>> confirmed thank you all. pleasure to meet your sweet daughter >> worldwide exchange tomorrow morning. >> yeah. >> five until 7:00 >> i'm going to stay here. "power lunch" is next. >> great to see you, brian welcome, everybody, to "power lunch. here is what is on a busy and evolving menu at this hour s&p 500 new record high. you just heard it from the halftime folks the transports, the small caps, the midcaps. also, new all-time highs as well is this marketed ready to stage a major fall run we will debate that straight ahead. plus, jp morgan getting ready to launch its own investing app that will cost users a whopping zero dollars for some trades what does it mean for the future of wall street and flying high after a very rough landing from its january

highs. the airline sector, look at that, taking off again is it time to get in your seat and buckle up? power lunch starts right now ♪ >> that's appropriate. hit that michael jackson welcome to power lunch i'm michelle caruso cabrera. rally on wall street today with the s&p 500 hitting an all-time high for the first time in six months the dow touching its highest levels since february 2nd. any gains today? four straight for the major indexes. the dow transports also hitting new records. csx, norfolk southern, union pacific all at lifetime highs. another positive day for retail. tjx, kohl's both reporting better than expected numbers now nike and costco at new highs. kohl's has come off a little, about ut still, it's been a good day for them

>> i'm morgan brennan. let's get to bob pisani for more on the record-setting bull run hey, bob >> and the important thing is it's the longest one unless we drop 20% going into tomorrow starting tomorrow this will be the longest bull run ever here is this really worth celebrating? i think it is, but just bear in mind there's different interpretations of it. first, there's no standard definition of what constitutes a bull market overall. there's that 20% rule, but there's nothing magical about that it says a bull market begins once we rise 20% from the bear market low, but there's amount ti ways of looking at it one simple way of looking at a bull market, you got to pass the old highs. look at this remember we hit the historic highs? that was way back in 2007. october 2007 some people say that's a good way to judge the bull market it begins once we pass the old highs. again, different ways to look at it for the average investor, here's what the most important thing for everybody to bear in mind. bull markets last longer than bear markets, and this is why the stock market keeps going up. the average bull market, look at that wrrks 981 days since the

1920s. the average bear market one-third of that, and that's why a market goes up every average day. the stock market moves up more than it moves down record high on the s&p, the midcap, small cap, the transports dow industrials lagging down 2.8% let me just remind everyone we're at 2872 right now. on the bottom on march 9th, 2009, the s&p was at 676 we're up 324% since then guys, back to you. >> i remember that day, bob. remember it was so scary, but here we are. bob pisani at the nyse >> the s&p 500 hitting record highs just minutes ago dow up triple digits the nasdaq flying high too of course, what do you do now? are stocks setting the stage for a major fall

great fall let's bring in joe, ceo and founding partner and dan, he is managing director and director of research with -- gentlemen, good to have you here. dan, how much more can we get out of this? is there more to go in this bull market >> well, it's dangerous to make a big and bold call when the market is trading at an all-time high for sure, but from our perspective, we actually think there is much more to go in this the years ahead. what we've been telling clients is watch out for some near-term volatility as u.s. markets in particular do look overheated or extended here. on a long-term basis and we're talking for the next several years, we still think the u.s. is involved in a massive reflagsary secular, and i think it's going to bring the multiple much, much higher in the years ahead.

we think stocks are going to take an inflationary cue from all that money turnover, and within the next several years we think the s&p is going well north of 3,500 probably closer to 4,000, believe it or not. >> wow totally, completely bullish. joe duran, you agree >> well, of a time, yes. i'm not sure it happened as quickly perhaps, but of a time, of course, if you earn ene equities over any period of time, ten years or longer, you'll be higher at some point we'll hit 4,000 or 5,000. i'm just not sure it will be as neat or as packaged in the next couple of years as maybe others -- we don't know what th

contingent effects will be, and i'm super bullish. i feel very good about stocks, but i suggest for investors who have been there from 600 to 2,400, that they look at rebalancing. again, i think your guest mentioned this, volatility surging is likely in the late stage. the thing i would say is the next stage of the market, you want to own different things than you probably owned on the way up, and i think value stocks have really lagged for most of this time. they tend to be more defensive i suspect we have a blow-off that comes in the next couple of months, says so we'll be amazingly good, and then you want to slowly be trickling into more value-based stocks so that if we do get a correction you want to be rebalancing, so you don't have too much in equities.

you have are at all-time highs >> basically, joe, what you have been saying for quite some time, and that ie that value is the place to go because it has not been the place to go dan, let me turn back to you and get you to react to that you paint a very nice picture of an s&p or a market that is going to rise, but do you think it is going to rise in stair step fashion. >> in other words -- more likely -- >> yeah, i think, looking any secular bull market is going to have severe setbacks

>> you are always going to -- and i don't disagree with that i disagree with the fact that we need to see rebalancing. we're seeing a lot of momentum come out of the things that brought us here, those leaders like joe spoke about we're seeing -- we're actually seeing good participation, and we would encourage investors to start broadening out their ek po exposure into things like consumer discretionary, away from that tech-centric portfolio that has been leading. i would agree, over the short run, you can see some volatility in any bull market you can see some volatility. the underlying secular drivers, valuation, demographics, credit cycle, simple supply-demand, too much money right now chasing too few stocks out there these are the things that i think are going to power us longer-term. i'm not looking for a neat package to 4,000, but i do think in the next several years we do get there. that's our belief.

