although, i'm boneing up as fast as i can i would say right now their economy looks terrible >> thank you very much i'd like to ask ryan zinke, secretary, he was giving a run down on the horrible fires taking place, i to the what he said is so true. >> the president there making remarks before that cabinet meeting. we heard from larry kudlow giving a debrief, telling the president he believes by far the biggest story of the year is the economic boom, said it's in the early innings, that it should continue as most of us around here know from seeing larry all those years. that was larry kudlow very much in his element talking about the strength of the economy, echoing the remarks the presidented a made preceding him larry, going down the list

talking about how the current united states economy is, it under scores, of course the reason why you got the market where it is now, you know, 25,500 you got a 400 point gain today it does underscore the reason we have gotten here in many respects >> absolutely. it has the foundation for these fundamentals coming through, continues to be working on the equities and individual stock the they, theed a men strikes expects this to go on for a while. >> you give $1.5 trillion to companies and top 10% of americans, you got a boom. it's not free. hopefully we can close the gap that will boone. hopefully enough economic growth happens, not just this quarter but as larry says years to come. if that's the case, the deficit won't grow up to the degree right now, it's on the trajectory to do so it's not i wave the wand,

there is all this economic growth we will pay for it >> record collection of taxes. in july, another record is august that's got to help that deficit josh is speaking to. >> for a very long time monetary makers were basically behind the advances in the stockmarket. there was this call from those monetary policy makers to have a handoff to fiscal policy we are finally getting the fiscal policy. the real question, how long is the runway clearly, we are right now in the midst of something that's perceived to be a boom and it is the question is, how long is that runway fiscal policy is the cat a liss right now >> or will fed policy have to counteract that to me the real question is, where do rates have to go if larry is right >> we will leave it there. it's been a real pleasure. thank you for sticking with us for the entire hour. thank you. that does it for us on the halftime report. i will send it over to "power

lunch. >> thank you, scott, i'm melissa lee along with michelle ka rouse sa cabrera president trump making headlines that hour on trade the economy and the opioid crisis, meeting with his cabinet, getting ready to restart trade talks with china. we got team coverage we begin here with eamon javers. >> reporter: that's right. you heard larry kudlow in front of the cabinet briefing him on the state of the u.s. economy and also i thought was notable there is that you heard larry kudlow taking a dig at the chinese economy by contrast of the united states. he said they are heading south, business investment is collapsing, according to numbers. right now he said their xi looks terrible another nugget from the meeting with the president that wrapped up a few moments ago we haven't gotten the video of this just yet. butting is mnuchin talked about sanctions with turkey and expressly linked it to the

pastor held in turkey, that has been the source of so much controversy. mnuchin saying we have more, more sanctions that we are planning to do if they don't release him quickly. so clearly, the united states side is thinking about more sanctions on turkey if that pastor is not released quickly in the words of the secretary of the treasury back over to you guys. >> a remarkable moment watching our former colleague there addressing a cabinet meeting on the economy a real debrief there. thanks one of the reason for the rallies and talks with coin back on kayla taush is in d.c. >> reporter: i learned the talks will take place next wednesday and thursday ahead of those talks, treasury is said to be reviving a list of eight demand it made in may. at the time they were cutting the deficit to stopping intellectual property theft to

swallowing u.s. debt without retaliation. it's unsure what china will be table in washington next week. it will be led by vitaminsters of finance and examiners they will meet counterparts led by secretary david malpass, previous talks were held at a higher level but we will see whether these talks ends up bearing fruit. white house economic adviser larry kudlow said the fact that the two sides are talking is a good thing previously, the white house said it would engage china if it made a serious offer to restructure its economy. it's unclear it did this time to prompt the u.s. to pick up the phone and invite that delegation back to washington kudlow this morning on cnbc declined to say what prompted the optiening of those talks we go to wall street now the monster rally. the dow leading the charge bought the sony at the big board.

robert >> you can talk about turkey contagion. >> that itself story this week what moves the market is coin trade war issues i want to show you the s&p futures. 10:00 a.m. last night talks might resume with china. we immediately moved about so, 12 points. this morning around noorngs we heard talk that this may be scheduled for august 22nd, 23rd, you saw kayla talk about that we moved up another five points or so here's what matters. right now the market is telling us the china trade war is the number one for the market. it ameliorates, it doesn't resolve the slowing coin growth story the turkish contagion story still an issue it's largely an international story. that strong dollar slower growth story had negative effects on a number of sectors in the united states here's what's turned around metals and mining stocks energy has been weak

steel has been weak, copper has been weak. they've all turned around. of course we told you but the chinese internext stocks are rallying you want more proof? the s&p down on monday, up on tuesday, down on wednesday, up on thursday. what does it mean? down on slowing growth and a stronger dollar. up on improved growth, trade war resolution and a weaker dollar that's clearly what's been moving the marks i just want to remind everyone kudlow in a sense is right here. overall global markets are having a tougher time we are we are only 2% from historic highs. >> bob, to follow up on what you were talking about, the improvement and discussion about trade ameliorateing things about china. the last things that larry said was china was falling apart. investment falling apart if that's true, that would actually be pretty bad for the u.s. mark, wouldn't it >> it would definitely be bad,

by the way the gdp numbers are mostly at 6-and-a-half some have low 6% >> on china. >> for gdp on china, i don't see dramatic lowering of the gdp numbers. it may be a little hyperbole michelle, you have been reporting on attempts to much up the chinese economy by the pboc. they have been pumping money into the chinese economy regardless of whether anybody is lowering their gdp numbers or not, there is clearly a concern about a slow down in china >> definitely some stress, thanks, bob. all right, should investors buy into today's rally jamie cox and the chief investment officer of boston private wealth shan norngs let me start with you. what do you think? do you buy the u.s. because we think we will see an improvement in trade talks or are you worried about the u.s. >> no, i think -- trade talks, turkey contagion there is definitely some feeling

there will be weakness for the next three, six, seven weeks or. so the only thing they're weighing on international is the dollar strength. it's been snefk. investors off nice gains last year, it feels early to jump back in, especially to emerging marks. small cap stocks have done well, very little dollar exposure, very little trade exposure >> you are saying ride that? >> right now it makes sense, we haven't felt the full benefit of the fax reform last year and small cap companies benefit from that there is that trifecta of things that will continue to see this rally. >> jamie, you stay in the united states when you see this four points today >> i different from shannon a bit. emerging marks, outflows, emerging marks are starting to peak we are starting to see some of the signs of bottom income those markets. and a lot of people have conflated the problems in

emerging markets with energy-related issues when they should be focusing primarily on technology if you focus on technology markets, you will find the largest companies in the world doing incredible things in their own commitment i think there are some good places to find, india, reliance is a great place for e-commerce play, telecom play, c-chip, china, talking about travel, things like that there are a lot of interesting stories there that are a lot less expensive than the u.s. counterparts >> so you are not worried about stress that may be showing up in china at this point? that would have an effect on china and the other emerging markets? >> it would, i think are you at a.that is playing itself out you are talking about these particular commission and stocks being beaten up. this is a good time to pick them up while the trouble is going on now is the opportunity set that presents itself. so, yeah, there are some issues. i think it will play out over the next little while.

