump there are other voices in washington, too, growing louder in terms of whether amazon should be scrutinized for

antitrust practices or anti-competitive behavior. if the democrats retake congress that could increase. there are other people ray raising the issue the having the president's bully pulp. >> thank you for joining us today. >> thank you >> in the meantime german grocery chain aldis has been in the united states over 40 years. but if you've never seen one that's about to change courtney reagan is in a st. charles illinois with more >> hi, bill. that's right this is one of the remodelled aldi stores opening the 180 ohth u.s. location 700 more to go if you ar competitor watch out, they are lki are eate oongt alst in the neighborhood. i got the story coming up on "power lunch." hool. really helped me up my game. i had a coach. math. ooh.

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and see all the hotels for your stay! tripadvisor searches over 200 booking sites... to show you the lowest prices... so you can get the best deal on the right hotel for you. dates, deals, done! tripadvisor. visit tripadvisor.com german grocery chain aldis looking to bring a unique twist on discount grocery shopping courtney reagan joins us from illinois with more details hi, court. >> hi, contessa. this is one of aldi's remodelled stores, one of hundreds that are

going to be remodelled over the course of the next five years. it's part of a $5.3 investment to refresh the stores, remodel them and also add hundreds more as aldi tries to be the third largest u.s. grosser by store fleet by the year 2022. >> it's simple we are going where competitors are. we like to be kploes to the competition for convenience reasons for our customers. we like them to shop exclusively aldi but we recognize the consumer is going to more than one store. >> so today aldi says it's halfway through the remodelling plan to remodel the 1,300 stores by early next year 20% what have you see in the aldi story is new. 40% of the fresh food is new that's key for shoppers. aldi is saying 90% is aldi

private label goods. that's how they offer prices between 15 and 40% below competitors. now, aldi is privately held. but u.s. ceo jason hart said sales doubled in the last five years. he plans to double them in the next five years. that's somewhat easy to do but he says the comparable sales are growing. it's easy if you are building stores but the comparable sales are growing. so at carney says it's even though fragmented nef a 2% market share but it's well positioned as millennials in particular are very inopportune with buying private label deals. and actually they say private label brands are up 4% last year back two. >> you're the retail may haven where does this fit in with wegmanning, to whole foods, even like what you get at costco,

which is a very popular grosser as well. >> right, so as we said earlier they like to locate the stores near competitors on purpose. they know shoppers shop at more than one store of course they want them to shop just here. the data we see from cantar retail show they are nulling shoppers of all different kinds. pulling in a wal-mart shopper, a whole foods shopper. in fact in june one out of every four shopper had a household income of more than $1,000 where it fits on the spectrum it serves all rts sorts of consumers. a gallon of milk is shh 99 eggs 89 cents bananas be 44 cents. doing a lot of things to lower prices you have to pay for bags if you don't bring your own you have to stick a quarter in the carts as a devos toit take it out that protects them and keeps the

employees having to run around and collect carts. >> got it. courtney interesting. courtney reagan in illinois at an aldis those were cheap prices. time for trading nation. look at the two sectors leading this week this month and the year tech consumer discretionary. both groups are neck and neck. up about 2% in the last week and trading near all-time highs. the question is which is the better bet frank caplery is with ins at a net and mark with strategic welt partnering frank you first. >> i will go with xly they've been an uptrend for a long time. go back three years and there's been some weakness including this year xly was down 11% in february and 9% in marni both leading to buying opportunities. year to date both the xlk and y are up 15% revel actively

we see the comparison has been grocery it'sen underperforming since earlier the enof 2017. what happened back then in november was retail finally got legs that continues now i think that still is in the early stages so based on that and the fact that are many extended names with the xl the k i vote for xly. >> where how about you mark. >> i agree with franke we prefer consumer skrigsary over tech. i think the lower unemployment means more skurmts with ability to spend and wage growth is only growing modestly but we want assets when there is the potential for a catalyst if you get a spike in wages we do expect then consumer spending increases and that translates into higher profits for that sector in contrast, internet based tech hit high expectations. and for the most part you have seen user growth fail to deliver and impression when you look at twitter and facebook with that all going on we prefer

the consumer discretionary over tech. >> mark, frank good to see you on trading nation and for morehead to the website or follow us on twitter. >> angie home services stock taking off after 13% earnings fee. we will talk about the demand for home improvement we have that and so much more straight ahead on power lunch. >> so much more. >> announcer: and now the latest from trading nation.cnbc.com and a word from the sponsor.