>> joe, i want to dig into this discussion around market leadership and the role that tech has played in that. i get that it's been a dominant force in the last couple of years, but, i mean, just look at today at the 52-week highs, best buy, advanced auto parts, discovery, darden, michael kors. it's broad should we be reading into the fact that you are seeing this broad rally even if tech has been the outsized leader >> i think it's -- i think it's fantastic. it should -- that should be what gives people peace of mind what you'll see typically when you hit a new high is that new money coming in now has great fervor, fear of missing out, and chasers of fear of going up the most anyone investing now is probably less sophisticated than the people who are buying when the market went down, and so what you want to do is you'll typically see the things that ran continue to run even further. what you see is a lot of folks now are index investing. it leads the whole -- anyone in the s&p 500 is doing really

well we are seeing the russell doing really well. there's a lot of good things to see. what i would just suggest is you be prepared for a 15% correction in the next six to nine months don't be surprised if it happens. don't think that it's the end, butjust be prepared for it if you have done well, you are protected, and if you haven't, you're prepared. >> no, you can expect to be some statistical reversion to the mean at some point we just haven't seen it in a long time. gentlemen -- >> again, it's been about three and a half years, and that's a long, long time since we've had a 15% correction >> noted talk about it a lot. thank you, guys. joe duran and dan. >> the white house and the media, of course, now on verdict watch as the jury in the paul manafort case may, may, may be nearing a decision there's also news on the president's former lawyer. ayman javers live at the white house to wrap it up for us wrshs. >> that's right. it's a stormy white house here at the moment, but all eyes really across the river and across the potomac river in virginia where that paul

manafort jury continues to deliberate at this hour. the question is whether or not they've reached consensus on any of the 18 counts against the president's former campaign chairman now, the jury came back this morning with a note to the judge asking for some clarification on what happens if they can't reach consensus on one of the counts not clear whether they've reached consensus on some of the counts, all of the counts, none of the counsel at this point, but the judge told them to go back and keep at it. we'll wait and see whether we get a decision from that jury today in paul manafort's case. meanwhile, in the michael cohen situation, nbc news now reporting that the president's former attorney is considering a guilty plea. that could come as early as this afternoon on a number of charges against him. that could portend bad news for president trump insofar as it could indicate that michael cohen has flipped and might be willing to testify against the president. we'll watch for news on that front as well. meanwhile, the president venting some of his frustration on the federal reserve.

chairman jerome powell, the president, suggesting that he is not entirely happy with the way things are going at the fed saying that he is not thrilled with powell for raising rates. he says the fed should be more accommodate and wants more help in generating an economic recovery from the fed. he says he will criticize the fed if it continues to raise rates. this president not afraid to share his views. doesn't necessarily share the idea of recent former presidents that the president should simply refrain from commenting on the fed at all this president clearly intending to send a signal to the fed. he wants to clear it all >> you have an umbrella, don't you, eamon >> i do. i'll have to grab it >> eamon javers at a rainy white house. >> jp morgan moves in on their turf is this just the first step in a big change for the financial services industry? and the trump administration reportedly close to a trade deal with mexico. talking to china we're talking trade and much

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>> jp morgan chase will launch a new investment app that comes with free trading. free trading ameritrade down as much as 5% today. there you see schwab and e-trade as well. joining us with more is cnbc.com banking reporter hugh san. hugh, what is this app, and i'm just a regular banking customer with chase and use their banking app, do i now have a brokerage account linked to it or what how is it going to work? >> you do, and it's actually not a separate app the kind of cool thing about this is when they flip the switch next week and turn this thing on, all 47 million people who actually have the banking app or use chase mobile on-line will immediately get access to this new brokerage -- free brokerage, and all they have to do is sign on for it it takes three minutes it's very quick. there are fields that are auto populated with stuff that chase already knows about you, and so it's going to be pretty seamless, i suspect. >> free for how long and how many trades? >> true. so the base sort of offer is 100

free trades for anybody. that's with, you know, even if you have a dollar basically, you know, to invest. there's no minimums. you know, basically you've got the chase premier account, which even i have that that's about $15,000 in holdings with various chase accounts, and you get 100 fee trades for free indefinitely it's every year itle ros over. if you have the highest accounts, chase premier, chase -- then you get unlimited trades indefinitely. >> do i have to be a new downloader of this app to qualify for those free trades, or -- >> yep >> or does anybody get them? >> tyler, that is a good question i ask that myself. actually, if you have the app, starting next week, you could actually just -- you don't have to download or upload anything new. it will be available to you. it will be there you know, sort of immediately. everybody who does this is going to have access to this 100 free trades at the very least >> all right interesting stuff. hugh, thank you very much.

what is today's move by jp morgan going to mean for the future of wall street andthe brokerages let's bring in mike may yoer, senior banking analyst for wells fargo. ths a ripple from a titan of wall street that is going to -- and we've already seen it in the stock of e-trade, schwab, td ameritrade and so forth. what does it mean for them apart from what it may mean for chase? >> let me pull the lens back what we're seeing now is national digital banking wars like you have never seen before. 25 years after national banking was first allowed, the largest banks are focused on building a comprehensive relationship with a full suite of products we think the winners are the goliaths like jp morgan. >> you brought to some -- >> hold them up.

>> you have a lot of davids out there, but we think that the goliath is going to win. >> who is that >> jp morgan and citigroup those are three banks we recommend. this will stay a structural break-out for the -- michelle, don't touch my dollars who are the davids >> they're some of the smaller players, especially the smaller banks. when you talk about smaller banks developing these sorts of capabilities, you know, they have their back against the wall when you look at monoline companies generally, though, the pendulum has swung from the -- >> what's a monoline company somebody that just sells credit cards. >> is td ameritrade? >> it's getting hammered by 7% >> some of the large banks have been and others have offered free trades in the past. this is not the first time this has ever happened. there's other competitors out there. it's happened before what's different this time, though, is when you look at jp

morgan, the amount of the technology spending, $11 billion a year the amount of the marketing dollars, $3 billion a year both higher than it's ever before the reseptemberivity of the clients have changed jp morgan and the other goliaths are pressing their advantages to really create a comprehensive relationship as opposed to simply one product >> is this a race to zero? we had fidelity on a couple of weeks ago. they're offering no fee funds. you have this move by jp morgan. you have the start-up robinhood. are we going to continue to see the fees get cut, and if so, then how are folks making money on this? >> i'm going to comment more broadly. not just this one product area it could be erased below zero. there are some banking firms that they are dag an upfront hit simply to get a customer relationship i think the wave of the future is what is the total value from a relationship as opposed to simply one product >>this is a marketing battle