if you are serious about investing in these companies, it's a good time to buy them. >> i saw you nodding your head, he was talking how people on wall street were not taking down their numbers yet, boeing is one of those companies that's rallying big time today. they've long considered a proxy or a symbol of our trade relations with china does that tell you that even tow the chinese economy hay be slowing down to some degree, we can still come to some sort of a trade agreement and help our multi-nationals in that country? >> i think that's indicating that i think the thing to remember if it's a state-run economy so there is a lot of latitude there. so they will be thoughtful about what they will need to do to incentivize companies to continue to be competitive i think the other thing is that we look at it from an emerging markets perspective in general long term dollar trend is negative the dollar should weaken over

time right now, necessarily stepping in front of that, particularly with comments about gdp growth, slowing in china we're talking 6% growth. you can't get thatelsewhere an the government is backing that i wouldn't say i would bet against china in the near mark term. >> thank you we are have breaking news. >> michelle, we are checking out teva pharmaceuticals they are on the move, they are approved the first version of the epipen teva is up on this news, this is the first generic version of this emergency allergy drug. it's an important time to be approved as we hear about supply disruptions for the epipen as parents stock up you see mylan down there about three-quarters of 1% this is the first generic version. of course, it had been delayed on the market for years which many said contributed in the rise of the epipen, which of

course garnered so much controversy in 2016. >> is the delivery mechanism the same as well >> that is a very important question i'm waiting to hear back from the fda whether it's a-b rated i do believe this will be swappable at the pharmacy when your doctor writes epipen on your prescription, they should be able to swap this one in for it, which makes at this time first generic version. there may be tine aye ways in the way it's administered. >> tanks mech terrell coming up, boeing and wal-mart contributing more than 100 points to the sturgeon on the dow. wal-mart on pace for its best day in years we have the stats on the retail giant earnings report coming up on "power lunch. and serve with confidence that it's safe. this is a diamond you can follow from mine to finger, and trust it never fell into the wrong hands.

♪ ♪ this is a shipment transferred two hundred times, transparently tracked from port to port. this is the ibm blockchain, built for smarter business. built to run on the ibm cloud.

see the big decline there. shares of chipotle down. kate rogers. >> five stool samples linked to a single location in ohio tested for a toxin a food born illness that occurs when food is left at an unsafe temperature, causing gastrointestinal problems. a single source of the food is not identified ongoing food and stool testing is being done the general county would fought say specifically

how many people were confirmed ill adding as a public health department, our responsibility is to detect outbreaks, not to diagnose or confirm individual cases. ceo brian niccol issued a statement that reads, chipotle has a policy for our stringent food safety standards. we are committed to ensuring it does not happen again, they closed down to replace the food inventory to complete cleaning and sanitization and will be training on food safety protocols and will be adding to its daily safety routine the stock down around 4% >> remember yesterday the stock was at march 2016 levels on a morgan stanley upgrade quite a turn in today's session. >> they're not trading until next week. so enjoy this week shares of wal-mart soaring today on pace for their best one-day gain since november of last year, beating the estimates for

earnings and sales courtney reagan here with three staggering stats >> yeah, right so the big bottom line, top line is fun, right. they're impressive i got noticeable stats and charts to go with it take a look at the u.s. comparable sales growth. this is impressive up two full percentage him points and the best in over a decade what drove it? grocery, it had its best comp sales in nine years. that was a big drive it's about a 70 billion business this quarter. wal-mart e-commerce sales, they grew 40% it's the largest growth rate in about three quarters wal-mart eq commerce make up about 4% of sales, still an 11.5 billion last year because wal-mart itself is so big. sam's club comp sales grew 5%.

not total, not u.s., this is the strongest growth rate in six years. can you see there is a bit of an upward trend, sam's club comp sales are getting stronger they are below costco's recent growth trend samsung net sales have about half of costco's annually, still that's a $66 billion business. impressive stats beyond the top and bottom >> i will state the obvious as i'm always doing maes is terrific number down 16%. a stock rallying on good numbers. >> you have to remember what the growth we had going into the numbers. so we talked about macy's impressive growth rate look at the last quarter, macy's were up 30%, the big run-up. wal-mart shares had been up 5% got good news, it's paying off. >> we didn't see anywhere near

the rally. >> yeah, exactly >> you got it. joining us to break down what is driving wal-mart is ben the analyst at see mens, great to have you with us i will peck up where we left off, that is the performance going into the quarter even with food's stellar gains, wal-mart is flat, under performing the xrt by about 12%. so put this quarter, put the guidance if context relative to the rest of the sector >> yeah, you know, i think it's in the context of a re-investment cycle for wal-mart the stock over the last year is up nicely at the tail end of ament-year cycle of re-investment in the business. we seen margins under pressure and accelerating momentum in same store sales growth. last year, we saw growth falter. that created a little downward pressure on the stock from previous highs we recovered some of that in one

queue. we recovered more today with e-commerce sales continuing to accelerate these are proof points relative to management investments in the business. >> how do you view the online sales division, put in perspective for us, we had an analyst here the other day we had been marveling on the investment in the online division the companies they bought and so forth. then an analyst came by and said it's all about groceries online is a small piece, they pointed out it's 40% 40% growth and their online sales in this latest quarter is very impressive. >> yes >> it's a big number >> for sure, it's a big number they spend a lot of money to reinvent this business the reinvent the way the customer thinks about this business grocery is an important part of. that they have been adding bottom line pick-up in the store

for grocery had a steady reach we are seeing bigger baskets and i think steadily we're seeing an improved offering from wal-mart in what's a competitive industry obviously, amazon is a leader in this space i think wal-mart is solidifying their position in this industry. 40% growth is fantastic. it's below what we saw last year >> to put bill's questions, more precisely, what drives that stock? when i look at the two-year chart, when you look at the most recent peak in the stock, it was when the whole world woke up and said, wow, it looks like wal-mart is actually getting online right they get it right two quarters boom, they don't the stock falls. does the stock get driven by groceries or the believe it will manage the online platform in a way that drives the bottom line? >> you know, they're both critical e-commerce is critical i think in light of the magnitude of the investments the company is putting into the

business, the margin pressure we've seen, i don't think they can get anything wrong i think they have to put up good results across the board we saw good comps last quarter we saw better e-commerce growth in this most recent quarter. we saw great results out of both segmentles i think for investors to be patient as it relates to the margin pressure. they need to see growth in all aspects of the business so these guys really need to deliver solid results across the board for the stocks. >> so what does the tell you about target which may be its closest comparable, kept it has less grocery exposure, less margin perhaps. >> i don't cover target. what i says about the low end consumer, we're seeing bigger basks. wal-mart has shown really strong same store traffic growth over the last several years just here recently, we started to see same store ticket expand. we have the strongest same store

ticket expansion we have seen in a long time at wal-mart up north of 2%. we are seeing consumers spin more in the stores i think that points to a healthier consumer more broadly, on the grocery side of the business and all aspects of business >> we have to interrupt you. we are going back to the cabinet meeting where jeff sessions is speaking to the attorney general about the opioid crisis. >> columbine, aurora and parkland who were there when it happened they believe we need to do a better job of sharing information to identify the red flags that you mentioned earlier on the juvenile courts are totally secret police have secrecy rules. schools have secrecy rules mental health people have se sayscy rules medical professions have secrecy rules. we think we can do a better job of children at risk, children who are suffering, children at risk for suicide if not

violence, too, to create an environment where the teachers and administrators know what's lawful and for them to share and not be sued for it i do think we can make progress in that regard you also asked us to fix the nix system we have legislation with repressing that every day so more jurisdictions are bringing in, coming into the system and reporting all their convictions. we need to continue to press mental health adjudications. those need to be in the system, too, to protect people mentally unstable of purchasing a gun who are declared unfit and we have got two different grant programs, $50 million and $25 million that will help hire school resource officers who are trained and also to train

teachers, professionals, administrators to carry guns just in addition intended to a school in arkansas they have been allowing their administrators to to have guns for years. parents, teachers, people who have graduated from the school all favored that >> we will hear more from the opioid crisis last year was a record year for opioid related deaths in the united states. this playback continues. we will monitor more news related to the market. are we at a turning point in the housing market has the advantage shifted to the buyer? what are the latest numbers? what are they signal something >> today may be a good day to check your 401k jump for 401k millionaires that's good news here on "power lunch."

