the biggest beneficiary. >> let's get to the final trades jim, what do you say >> apple it's on a tear but it's going to keep going. >> rob. >> i'm going with what i talked about earlier, cqqq. >> j.j. >> not sexy, but coca-cola is near a 52-week high. >> doc. >> archer daniels, bought it. >> that does it for us "power lunch" starts right now. i'm michelle caruso-cabrera and here's what's on the menu. it's all about the long term the president floats the idea of ending quarterly reports and going to a six-month system. good idea or will it lead to less transparency and hurt main street investors getting ready for a storm. investors bulled ppulled billiom equities should you pull the money or stay the course. and as the back-to-school season kicks off, the u.s. is facing an epipen shortage. why, and what can you do if you need it? "power lunch" starts right now

and we do welcome you to "power lunch" for a friday i'm bill griffeth. mixed day on wall street so far. the dow solidly in green right now, the s&p waffling, a little bit higher right now the nasdaq is seeing the biggest losses on pace for its first negative week in the last three. the defensive sectors leading again today, telecom, utilities, consumer staples tech is the biggest laggard. among the movers, tesla on pace for its worst day since february on the reports that the company is being investigated by the s.e.c. then those technology stocks that are moving lower, nvidia after reporting disappointing guidance, applied materials after its profit outlook missed and nordstrom soaring today following earnings and sales >> big move there, yeah. we begin with a tweet from the president that could have a major long-term impact on the markets and how big businesses

run in this country. kayla tausche has that story from washington. >> reporter: the white house has confirmed as part of the president's pursuit of regulatory reform he is looking into possibly ending short-term reporting requirements as the president said in a tweet this morning that he has asked the s.e.c. to study the issue based on a conversation that he recently had with one ceo, who said stop quarterly reporting and go to a six-month system earlier today talking to reporters before leaving for a fund-raiser up in new york, the president said that ceo was outgoing pepsico ceo. >> i asked what could we do to make it even better. and she said two time a year reporting, not quarterly and i thought of it and it made sense to me because, you know, we are not thinking far enough out. we've been accused of that for a long time, this country. so we're looking at that very, very seriously we're looking at twice a year instead of four times a year. >> i'm told this idea was

floated by nooyi at a dinner the president held in bedminster last week for many business executives, a sort of informal roundtable nooyi made that suggestion and the president immediately offered to have the s.e.c. look into it. there was general consensus among the other executives that were presenting, although many ceos who have voiced the disdain for short-termism, if you want to call it that, they have tried to thread a smaller needle on this issue for instance, jamie dimon and warren buffett had said that perhaps you should end short-term epa guidance expectations, not requirements but expectations, and that there are narrower ways to do this without ending the transparency of having public companies not report earnings every quarter. we'll see what the president and s.e.c. ultimately decide to do on this issue, but certainly it sparked quite a debate in

corporate america. guys. >> kayla, thank you. so how is wall street reacting to the suggestion from the president? bob pisani is on the floor of the new york stock exchange. bob. >> reporter: i think most traders think it's not a good idea to end quarterly reporting and i don't. i haven't thought so for a long time who wins when there is less information that's actually available out there? my opinion, you get an information asymmetry out there and professional investors would have access to more information eventually reducing information is not going to eliminate analysts' reports or anything like that. if the companies don't set the goals, wall street will set the goals and people will be unhappy with the guesses people are going to make. i'd say let's turn this upside down instead of let's change reporting, let's change the ceo mindset. they all say we want to think great thoughts,we don't want t be bothered with short-term stuff but they themselves are short-termers. the average ceo is under five years' term now. ceo compensation is what drives their behavior and the

compensation is based on the stock price. how about we change that around. that's the kind of short termism i worry about. finally, bill and michelle, can i ask a question nobody else has asked? what's wrong with short termism? what's wrong with people who don't want to hold stocks for years an years, who want to trade them or move them around every few years? i have endless admiration for warren buffett but i think it's unrealistic for all of us to own coca-cola into our 90s. >> we'll take that point, bob, thanks so much let's discuss this more. is it a good idea for companies to go from reporting four times a year to only twice let's debate it with bill george, former medtronics ceo. he agrees with president trump not often! and bill cohan is author of "why wall street matters. he disagrees bill, bill, bill, bill, bill why do you want investors to have less information, former ceo of medtronic.

>> i don't think investors will have less information, i think it will shift the focus to long-term information. yes, i agree with president trump. i thank a good friend in nooyi for proposing it i think this would shift the focus away on the endless focus on quarterly expectations. my former company, medtronics, had a hurricane in puerto rico and the stock goes way down. well, the stock is way up because it's a short-term thing. >> do you think your stock would not have gone down in the middle of that hurricane? you probably would have had to tell the market that there was an effect, right >> yeah. they preannounced an effect and it hit honestly, i think it's going to put a greater focus on semiannual -- look at unilever eight years ago, it's course it's a british company, they went to semiannual earnings.

they do report revenues at the quarter mark i think you can update on strategic matters and update on investments and what's happening. i don't think it means less transparency, i think it shifts the focus of transparency to the longer term. i think this is good for companies. like president trump says, it will encourage more growth and more focus on growth and not just the focus on whatever the analysts' expectations are and whether the companies hit him. >> william cohan, why is this a bad idea >> i agree completely with bob pisani if it ain't broke, don't fix it. how can it possibly be a bad thing for investors, retail investors especially, to have more information about a company on a quarterly basis i just don't see how that can be a bad thing. beyond that, last time i checked, the president was tweeting about how this is the greatest economy ever. profits have never been higher, the stock market has never been higher, corporate profits

higher, unemployment is low. so everything is going great and now we need to make it even better by having less information for public shareholders i completely disagree with this. this is not a good idea. it's not in the best interests of shareholders, especially retail shareholders who, by the way, own these companies, not the wall street firms and not the corporations themselves. so more information is better. if it ain't broke, don't fix it. please,ridiculous. >> i'm going to play devil's advocate and push back a little bit here can you point to a way that med tronic was hurt with you having to come out every three months with earnings? >> back when i was ceo 15 years ago i think it shifted the focus too much on the short term >> how did that hurt medtronic >> did you forego investment >> it would have hurt if i listened to them we didn't listen to them, we ignored it and invested heavily in r & d, invested heavily in

capital equipment, we invested heavily in expanding overseas. it all paid off. >> did your stock suffer as a result >> go ahead. >> did your stock suffer as a result >> no, it skyrocketed because we ignored them i've been advocating ceos do this it's hard to do because today we don't focus on how companies are growing and what their results are, we're focusing on the expectation to make your number. oh, it's down 5% oh, you said you'd be down 7% so this is good. >> i just don't understand, you said you had a spine other ceos, they should have a spine. william cohan -- >> the pressure on boards is great. >> william cohan, we're conflating two things here, right? what i hear often about the quarterly reporting isn't the quarterliness of it, it's that there's so much more legality, regulatory, all the other stuff

that goes along with the quarterly reporting that has made it very onerous and costly. >> that's what jamie dimon and warren buffett sound like they're thinking about, a middle ground let's focus on the actual quarterly earnings eps number. we're talking about a 10q which has a lot of information in it that is very valuable to investors versus this sort of endless focus on making the quarterly number by the way, it's much better now. in other words, there's much less focus on making the quarterly eps number nowadays than there was ten years ago or 15 years ago during the dotcom bubble where if you didn't make it your stock tumbled. if you did, the stock kept going up there are some ceos like jeff bezos and maybe bill george who are able to educate their bezost

man by a factor of $50 billion, so it can work just be a bold ceo like bill george and jeff bezos. >> bill george, very quickly before we go, isn't it theoretically possible given technology today that any cfo would know at any given moment what their earnings are? >> well, cisco used to say that. i think there are a lot of quarterly adjustments. no, i don't agree. i don't think it's just earnings, it should be on revenues and market share, employee engagement. those are leading edge indicators, these are lagging indicators we need to give our shareholders, all of them, more information on this. i do think it's wall street that's focusing on the short term more than the retail investor i think president trump is right. we've got to invest more for the long term. if we made this move, ike it would put greater emphasis and shift the emphasis to greater investments in the u.s. economy,

in research, in capital equipment. this is a good thing for all companies and all investors. >> gentlemen, good to have you bill and william. >> thank you >> thank you so the dow is adding on to yesterday's big gains right now. pfizer and verizon are leading the top performers among the dow components when we come back, we'll have more on the markets and where the money is going right now money is not moving into tesla today. the company still faces a potential fight with the s.e.c., and elon musk opens up in a dramatic new interview with "the new york times." all that and much more coming up on "power lunch. this wi-fi is fast.