for millenials and everybody else, and i don't think it's a coincidence that today is the first day of the qualifying matches for the u.s. open. next week jp morgan is rolling out the full new investing app this is a marketing battle >> i can't help but think this has much bigger implications in terms of income equality, and what i mean by that is you have a huge swault of the u.s. population that hasn't participated in the market rally because they weren't invests millenials being a key price of

that now you make it easier to inv t invest >> it's certainly a necessary but not sufficient condition to get those who have not been investing to invest some simply opening up an account and getting free trade you can at least dip your toe in the water more easily. >> well, we like your toys thank you for bringing them. >> always. >> david and golia had, appreciate it. >> to the mayo mike mayo with wells fargo >> a big drop in sales in the most expensive apartments in manhattan. we'll tell you why it's happening. oh snap, the social media company continues to get hit its longest losing streak since may. everything else is hitting new highs. they're off by more than 2%. why? can anything turn this stock around alone, and teaching my kids that no ambition's out of reach. amlive everywhere. synchrony helps make them happen with data, insights, financing and technologies.

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it's a smart way to help increase the rhino population. and turn the poachers into the endangered species. ♪ ♪ >> diana ohlick joining us now to explain what's going on >> well, morgan, manhattan's high end is getting hit hard by new tax laws and a retreat from international buyers luxury home sales fell 17% annually in the second quarter of this year that according to douglas elleman. luxury being the top 10% of the market median sale prices down also 4%. the weakness was worth in condos which is where most international buyers rsh condo sales down 20% annually. co-op sales down 13% luxury co-op prices were up 12% while luxury condo prices were down 8%. a stronger dollar is also making pricey properties even priceyer.

>> there's less up side potential. >> the manhattan condo market is also coming through several years of over supply of new constructi construction. >> eric cantor, from my home state of virginia, will join us to talk trump, trade, tariffs and much more. leslie picker live at a factory in michigan where the tariffs may not be having the desired effect leslie >> hi, guys. we're here at transmatic a 50-year-old metal stamping

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hello, everybody i'm sue herrera. here's your cnbc news update for this hour. nbc news reporting president trump's former personal attorney michael cohen is discussing a possible guilty plea deal with federal prosecutors in manhattan in connection with tax fraud and banking-related matters. sources tell nbc no deal has been reached, but one could become official as soon as today. meanwhile, the jury in the case against former trump campaign chairman paul manafort is still in deliberations. in the last hour the jury submitted a question to the judge asking what to do if they cannot come to a consensus on one count. nbc news saying the judge stressed to the jurors not to change their convictions solely for the purpose of coming to a unanimous decision, adding if they cannot come to consensus, he would consider the necessity of a hung jury on that one

count. new video coming inasmuch as southern wisconsin remains under a flash flood warning after that area was pummelled with heavy rains in the last 24 hours forecasters are calling for between two and seven more inches of rain to fall and drake made a young girl's birthday wish come true surprising 11-year-old sophia sanchez in her hospital room yesterday after she had asked the rapper through social media to visit her on her birthday sanchez is currently awaiting a heart transplant after being diagnosed with cardio myopathy that is the news update this hour morgan, i'll send it back to you. >> man, talk about a birthday gift >> i know, right >> yeah. thanks, sue herrera. >> let's get a check on the markets right now. the s&p hitting an all-time high for the first time since january. the dow at the highest level since february it's currently up 120 points right now. the s&p, med tronnic, pulte

home, discovery, and lennar. intel, caterpillar, and goldman sachs all leading to the up side as well. tyler. >> thank you very much, morgan could tear ifrs be backfiring. leslie picker is live in michigan with the story of a company that may have to move manufacturing out of the united states because of the higher prices today our trade war tour takes us to holland, michigan. leslie >> hey, that's right employees here at transmatic are part of the 6.5 million americans that are part of the so-called steel consuming manufacturing. these are the types of employees that are really feeling the effects of the trade war on the factory floor. >> reporter: the fall-out of the steel tariffs hit transmatic practically overnight. transmatic uses mostly domestic steel, but the cost of the coils coming on to the factory floor have soared as u.s. steel makers boosted their prices by 25%.

that is then stamped into components for door locks and plumbing materials and shipped to customers all over the world. in a trade war, which is essentially what we're in, there are clear winners and losers, and, unfortunately, there's a lot of collateral damage, and people's lives and livelihoods are put between the crosshairs >> if the tariffs stay in place transmatic may need to transfer production to their plants in china and mexico in order to remain viable against foreign competition. is it doesn't really help. it would be nice if it did, but it just doesn't.

there's potential retaliatory actions from kmooin on products that they export to that region. morgan >> thanks. i know we have some of the parts right here >> here's a door >> props, yeah have had he already started to lay-workers or furlow anybody even though they have been able to raise prices, but right now is this all the uncertainties growing? >> they have been able to raise prices they've been passing it on to their customers.

tler able to lock in a better deal for those switching customers are too high over time they may feel more inclined >> leslie, thanks. >> joining us from the factory floor there in holland, michigan let's talk more about the trade tensions and the latest out of d.c. let's bring in eric cantor, former republican house majority leader and vice chairman of molis and company. good to have you here, sir >> good to be with you, and i want to congratulate you i heard the announcement on "squawk box" this morning and wish you a lot of luck >> thank you very much if you don't know what he is talking about, i'm joining the board of a financial services company in september, and i'm very excited about it. kind of you to mention i'll try not to cry. how do you feel about what the president is doing here? you are a republican it feels like he is picking winners and losers >> listen, i think, you know, as we know, there's been a lot of theater with this white house and this president has always been sort of master of suspense. i think just like your piece

that we saw with the manufacturer in holland, michigan is concerned. there's a lot of uncertainty out there, and the real question is where does it go from here i know in town this week in washington the mexicans are here the europeans are here the chinese are here all trying to sort of ferret out where this sort of trade effort is going to end up a lot of uncertainty i'm suspect of whether there's going to be any resolution this month as some suspect in terms of nafta it's so great. i think longer term we've got to keep our eyes in tune. >> on china we've had derek from aai. he says give up on i adeal with china. it's not going to happen i really believe the number one problem is intellectual property