is the housing market finally shipping from a buyer's market to a selling market? we have new stats showing the marks making a turn. >> it's not quite a buyer's market yesterday the tide is trading. sellers are starting to come back down to earth 14% of all listings if june seen a price cut up from a recent low just under 12% at the end of scent 16, all according to a new report from zillow price growth is slowing and half of the largest u.s. metropolitan

markets. rising mortgage rates hit affordability hard, especially from millennial's. there is a limit to what people can pay especially with a tight lending environment. all real estate is local n. san diego, 20% of all listings had a price cut in june, up from 12% a year ago, in seattle 12% of all listings had a cut the largest share in four years. l.a., chicago and new york city are also seeing jumps in the share of sellers cutting prices. cities that were not as hot in the last couple of years, however, are seeing fewer price cuts, those are san antonio, fear, and houston. a critical shortage of homes for seam, supply is increasing slightly the latest home sellers was not encouraging. for more on these numbers, they're on cnbc.com. back to you, guys. >> a critical part of the story.

thank you so much. i'll show you water going on, we had a legitimate rally on hand the dow is up more than 400 points, 1.6% nasdaq has a gain of three-quarters of a percent a gain of 28 points, remember the big move in the industrials, wal-mart after that gang busting earnings report and boeing, we talked about perhaps the trade talks resuming with coin. coming up, much more on bill cramer's interview with elizabeth warren, is her plan for populist voters? is she pitniosiong herself to challenge president in 2020? we'll be right back. my digestive system used to make me feel sluggish but now, i take metamucil every day. it traps and removes the waste that weighs me down,

so i feel lighter. try metamucil, and begin to feel what lighter feels like.

we got somebody out for him. he needed help getting somebody out of some place. they came out. they want to hold our wonderful pastor not fair not right. but unrelated to that, how are you doing with sanction on turkey and as you know we doubled up the tariffs on steel and alluminum. alluminum will happen very shortly. how are you doing with sanctions, please? >> we are doing well as you know, we are clear with

our counterparts, secretary pompeo and myself, on the release of the pastor we put sanction on several members, more if they don't release him quickly. i'd comment on the rollout of the iran nuke cheer sanctions is going extremely well we're working closely withing is pompeo, strongest sanctions in preventing things there. we continue to be very focused on implementing the tax cuts and jobs act just rolled out the pastor -- lowest rates for small business and pass throughs since the 1930s and a big part of what larry kudlow talked about in terms of the economic growth >> all right thank you, great job, thank you very much. secretary willke, so we got choice pass, so we don't have to wait online six weeks and end up with a simple condition -- >> all right we wanted to dip into the

cabinet meeting about turkey and sanctions and hearing from secretary treasurer steve mnuchin. the lira rallied the finance minister of turkey held a conference calm he said all the right things, it helps the lir remarks it hurt the dollar however the lira fell on news that secretary steven mnuchin said they were preparing more sanctions if president trump has demanded it's been a big story. today, however, when it comes to u.s. stocks, there is a huge rally the dow is leading the charge fueled by wal-mart's big gains, it's up 428 so pretty strong session 1.7% the s&p by 29 points let's have all s&p sectors

they are in the green, led by telecom, consumer staples. a number of well known names are hitting new highs, dollar general, apple, merck and chipotle among them. sue. >> thank you very much, michelle here's what's happening at this hour, everyone the famed apollo theater in new york's harlem is paying tribute to the queen of soul, changing the marquee to read mourning apollo legends aretha rank lyfrn she first played there in the 1960s. she died this morning at the age of 76. good news for oklahoma residents on the failure of a dam following water levels this week it was feared millions of gallons of water woulded into fear several homes and nearby

roads if a breach were to occur. another business pivot for movie pass the company says it will be limiting available films and show times in an e-mail to member, they say quote during this transition period, we will be limiting the films and show times available to members each day and offer six films to choose from daily new video out of lake tahoe, california, where sheriffs deputies were forced to use a bean bag gun to free a bear trapped inside a car the officers were able to blake the window, there the little guy went running, the bear escaped, obviously. deputies say he opened the car door and climbed in, in search of food. but he got out hopefully, he enjoyed the snack. >> which we ask you, why couldn't he get out from the inside >> i don't know. >> the bear lock >> the child lock. >> by the way, can i point out i haven't heard anybody else

talk about this august 16th, we mourned the death of the queen of soul, 1977 on this date, we lost the king of rock, elvis presley. >> did we really >> they died on the same day, how weird is that? >> unfortunate >> you got it. it is the big interview talked about in washington and wall street, senator elizabeth warren sitting down with jim cramer on "mad money" talking about the bold man to make her plan for employees and why she thinks we need action now. >> you know, we've built in america a grate middle class and we did it on the backs of hard working people who came towing mostly through their unions to be able to say, this is a country, teach rules, give everybody a chance that's going off track in the past 25, 30 years in the wrong direction. we are a country increasingly

where the government works just for those at the top and just leaves everyone else alone >> senator warren sounding populist notes, making a play tore the same voters president trump gained in the rust belt in 2016 political analyst american enterprise institute is with us and andy green, at the center for american progress, good to see you both jimmy, obviously, one thing that she's going after is income and equality, her premise is that even as corporations have prospered over the last generation here, wage versus stagnated. we have this income inequality so she wants employees to have a greater role in the say of the companies, putting them on the board, for example you don't think any of this will help why? in there i don't think the market is up all the investors are looking for worker councils in every corporation of america. listen, the big problem with the american economy is we have not

had fast enough productivity growth that's where it begins what elizabeth warren is describing, the country may most resembles germany and germany does not have nearly the number of fast growing innovative companies that america has few look at the lists of most fast growing innovative companies, you can't find a german company yet that is the model she wants us apparently to duplicate >> we were hoping the music to be more dramatic. >> i always want a sound track i want to score. >> you hand him that very well andy what do you think of her proposal here? is this the answer to solving the income and equality issue in that countthis country >> i think there are a lot of things to be done. this is a central aspect of it look, be every the 1980s, we had a series of things that put pressure on countries to make sure they took care of a wide

range of stake holders, also investors, workers, communities, other priorities that work for america. since the 1980s there was a shift shareholder maximization saying the only priority is extracting as much money from companies to share holders given the fact that 84% of shares are held by the 10% wealthiest americans an 50% of americans have zero shares suggests that that extractive approach, $7 trillion have been extracted from america's largest public company since 1985 has not worked it has been a major driver of inequality so there is a lot more that needs to be done >> i think it's very interesting people describe what they believe with our economic golden age. the president and perhaps elizabeth warren as well they want us to go back to the period of 1952 and maybe like 1968, that was the golden age of the xi that we can reduplicate