i know! i know! i know! i know! when did brian move back in? brian's back? he doesn't get my room. he's only going to be here for like a week. like a month, tops. oh boy. wi-fi fast enough for the whole family is simple, easy, awesome. in many cultures, young men would

stay with their families until their 40's. investors seem to be pulling money out of u.s. equities and starting to play defense dom chu is here with the numbers. >> one of the places that we want to look at is the technology funds out there investors have poured a lot of money as you can see here the last couple of years it's something that analysts over at bank of america and merrill lynch have pointed out, this idea that cumulative technology fund inflows have been in place the better part of two years but we're seeing a bit of a rollover. are people starting to take money out of those tech funds to put them elsewhere that's something to watch. the other thing to look at is those fund flows over the past

week u.s. equity redemptions have been pretty steep, down about $2.6 billion over the course of the past week so that's something to watch there tech outflows down by $500 million out of those funds over the course of the last week. financial outflows down about $1.2 billion during that span as well and the one place we are looking at inflows is health care. we did see over the past week around $800 million worth of inflows into health care-related funds. one thing else to watch, the rotation that's happening. over the last three months we have seen the outperformers be places like the spider utility index, real estate side of things and consumer staples, these traditional high dividend payers, more economically defensive sectors. a lot of investors seem to be getting a bit more defensive back to you. investors may be turning defensive but the dow and s&p still on track for their sixth

consecutive week, up in the last seven. so did you follow the money or will this rally continue mona is the u.s. investment strategist with allianz and rob is with cabot wealth management. mona, we've had a very volatile week it seems the market has a very short attention span one day it's worried by something, then it's comforted, then it's worried, then it's comforted. what do you think is going on? >> this is kind of natural as we get later and later cycle in the u.s. economy we have the fed in play and now we have risks from both the china trade tensions, turkey and the potential contagion there. some sector rotation as we've heard. the investors that have been in tech and discretionary, they have done quite well, up about 15% year to date so i think it's natural for those sectors to take a little bit of a pause, a little profit taking, but we're encouraging investors to round that out with some energy potentially.

health care and staples are areas that can do well even in a downturn. >> what are you advising are you encouraging people to follow this defensive rotation >> we are encouraging a little bit of a defensive rotation here we think it's important that you round out your technology portfolio with more defensive stocks as we get later and later cycle, absolutely. >> rob, it looks like a lot of your top picks are in techland. >> exactly right i've been a big fan of technology for a long time i think we're in a unique period of time in our economy, taking advantage of new developments in technology to a higher level it's really about artificial intelligence that term is used a lot and it's really hard to understand, but using data to run businesses better is the bottom line of artificial intelligence. it's basically combining information to operate your business more efficiently. i was in the new york stock exchange last week listening to a company named rollins, the leading pest company, talk about their improvements in operating

margin over the last ten years they improved it about 600 basis points i think that's a great example of how technology is helping businesses a very common business that just goes into your house and eliminates pests operate at a better level we're seeing this throughout the economy and i think investors need to stay in these spaces nvidia is a great way to invest, adobe, google -- >> so you're not worried about the rotation that we've been talking about out of tech? that's not a signal to you you're not worried that the market will abandon you with such a heavy tech focus? >> no. this is part of investing. we get volatility, we get corrections, we get profit taking oftentimes a company reports great earnings and the market sells off. that's just investors taking a shorter term focus the long-term focus on all of those companies i mentioned is very positive. it doesn't mean you make money every month or week or even every six months, but longer term, they have been very good performers

i see our economy in a unique space today taking advantage of that the next five or ten years. >> but you talk about the short termism. are you in agreement with president trump? would you accept earnings reports only every six months since you're a long-term investor >> i know in europe the companies do it every six months i agree with the comments that good investors get the information they need to stay with the investors i think it may create a little more volatility not having as much information so i think -- there's no easy answer to that i think more information generally is good for investors. i'm not sure what the right thing to do is i'd like to hear the debate from the s.e.c., what they think. >> we'll put you on the spot too, mona, what do you think >> from a portfolio management perspective, we feel that the six-month period is a nice time. it's kind of harder to every quarter try to go to your investors and say this is what our portfolio has done, so it's nice to have that longer tailwind there. >> it's easier for you

>> window dressing at the end of every quarter. >> don't you think that everything that happens every quarter will happen every six months but in bigger scale, on a bigger scale >> volatility will be bigger because you've been without information for so long. >> you could also get that longer term period the company will be investing on a longer term basis. >> they can do that now. you can ignore all the quarterly reports right now if you want to >> bill george said he did >> the people that can ignore it, they're all for the better the people that have to report to their investors every quarter, they're suffering every quarter. >> well, this certainly evolved. but thank you both for your thoughts today on a lot of things, thanks for joining us. >> that european comparison gets me nervous school is starting across the country and children with allergies may need to bring an epipen with them on the first day. the problem is there's an epipen shortage right now

we'll discuss more. plus some of the worst wildfires on record still burning in california right now. we'll tell you what the insurance industry is doing to protect people and property. that's next on "por ncweluh.

i love you, basement guest bathroom. your privacy makes you my number 1 place to go number 2. i love you, but sometimes you stink. febreze air effects doesn't just mask, it cleans away odors. because the things you love the most can stink. and try febreze small spaces to clean away odors for up to 30 days. breathe happy with febreze. you've probably heard the fda has approved a generic version of the epipen but it won't be ready in time for back to school. meg terrell has that part of the story. >> we know they expire every

year whether you use them or not and prescriptions spike in august as parents fill them for back to school, but this year that's proving not so easy alyssa's 6-year-old son, hudson, has a severe nut allergy as he heads back to school, she needs to stock up on epipens. >> i went to the same local cvs pharmacy that i always do to fill my son's prescription and this year i was told that the epipen generic, which is what my insurance covers, was out of stock. >> she is not alone. manufacturing disruptions for the life-saving allergy drug have resulted in pharmacies around the country running low on supply. >> in my busy pediatric clinic we have noticed that there are a number of patients, for example, calling in wondering where they can procure their epipens. >> in calls to two dozen pharmacies from boston to san francisco, cnbc was told almost every single one had no epipens or just a few in stock mylan says it's exploring options with its manufacturing

partner, pfizer, to stabilize supply pfizer says it's experiencing delayed shipments due to process changes and cited supply of third-party components in the manufacturing process. epipen isn't the only option on the market there's also others but it's by by far the most dominant. >> the school prefers the epipen because that's what they have trained their staff in how to administer. >> love you, have a great day. >> as hudson prepares to start first grade, his epipen is one of his most important school supplies and so that approval yesterday for the generic version is welcome news but they're working on the launch the next few months so probably won't help for back to school. >> nervous parents thanks, meg. well, it is the movie everyone is talking about, "crazy rich asians." putting it in the theaters are passing up a big payday from

netflix. shares of tesla down 15% after elon musk's tweet about going private. does musk need help running the company? should tesla hire a so-called adult in the room? we'll discuss that coming up on "power lunch." 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. ♪ today, life-changing technology from abbott

is helping hunt them down at their source. because the faster we can identify new viruses, the faster we can get to stopping them. the most personal technology, is technology with the power to change your life. life. to the fullest.