theft. if we're ever going to see some resolution here wieb going to need to see the president talk to the american people about what it is he is after when we begin to see that shift again, maybe it's about a midterm election play. who knows? all of us are getting, i think, seasoned in the art of trying to separate theater from substance here >> there is certainly this sort of trust but verified with the chinese. there's no question about that i think one of the things that the trump administration did early on through not only its national security messaging and saying that we have a national security interest in competing

look, we have to be very concerned about the direction the chinese are heading in terms of intellectual property theft, and what that means for our national security. >> sort of a trust but verify. >> that's been a key piece about property theft when you talk about targeting advanced manufacturing. you are talking about capability that is directly benefit the military, and that's been the other side of this with china is that they've been flexing their might increasingly in the asian region of the world. they've covered a variety of topics that i think each and every one of us could expect maybe a day's worth to cover in the age of donald trump, it is another day and another news

cycle, but, remember, he talked about his engagement with north korea, with kim jong un, and his disappointment that the chinese have not stepped up and been more cooperative >> i'll bet you are on manafort watch. everyone waiting on pins and needles to see what happens. paul manafort, for a short time, was president trump's campaign manager it doesn't reflect well on the fact that he was hired as campaign manager for donald trump back in the early days after the nomination was secured or during right before the nomination was secured so, again, it doesn't reflect

well i think the president spoke out. he commented on twitter, which was, again, very unconventional, and not normal for an american president to speak out while a jury is deliberating that's what we've come to find with president trump you know, he came in to office saying he was going to break up the norm, and that's what he is doing. >> we step back and look at -- >> i know you hope so. i'm asking do you think they will >> the country should hope so because look what's going on with the economy i think all of us in line now, you know, new role not so new anymore four years of moelis and company. just the general sense that we've got a government in washington who understands the necessity for risk taking. it was something that we never saw.

>> i certainly hope so >> yes that's what you said thank you. >> so great to have you on, and thanks for your congratulations. appreciate it. >> well, to the bond market, we've got rick santelli tracking the action at the cme. rick >> you know, if you look at a may 1st start, you see important things yes, yesterday we said that 282 was the lowest yield close since the end of may the 29th we were under 280. there's not a whole lot of fear in this treasury market. maybe the most fearful thing is how many short positions there are. you can see that reflected in some of the etf's. same could be said for the lqd it had a big drop in april we're comping about mid-april. also about four months

we're right back into solid support, right around that 95 to 95.50 area tyler, back to you >> rick, thank you very much rick santelli. up next, shares of snap wilting in the summer heat down close to 15% in the last couple of months we will go inside the slide after the break. plus, on-line retailer boxed recordly turned down a $500 million from kroger. why they want to go it alone and why vc's are giving them millions to stay independent the very, very nice and viable ceo chh iehuang will be with us after the break. it's absolute confidence in 30,000 precision parts, or it isn't. it's inspected by mercedes-benz factory-trained technicians,

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>> shares much snap on a losing streak heading down for the sixth straights session. what is sending this stock into that tailspin? julia has the details in l.a julia. >> shap shares are down another 2.5% today that's the -- that's after losing 7% over the prior five trading sessions now, this brings the stock down over 12% since the morning after reported earnings earlier this month. that earnings report sparking concerns about its first ever decline in daily active user numbers. since that earnings report last week george soros revealed that he was selling snap stock and buying facebook along with twitter and apple shares last week we saw signs of snap losing its exclusive hold on premium content. nbc's stay tuned show which was exclusive to snapchat announcing thursday that it's expanding to instagram as well. now, instagram, which dwarves

snap with one billion monthly active users is going after more premium content with its new instagram tv feature while instagram's parent facebook is trading higher today, facebook shares are down almost 13% since it reported earnings late last month guys, back to you. >> julia, thank you. >> a new round of funding. >> let's bring in the co-founder and ceo of boxed he joins us here on set. i got to start with these reports. did you actually rebuff kroger >> so i think what we've always said and cnbc as well is that we know all these folks really well, and so they equally try to kill us, buy us, partner with us, and kind of invest in us all at the same time, and that's been par for the course for about five years for our company now. >> you raised $11 1 million.

what are you putting that money towards? >> towards automation of the facility now we actually have our on site robotics team where all the new automation hardware is actually built in house as well as continue to build scale. this industry rewards scale. fresh direct or what's being offered by, like, key pod. is that the exact comparison >> to a certain extent except we bring the big sizes to you, to all lower 48 states, with no membership fees. pea pod, it they're usually land locked in certain geos we're national at least -- >> are you shipping over the mail or have trucks everywhere >> we have an express delivery service for fresh deliveries in about five locations throughout the company. for the rest of the country we ship via ups and fedex via local couriers >> i know it's free shipping over $49 >> one of our fastest growing business segments are dwo-fold

one is b2b, and you take a study yoi like in in the greenroom even the cafeteria here. you are getting it somewhere, and probably not amazon. that's one then two, what's interesting for us is one of the fastest growing parts of our businesses has been our ad business as well. you can come on boxed and brands by sponsored placements and costs per click on the back end. >> that's another revenue stream for you. your typical customer is, what, a business or an individual who is buying a three gallon vat of mayonnaise what is that >> um, so -- >> who is your customer? >> the mayonnaise is delicious, and that's why >> you know, right now the majority is still b to c, so our average customer is still a 35 to 42-year-old ceo mom of the household looking to stock up because she has more time. more money than time at this moment >> so let's -- you don't want to discuss particular deals, but