it plus andy would like to go back to 1980 when american companies were fat, they were getting whooped by their overseas competitors. there needs to be a change an there was. i don't get the nas tal ja >> funny you should bring that upch she was asked and here's what she said. >> obviously, are you a left wing fire brand. isn't the way this country was in 1980? >> yeah. that's really the point. i believe in markets i believe in all of the wealth that markets produce, but parks have to have rules and together we decide those rules. >> this is on the word we, i guess, jim >> it's fascinating that the companies that seem to be doing what she wants them to do invest more infoization, research, pay their employees well are these big technology companies, with i they also want to dismantle,

heavily regulate so few do the things they want you to do, they want to break you up if you do those things, they want you to regulate i don't think successful companies with win under that successful scenario. >> a lot of her ilk is there is one thing of quall opportunity it seems like you are pressing for ekwalt of outcome. is that ever going to be possible >> i think we're looking for a level playing feel here. >> that's different. that's quality of opportunity. what about equality of outcome they were pushing for equality of outcome everybody ends up the same is that what you are looking for in. >> not at all. i think senator warren said it clearly. we are looking at markets to do what they do best. which is compete we want one for wages going up my colleague here jim makes a good point productivity is a key aspect of growth and few look at the studies, productivity growth is

stronger when you have wages grow the growth has been extraordinary and that gap has really gone to the wealth of those at the top many americans have seen wages collapse and jobs more overseas. >> listen, is there any company she likes other than patagonia is that the only company that's working? that's about all i hear. >> all right >> he's speechless >> we'll leave it there. >> it was a rhetorical question. >> yes, i am aware this is not rhetorical i got to move on, thank you. to see the full interview with senator warren and jim cramer, head over to cnbc.com. >> let's get to the bond report. hey, rick. >> highly unchanged in treasuries, that isn't necessarily a bad thing. ittals underscores, yes, we saw some flight to safety. but it wasn't a big interruption within the trade since the

emerging mark and the turkey issue surfaced in full last friday you see on a one-way chart few look at the dollar index, we surely have 13 that pop up a bit. today it's in light negative territory. this chart demonstrates we were at 97 even yesterday you see the way things have changed today the issue is how quickly it's moving higher we haven't closed above that 97 mark we came a couple ticks of yesterday. finally the yield curve, something you want to pay attention to it's been flattening does that mean everything will impact the fed they seem to question how the slower global growth could affect a gold medalilocks scenario for the u.s hence the flattening has been difficult. clearly the 25 you see on this year-to-date chart, 24 was low for mid-july going to the summer of '07 the years of ten year is still relatively high for history.

not higher than the levels of may 2014 even though things can look better it doesn't mean all the big hornet's bites have healed over. michelle, the whole gang, back to you >> definitely, that is something definitely to watch, rick, thank you. coming up a dangerous dog with a cool office. it's at the top of mount everest. we will show you how a mountain climber makes a limit. we will watch the big rally on wall street right now. all 11 s&p sectors are higher. "power lunch" will be right back [ music playing

we just got married. we're all under one roof now. congratulations. thank you. how many kids? my two. his three. along with two dogs and jake, our new parrot. that is quite the family. quite a lot of colleges to pay for though. a lot of colleges. you get any financial advice? yeah, but i'm pretty sure it's the same plan they sold me before. well your situation's totally changed now. right, right. how 'bout a plan that works for 5 kids, 2 dogs and jake over here? that would be great. that would be great. that okay with you, jake? get a portfolio that works for you now and as your needs change from td ameritrade investment management. we do talk during special.

>> just not enough today's dangerous job will have you feeling like you are on top of the world literally morgan brennan has the story >> meet the the man who works in a place where just about everything can kill you. >> i'm a mountain guide, expedition leader and i lead people up the highest mountains in the world >> reporter: garrett madison owns madison mountaineering which specializes in guiding amateur adventure seekers up several of the world's most treacherous peaks. he leads about ten expeditions a year taking care of every detail from planning routes to rationing food and supplies. >> step and a rest. >> reporter: it's his job to lead his clients on their climbs and keep them safe from mother nature's wrath. >> there's avalanches, ice fall, rock fall, crevices, altitude. all of that makes it dangerous. >> reporter: much of his business is done here on mt.

everest where he takes up to a dozen clients a year. >> for me on everest the first time was incredible getting to the top but now coming back i enjoy helping other clients realize their goal it's a bucket list they've dreamed about for years, decades. >> reporter: but on theworld's tallest peak an exhilarating hike can turn into tragedy. >> this was one of the first americans reported dead after a massive earthquake caused an avalanche. >> reporter: in 2015 18 people died on everest in a catastrophic after va lap much including his team doctor. >> losing eve was very hard for everybody, including her family, friends, myself. i thought, gosh, is this something i should be doing with my life? should i continue climbing >> reporter: after serious soul searching he returned to work. >> i didn't want to walk away from the mountain or quit on such a low note. while i'm helping other climbers get to the top.

>> you've got it. >> i can feel their excitement, their joy like i had this amazing positive contribution on to their lives. >> reporter: over the last eight years garrett says he's taken more climbers to the top of everest than any other guide and despite the ever present dangers, he thinks business is good >> a good year, everything goes smooth, i can make six figures or have a bad year, lose equipment, various natural disasters i could lose a lot >> there's no reason to cut corners. this could be life or death. >> reporter: morgan brennan, cnbc business news that's very cool, but listen to this. next week's dangerous job is a snake milker no, snakes don't actually make milk but it is the snake milker's actual job to extract the venom. why you ask? you'll have to tune in. >> sounds like a good kwun. >> it's a terrific story very, very useful and practical.

>> really? >> yes, it is. >> i will tune in. stocks are soaring today many people are seeing seven figure balances in their 401ks the incredible stats you always pay your insurance on time. tap one little bumper and up go your rates. what good is your insurance if you get punished for using it?

news flash: nobody's perfect. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. switch and you could save $782 on home and auto insurance. call for a free quote today. liberty mutual insurance. ♪ liberty. liberty. liberty. liberty. ♪ at fidelity, our online u.s. equity trades are just $4.95. so no matter what you trade, or where you trade, you'll only pay $4.95. fidelity. open an account today.

there are now more 401k millionaires than ever before. who says the news doesn't do good news? >> exactly we're going to do good news now. good news for a lot of people in fact, it shows that once again the surest way to become a millionaire is to save and invest over a long period of time here's proof the number of fidelity investment clients who had at least $1 million clients reach 168,000 in the second quarters that's an all time record. it has more than doubled since 2015 this is still a small fraction of total holders those millionaires account for just 1% of fidelity's total 401k accounts the average is 104,000, that's still just below the record set last year. even though markets are up overall, balances are down slightly the average worker is putting in 6.7% of their salary into their 401k broadly the trillions of dollars

of wealth created by the rising markets is making americans richer total household wealth just topped 1 trillion. that accounted for 50 trillion of that, more than double the levels of the crisis rising home values also helped home equity accounts for 28 trillion up 50% from the crisis. still, stock market gains have been top heavy the richest 10% of americans own 85% of the stocks and that is why the number of total americans worth 25 million or more has surged by 20% over the past two years so the rising tide does lift all boats. >> fantastic. >> bigger boats. >> bigger boats. >> exactly. >> thank you, robert great stuff. coming up on the second hour of "power lunch", an employer who cut his workers back to four days a week and still paid them for five did his gamble pay off were they even more productive on less time all good questions which we'll ask him. plus, walmart a big driver

of today'sal rly the company's investments are paying off more on the retail rebound when we come back

i'm michelle caruso-cabrera, here's what's on the menu. what a difference a day makes,