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i'm sue herera her had here is the new cnbc update. karla provos is the new head of the border patrol. i want to ensure we are and remain the best trained, the best equipped and the most professional law enforcement agency in the country. and that we continue to dmeer to our core values of integrity, vigilens, service to country as we work to secure the border and to secure the nation the justice department announcing it charged a boston area man in connection with murder for hire solicit allegation to kill i.c.e. agents he previously threatened to slit john mcmahon's note. on a lighter note, what's your grandma up to well this 93-year-old -- dsh

look at her so cute. taiwan ease grandma is pending her day paragliding in taiwan. the paragliding company confirming she is the oldest customer they've had it's her second ride, and she says she is willing to do it again when she turns 100 and i wouldn't bet against her love that story. that's the news update at this hour back to you, guys. >> she sets the bar high for the rest of us. >> she is. >> thank you a check on the markets right now. stocks trading in a narrow range with the nasdaq leading right now. we are look looking at stocks flat at this point the dow up 0.1%. the nasdaq up 0.38%. look at the big moving roku and yechlt yelp soaring and booking holding disappointed tesla at session lows down 6%

process more on that ahead the oil market closing forred day let's get to jakky at the commodity desk. >> crude trading flat today. on track for a bad losing streak here, the worst in three years down 3% this week. analyst polarized the range is wide some say back down to 50 on the fundamentals but one thing is for shoe a new range is established here. summer driving season is pairing down the iran sanctions haven't hit hard yet 65 to 72 the technical show the upstrend still intact with the reebt lows we have seen we will see if those hold before we go to the weekend back to you. >> jackie thanks jackie danglis. here is the best sign i can think of we recovered from the recession. for years job politics would send out resumes even interview and then hear nothing. but now companies are dealing

with ghosting. what is work ghosting. eric is here to explain. >> for years job politics complained that employers disappeared. that's a term known as ghosting from the dating community they would be in touch and never hear back but now the tables turned what started off as dating term has spread across fortune 500 companies and offices across america. it's called ghostings refers to practice of ending a personal relationship suddenly and without explanation withdrawing from all communication. >> it's happening as we have seen profession organizations different industries it'shappened everywhere. >> we decided to investigate it ourns out that job candidates are turning into ghosts, disappearing from the interview

process. >> we have been seeing an uptick over the past six months in areas related to industries in energy, finance and business services and industrial and manufacturing. >> and it gets spookier. corporate managers are telling cnbc they see ghosts across the entire hiring process, people not showing up for interviews, not showing up for the first day of work. some people disappearing from jobs they already had. >> it's certainly a trend. i mean with the market as tight as it is for good candidates and so much hiring activity going on there is definitely more of everything happening goefrting being one of them. >> experts don't recommend this practice in any form saying it could one day come back to haunt you. >> wow kilo. >> it's crazy to me that folks would burn a bridge with

potential employers because you ner know. >> here is what's interesting i learned. six months ago -- generally what's happened recently it's always on text it's all on text i think about the generation calling, emailing you're not texting hr for jobs. it's all text. six months ago people would respond with sorry took another job, not coming. now they don't respond i think because it's text culture. think about how many we don't respond to. >> and maybe there is not a real person on the other end. >> could be a bot, a ghost on the other end. people have been burdened by companies they think that's how business gets done. >> thank you eric. >> the instruction of society. >> another bad rap. >> the sky is falling thank you, kmiken little. >> it's been a head wind after another for las vegas. they have the increased competition from new casinos around the company -- around the country rather and casino ceos blame a lack of events for a slowdown in

visitors remember the earning reports last week. we will ask the mayor. what is there to do in las s?ga >> plenty. >> stay with "power lunch.