hi, everybody, i'm sue herera here's your cnbc news update for this hour. trump aide kellyanne conway is defending the president's decision to revoke former cia director john brennan's security clearance. speaking to reporters this morning, conway said brennan had no interest in helping national security >> he's a former cia director. he since then has shown no interest in helping this administration further, the national security interests of this country. he's paid for his opinion now and his opinion is against the interests of this administration which are serving the interests of our national security >> at least 470 people are sick after eating salads at mcdonald's federal health officials are tracking the outbreak of a

parasite linked to the salad mix served at the restaurant 15 states have been affected so far. mcdonald's, though, says it has replaced the supplier of its salad mixes. and a new study from researchers at brigham & women's hospital published today suggests that very popular low-carb diets can help you live longer but only if you take it easy on the meat as well it showed that low-carb diets increase the risk of early death because most people replace the carbs with animal fat. that's the main source of protein instead of using nuts and legumes. moderation is the key. take it easy on the meat that's the news update this hour michelle, i'll send it back to you. >> thank you so much. let's get a check on the markets right now. the dow leading the gains. right now the dow is higher by 38 points. that's a gain of 0.15% but considering yesterday it's pretty impressive. your dow leaders, pfizer,

verizon, caterpillar and apple they're all helping to lift the dow. those are all gains of more than 1% your laggards, mcdonald's, microsoft and intel are lower. bill. >> michelle, elon musk, boy, have you read this "new york times" interview yet >> what interview? >> elon musk telling "the new york times" it's been a painful and difficult year for him and it may be getting worse. today tesla shares fall 8% heading for their worst day in nearly five months phil lebeau joins us from chicago to talk with "the new york times" interview with elon musk. >> what was most interesting is when you got a glimpse into what's going on with elon musk and his state of mental health, state of physical health and a couple of quotes stand out, especially with regards to the tweet that he sent out first of all, he says in regard to his health, it's not been great, actually. i've had friends come by who are really concerned the reason that musk did this interview because the heat he has received and tesla received

over the last week and a half because of the tweet he sent out last week about potentially taking the company and going private. he said he doesn't regret sending out that tweet and he also wants toclarify and he di clarify to "the new york times" that he was not using drugs while tweeting he writes it seemed like better karma at $420 than at $419, but i was not on weed, to be clear weed is not helpful for productivity as you take a look at shares of tesla, i know some people read that and said really marijuana is not helpful for productivity take a look at shares here we should point out the big reason that i think this stock is lower is because there's a lot of uncertainty about whether or not elon musk, does he take a leave of absence does the board step in and say you've got to have a coo or somebody who can rein you in a little bit which would potentially dampen his creative juices, if you will? that's what i think is really weighing down the stock today, guys >> tommy chong on line two for

you, by the way. >> partly too, phil lebeau, there's been reports that they have been investigating, the s.e.c., tesla long before this, just about the whole malls 3 disclosure, right? >> right. >> that could be one reason. i'm wondering if after james stewart appears on cnbc this morning talking about that interview if it didn't hurt the stock even more as he described what he was like on the call >> yeah, and if you watch when jim stewart is on our air, he's usually very measured in his comments about companies and i thought it was interesting that he expressed some legitimate concern about elon musk's mental health, if you will and i think that made some people sit there perhaps and say, hmm, how bad are things with tesla and with elon musk? >> right phil, stick around we want to pick up right on that point. is the erratic behavior we've seen from mucsk, the tweeting, the crying on the phone calls with reporters, the ambien another reason why ceos don't

make the best day-to-day managers let's bring in charles charles, i want to go where phil left off about the state of elon musk, whether it's his mental health or physical health. jim cramer tweeted this. he writes devastating "new york times" piece filled with new facts. we know that the safest thing for musk right now is a medical leave. i would insist on it what do you say? >> you know, the board has got to take this all into account. they're there to make sure the company operates effectively for everybody, all the shareholders. and their interest here is really the company and at this point not mr. musk so they're going to have to ask themselves given what's happened, they have three big issues they have, a, the tweet that was problematic, b, obviously the s.e.c. investigation you've got the whole management buyout which is troubling. that is a massive conflict of interest for a manager to buy out everybody else and then they have the judgment call of the last couple of

months, this very unusual stuff occurring. they have got to ask themselves does this make sense to have him continue in that role. a tough question because it's his board. he put them there. they're obviously friendly with him, loyal to him, but they have got to distance themselves and understand that they're there to represent the company, not him at this point. >> charles, let me interrupt for just a second. you read "the new york times" article an let's say you are on tesla's board. what do you do immediately do you call him up do you ask for checkups in terms of his mental health, his physical health? >> to get him a therapist? >> what do you do exactly after this article comes out and there are all these revelations that may not be consistent with a leader who is in tip-top shape to run a company. >> i think you first ask yourself what am i doing here? why am i on this board but i think beyond that, i think you have to sit down and get the facts in front of you. you've got to look at the

interview, look at what you know and the board itself needs to meet without him there to figure out what to do next. whether it's keep him, whether it suggests bring someone else in look, they have got to stabilize things this is a very dicey situation they have had it pretty easy for a long time. with this coming out, there is a real problem you have a judgment issue obviously on the part of your founder and your largest shareholder. and you can't ignore it, it's not going to go away their goal is to obviously preserve and protect the company. everyone is human. we'd like to think we're indispensable but even the greats are mortal. what happens if you get hit by a bus? the world will go on, the company goes on. i think that's what they have to think about. relationship is obviously important. >> phil, clearly we have an unstable genius on our hands here the world has been cutting him slack for years, but now he's running afoul with the s.e.c that is where they're going to

have a problem here. do you think based on what you know about the company that they are likely to want to hire an adult, a sheryl sandberg or, you know, somebody who can come in and run the company and let elon be elon? >> i think they probably would love to do that. they would love to have a little more stability, bill the question is who. let's look strictly at tesla as an auto company. i have brought up tesla to auto executives from other firms several times over recent years. almost everybody says the same thing. fascinating guy, fascinating company, no way i'd go near them because they're set up -- auto company is set up much differently than the way tesla is run i suspect that if they do try to bring in an adult, if you will, a coo type, it would be from the tech world somebody who understands the mindset of elon musk, the disruptive nature of him who would be willing to say, okay, yeah, i can ride the lion here, i can deal with this i do not think that you would find somebody in the auto industry who would say, sure,

put me in charge there. >> he needs a ying for his yang, that's for sure. you know who would definitely agree with the president about only reporting every six months, phil, would probably be elon musk i think the most recent quarterly reports are what did him in. >> why stop at six months. >> that's why he wants to go private and have none. >> the other thing is when you're talking about the president, he reacts to anything very quickly on twitter. to the slightest slight against him or against twitter and that often fuels the next controversy, if you will, or the next people talking about tesla for x, y and z it's because he goes off on twitter. there will be some who say we love it. we love that's how he communicates, he's a genius. others say that's the last thing he should be worried about, whether or not somebody puts something out on twitter. >> guys, thank you charles and our own phil lebeau.