huh? stocks are in rally mode as u.s. trade and china talks resumes. chief investment optimist asks whether the optimism can last. short term pain, long term gains. the concept seems to have worked for retailers, walmart and best buy. so what can other companies learn from their success. one ceo decided to try a four day work week and see how it would impact the productivity he's going to provide us with the results. they're actually pretty good "power lunch" starts right now ♪ ♪ and welcome to "power lunch. i'm melissa lee. the dow leading the charge powered by strong earnings the dow is now on pace for a positive month as well as day and the s&p 500 is having its best day since early june. all 11 s&p sectors are in the green right now led by telecom

consumer staples and industrial staples on pace for the best week walmart, kraft, procter & gamble are the leaders there walmart giving a lift to the dow. cisco, boeing and cat the leaders there. the financial winners, comerica, morgan stanley trading higher. >> i'm bill griffeth here's what else is happening. amazon is in the running to buy landmark theaters. landmark has more than 50 theaters in 27 different markets. it's backed by mark cuban and tom wagner. volvo is pressing ahead with the plans for an ipo by the end of the year. the ipo could value the automaker as high as $30 billion. and the 30-year fixed rate mortgage fell six basis points last week now at 4.53 nationally while the rate is low, it's significantly higher than the average of 3.99% last year at

this time. michell michelle. >> thank you, bill we're going to begin with the markets. bob pisani, let me reiterate, what a difference a day makes. >> it does what the markets are telling us is talk all you want about turkey contagion, but it's china growth stories and china trade resolution that really moves the markets. i want to show you the futures overnight, 10:00 a.m. is when we first got the word that there might be china talks move 12 points in one minute overnight, that's 10:00 a.m. then around noon we got confirmation that china meetings will be set for next week. moved another five or six points you see we've come off of the high the markets, what matters here is resolution of that china trade war issue. that ameliorates, doesn't make it go away, but ameliorates the china growth story second only to the u.s. growth story. turkey contagion, still very real but it's right now an international story. sector movers today the ones that were hit on the stronger

dollar the ones with issues with global trade. oil and gas stocks, steel stocks, copper stocks, chinese stocks all moving up as market leaders. look at the s&p this week. more evidence that this is what it's about down on monday, up on tuesday. down on wednesday, up on thursday down on slowing growth and a stronger dollar. up on improved growth, trade resolutions and a weaker dollar which is exactly wa we had today. earlier melissa showing you the top four stocks in the dow walmart on the great news of the earnings, cisco on the good earnings boeing is up 13 points caterpillar. you put the three together, four stocks, 186 points almost half the gains in the dow jones industrial average guys, back to you. >> bob, thanks bob pisani central banks around the world have been doing more tightening than easing steve liesman is here with the rates moving higher. steve? >> melissa, thanks interest rates remain lower but several big central banks ease but the direction of the global monetary policy unmistakably

towards tightening take a look at this map from the council on foreign relations you can see what it is, it's color coded. red is tightening and blue is easing more and more red in the picture. in fact, some red added just this week. azerbaijan -- argentine into tightened. they went from 45% to 40%. 500 basis points indonesia joins. if you take a look at the next map you can see michelle wouldn't need the names under here, i do she's the international reporter just in august 5 central banks, another 5 in june and july couldn't find any easing among the central banks all tightening it would have been all mostly easing a shift in direction turkey went up by 125 basis poin

points mode for a different developer. >> we've come forward here, minus 3.4. new ten-year high of 3.9 i don't think this means that the situation is tight, it means that they're in the direction of tightening. >> steve will be hosting the national geography be.

>> thanks for asking. >> what does this global wave of tightening mean for u.s. equities bringing in brad newman, he's market strategy for allmendinger rich weis is the chief advisor what a herky jerky market we've had this week. we always come up with a different reason this time it's still about turkey. it's still about china it's now about walmart you know, all of these different things but the net is we continue to move higher here, right? >> yeah. i think clearly today investors are cheering i guess some good prospects for maybe some resolution on trade and of course turkey's getting a little bit of a bounce. you know, you see this when the tide goes out and the countries and companies that are ill positioned, you know, get exposed and i think that's kind of what happened to turkey you know, the way we invest at% alger is to look at companies gaining market share with good

balance sheets and going to exceed in any kind of environment. >> are you always fully invested in stocks? steve sets it up, we've gone through major easing and now we're moving to a world of tightening, right? if you believe that to any degree the reason we've had a big rally in stocks is because of easing, when the world starts to tighten do you say, maybe we should have a little less exposure to stocks >> well, we don't change our exposure to equities in general our mandate is to stay fully invested at alger, if you look at our philosophy it is to look at investment and change and i like to look at power boat versus sailboat we're looking for a company that has an engine of growth that's going to propel it through the economic seas. we tend to avoid the companies that are more cyclical, more value in nature more like a sailboat dependent on the economic winds that can be a great ride if the wind is blowing the right way. we like to stick with our forces like ecommerce, advertising, cloud computing, those kinds of engines. >> rich, do you want to stick

with technology? when i look at the market bounce in today's session, tech is one of the lagging sectors when it comes to the sectors that are higher on the session compared to yesterday's big losses and are we going to look back and say, you know, there had been a period of rotation that started during this market tumult that's going to persist through the end of the year? >> yeah. i don't think there's any question we're going to be looking at some sector rotation coming along here in the near future as we all know, this bull market's been very concentrated in the u.s. in certain growth sectors, tech and health care, of course, consumer discretionary to some extent, but as the economy winds through the cycle, as interest rates continue to eke up higher, inflation maybe rears its ugly head, we'll eventually see a turn to the later cycle sectors. some we saw today. consumer staples, for example. the more defensive sectors that's going to be the play i think for the next few months out. >> defensive plays are getting a

lot more headlines these days for obvious reasons. >> you like staples? >> yeah. so we don't like staples generally. i would say we're generally under weight mostly because we don't see the kind of dynamic change that we look for and at the margin we think they'll be hurt by higher interest rates more in that vein would probably be health care which is in our large cap strategy we've moved a little bit of assets there to insulate ourselves a little bit from some of the tariff tumult. >> brad newman and rich wise. president trump meeting with his cabinet today making headlines on the economy, trade and more eamon javers joins us with more. >> reporter: michelle, that's right. larry kudlow featured prominently in the cabinet meeting that was held in the white house. larry kudlow suggested that the biggest story of 2018 in his view is the idea that there is a massive economic boom going on in the country that nobody would have predicted back during the presidential campaign, but he also did something interesting, which was have some very harsh words in terms of criticism of the economy in china

here's what he said. >> business investment is collapsing in china according to the numbers. industrial production has fallen and now is plateauing at a low level. people are selling thecurrency there may be some manipulation, but mostly i think investors are moving out of china because they don't like the economy and they're coming to the u.s.a. because they like our economy. i'm not a china expert although i'm boning up as fast as i can i will just say right now their economy looks terrible >> reporter: larry kudlow saying the chinese economy looks to be terrible, and to me, guys, that felt a little bit like setting the table ahead of these negotiations with the chinese, which we've learned are now happening later this month the chinese side coming to the united states. it looks like the message here from larry kudlow and the president to the chinese is your economy is worse than ours you guys need a deal more than we do and therefore a deal should be on our terms maybe a little bit of

showmanship here in terms of the preamble to those negotiations which will happen at the end of this month. >> eamon, thank you. eamon javers at the white house. coming up, shares of boeing taking off on a bullish note that has them rising 50% from here should you get on board and buy? plus, four day work week sounds pretty good in theory, but does it really work meet a ceo whose company has been experimenting with it he tells us it did and he'll tell us why. marerkable turn arounds for walmart and best buy what they're doing coming up next xfinity mobile is a new wireless network

designed to save you money. whether you use your phone to get fit. to find meaningful, thoughtful, slightly-weird gifts. or just to know which way you're facing right now. however you use it, your wireless bill is about to cost a whole lot less. ask how you get xfinity mobile included with your xfinity internet. so you just pay for data -- by the gig or unlimited. saving you hundreds of dollars a year. plus, get $300 back when you buy a new smartphone. xfinity mobile. it's simple. easy. awesome. click, call or visit a store today.