you have chosen to go it alone why? >> i think when you think about as an entrepreneur the confluence of the different factors in the economy today, you have availability of capital. we all see this. soft bank has $100 billion venture fund i mean, that's about as crazy as it gets these days >> are they investor in you? >> no, they are not. >> they're an example of how much money is out there for sure >> availability of talent. there's a lot of folks out there kind of fleeing traditional retail third, we're in the right place at the right time. five years ago when we were in my garage, no one wanted to talk to us, but now mobile commerce has become a thing and also, on-line gro eshry has become on trend. all of that mixed pretty well for us where. >> you have a tight labor market i'm looking here personally. you personally fund up to $20,000 for employees weddings pay full college tuition for boxed employee children. these are, like -- i haven't even heard of perks like this before >> we don't have -- we're hiring >> to morgan's point, it's that

hard to find people that you have to offer perks like that? >> it's not the genesis, but it sure is helpful in the kind of talent war right now even within the fulfillment center labor markets all the big folks are all within a few each other when you're looking for that person given the tight labor market, you know, that person has a lot of choices and so we treat them well. give them great benefits and luckily we have decent pick. >> if i want that college benefit how long do i have to work with you? stay with you for a certain amount of time. >> no. right now it's tied to not only. >> he is looking for a time here. >> i'm applying right now, man. >> it's tied to a -- my personal share in the company but before that, right now this coming semester we have six or seven kids in college. >> chieh huang thanks for joining us >> thanks. >> airline stocks have been grounded for much of the year but flying high as of late

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i'll only use an oral-b! oral-b. brush like a pro. brush like a pro. well, it'sonce again.eason >>yeah. lot of tech companies are reporting today. and, how's it looking? >>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.

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" everybody airlines flying high after

months of free fall. nyse airline index took a dive when it hit the lowest level in 2016 but stocks in the business appear prepared for another takeoff rallying more than 10% since that june low. can they keep going? jim corridor is an analyst at research which did they have a rough winner and spring within why have they come back. >> we need to look back at what was going on prior to q 2 earnings airlines were growing capacity too rap lid united american and delta. energy price huss risen 50% from lows a year earlier. and investors were concerned that airlines wouldn't raise fares because of raising capacity too rapidly looking at what happened since then q 2 earning kim out and they beat expectations and oil prices reaching highs have come back down to about $67 a barrel.

that's given relief to worries about higher oil prices at the same time airlines are moving to cut capacity, comment tear on q 2 earnings was that they are reducing the rate they are grow zploog which of the airlines do you like the most? and which do you like the least? >> yes we have a strong buy on delta airlines that's the topic. the airline has taken advantage of missteps by american and united and picked up some business capacity. business share and that's allowing this them to generality a unit revenue premium to peers we expect that to help them continue to generate strong cash flows which they use to buy back stock pay down debt and invest in the products. they are our favorite. we have buys and american and southwest. on the bottom end of the scale we are not as favorable on jet blue and united. united public relations disasters of course. and also we don't think they are going to continue to improve operations as they had previously. >> and what's the problem with jet blue. >> jet blue is not as well

hedged for energy provides they're in the hedged at all going into the second half of the year and so we are seeing oil provides higher here their costs will rise. >> over all is the travel market strong from where you sit in terms of leisure and business. >> summer raffle was strong. july traffic reported rising capacity that's a sign people continue to fly. and we expect that to continue into the fall. >> all right jim thank you very much. jim corridor cfra research on the airlines. >> still to come facebook is going to start rating the trustworthiness of users all part of the effort to tackle fake news. will it work and is it a good idea? we're digging into that. plus, the home builders have been on the rebound after getting drilled most of the year is this recovery for real? we debate that as well "power lunch" back after this short break.

i'm michelle caruso cabrera. here is the menu 113 months that's how long this bull market lasted some argue the bear case is now building well show you the wall of worry. under attack, microsoft

uncovering more russian acting attempts, targeting the mid-terms elections. what they are doing and what we can do to prevent it and animal gone wild why mondle east is setting the animal crackers free details on the decision to end the 116 year sentence for the zebra, the he will vant, lion and giraffe and gorilla, the second cage free hour starts now ♪ born to be wild ♪ ♪ born to be wild ♪ >> at 2:00 p.m. in the east welcome to power lunch a record breaking day on wall street with the s&p 500 now -- hitting all-time high first for that since january all three major indexes now on pace for a fourth straight day of gains appear and the fifth in six days energy and consumer discretionary, the winners as you see there. real estate and utilities, they are et losers today.

right now, leading the dow, intel goldman sachs, joon-pyo morgan and american express. lots of new all-time highs including companies that you thought at one point or another would be left for dead, including best buy, dollar general, ross stores, tjx certainly not left for dead. reporting stronger than expected results morgan. >> i'm morgan brennan beginning with the markets tomorrow this rally could be the long et bull market in history 3452 days and counting but now there are signs that could be coming to an end. dominic chu joins us from the wall of worry. dom. >> it's a big wall we don't have enough room for all the bricks but the bull/bear debate back on the front burner with stocks trying to set record highs again. we hit the levels. all of the 401(k)s are better off. they are great but it's worth looking at the bear argument so they don't catch you off guard in case

coming to fruition we are talking about economist david rosenberg, he has five reasons why the bug market may end sometime soon. first of all he looks at the job market the job market is there. there aren't enough skilled workers out there to fill the open jobs we've got. it means that job market has pretty much stalled out a bit. second we have a tighter labor market which means higher wages eventually and while that does sound good for all of us that price inflation associated with the higher tariffs couple with higher wages and conditions for a possibly tighter policy from the fed could be tapping the brakes on the economy. third slowing growth of money supply, specifically the real growth rate of m 1 and m2 smoen supply, cash checking deposits savings accounts, money market funds you get the punishing. those growth rates are consistent with an economy that he says is down shifting to lower growth fourth you get a peak in the housing mechanic you see that playing out in home builder stocks and then fifth the appearance of

a peaking in the credit cycle with some cracks ee vochlg in the investment grade bond universe we know the bull argument better corporate prophets better economic conditions, fiscal stimulus with the tax cut and jobs act but keep an eye on some of the factors for a bear to come. >> dom thank you dom chu. is there nearly decadeslong rally out of gas or more ins tank let's bring in michael eroni with state street global advisers and steve misoka at we had bush securities thanks for joining us. dom laid out five worries for the bull market what do you think. >> i think we are near the enof the bull market than we are closer to the beginning. but there are a number of of things that signal the bull market has another 12 months of good stock market returns. mostly in the which of good economic growth and solid correspondent profits. this is also alled by easy