the next prime minister of pakistan will be sworn in tomorrow and one of his first decisions will be whether he should approach the imf for a bailout. pakistan has taken on billions and billions of loans from china at part of their one belt, one road initiative. in an interview late last month, secretary of state mike pompeo said the u.s. would not allow chinese investors to be bailed out with u.s. taxpayer dollars via the imf. >> make no mistake, we will be watching what the imf does there's no rationale for imf dollars and associated with american dollars, part of the imf funding, for those to go to bail out chinese bondholders or china itself >> pakistani officials criticized pompeo's comments, accusing him of trying to drive a wedge between pakistan and china. to the bond market now rick santelli tracking the action, such as it is at the cme today. rick >> yeah, no, you're exactly right. we're not covering a lot of

basis points today look at a two-day chart, we have moved a bit lower, we're down two on the day, two on the week. we settled at 2.87 last week and last night if you look at the third week in june start for the 10-year, what should jump out at you is that the 2.80s, we've been there and done that. that will give hope to some of the traders looking to establish new shorts there's good support in this area as far as the currency of the week in many ways it doesn't mean it was a good week. it was the dollars versus the chinese currency, the yuan if you go back ten plus years you can see how close we came on wednesday, the lowest close almost all the way back to 2008. let's look at the dollar index this chart starts at the endi o july we almost traded up to 97 and backed away but it's still been a solid month to date for the greenback. michelle, back to you. >> thank you, rick. the mendiocino has burned

more than 300,000 acres, an area bigger than the city of los angeles. hundreds of homes and buildings destroyed. coming up ne, atxtwh insurers are doing to protect their clients.

wildfires continue to rage across california. the mendocino fire is the largest in the history of the state burning over 360,000 acres. there are eight major fires burning and fires have killed ten people since the first of the year, including six firefighters now some insurers are taking a more direct approach to protecting their policyholders joining us is paul crump good to have you here. >> it's a pleasure to be here. thanks for having me i love talking about how chubb helps their clients. >> give me some context on this wire in california have you ever seen anything like this >> it is incredibly dramatic

just in the last ten months alone, california has seen three of the largest eight fires in its history, so california -- it's wildfire, wildfire, wildfire in california right now. >> what are you doing as a result we've read you're going to extraordinary lengths to protect the homes of your policyholders. by doing what, for example >> maybe i can break it down in what we do before, during and after. before, we know where all of our clients are, where they live and how to contact them. so when they're in imminent danger of a wildfire, we give them tactics on what they can do some of it is very practical and some is to help protect the home during the wildfire, we send in our private wildfire defense forces to help fight the fire. it's everything from going in and removing any debris that might be in the yard, the lawn furniture, taking duct tape and taping up the drier vents so that smoke doesn't come into the house inadvertently, same with the garage doors and putting out

sprinkler systems on the yard. if the house is threatened, we put a foam gel on it that helps repel the fire. >> how does this make financial sense for you? is it more costly to replace the home of those you have insured and then next year you'll have the premiums go up at the same time as opposed to letting the home become a loss >> you know, thanks, melissa, that's a terrific question the reality is this is a huge return on investment here. just this year alone, we've saved a dozen homes. last year dozens of homes. over the years hundreds of homes. and those are saved homes, let alone partial losses so it absolutely pays for it it pays for it in dollars and cents, but it also pays for it in reputation andgood will wit our clients. >> now, you have teams that go in these are people who this is their job. >> these are professional firefighters, 13 squads we have right now. seven are currently active out in california, we're monitoring fires. >> are they full-time staff or seasonal >> no, they're seasonal staff. they operate in 18 states for us

where wildfires are most prevalent. >> what am i paying for that as a chubb customer >> it's a complimentary service. it's in the best interests of our clients, shareholders and communities as well. when we send in the private forces, that helps free up the public forces. >> am i already paying more for my insurance since i live in an area that is likely to have a forest fire of some kind >> yes. >> so i'm paying for it essentially? i should just take advantage of it, right? >> yes if you're a chubb client, you're getting it if you're not a chubb client, you're not getting it. >> how much do premiums go up next year in this area where the fires are right now? >> insurance companies in the homeowner space have to work through the regulatory body. so in some jurisdictions, you know, it's going to take time. most often, though, we have to prove what the actual losses were, put them into the pricing models, deal with the regulators and then bring them out into the marketplace. >> don't misunderstand, i think it's a great idea. you get out there and help them.

>> it's proactive as opposed to sitting back. >> paul, thanks very much. >> thank you >> paul krump. the hot movie opening this week in theaters is called "crazy rich asians." >> i'm seeing it tonight. >> you are i'm jealous. it's getting a lot of buzz here, including about why it's going to theaters in the first place why didn't it go the nfletix route? that's next on "power lunch. >> now you're excused, paul. ho? >>i don't know. there's so many opinions out there, it's hard to make sense of it all. well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings estimates into a single data point. that way you can keep your eyes on the big picture. >>huh. feel better? >>much better. yeah, me too. wow, you really did a number on this thing. >>sorry about that. that's alright. i got a box of 'em. thousands of opinions. one estimate. the earnings tool from td ameritrade. dinner date...meeting his parents dinner date. why did i want a crest 3d white smile? so i used crest. crest 3d white removes... ...95% of surface stains in just 3 days...

...for a whiter smile... that will win them over. crest. healthy, beautiful smiles for life. omar, check this out. uh, yeah, i was calling to see if you do laser hair removal. for men. notice that my hips are off the ground. [ engine revving ] and then, i'm gonna pike my hips back into downward dog. [ rhythmic tapping ] hey, the rain stopped. -a bad day on the road still beats a good one off it. -tell me about that dental procedure again! -i can still taste it in my mouth! -progressive helps keep you out there. -i can still taste it in my mouth! 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.

this wi-fi is fast. i know! i know! i know! i know! when did brian move back in? brian's back? he doesn't get my room. he's only going to be here for like a week. like a month, tops. oh boy. wi-fi fast enough for the whole family is simple, easy, awesome.

in many cultures, young men would stay with their families until their 40's. "crazy rich asians" hitting the box office with high expectations after thedirector rolled down the dice, turned down a seven-figure payday from netflix to see it on the big screen it topped $5 million in its opening on wednesday, adding $3 million yesterday, it's expected to make between $25 million and $30 million between its opening day weekend. could this be the start of a growing trend in hollywood let's check that out with rebecca sun and paul garabedian. rebecca, i want to start off with you, walk me through the reasoning why they turned down netflix and opted for the big screen >> well, the direct oor john ch talked about it what if it comes

down to money. and they thought well what if we donate our portion to a worthy cause which will help get us into the movie theaters? it's been a quarter century since we've seen contemporary westernized asians in a hollywood studio movie so part of it was the cultural zeitgeist. it was the significance of having an experience where people had to buy a ticket, leave their homes, go see a movie featuring asian-americans. the other big reason is because of cops. 23 the movie came out of netflix you would never know how well it did. netflix doesn't relos data on individual projects and so there's no way to prove to other studios that, hey, "crazy rich asians" mademoney and people wanted to see. >> it so that decision was not just about this movie in and of itself it was the fuch pore tture potel pipeline of movies that will feature an asian cast. >> it was completely exactly

with an eye towards will this open doors for the future. if they wanted the movie to be profitable to them, they would have taken the netflix money because that was up front payments. >> was this a good idea, paul? how much do you think they gave up $25 million to $30 million sounds modest to me going to the box office. >> the netflix deal had more dollars involved and more revenue on the back end for that movie or the front end of it in terms of the thee kbratrical release, they wanted to have the biggest stakes for this movie and as rebecca said, it's about showing the industry and the movie industry that inclusion and diversity is good business you really get that prestige factor when you open in the movie theater and you can get lost if you're in the giant

platform of netflix and so many movies come out every week and everyday on netflix that going theatrical was a smart move. you get that conversation building in a big way when you open in a wide release. >> you must be thrilled. i've been interviewing you about the movies for 20 years. i find it thrilling that people believe, you know what we want to do in the the theater, we're going to do it for real none of this netflix and chill suspect it gratifying that it's still believed the theater get up, get out of your house, buy the popcorn. hallelujah. >> it's a buy -- i love that you just said -- it's abuy in of time and money but the box office right now according to our data is up 8.3% for the year, 12% for the summer and 17%

for august so we've on a roll and "crazy rich asians" is writing this perfect crest of a wave towards the end of the summer movie season and it's an important movie for many reasons and i think every time a movie like this makes a lot of money it opens doors and opens eyes and opens hearts as well so that's a good thing. i love what you said about going to the movie theater. >> the show i'm seeing tonight sold out three days ago. >> and there have been reports that some "crazy rich asians" are buying tickets to make sure people more broadly can see this film and that it would be a success. are there producers and projects waiting on the sidelines based on the success of this film? >> they're absolutely are. that's something that director jon chu has been saying all along the publicity trail which is especiallythis opening

weeke weekend. this is what studios look closely at and gauge a project's success or disappointment based on how well it does opening weekend. if it's perceived as a success, every studio will -- has a handful of projects in the pipeline they will move to the next stage of development or they'll decide let's commit a few more resources, let's not assume it will get relegated to the dust bin you will see more inclusive projects, not just featuring asian-americans but you will see hollywood feel emboldened to take a further step in widening the type of stories that get told. >> it's tough to make a good rom com. >> it's wonderful. >> rebecca and paul, thank you. >> i think it's a sign of where we are today that we're even questioning the strategy of going with a big screen as opposed to netflix.