welcome back to "power lunch. walmart and best buy made remarkable comb backs. how did they do it >> how did they do it? >> magic no, actually, it was a lot of hard work. it was just under three years ago that walmart laid out a big spending plan at an investor meeting. that day walmart shares sold off but since then shares are up 50%. he spent billions on wages, training, investing in online grocery options, building out ecommerce, supply chain and sprucing up the stores ten months after that big investment they bought jet.com for $3 million and moosejaw, shoebuy and they said earnings would fall 12% in the first year of investment but growth of 5 to

10% would return for the year 2018 that's the current year. today walmart updated forecasting earnings growth of 11 to 14 perfection percent so a little better than planned best buy's transformation perhaps even more staggering many wondered if it would exist let alone thrive they announced the new renewed blue plan to cut costs to improve the stores shares are up 385% since then. they said best buy was falling behind online and it had to stop declining comps and declining margin five years later the retailer concluded that transformation reversing its stat and state and started a new growth strategy. it's come a long, long way. >> sure has. thank you, courtney. >> you've got it >> stick around. for more on the retail revival and lessons, can we learn from walmart and best buy? good to have you here. >> good afternoon. >> when you look at walmart

today, what is walmart telling us are they telling us they've got the strategy straight or the economy is hot >> it is hot retailers are still under tremendous stress. >> see jcpennejcpenney. >> what makes a winner, what makes a loser? two types of winners one is value-based players, low cost structure, can offer the best price walmart is the epitome of value. they have the wherewithal and the positioning to make that transition, to pivot towards the internet, to make the huge capital investment required, the investment in margin the margin is still under pressure in order to do it they can be a winner other winners are those besides value play, differentiation based player those that are verticalized and offer something you can only get there. services that are in the home which are different for verticalization. you can get product you can only get there. that's backward verticalization. forward is into the home which best buy has done a different

amount with. they have products and services you can only get there losers are those who offer commodity products that are available everywhere and in that situation internet crushes your margins. your gross margin and your operating margin that defines today's department store. >> i would say also maybe walmart falls into some of that category in terms of offering products that are offered and sold in many places and their margins get crushed by the internet jerry, if we had this conversation yesterday we would have taken walmart and compared it to the xrt and said walmart is a loser today with a 9% gain, walmart is a winner because it puts the stock price basically flat for the year so is walmart -- do you know enough right now to say walmart is a winner? >> over the long term, absolutely, yes. and, again, yes they offer products that are available e e elsewhe elsewhere, but they're the low cost producer. like costco. they have the critical balance but basically you go to costcos,

the value is tremendous. walmart's a large company. i've said many, many times right here on cnbc there will be two big winners on the internet, amazon and walmart everybody else better be playing with one of them if they want to be around 20 years from now. >> jcpenney as i mentioned, that stock down 25% today. >> yeah. >> sales were down they didn't meet their numbers at all in terms of revenue. >> right. >> they're stuck with inventory that they have to deeply discount they have no ceo they're still looking for a ceo. do you want a ceo job at jcpenney >> he did not raise his hand over there >> that really is a tough one. look at macy's yesterday yes, we had the strange stock reaction but the quarter was really good. that shows you not all department stores are created equal. not all retailers are created equal. jcpenney is struggling the merchandise was wrong. you pointed that out they had to sell a lot of that at a discount. they didn't meet the fashion demand like they thought they

would. >> growth, what you see out of walmart, home depot, out of the winners in the environment -- >> what happened with walmart though the business model for the longest time was they had everything under the tent and they had everyday low prices so you could get anything you wanted at the best price what happened? >> they still have that. >> they had to change their business model because -- >> to a degree -- >> they made a shift they talk about their transformation they have sold off some key assets in the u.k., brazil, elsewhere in order to fund investments on the internet. they're making that pivot. they know like anyone knows that the future combines the internet with bricks and mortar so all channel model. they are making that pivot they've had the wherewithal and money. the big difference is the investment internet. everyday low prices, value everyday, that's what they stand for and they haven't swayed from that if you look at the numbers today, what was really impressive, put the internet aside, they were up in the stores traffic was up in the stores in

an internet age. >> as somebody said, bigger baskets. >> everybody -- >> somebody said that. >> everybody is not shopping on the internet and they never will they came to walmart stores in droves it's a great time to be a consumer. >> sure you don't want the jcpenney job he's not answering. >> i'd say no. >> still ahead, i'm on camera 4, ubs says the boeing shares could rise 50% from here is now the time to get on board? fasten your seat belt and stowaway your tray table trading nation is ready for takeoff next. as we head to the break, let's take a look at the s&p 500 leaders that includes the afore mentioned walmart, sim man tech, boeing and cisco "power lunch" is back after this

welcome back to "power lunch. i'm sara eisen this is trading nation today we're watching shares of boeing soaring more than 4%. on track for its best day since january. ubs updating the price target at the firm predicting a 50% rally from here making a space acquisition today and also the china trade talks all helping this stock mark tepper with strategic

wealth partners and bill beruth is with blue line futures. from a technical perspective are you a buyer of boeing? >> i am a buyer. there is a nice move coming off the 200 day moving average it fits it perfectly yesterday on the low that double bottomed a couple months back. there is some tremendous momentum right now i do think we'll see a move about 360 in the coming days from there if some of the fundamentals line up the u.s. and china continue to be a tail wind we could continue to break out above the trend line yes, we're going to see a much, much stronger gain from there. >> mark, boeing is a big exporter could be vulnerable to problems in the emerging world, especially china are you ready to get back in >> yeah. we like boeing a lot we agree with bill i mean, this is all about demand and demand is increasing because you've got a lot of improvement in both passenger and freight traffic. boeing estimates that the world is going to need 41,000 new jets between now and 2036 and a lot of that demand's going to be for

the single aisle jets which bodes well for their 737 where they currently have a five year back log revenue is diversified across 90 different countries which is good they are also one of the major players in the defense space which makes up 23% of their revenues, and that's the one area of manufacturing that we feel is really insulated from a trade war because there's really -- there's not any true global competitor so foreign sales should remain resilient and their number one customer's the u.s. government which makes up 31% of their sales, and on monday president trump signed the john mcclain national defense act which increased defense spending significantly for 2019 so we like the stock >> boeing up 4.7% adding 99 points to the dow by itself. guys, thank you. and for more trading nation you can head to our website or follow us on twitte twitter @tradingnation coming up, the trump administration's trade policy sparking moves in commodity prices look at the stock that could be

impacted the most here next. and as we head to break, take a look at the s&p 500 sectors, all 11 of them are higher right now led by telecom, consumer staples and financials. broad based rally. dow up 4.4 "power lunch" will be right back. and now the latest from trading nation.cnbc.com and a word from our sponsor. alerts -- wouldn't you like one from the market

when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time.

fidelity. open an account today.

we've got a big rally on wall street with the dow having its best day since april the s&p 500 having its best day since june 1st check it out, the dow is up 414 points or 1.6% s&p 500 up .8 or 23 points and the nasdaq is higher by 27 leaving the 125s&p, walmart and semantic and boeing. chipotle, net app, constellation and facebook the biggest losers. marathon, conniocophillips.