angie home services certainly has been a home run investment angie of about 74% year to date up the home advisers, work spot, just to add a few names there. they do and they reported better than expect the results with the latest quarterly earnings. joining us on power lunch exclusive. kris terrelle the ceo of angie home services. >> thanks for having me. >> demand up 30% in the last year alone. >> and that's just the marketplace business we have seen service requests really doing well and growing. our service provider base is growing. the business is healthy and had a good quarter. >> has the demand always been there but now services are available? or what happened here. >> i think the bigger picture is most of this has been happening off line you have friends, family, word of mouth and you start to see it move digitally online s in a huge marketplace from the last big marketplace going off line to online we are benefitting from that. >> we have the incredibly tight

labor market in the u.s. i get that demand is soaring what about the supply side of it. >> we have good supply growth both in terms of nominal adds and more out of service providers. we are helping them with kmats and do more jobs be more efficient. with that said we are concerned long-term that we need more plumbers be with electricianings. if own a home. some need to go to college but some need to be a plumber or electrician. these are $70, $80,000 a year job. >> are you getting involved in recruitment efforts. >> we are not as a company i am i'm on the bell commission in colorado we have a apprenticeship program. i am working with other groups to for kids to think about nas that a viable krer if you make $70, 80,000 that's the american dream. >> often that happens without

big college debt to pay off. >> exactly. >> sometimes they get in early with apprentice theships and the companies say they like you and will send to you tech school what is the challenge for the growth. >> really it's execution in our case this is a complicated space. constantly balancing supply and demand and what makes you get it right. we think about the not one big market but 200,000 little markets. how do we get better, smarter and roll out the products that home owners are looking for in the digital age. we have the on demand products we have the same day service those are the things millennials are interested as they become first-time home owners and call of us have kids and pay taxes and need help we want to be there. >> i would imagine data play as big roll. >> huge. huge pch we have a massive data whether the pricing we understand in a deep zip code

level on the cost guide. but we look at behaviors so we better match the home owner with the provider for their task. it's someone to know that someone can do the job but can they do it now we want to get the right two parties together at the right time. >> ceo of angie home offices thanks. >> thank you. >> it hasn't been the best of times for casino stocks many of the big players got hit hard the last month on weak earnings and guidance and that is prompting some fierce of a slowdown in las vegas. but are those fears overblown? we want to getspective pr karolyn goodman, the mayor of las vegas. great to talk to you today >> thanks for having us on we really appreciate it. i'm so excited >> here is the deal. i'm on the earnings calls listening to the ceos of mgm, wynn and caesar's talking about

he seeing a slowdown for august and september, maybe a bounceback but there has been -- >> apparently we're having an audio problem now. do you have me now, mayor? no, you know we have to take a break and see if we can reconnect this and come back hopefully to mayor goodman when we get the technical issues resolved. >> meantime, frozen foods are heating up and - that you can trust they're 100% authentic? ibm blockchain. a smart way to track every step, ensuring this coffee did indeed come from 6,000 feet above sea level. and not a foot lower. ♪ ♪ at&t provides edge-to-edge intelligence, covering virtually every part of your manufacturing business. & so this won't happen. because you've made sure this sensor and this machine are integrated. & she can talk to him, & yes...

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california had the worst wildfire season on record. scientists say, our weather is becoming more extreme and we all have to be better prepared. that's why pg&e is adopting new and additional safety precautions to help us monitor and respond to dangerous weather. hi, i'm allison bagley, a meteorologist with pg&e's community wildfire safety program. we're working now, to enhance our weather forecasting capabilities, building a network of new weather stations to identify when and where extreme wildfire conditions may occur, so we can respond faster and better. we're installing cutting edge technology to provide real-time mapping and tracking of weather patterns. and we use this information in partnership with first responders and california's emergency response systems. to learn more about the community wildfire safety program and how you can help keep your home and community safe, visit pge.com/wildfiresafety

well, the gad news is we made a bet we could fix the technical problems and the with bet paid of off. karolyn goodman rejoins us sorry about the problems i was saying i'm on the earnings call with with the ceos gaming companies. and they say they've had a slowdown because of lack of scheduled events i know you're not technically the mayor of the las vegas strip. it's unincorporated in clark county the strip is outside of your overview process but you sit on the board of the las vegas visitor and convention authority. you have a vested interest in getting people to las vegas. is there a plan to cover the dry months >> well, we are the voice. las vegas is the voice of the entire southern nevada area. and we are not concerned