>> versus streaming. >> very interesting. so shares of netflix are down 16% in one month has the market fallen out of love or is it just a brief pause in a very long bull run? we'll get to that. plus back to the hot topic of the day. the president saying the s.e.c. should consider ending its quarterly reporting requirement and in fact it was based on a suggestion indra noorry. we hear from her and get her side of the story. herb greenberg and susie welch will be waiting to battle that on the second hour of "power lunch. because you've made sure this sensor and this machine are integrated. atta, boy. & yes, some people assign genders to machines. & with edge-to-edge intelligence, you'll know your customers love this color, & don't love this one. never getting grape again. & you can adjust in near real time. & if someone tries to breach your firewall in london & you start to panic... don't.

you've got allies on the outside, & security algorithms on the inside. & if it's jammed up here, & it's hot in here. & you know both those things, you can do this. & your flowers won't wilt. at&t provides edge to edge intelligence. it can do so much for your business, the list goes on and on. that's the power of &. & when her patient's blood pressure drops, she can share the information with...

here's what's on the menu this hour, flashing yellow pimco says its recession indicators are screaming caution. why? and should you be worried at this point it's trump versus short termism. could that help companies focus? would it unfair. we have what i'm told is going to be a fiery debate the stock is down 16% in a month, nearly 9% just this week. is it the buying opportunity that many had been waiting for "power lunch" starts right now

and welcome to "power lunch," i'm melissa lee, stocks mixed today with the dow leading the gains, the nasdaq is lagging on pace for its first negative week it's just to the red, $77.93 tech, meantime, lagging within sca staples. gold is on pace for a sixth straight weekly loss the gold minors etf on pace for its worst week since 2016. as for individual movers, we have to mention tesla. it's sinking down by almost 9% on concerns about the future of the company. apple, meantime, another interday all time high and deere is higher by 1.6% on a strong earnings report. we begin with the markets and roberto pisani at the nyse despite the worries about turkey

and china, flat for the week, where does that leave us >> i think that's a victory given what we have to deal with. i want to remind everyone that we're still generally the best investment in the world and have been for several months. that's true this week overall and why? because basically our numbers are better than everybody else's far and away our earnings for q-3 and q-4, nobody has taken down the earnings it's higher than the rest of the world. we've had an ocean of buybacks, the u.s. economy is generally outperforming the rest of the world and the valuations, well, we're looking at 16.5 times 2019 numbers. i call that a reasonable number overall here yes we have a lot of market issues, narrow leadership and china growth issues out there, we have dollar strength. turkey is similar to greece. the concern is about bank

exposure and excess of debt. i don't know how a that will go but right now it's an international issue, very limited u.s. impact and finally just point out us against the world, michelle is right, we're flat but japan and brazil are still underperforming the united states even though not as bad this week. germany is down and china, well, we're sitting at 28% declines from the highs in early february for china. bottom line, the u.s. is still the investment of choice for most of the world investors. guys, back to you. >> bob pisani. every year fed officials and centralbackers meet in jackson hole, wyoming. this meeting could be particularly important steve liesman is here -- well, he'll be there, he joins us here with what we can expect. >> his yearly junket. >> it's not a junket we work hard over there. it's going to be the kansas city fed's 42nd annual meeting in jackson hole and jerome powell's first as chair coming just before the ten-year anniversary of the financial crisis and

likely behind the issues, powell speaks on friday, that's a week from today on monetary policy in a changing economy powell will be the fifth chairman to attend since the meeting moved to jackson in 182. leading central bankers will gather with him along with economists and other policymakers and a journalist or two. the conference will focus on the rise of large firms and market concentration in several industries kansas city fed putting out a statement explaining these shifts should concern central bankers since they have important lingage linkage becauy have slow productivity, slow growth and a declining labor share in the economy the foreign economies are doing pretty well. this will be no mountain retreat for the fed. here are issues on tap -- tariffs and the affect on global growth, fiscal stimulus which comes to a near full employment economy, emerging markets, how they will be affected by rising

interest by the federal reserve and corporate and government debt not to mention making monetary policy in the shadow of a president who sees somewhat less of an uncrossable line when it comes to talking abfed policy than other presidents. >> he crosses a lot of lines. >> maybe he'll provide color for the meeting. >> i look forward to seeing you with the grand tetons behind you. that's a breathtaking view but you don't even look at it because you are so busy. >> >> how do you know it's real? >> and we'll be looking for monetary moose which means a rate hike is on the way. >> i was prepared to ask me serious questions. there will be one policymaker ex-to another with a 200 basis point difference and that would

make for instant conversations if you want to talk about trout, i'd be happy to do that as well as using terrestrials in hopper droppers i guess we have to go. >> we do. we have a news alert let's head to sara eisen at the nyse. >> we have a statement from indra nooyi, the outgoing ceo of pepsico. remember president trump said it was her idea from which he got the tweet today to suggest that companies no longer have to report quarterly earnings. he was going to ask the s.e.c. to look into it. here's what indra nooyi says many market participants as well as the business round table which we are a part of have been discussing how to better orient corporations to have a more long-term view most agree that a short-term only view can inhibit long-term strategy and thus long-term investment and value creation. my comments were made in that broader context and included a suggestion to explore the harmonization of the european system and the u.s. system of

financial reporting. in the end, all companies have to balance short-term and long-term performance so nooyi at pepsico offering a little more clarification and context around her comments to president trump that took place at a dinner with other business executives in which he got the idea from her that in order to encourage longer term thinking and a better economy and jobs get rid of the requirement that companies report quarterly earnings in this country interesting she links it with harmonization of the u.s. and european system. not sure how much research has been done as to the european system but don't have to report every three months but that will be one to watch. >> that's why he might think she meant every six months, right? harmonization with the europeans because that's what they do. central bankers set to meet in jackson hole. the market focusing on the impact of a rising rate environment. pimco saying its recession indicators are flashing yellow with the market in the late stages of an economic cycle.