>> here's what's happening at this hour, everyone. authorities say they have found the body of a pregnant colorado woman reported missing this week and they believe they know where the bodies of her two children are. police arrested 33-year-old christopher watts in the disappearance of his 34-year-old wife shannon and their two daughters, 4-year-old bella and 3-year-old celeste watts has reportedly confessed to the killings. a melting glacier in the swiss alps has revealed parts of the u.s. plane that crashed in 1946 it was the scene of the largest alpine rescue operation ever seen at that particular time luxury auto sales are on pace for another record year and one brand in demand is aston martin the british car maker posting the first profit in eight years in 2017 and is setting the stage for a potential ipo. and brussels is highlighting its sun splash summer with a

mexican themed flower carpet on its historic grand place the display has more than half a million flowers and they have done that display every two years since 1971 and it is beautiful. >> i have a suggestion aston martin should ipo on the day of the next james bond movie. >> excellent that's a great idea. >> don't you think >> always thinking. >> typically a friday. >> absolutely. >> i can see it down on the floor of the new york stock exchange, little sports car. right outside of the pit area. >> thank you, sue. >> you've got it, bill the trump administration's trade policy speaking -- sparking moves in commodity prices as you know, and there are some stocks that could be affected if the trade war continues. jackie deangelis joins us now with more on the sectors that are in trades cross hairs. >> good afternoon. that's exactly right the rationale from the trump administration is that long term, a tougher stance on trade is going to help the united states the concern is the short-term bleeding we may see.

ubs put together a report on equities in all different sectors that could be impacted if this trade war continues and the results were interesting it was across many different sectors but fluctuations in commodity prices as you mentioned, the metals, agbonlahor spaag space and more waste management as a group and as a stock, lower prices for recovered metals that's a risk there. u.s. machinery companies like deere battling following ad prices and weaker demand higher steel prices, shrinking margins. metals and mining. china is a driver of metals growth that 50% consumption if gdp slows it's going to take on a toll like a freeport. canadian pacific, they could see lower volumes in revenue, less transports than overall. autos, costs are going to rise because of higher metal prices those costs will be passed to consume mers oil and gas. energy companies are still

struggling we learned that in earnings season another price dip could lia head what we know and what the market has been talking about what's to come. >> here to tell us what is driving commodity prices and why commodities might be a good gauge for what's going on with the trade wars, we're joined by jeffrey sherman at double line capital with $120 billion in assets under management. good to have you with us >> hi, melissa thanks for having me. >> there was a time when we would say dr. copper all the time is copper really the indicator of what's going on globally? if so, we might be in trouble because metal is at more than one-year lows right now. >> they call him dr. copper for a reason some people would say that he has an academic ph.d. in the health of the economy, but i think he's more like a medical doctor and that that perspective being when you see what cop ner is signaling, he's signaling there's ailments within the global economy and this appears to be at this stage of the cycle

a demand destruction story it's centered right around the tariffs and the trade war. as soon as the rhetoric picked up about the trade war over the late spring, you've seen dr. copper peak out, drop 20%. the volatility is driven by the headline news for the tariffs. today there are supposed talks between the u.s. and china to discuss how the tariffs will be discussed, extended trade war. you're getting a big rebound in dr. copper and the base metals. >> are you going to throw up if i say how do you know dr. copper's a man >> i don't know dr. copper's a man or a female. >> i'm just teasing. >> in the -- >> it's the times we live in >> a lot of trading here at cnbc. >> very sensitive. >> yeah, well, dr. copper is sensitive, man or woman. dr. copper is very sensitive to the global economy and regardless of the gender you ascribe to dr. copper, it is

causing pain within the marketplace and so what it's signaling is completely different from things you see within the dollar or you see within the u.s. stock market and we heard a phrase from -- >> you want to say we should believe that instead of the dollar believe copper, not the dollar >> well, i do believe it's there. a strong dollar does not necessitate a strong economy interest rate differentials. this could ultimately lead to inflation. your intro in the segment was talking about rising prices. that's not good for the consumer unless we have rising wages as well because that has to put a curtailment on consumption. >> what are the extrapolations on this? if we are to believe that dr. copper, whether it be a female or male signals, you know -- stop laughing. >> sorry. >> -- signals bad things for the global economy, you know, are the trades long treasury, short

emerging markets where do we go from here >> you can see emerging markets are having pain. it's not just the commodity producers, there's rhetoric and the headline noise which is facing its own crisis. one thing to think about when you think about the currencies is if you recall last week when president trump tweeted about the success of implementing more tariffs on turkey and erdogan and how weak the lira was and the strong dollar, i'm a little nervous that that could actually lead to not just a trade war but a currency war if it emboldens the president to go out there and focus on other countries and think tariffs are the solution because you can devalue the currency of these trading partners and ultimately cause economic pain, that could be a bigger problem overall. it's not a baseline forecast at this stage, it's something to monitor of a trade war turning into a currency war as well. >> what happens if the trade war continues in a prolonged fashion? what happens then to sir soy bean and the other agricultural

commodities? >> well, sir soy bean -- so i guess we're giving soy beans a gender title if sir soy bean is how you're referring to it as, it still has pain here because ultimately we imposed tariffs on china china retaliated by putting the tariff on soy beans and on top of that you have a record crop that's being produced here in the u.s. if you recall a few weeks ago the president announced he's providing subsidies, i think roughly to the tune of $12 billion to u.s. farmers to aid them with some of this pain. he didn't attribute it to soy bean farmers but it shows the tariffs are having implications there. sir soy bean as you refer to him is up slightly today as is the entire commodity complex but, again, there's a lot more pain for sir soy bean over the near term given the fact that there's other countries that have a lot of production that can negotiate with china. >> how are you positioning your portfolio? are you going to continue to see the dollar strengthen and put

pressure across a broad swath of commodities? how are you allocating your portfolio right now? >> when you think about the implications of the dollar, i mean, one look at the bond market, first of all, i think the last time my boss was on tv the ten year was trading roughly at 2.87% right before i came on the ten year treasury was trading at 2.875% at the end of that. the treasury market's done absolutely nothing during this trade war. it's had a little bit of volatility, but i think you have to look at the rates market to really think about the direction of the dollar. so i think of this as a tail of four markets right now the commodities market is suffering because, again, that's a direct implication, a slow down in global growth. the treasury market is just muddling along it's range bound push andpull dynamics that are keeping it there and then you have the dollar which has accelerated but not really in a major fashion. the one thing that is the outlier that is sloughing off or shrugging off, i shouldsay, th trade war is the u.s. stock

market u.s. stock market is very near the highs once again and it is a -- it's ignoring it. there's this idea of decoupling of the u.s. market we know this is a very well linked global economy. so there is a disconnect between markets. the commodities are typically the first to react >> okay. >> this is all about the trade war. if this is rhetoric and the president walks us back, would he have negotiations, we can see a huge rebound again, it's too early to tell. we continue to monitor it. there's already been pain in the space. we're not changing our view because we're trying to assess the probabilities of trade war we still like the complex. our fund is tilted towards the long side of the equation and we think that's the right place to be positioned today. >> jeffrey, thank you. jeffrey sherman, double line. >> thanks for having me. we've all experienced that awkward moment when our boss asks us to stay at the office just a little bit longer >> i'm going to need you to go ahead and come in tomorrow so if

you could be here around 9, that would be great okay >> oh, oh, i almost forgot, i'm also going to need you to go ahead and come in on sunday, too. >> okay. ahead we're going to talk to a company that's doing just the opposite, testing out a four-day work week. it's not france. we're going to go to break a look at names hitting all time highs, alepp, o'reilly automotive, dollar general and mccormick.