monetary policy although a bit tighter and a massive fiscal stimulus package that i think will continue to benefit companies with lower corporate taxes, less regulation and increased government spending. >> and, steve, on a day where the s&p 500 hits a new record high where do you think stocks go from here especially as the fed shifts away from easy money to a more tightened environment? >> well, this market was born of very aggressive monetary policy, not only here but also worldwide, the bank of japan and the ecb. it's changing .story about the bank of japan less retirisant. they buy etfs that's slowing down ecb, mario's term is about up. he is going to be replaced with a relatively conservative german the reason i is a i that's born

is the boj and ecb have a balance sheet have a balance sheet outweighing the fed. the we had fed is the fourth largest. if the monetary slows down so will the market. even slowing down it continues to be aggressive so i don't think you will see stocks plunge it will kind of ease off and maybe trend sideways and down a bit. >> steve, in light of that if you see on a global basis a shift towards tightening monetary policy, where do you want to be invested right now? or do you want to take some off and have some cash. >> well, we still think yields remain relatively low to history. even know rates are moving up they are moving up from 2% to maybe 3.5 or 4%. and there are a long list of high-yielding quiets inenstefr single digit multiples not a lot of growth but a lot of income to the table. you could put together a portfolio yielding 8%, 10% very

diversified with cheap names we think that makes sense given where we are in the cycle. >> michael, excuse me -- yeah, michael, if you think the bull has another year to run -- and i want to get ready for when it starts to stumble what should i do >> tyler, i think you should balance your portfolio between two competing forces one we are still in a kind of reasonable growth low rate low inflation environment. i want sectors generating solid revenue growth and solid earnings per grouting it will technology and consumer discretionary. i want to balance that because we are in the later stages of the economic cycle and dominic went through a number of things, the credit cycle, housing market signaling we are at the later stages. i want to invest in things that benefit from higher input costs, building inflationary pressuring with be energy, materials and industrials. >> steve, where do you see the 10-year yield ending the year. >> i think that policy is aggressive out there

i don't see the 10-year above 3% i've been writing about this for weks i think the 10-year stays below 3% the rest of the year unless a significant change in policy at the ecb or boj that liquidity washes on our shores the 10-year competes with government bonds from europe and japan. i don't see yields moving up a lot unless a significant change in policy. the backing off from the pedal a little bit we have seen recently is not moving the needle that much i think 2.8, 2.the 9 is baked in the cake for a while unless changes. >> mr. rooney, you agree with that, interest rates staying low inevitably help the market what are the two things that drive the stock market it's both earnings and interest rates. you agree they are staying below 3% when it comes to the 10-year. >> it's a monetary policy certainly has been a big reason why investors are willing to pay higher multiples than normally in this marketplace. i agree it's not likely that

you're going to see a big move in interest rates. i think there is some structural forces in play that keep interest rates well anchored or bello well balanced disinflationary impacts ever technology aging demographics are certainly two from that standpoint. >> guys, you we got breaking news michael and steve thank you for joining us news alert from dc amon javers life at the would you say. >> a few moments ago at 1:45 cnbc call images of michael cohen the president's former attorney walking into a building the office that holds the fbi field office in mid-town manhattan. this is moments ago michael cohen walking into a building including the offices of the fbi in new york city no indication on what cohen is doing there. there are other tenants et cetera in the building it's possible he is visiting other tenants. this is the building where the

fbi field office is located. michael cohen about 1:45 p.m. eastern time there is reports now that michael cohen is close to a plea deal with prosecutors in the southern district of new york in terms of a number of alleged violations the question is how all of that would play into -- how all of that plays into the overall trump picture. and i'm being given information now that we have a 4:00 p.m. hearing at the federal courthouse in new york that's been added to the schedule so that will be interesting to watch. there will be a lot of speculation about what exactly michael cohen is pleading guilty to here if he does indeed go forward and plead guilty as has been speculated about throughout the day today. that coming up at 4:00 p.m. this afternoon, guys. so michael cohen apparently on the verge of making a very big decision here in terms of his future and the future of the legal case around him. >> we have been showing on the skroen at the white house yungts, cohen in talks with possible plea deal according to nbc news if that were the case it would

make sense he would go to the fbi and there would ab4:00 p.m. hearing today. we tone know that for a fact that there is a plea deal. but certainly there are a lot of typical setups happening if that were the case. >> yeah, the fact that he arrived at the fbi field office in manhattan gives you an indication that he certainly is talking to law enforcement and there you see the picture again of michael cohen's arrival not clear who the other people are in the picture, whether accompanied by his own attorney or not walking in there. but there are a couple of reporters on the ground outside the fbi field office, including the cnbc camera crew on hand to krp the images that gives us a sense that something is definitely afoot in terms of michael cohen and the decision to plead or not plead. >> thank you amon javers on michael cohen and manafort watch microsoft uncovering and shutting down website linked to russian hangers. what it means for the mid-terms

elections. plus facebook assigning user a reputation score one who fell for a fake page. turkey putting pressure on emerging markets could that be the opportunity that investors were hoping for to g ietn? we will discuss more power lunch is back in two minutes.