are they right joining us, bill stone at stone investment partners. guys, good to see you, this is a very consistent theme. we are late in the cycle. defensive rotation going on, are you following the trend where people are rotating in the defensive sectors? >> yeah, absolutely i noticed that it's probably been better for our portfolios than maniors because we are more of a defensive organization in how we invest and so the rotations are a little more helpful over the last month and the volatility is kind of renewed that we had earlier in the year. it's flashing yellow, though, the markets in some ways, certainly when i look at -- i've become obsessed with the yield curve and how flat it is and if the fed raises rates again in september as everyone thinks they will, how much flatter does it get unless they get the 10-year and 30 year. and before every recession, you

do have usually rate hikes and strong earnings. >> you're worried about a recessionment when you hear about the yield curve and recessions are strong, you're worried about the "r" word >> i will say this, the market has moved up a lot and the fed has been slow and gradual with their interest rate hikes so that's nice they've been slow and gradual because if they need to reset or slow down and pause they haven't set themselves up what we have is explosive pe expansions coupled with fast rate hikes and that causes a recession. we don't have the explosive pe growth and the fast rate hikes either if we have a slowdown to a mild pullback, i think we can handle it. >> bill stone, you disagree, why? >> it obviously depends how you define yellow. but i think yes, okay, if you say we're probably certainly in the second half of this expansion, it's going on so long i don't think that's going out on a limb. i think the thing is i just

think anything you watch or i watch, you're not getting the signal that we are close to a recession. the yield curve, yes we've seen it flatten when we define it on the ten-year yield i'm not sure that's the right way to look at it any way. the problem is if you look overseas you have to german ten year at 0.3%, the japanese tenure at 0.1% i suspect the curve in the u.s. is flatter than it otherwise would be given the quantitative easing going on. if you look at other curves that the fed has put out that they think make more sense to look at, you don't get the same story of tremendous flattening. >> bill, you disagree with pimco's red warning signal you say it's more like a yellow. what does a warning signal portfolio look like? >> i don't know if it's yellow i still think you say the economy is still -- i'll argue still going strong yes, we posted 4%, 4.1% to be

technical in the second quarter gdp, we won't see that again likely in the third quarter. we're likely to be around 3%. >> so how are you investing as a result of that view? >> i think you stay with -- i think technology looks good. i think energy will continue to benefit from a faster growth i think those are the places and if you want to look overseas at a place that hasn't caught up as much or, you know, hasn't gone as well as the u.s., japan. they really depend on global growth if you think global growth continues like i do. it's much cheaper and a better dividend yield. >> thank you guys. happy friday. >> thank you, you, too coming up, today's millennials are three times more likely to change jobs than baby boomers. 23 you're a company, how do you attract them and make them want to say linkedin's editor-in-chief will join us ahead. plus, would you pay $50,000 for a pickup truck the big three automakers are banking on it. first, the president pitting companies against wall street by suggesting to end quarterly earnings reports

one of our next guests says it's the greatest idea the president has had so far our second guest says no, it's t.no ♪ let's give them something to talk about ♪ you always pay your insurance on time. tap onlittle 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. ♪

this wi-fi is fast. i know! i know! i know! i know! when did brian move back in? brian's back? he doesn't get my room. he's only going to be here for like a week. like a month, tops. oh boy. wi-fi fast enough for the whole family is simple, easy, awesome. in many cultures, young men would stay with their families until their 40's. welcome back to "power lunch. to dom chu for this news alert we have markets moving towards the highs of the session and this is on the heels of some dow jones "wall street journal" headlines saying officials within the u.s. and chinese government have now plotted a

potential road map to resolving the long-standing trade dispute by the month of november this is saying trade talks may be lamp eve by hampered by internal divisions between the u.s. government and the trump administration and also that the talks are aimed at a potential president trump/kpresident xi meeting in the month of november that's why stocks are reacting we'll know more details. the details are sparse but we know a trade delegation will be meeting later this month to hammer out some details but the idea that a summit level president-to-president meeting could be in the works is what's moving markets to the session highs. >> very interesting, dom, thank you very much. after meeting with ceos last week, the president did tweet today he is asking the s.e.c. to investigate whether companies should end quarterly earnings reports and go to a six-month

system good idea? bad idea does it lead to less transparency is it better for companies joining us now, herb greenberg, partner at pacific square research he love this is idea not. and on the cnbc television phone line, suzy welch the author of "winning." you like the idea, why >> i think it's a moot point i don't think the s.e.c. will go for this, it will be like the commissioner of baseball deciding not to televise games but it's also an idea that i don't think there are ceos sitting around saying i wish we could have six-month reporting this is another classic trump let me throw a firebomb idea but businesses have long been criticized of thinking too

short-term and this would be a way to mitigate against that i don't like there not being any reporting except for every six months there would have to be some kind of hybrid system where in the middle of that there would be an earnings call where a general direction would be given but it would remove the managing to earnings which is very hard on many businesses and it doesn't always bring out the best behavior. >> herb, how much do you not like this? i know the answer but i'm going to let you say it. >> well, look, i think suzy had interesting points but we're not talking about quarterly earnings and as so many people said earlier today when they put this in perspective, we're talking about quarter l eerly guidance. that's where management gets into the meat or beat situation. i've simply said get rid of the guidance, companies will have to put together quarterly reports anyway, they might as well make them public, this is the way it

has been, this is the way of the world. it hate to see it. i always like the idea of quarterly conference calls because when you're researching a company, you string them together over many quarters and you can figure out what's going on i would say a better idea or maybe a compromise idea would be get rid of adjusted pro forma non-gap fake earnings. >> cleaning those numbers up i think would be a great help to a lot of investors as you struggle to digest the earnings when they first come out but if we eliminated guidance, wouldn't that create more volatility in how companies trade. >> when you throw the algorithms and quants into the mix, you have one less metric they can hang their hat on but you can't

worry -- melissa i don't know that you can worry about the volatility that you're suggesting i think people have to do their work. >> she's not worried she's suggesting if you got rid of it you would have more volatility if you have to wait six months to know what's going on, let me tell you, stocks will move more because everybody has been waiting around for the information, right >> which is how it works in europe right now, suzy does that work better than it does in the united states? >> i was going to back up for a second and say i thought herb and i were going to the same place when he was saying what might work and i thought he was going to say just making the adjustment to having reporting be three times a year instead of four times a year which would be -- might be a compromise that would be agree to believe both the people who want all that transparency and the people within businesses devoted to preparing quarterly reports. once again, to return to the

point, i don't -- i think this is a one day story maybe i'm wrong. i think he throws -- >> we agree. we agree 100% this is never going to happen. it's a great story for a friday afternoon. >> it's friday in august on cable and we are grateful to the president for throwing this twitter bomb to give us lots to talk about today. >> you wonder how many ceos think this is a one day wonder how many ceos aspire to reporting less thinking more long-term. indra nooyi admits she's the one that brought this up during dinner with the trumps in bedminster, new jersey she thinks there's a need for ceos to think long term instead of short term. >> and ceos can do this, right ceos can choose to report quarterly reports and not give guidance and that's what some companies do. >> all companies have to do is put up their numbers, they don't have to have conference calls or do anything. i think that this is -- i can

see why ceos would like this i listen to bill george last hour, i like bill george i totally disagreed with his analysis, this is great for ceos -- >> he's in favor of it. >> i know he is. i think it's terrible for investors. at least to potentially more manipulation if you look at financial services firms and you only have them reporting every six months i know when i'm doing research on a company in europe and it's only every six months. even though they have their quarterly updates, it's so frustrating because you just can't see. that's problematic. >> high-quality companies, it's low-quality companies you don't want reporting every six months. they hide ifg. >> you could earn your ability to report less frequently. there could be the ibms and blue chips of the world. >> better earnings >> no. >> once again i think that -- i

don't think this is a cause that ceos will fall on their sword for. you'll have to advocate this i think he might -- trump might have thrown this out there to mull phi the ceos who are worried and concerned about tariffs. that might have been why he seized on it i don't think this is a fight that any ceos or cfos are going to take on. >> herb, thank you suzy, good to see you -- hear you. talk to you later. >> thanks a lot. let's get to leslie for a market flash. >> i want to draw your attention of tivo slumping saying that amazon is planning to create a live tv recording device that would be in direct competition with tivo. you can see shares down about 3%, they were down 5% earlier.

we'll let you know when we hear back. >> i never understood -- >> why tivo didn't make it it was fantastic >> great invention. >> it transformed the way we watch television but they didn't have their eye on the patent ball and they let technology get away from them and everybody stole it. >> that super bowl with janet jackson, i was so happy i had tivo did that really happen >> we're highlighting the impact on tivo, imagine the cable operators that don't have to rent those boxes that are very costly. more retail earnings on deck with lowe's and target among the big companies to report. will they keep the good times rolling for the sector or will they deliver disappointment? how to trade the stocks ahead of the earnings next. and markets are near session highs on reports the u.s. and china are plotting, quote, a road map for a peting between trump and chinese president xi to resolve the trade dispute

we'll have more on that. don't move fight security threats 60 times faster with ai that sees threats coming. the ibm cloud. the cloud for smarter business.