welcome back to "power lunch. as many summer vacations start to wind down it will be back to the 9 to 5 but not for 240 employees at a new zealand based financial services program called perpetual guardian. starting next month they will be implementing a permanent four day work week after a successful trial this past spring here are some of the stats from that trial it was eight weeks long. stress levels during that time were reduced by 7% 78% of employees said they could manage their work-life balance

better and social media surfing dropped by 35%, not that that's a bad thing. joining us on the cnbc line is andrew barns thank you for joining us, andrew >> hi, bill. how are you? >> good. why did you do this? >> i had read a couple of research reports that indicated that people in the u.k. were only productive for about 2 1/2 hours a day, a canadian survey said about 1 1/2 hours a day so i started asking myself if i could change the way people worked, would i actually get better productivity? >> and you did i mean, what you're focusing on is the results you want them to achieve certain goals job wise no matter how long it takes them to do that, so if they can do it in the four days, then you're happy, is that the idea >> that's exactly right. this is a conversation about productivity and output. we spend most of our time if you

think about looking at people in the working week, we worry how much time they're spending, but often the time in the office isn'tthat productive you might be having a chat, you might be surfing the net, you might have somebody disturbing you when you're trying to concentrate on something or you've got problems at home and all of those things mean that in your working day quite a bit of that time is spent not actually producing things as far as the company is concerned, and i just wanted to change that. >> why would not working one day a week actually make them more productive on the other four i mean, i see this and i think, oh, boy, if they were as productive on those four days, if they worked five, then you'd have a really profitable company. >> i think you don't spend every hour of every day all in the same production. so there are lots of things that

set them up that are because you've got to deal with that look at your house at home and so it doesn't matter how you structure it, it's always going to be down time. you give people more down time, you give them the ability to look after those things outside of the office while having an extra day, if you give them the opportunity to refresh themselves and the chaps are you get better productivity and in order to do the work in four days they actually have to work smarter and that's what it's about. >> is this all about attracting the millennials? they seem to value a quality of life over pay in and of itself and are willing to take a pay cut. >> no, because we pay exactly the same for four days as we do five days. this is about the output that i get from them. but interestingly, the people that this really benefits are people with families, people

with commitments outside of work and they're desperately trying to balance it. in the modern world both parents are working, they don't actually have the ability to handle these things other than in the office and so when you give people a day off, it's life changing. it's like giving a father a chance to be a father one day a week or a mother a chance to get home in time to pick the kids up in time for child care it's a big thing. >> do you know -- >> andrew, thank you andrew barns, keep us updated. perpetual guardian. >> it was not mandate the until the 1940s. >> and in the 1920s, we did this on "nightly business report" which is on pbs produced by cnbc a couple of weeks ago. in the 1920s is when companies started to offer five day work weeks. you know the first company that

did that ford motor company henry ford. >> good. >> what's a weekend? >> no. >> otherwise i would have called her dame. >> exactly >> still ahead, stocks back on track here in the u.s. china, different story what is going on with the same stocks lower again samantha jumping on records starboard value had taken a 6% stake. lululemon in the green following an upgrade to buy at arg gus all of that straight ahead are you taking the tissue test? yep, and my teeth are yellow.

time for whitestrips. crest glamorous white whitestrips are the only ada-accepted whitening strips proven to be safe and effective. and they whiten 25x better than a leading whitening toothpaste. crest. healthy, beautiful smiles for life. (indistthat was awful.tering) why are you so good at this? had a coach in high school. really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer free access to coaches

and a full education curriculum- just to help you improve your skills. boom! mad skills. education to take your trading to the next level. only with td ameritrade.

stocks are rebounding from yesterday's losses with the dow up 400 points but the shanghai composite falling for the fourth straight day with concerns about a slow down from china in concerns at the white house president trump's economic advisor larry kudlow says china's economy looks terrible right now. is the real story china and not

turkey gentlemen, good to have you here jonathan, let me start with you. china's way bigger than turkey if it's slowing down it's way more important for the economy than turkey would ever be, right? >> it's of paramount importance not only for chinese investors but yes investors. and on the discussion of tariffs it's been a one way street so far with the u.s. stock market doing well, the dollar strengthening. but there can be a knock down effect our view is that economy is under stress, but perhaps not to the extent of mr. kudlow's conversation today if there's impact on specifics for example health care, energy, there still remains parts of the market to play at heavily discounted valuations. >> one, do you believe it, and

two if it's true, is that good news or could it be bad news for the u.s. market? >> it depends on which economic data you're looking at on the macro level, the industrial production numbers have been largely sideways, gdp numbers have been largely sideways there's two different dynamics with china right now one is a macro dynamic and one is micro from a macro they're trying to switch i would argue, yes, their health care is interesting, high growth is interesting in china. the chinese stock market is trading on a very different dynamic than i think the economy here is i think the market is over sold. >> you mentioned sectors you would sell on based where the

market is going. >> the banking sector, areas where there's too much capacity. >> this is china you're talking about. >> yeah, this is in china we're talking about. but if you look at sect shz where continued investment is going to come not only from the public sector but the private sector, health care, which we think consumption and growth is going to continue. and again environmental degradation is a key theme and you can play that in different ways for example, there are u.s. attracted listed names that have connection -- >> are we showing them right now? adecoagro. >> obviously with tariffs increasing against u.s. agricultural providers the demand is going to go somewhere. aggro which is nork stock

exchange listed is in dollars, and golar which is desperately trying to wean its way off of coal >> i think chinese demand is both caught in trade wars and currency dynamics. the trade war is going to knock down commodities de fact i think there's more upsi than down side in the short term and check please is next ♪ that's confident.

but it's not kayak confident. kayak searches hundreds of travel and airline sites to find the best flight for me. so i'm more than confident. how's your family? kayak. search one and done.

it's national tell a joke day, so i'm going to tell a joke >> are you really? >> yeah. >> okay. >> what's a buccaneer? >> what? >> really expensive corn >> are you going to do the other one? >> we've got many on twitter one is what do you call a waffle on a beach san diego. what do you call a fake noodle in pasta they're bad but you laugh. >> national joke day it didn't say national good joke >> yeah, it's just joke in general. zblis >> this is no joke, we have the first 59 today this is the first one of the season we've had three consecutive 59s on tour. he opened with a bogey and actually missed a 3 foot birdie

put-on another whole, so he conceiveally could have shot the lowest and take a look at the rallies still holding on as we enter the final hour of trade. technology is really underperforming the market thanks for watching power. >> "closing bell" starts right now. it is time for "the closing bell." i'm sara eisen in for kelly evans. big ral efor stocks today. we've got someone who says the bull market run is over. the first ever generic version of the epipen has just been approved by the fda we'll break down the moves ahead. i'm scott cohn in los angeles. amazon may be getting ready to finally reveal its second headquarters