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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.

more breaking news out of washington let's head become to amon javers live at the white house. >> that's right michelle nbc news confirms that michael cohen has accepted a plea deed deal with the prosecutors in the southern district of new york. that explains the video we saw a few minutes ago. ated 1:45 michael cohen walking into theabling that's the home to the fbi field office in new york the question is what are the terms of the plea deal what exactly is michael cohen pleading to in terms of all the possible allegations out there against him? and what does it mean in terms of his potential cooperation with investigators in any case involving the president of the united states? we've been told by the white house that if we get any movement on a number of fronts the white house generally will not comment on this. they will refer everything to the outside lawyers. nonetheless we will go inside and see if we can get the white

house to offer their take on the significance of the president's former attorney now accepting a plea deal with prosecutors in manhattan, michelle. >> this plea deal, what do we know about what it might cover in other words, as i understood it -- i may take you into an area you can't answer and i understand that. >> sure. >> was that a lot of his legal jeopardy such as it is or was had to do with loans and the financing of taxi medallions and a taxi business that he owned. >> right. >> with other family members >> right we're in the realm of speculation here because we have not seen the plea deal we haven't seen any documents around this. but among the allegations swirling around michael cohen involve potential bank fraud and also campaign finance irregularities remember the accusations or the possibility that michael cohen was involved in payments to certain women for silence in exchange for silence, in the run up to the 2016 elections their silence about potential

interactions that they had with then candidate donald trump. by one reading of the law you could argue those were campaign-related payments and therefore those should have been disclosed. >> right. >> as campaign payments. so we don't know ultimately what he is going to plead to here and that's why we are monitoring this closely over the next couple of hours. we should get documents here today giving us a sense of the lay of the land and then more importantly i think for the larger picture for the national picture is what does it mean for the president and the legal case that might be building against him? we will wait and see what it is that michael cohen might have to tell prosecutors here. >> all right amon thanks very much we know you will stay on it owner on the north lawn. joining oh on the cnbc news line a partner at morrison and firefight also the former assistant attorney general and a cnbc contributor we received the new that is mr. cohen reached a plea deal with

the government having to do presumably with a variety of issues surrounding his taxi medallion business and maybe other things what do you make of it >> well it's potentially significant news i think we'll have to wait and see what the terms of the deal are, what he pled guilty to, and whether or not he has agreed to provide full cooperation, which you would imagine that he has if he is signing up to a plea deal. with you we have to wait and see the terms. that this is occurring at the same time that the former campaign manager is awaiting a jury verdict about his fraud, and interesting news today, from microsoft about russia's continuing attempts to attack our country, and to in this case attack conservative, republican groups, we have i think a confluence of events here of historic proportions. >> let me turn to a narrow part of this with respect to -- to mr. cohen and his potential plea

agreement. part of his legal jeopardy may be tied to campaign finance violations having to do with payments that he either made or funneled to women in return for their silence. what do you make of the legal theory that those -- that those payments were de facto campaign contributions? it seems to be -- i'm not a lawyer -- it seems an interesting reading of the law what do you think? >> look, i think on that we have to wait and see. there is a lot of hypotheticals about potential criminal liability. but what we have heard so far and seen in the documents was a author owe investigation and out and out fraud. we need to not get ahead of ourselves as some on potential

theories and look to see what the facts are. is there fraud are people lying are they signing things pretending to be one person and they are another a are they lying about assets? are they moving money and saying it's for a purpose but actually for another. that's the bread and butter of what investigators look for and where prosecutors bring traditional charges. >> mr. carlin you said the confluence of this with mr. cohen, manafort, and also the situation going on right now- dsh you said it was a conflugs of epic or historic proportions. where are you going with that? what do you mean. >> i think, we need to take a step back here and think a long time adversary of the united states under the leadership of putin in russia, the leader who fundamentally views democracy as an existential threat to his gem, he thinks he is in a life and death battle. >> i get that but draw me a line

to cohen and manafort. where are you going with it? you mean what. >> on the one hand we have the active foreign adversary attacking us through cybermeans. and on the other hand we now have the campaign manager, potentially, let's see -- let's see what the verdict is -- being found that he fraudulently was getting millions from russian interests and lying about it while campaign manager while changing the platform in a way favorable to russian and -- russian and russian puppet's interests in ukraine now we may also have the former lawyer in a plea agreement agreeing to provide additional information that might be helpful with that investigation. i just don't think there's been a time in american history where we have had many people this close to a presidential campaign potentially tied up with one

offer tour top adversaries. >> john, i don't understand -- i realize michael cohen talking about plea deal, investigated for bank fraud that's a possibility of a plea deal around that maybe something around hush money how that's connected to campaign finances what does it have to do with russia >> yeah, so i think we have to wit and see with cohen, right. what's going to be in the plea deal, what it is that he -- where it is that he agrees to cooperate. he is certainly in a position to know a lot of information. so that's one. two, manafort, and we are waiting for the verdict on that. that seems -- people have said -- that's it's not closely linked but it is close will i linked insofar as you have someone committing fraud and committing fraud and hiding transactions that come from putin's russia let's remember what it is he was doing, where the money is coming from it's coming from putin's puppet in ukraine who fled to russia after being overthrown in

ukraine. if he is lying about taking millions of dollars while the manager of a campaign and that campaign, the republican party stood strong against russia for years and years and years. for the first time any change their platform in a way that was favorable to russia in this election cycle, that's potentially very significant >> what do you -- how do you -- how do you respond to the president's assertion that is mr. manafort played a minor role for a very brief time in his campaign, something like 60 or 90 days? or is that material here. >> i'm not sure that that's material we'll wait and see what would be material is if during that period he was responsible or played a role in changing the republican party platform in a way that is favorable to russian interests i think that's where we need to aspen the attention. and we never got the full story as to why that platform changed.

to be clear that doesn't mean -- that's not something that reflects directly on the president. but this has to do -- we're all americans here this has to do with whether or not russia is trying to influence our campaign -- everyone agrees that they are -- and then secondly were they trying to influence certain officials to do it and that manafort may be one of those people. >> based on what microsoft asserts this morning they are still -- russian interests are still very actively involved in trying to influence, meddle in the elections in the united states, and in other countries >> that's -- that's the big picture that we just can't lose sight of with all the day to day news that's coming out the microsoft report was significant in that it's another data point that shows they are not part of it we shouldn't either they don't care whether you are

conservative or liberal or democrat thing take. they are in line with putin's values that's the microsoft hack revealed today those are conservative groups. what they have in common is they take positions russia doesn't like and the response is the attempt to hack them here we are running up to the election and some states, one in which we've been trying to get them to take action georgia, five states left they haven't put in paper ballots. they are using systems every expert agrees are vul they werable to hacking potentially altering vote counts we need to get together, americans and say we are making the elections safe. >> mr. carlin we are showing people video of the documentation found in ukraine back when the leader fled. there is a daca on his property