welcome back to "power

lunch. investors are gearing up for big box earnings we're talking lowe's and target. both reporting next week target shares surging 28% while lowe's is only up 5% in this same time period which is the better big box bet? gina sanchez and craig johnson are with me now. craig, if you look at the charts, what we learned is the set up matters macy's a big winner, walmart a big loser, both switched course this week. which strategy do you follow >> so i'm rolling with the momentum and i'd be aa buyer of target ahead of the earnings release next week. when you look at the options implied move it's 6%. from our perspective a move above $85 and target will be a nice technical resistance level to break through, it would represent a three year new high in the stock

i'd be buying target here, now, ahead of the earnings release. >> gina, buy target? or walmart is down 8% into earnings, a big winner. >> i agree with that call. i actually suggested target on the fundamental story. do you buy a catchup story that has made good changes changing their same day delivery and forging into the e-tailing space and that's paying off versus an average story in a booming sector i think target fundamental story is a story of a company doing things and getting rewarded so i think there's more to move. >> both of you like target guys, thank you. gina and craig for more trading nation, head to our web site or follow us on twitter @tradingnation. coming up, netflix shares not getting off the couch this week down 8%. is this the opportunity investors have been waiting for? "power lunch" will be right back you always pay your insurance on time.

tap one little bumper and up go your rates. what good is your insurance if you get punished for using it? 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. ♪

hello, everyone, i'm sue herera here's your cnbc news update at this hour. the mayor of washington, d.c. is firing back at president trump who blamed local officials for the "ridiculously high cost" of his proposed veterans day military parade. well, mayor muriel bowser tweeted that she was the one who got through to the reality star in the white house with the realities of $21.6 million with parades and demonstrations in trump america. the president saying maybe the parade would happen in 2019 when the cost comes way down. life saving allergy medicine epipen has been experiencing

supply disruptions since may but the situation may be worsening as children head back to school. the drug maker says it's exploring several options with pfizer that would help stabilize supply have been a report by zillow shows 14% of all home listings in june had undergone a price cut. growth in home prices are slowing in nearly half of the 35 largest u.s. metro markets speaking of housing, the most livable city in america is -- that beautiful place, honolulu, hawaii that's according to the economist intelligence unit. pittsburgh, pennsylvania, came in second with washington, d.c. rounding out third you're up to date. that's the news update for the hour that's a most diverse set of cities for most livable cities but there you have it. michelle, back to you. if you had any doubt how important trade is, stocks are at session highs on reports that

the chinese and u.s. regulators are drawing up what they're calling a road map for talks to end the trade dispute. could xi and president trump meet at a summit in in november? there are multilateral summits in november. maybe they meet on the sidelines. industrials are higher 147 poinlts, an intersession move up s&p is higher by 12 points and the nasdaq is higher by 12 points as well caterpillar, apple powering the dow. apple is up by 1.8%. apple hitting an all time intraday high. nvidia, lamb research are seeing losses of 4% and 6%. >> let's get to dom chu at the commodity desk it's been rough for oil. >> the prices for crude oil are positive on the day as you can see but off their best levels of the session.

west texas intermeet yad and brent futures up by three quarters of one percent. they're slated for their third straight week of losses. china remains a huge concern as some traders are looking for signs of a slowing economy that is being exacerbated by trade and tariff tensions so those dow jones headlines, a possible november summit between president trump and president xi providing a near-term boost today but concerns over oil supplies probably inially are outweighing the headlines for now. we'll see if those trends continue. >> you know where jackie d. is right now? >> probably on a government kourg. >> she is, know what she's playing? liberty national. >> i hope she hits them long and straight. >> she better. >> what if she called 234 sick to school. >> she didn't. she told us yesterday where she

was going. thank you, dom the job market is hot. there are 6.7 million job openings in june, unemployment hit the lowest level in 50 years in july. at the same time millennials and gen-z generationers are open to changing job and switching careers than any other generation how do companies fill job openings joining us is dan roth, editor-in-chief of linkedin. thank you for being here. >> thanks for having me. >> why are they so apt to change jobs >> they can. the tables have turned employees are in control they can make demands because they are in demand so more job openings than workers applying and more willing to change jobs so employers have to do more to keep them in the door and that's not just perks, it's making sure they're happy at work so it's changing the entire employee/employer relationship.

>> do we know why millennials change their jobs? are they changing the profession or career they're in. >> they're doing both. >> not just i work at a newspaper, i don't like this newspaper, i'm going to another newspap newspaper. >> we have known the job for life is dead for millennials, they don't even think about career ladders anymo anymore. it's not important for them to move up the rungs. 0% of millennials told us they would be happy to switch careers or industries entirely they don't see it as moving up, up, up, it's moving laterally. >> they're simplers. i have two kids. one of them is a major sampler she talks about different career tracks that are wildly different and it's because they're curious and they want to see what is out there. >> and it feels open you can learn anything and gain skills, you think you can be an expert in a lot of different areas so

you want to try different things and move up. >> more than a third would take a 10% pay cut for the ability to design their own schedule. they love flexibility. these are the we work people. >> yeah. and employers aren't paying people more. the salaries are not going up. one things they can offer though is more flexible work which is what people want. >> unlimited vacation. >> unlimited vacation. >> that's a big one in technology. >> or to work from anywhere. you see people who want to live in an airbnb and work in a we work from bali and that's epito them. >> what is the consequence of staying at the same lower rung forever across industries? isn't that these people's earnings potential later on? >> right because you never grow -- you're never being promoted you're sampling. >> the goals are different

you talked about zillow's numbers on housing they're not buying houses, they want to travel, they want experiences. so do they need to keep moving up and paying for a mortgage >> guess not fascinati fascinating. >> i've had the same job for 37 years and i'm still waiting for the change. pickup trucks are the most profitable model for the big three automakers but with the average price approaching $50,000, is there a limit to how much customers are willing to pay? phil lebeau is in chicago with more phil, are these trucks lined in gold >> no, but they are critically important for automakers the average full-size pickup truck for $45,000 the gross profit, $14,000. that's why these are so important for the big three who dominate the full size pickup truck market in this country the reason we're bringing the story is up the chevy silverado which is just trickling into show rooms, the msrp may be

under $49,000 but edmonds expects once people paper everything and it's out of the show room and in the driveway it will top at least $50,000 and they don't think people will mind paying it. >> between the content and the new appointments, all the bells and whistles, shoppers will buy these trucks and likely be undeterred by this $50,000 mark. >> call this chart of the day. we are showing you shares of ford going all the way back to 2004 and you may be saying why are we looking at ford in 2004 when it was higher than it is right now? that was the record year for sales of the "f" series pickup truck. 930,000 were sold then right now ford is on pace to top that in terms of f-series sales this year. it will be a record year yesterday shares of ford languishing under $10 a year. >> unbelievable. thank you so much phil

coming up, the rise of the superfoods a look of freeze dried fruit products that could change the way you think about food -- at least according to our next two guests there they are gentlemen, start your blenders "power lunch" is back in two minutes. >> oh, boy the digital divide is splitting this country. we have parents who are trying to get their kids off of too much social media and computers, and then we have parents who would only hope their children have access. middle school is a really key transition point, right. the stakes start changing. students begin to really start thinking about their futures. what i like about verizon's approach is that it's not limited to just giving kids new tools, it's really about empowering educators to teach in different ways, and exposing kids to more active forms of learning. giving technology is not a total solution.

teaching technology, now that is.

on today's "power lunch" menu, with ear actually getting something to eat, acai bowls, not just meghan markle's favorite maeal. 39% of americans are trying to eat plant-based foods and retailers and food developers are racing to keep up. here with us today is the pounder of southham freeze dry he's joined by colleague carlos barroso, former senior vice president of global research and development at campbell soup gentlemen, good to have you here. >> thank you for inviting us.