we have so many people calling us about reservations, what's coming in, the events happening. and of course the slowdown has a little bit to do with the heat you know it's hot here and most of our traffic, our grand traffic comes from southern and northern california and you know the fire andis

betting there will be more in the future in fact, everybody is expanding. seizers is throwing a ton of money at new convention space. the convention and visitors authorities expanding the conference facilities here in all of this building you've got to get raw materials in and steel prices are up as much as 50%. are tariffs affecting the outlook for las vegas? >> you know, we've been looking at this as soon as this administration made the announcement that they were contemplating raising and putting thesetariff nes into ple we were already out there. most of these hotels, downtown new casinos, our convention

facilities, we're all looking at reversing that steel, getting our labor in place so we're just booming. it is hots here is all i can tell you and you know we have the bestribest restaurants, the greatest entertainment. and it's the down town that's sparked the area, and we have the view opening up with 1,500 rooms and 228 direct or international flights every week so this is not a time of concern but a market something to the stockholder. the city is so huge and explosive right now we keep trying to have enough brains out

there, laborers carpenters, p m plumbers out here. >> thank you, ma'am. >> thank you >> i'm just told david faber has breaking news. it's got to be important what's going on? >> it's somewhat important it involves the future of campbells soup after the company moved to dismiss its former ceo denise morrisson has been undertaking a strategic review but it's going to be under pressure now because daniel lobe has just filed a 13 d, and perhaps what is more important and perhaps what is going to leave perhaps some warfare in the internal family is the fact that included in his group is a man named draw strawbridge, an

older gentleman, a part of that overall durants family he controls roughly 2.5% of the stock. together as a group they're roughly in for 9% of campbells soup and in a detailed filing they make it clear they are hopeful the current tstrategic review will end with the sale of the company. mr. strawbridge looking at perhaps more about the purchase of the current board, mr. lowe looking for an outcome that would involve the overall sale of the company but they've both taken a proxy fight to replace the directors of campbells soup. those include bennett durant mary alice durant who owns as much as 17.7%. these are estimates based on people who at least have been trying to puts them together for me for some time

arch burin on the board. so he's moved away from the rest of the family. what is unclear, and i've reported on this a bit in the mornings is what stance the family will take overall on the potential sale of campbells soup it's still unclear they would want to go down that road, but there may be further pregtser here given the entire board is up for election, and you could have an interesting scenario where they try to replace the entire board, but would they get the votes in a deal if it were to come to fruition to support it from the rest of the family a lot more going on, bill. was that big enough for you? >> very big. although the stock is up a rather luke up 1.75% right now

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to get consumers to buy frozen deserts? >> you know, the thing is consumer trends today are so bifurcated of course we all want to eat what's better for us but after that day of being really disciplined, i'm out with friends, i'm celebrating a special occasion i happen that i indulgent treat. >> are you revamping your food brand? >> sure. the thing to remember is two thirds of our business is consumer services. and we're a market leader in that space and we have some awesome foods. >> are you seeing growth can you share some numbers with us >> what we're seeing is is the space we're in are about $6 billion in total, and that market has been growing in the local single digits for the past years. and the place are where we play food service indulgent treats,

pies gets more growth in the food sectors there >> you've seen something like a dozen ceos exit companies in the last couple of years we just had david faber on reporting that on campbells. >> it's a very exciting time in foods. there's lots of things happening. it's very dynamic. but our story is about growth. we're playing in a big market. we have leading brands in our segments, and we can grow. we have great food our ch we've got great foods, a dedicated sales force that's going to work with those customers to earn those spots.

we feel as if we have a great story ahead of us. >> thanks for joining us today >> thank you >> i wish we could have some samples. i'm hungry >> wasn't this fun >> thank you i'm back tomorrow. i don't know if anybody else is. >> i'm back tomorrow >> thank you for watching "power lunch. >> and we've got "closing bell" coming up right now. it's time for "the closing bell." i'm wilfred frost at the new york stock exchange. stocks wavering all session long but the nasdaq set for its biggest winning streak of all of 2018 in st. charles illinois, aldi making some big changes to its u.s. operations at the grocery wars heat up we'll hear from the company's ceo ahead. the ever changing trade war could be having an impact on federal reserve policy i'll have the latest thinking of the central bank and top economists coming up >>