>> well, this is dried with all the nutrition in it. >> acai is a fruit >> it's a fruit, it comes from the rain forest in the amazon. it's a berry and very nutritious. >> i have a higher altitude question what is superfood? i hear commercials for superfood. >> well, it's generally broadly speaking something you think is good for you in this case because of the high anti-oxidant values in them. you hear about dark fruits, that's because they high anti-oxidants. >> so not something artificially fort ize fortifi fortified. it just happens to be good for you. >> it should be natural. >> and your product is in these products like there's acai powder in cereal so people can have the cereal >> there you have it

it's acai and maki. >> what is that? >> it's also a very powerful one from the patagonia forest south of chile it's been used by the mapucha community for years and years and it's an an says central staple it's even higher in antioxidant than acai. >> are these berries grown at a farm in the midwest or do they still come from the rain forest? >> they're hand picked, they're the wild harvest. >> michelle told me if i did this segment i would be able to eat something. >> there are the berries in the meantime, make us a smoothie, we'd like to taste it. >> what goes in here you've got ice -- are you going to put these in there? >> oh, yes. >> so these are super strawberries. >> freeze dried. >> freeze dried. i'm going to want to really taste so i'll do that now before you put one in there. >> while he's making this, this is a long way from campbell's soup, why are you doing this

>> i retired from campbell's not too long ago and i'm helping foods taste healthier. >> should campbell soup have done more of this? >> we worked on it and they're continuing to work on. >> it is this what astronauts eat? >> yes, absolutely some of the dried fruit. >> better than ice cream >> and the honey, terrific how popular is this? how well is acai and superfood selling products >> they've been trending they've been around for a long time but they have been trending because people are looking for healthy foods that taste good. >> there goes the key ingredients. >> the maqui and the acai are wild harvested, are the prices higher >> typically wildly harvested things have a higher

anti-oxidant value. >> let's go. all right, here we go. >> how is this not a fad >> you never know if it's a fad until after the fact but this has been going on for some time so i think it will be all right. >> that looks good >> it doesn't. i'm going to bring some to "crazy rich asians". >> you can help me with this topping. >> you're going to put this in here >> are they garnish? >> you want them on top? okay you bet. >> i'm good at plateing. >> and i'm good at splashing all over so bear with me. >> looks beautiful. >> the purple color is the anti-oxidant. >> michelle, you didn't get your freeze-dried strawberry. >> there you are, bon appetit, everybody. >> excellent. >> it's delicious. >> do you like it? thank you. >> cheers, guys. >> happy friday in august. >> i feel better already. >> i'll drink to that. >> thank you thanks, boris and carlos

you like it? >> i don't know, because i have the tease. [ laughter ] still ahead, the hottest trade on the street isn't so hot anymore. netflix having a bad month, a bad week and a bad quarter is this the buying opportunity many have enbe waiting for that's coming up after these that's coming up after these smoothies. (vo) progress is in the pursuit. audi will cover your first month's lease payment on select models during summer of audi sales event.

with pg&e in the sierras. and i'm an arborist since the onset of the drought, more than 129 million trees have died in california. pg&e prunes and removes over a million trees every year to ensure that hazardous trees can't impact power lines. and since the onset of the drought we've doubled our efforts. i grew up in the forests out in this area and honestly it's heartbreaking to see all these trees dying. what guides me is ensuring that the public is going to be safer and that these forests can be sustained and enjoyed by the community in the future. monitor their blood glucose every day. which means they have to stop. and stick their fingers. repeatedly. today, life-changing technology from abbott makes it possible to track glucose levels. without drawing a drop of blood, again and again. the most personal technology, is technology with the power to change your life. life. to the fullest.

check out netflix. the once unstoppable stock having trouble lately. apple on the other hand having a great running, hitting the trillion dollar market cap so are we seeing a changing of the guard in tech? joining us now to discuss is dan ives what's wrong with netflix? >> it's been a good gut check period, especially on earnings this is a white knuckle period we see in the near term for netflix both because it comes the international story is the key. given q2, and 3q that was the worrying sign. you've seen it, both heading for

exits hitting the elevator >> there was concern around netflix's ability to forecast. so has that abated at this point? has the stock rerated enough so maybe the forecasting isn't enough and we'll accept it >> we believe it has and a cfo change as well i think it comes down to this growth story and the forecasting is back on track and ultimately i think it will be a range bound stock until we see the next quarter i think this is something they can navigate through given the 700 million potential international subs even the stocks could have basically doubled over the last year, but this is definitely a gut check period for netflix >> is this an example what happens when investors are thinking short-term when a ceo likes to think long-term reed hastings is still making huge investments in new talent,

new production, new companies to come in and develop for netflix. we're bringing in over one quarter subscriber growth here >> here's the thing, though, the market has already given it a multiple that's generous >> that's just a testament to what they've done. i'm not here to say buy it or sell it. >> it's investor patience. >> look at amazon and apple, it was 150 lower a few quarters ago and now $1 trillion and new highs. i think it's the long game here. these you do have a talk more of the long way here. ultimately in the near term that's the opportunity as we've seen with amazon and apple in particular >> have you looked at any correlation between apple and

chinahe china as one of the headlines, have you looked at that question it's got to be pretty important to them. >> there were worries about what this could do to the supply chain and now that risk seems to be off the table at least in the near term. that seems to be something that was the big risk and now investors are looking at that with no supply chain disruption and ultimately the linchpin, the golden opportunity in software services we think that alone is the market cap >> this is not a good setup in terms of this hard run into the big product launches this year >> no doubt if you look right now with apple i think numbers are, the expectations are lower and conservative to that i think it does come down can

they be all guy, and the key is the software services and the stock going from 250 check please is next let's begin. yes or no? do you want the same tools and seamless experience across web and tablet? do you want $4.95 commissions for stocks, $0.50 options contracts? $1.50 futures contracts? what about a dedicated service team of trading specialists? did you say yes? good, then it's time for power e*trade. the platform, price and service that gives you the edge you need. looks like we have a couple seconds left. let's do some card twirling twirling cards e*trade. the original place to invest online.

at ally, we're doing digital financial services right. but if that's not enough, we have more than 8000 allys looking out for one thing: you. call in the next ten minutes... and if that's not enough, we'll look after your every dollar.

put down the phone. and if that's not enough, we'll look after your every cent. grab your wallet. (beeping sound) (computer voice) access denied. and if that's still not enough to help you save... oh the new one! we'll bring out the dogs. mush! (dogs barking) the old one's just fine! we'll do anything, seriously anything, to help our customers. thanks. ally. do it right. plastic straws now headed

for extinction environmentalists do not like balloons either. >> who doesn't like balloons >> environmentalists >> they saw it causes marine debris releasing 103-in-1 balloons into the air before games, not going to do it anymore >> is there an alternative >> like a bio degradable balloon? >> i'm sure there are scores of entrepreneurs working on right now. >> so a shameless look attempt to get everybody onboard here with a aww, sound, we be pictures where they put go pros on the zoo keepers so we can get an up close and perfect view pictures you don't often see when you go to the zoo

these are truly up close and personal pictures. >> so adorable ready, there you go. >> aww >> worked again. >> thank you so much >> thank you for watching "power lunch. >> "closing bell" starts right now. it is time for "the closing bell." i'm sarah eisen in for kelly evans. tesla stock is tanking after elon musk gives an emotional interview. and more on this risk of a ceo burn out coming up deere the latest company to get digged by rising material stocks after a morning plunge what's behind the wild swings, that's coming up i'm steve liesman at cnbc headquarters globe bank