where putin used to stay he threw a lot of the documents into the river and the place where putin stayed had heated floors. they put them on the floors to dry them out where putin stayed. it was in the paperwork that they found manafort's name with reference to the millions of dollars when he was an adviser we were there after the sochi olympics a lot of people may not remember this this is when the protesters were assassinated in maiden square in kiev and it had the ripple effect and then the eventual invasion of crimea all that said, what if mr. manchester gets off. and it sounds to me like you would be disappointed. >> well, you know, i have to wait and see what the -- what the jury does, tried a lot of cases. it's one of the great things about our system is it's ultimately up to the jury ever

our peers. you never want to try someone until you see the facts. regardless of the converted with mr. manafort by his own choice, the -- there are additional charges still pending in washington, d.c. so there is another trial, win or lose this one coming again in the fall >> that's about whether he registered as a representative of a foreign agent, correct, which is very different than the money laundering and hiding his money case we are dealing with right now. >> they are different charges. what they have in common, right, would be that you're hiding ties to this foreign entity this case is about the tax fraud and other types of fraud with the money. the other case is also about hiding or lying about the fact that you are accepting money from foreign interests but in that case it has to do with your registering as a foreign agent. >> right.

>> in that sense they have a lot in common. >> yeah, well, we are waiting for two big announcements. one we think comes today with michael cohen appear appearing in court at 4:00 p.m. and also the manafort jury. mr. carlin thanks for calling in we appreciate it cnbc contributor more after this break. doesn't move for the past five years, i've spoken with hundreds of families and visited senior-care communities around the country. and i've got to tell you, today's senior-living communities are better than ever. these days, there are amazing amenities, like movie theaters, exercise rooms and swimming pools, public cafes, bars, and bistros, even pet-care services. and nobody understands your options like the advisers at a place for mom. these are local, expert advisers that will partner with you to find the perfect place and determine the right level of care, whether that's just a helping hand or full-time memory care. best of all, it's a free service. there is never any cost to you.

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hello, everyone. i'm sue herera here is the cnbc news update at this hour. we are monitoring a developing story. a plane carrying 16 passengers blew two tires during take off from teterboro now it's in route to westfield massachusetts for an emergency landing. it was headed to england iowa police say a body believed to be that of 20-year-old college student mollie tibbetts has been discovered in a rural area near where he he she went missing the agency called for a news conference this afternoon to provide an update on the search. the fda is extending the expiration dates for sop epipens by four months the decision comes in the midst of a national shortage of life

saving allergy drug to check if the expiers date of your pen has been extended you can log onto fda.gov. and costco is accepting apple pay at warehouse stores and installing payment terminals at gas stations but elbow a few active a.m. pay will launch at cvs and 7-eleven stores later this year. costco stock up on the news. that's the update this hour. michelle back to you. thank you very much. showing you what's going on with the markets the dow, s&p and nasdaq all in positive territory the s&p just a couple of points below that new all-time high it hit earlier. you say that during the halftime report the industrials higher about 103 points s&p higher by 11.5 opinion the nasdaq composite up 56 points. in terms of percentages it's the biggest grainer. discount are getting hit bus joon-pyo morgan offered for free trading. td merry trade fw giting hit

etrade lower by 4% and charles schwab off more than 2%. morgan. >> thanks michelle coming up the turkey crisis rocked emerging markets. but could now be the entry point? we have a five-star fund manager shares the topics in the space that'sex nt. who would have thought,

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welcome back to "power lunch. we want to get you become to the big breaking story at this hour. president trump's former lawyer michael cohen reached a plea deal with federal prosecutors nbc learned. hearing scheduled for 4:00 p.m let's back to the white house amon. >> a little bit more information now on what exactly michael cohen may be pleading guilty to here we will get the full answers a 4:00 but nbc news jonathan deans has two sources saying it includes tax fraud bank fraud and a campaign finance violation nothing is done here until it's done we will wit and see the actual documents indicating

but dean's two sources here are in line with what the speculation has been in the run up to this talking about tax fraud, bank fraud and campaign finance violations a campaign finance violation that might indicate one. we will wait and see the details of all that. clearly prosecutors have combed through michael cohen's business dealings and come up with something they feel violates the law in cohen's past. and now cohen is expected to plead guilty to that now, at 4:00 when we get the documents what everyone will be watching for here is what type of deal has cohen struck with prosecutors? is he agreeing to cooperate? and can we tease out from the documents any details about what exactly the terms of the cooperation are? is he an active cooperator as they say we should get more information on that in about an hour and a half. >> let's tease out some of these. campaign finance violations we have talked about that s it that's relatesed to stormy daniels, correct. >> possibly stormy daniels possibly others.

the issue that's been swirling around here -- and again we are in the realm of speculation but the issue swirling around is payments to women to keep silence about any relationship they may have had with then candidate donald trump during the campaign the argument might be that those were campaign related payments and should have been disclosed in campaign disclosure filings. >> if michael cohen made the payments on behalf of the president. >> exactly. >> the then candidate without getting reimbursed for them. >> well, right, or -- that's right. so the question is, how did the reimbursements happen? who knew what about those payments and when did they know that? and of course we have seen michael cohen change his tune publicly about the president early on he was famous for saying he would take a bullet for donald trump more recently he said that his family and his country come first in terms of loyalty. then he released some of the tapes of his conversations with the president of the united states during the campaign and those tapes seem to indicate that the president was then candidate was at least aware of

the discussions surrounding payments to -- to at least one person with you the tapes were inconclusive as released publicly by lanny davis, michael cohen's own attorney so the question is what tapes does michael cohen have that haven't seen the light of day? and do prosecutors have those in and what's on them >> tax fraud, bank fraud, the reports are that's related to his taxi medallion business as tyler indicated earlier, right that's where that's coming from. >> could be financing for the taxi medallions getting loans based on the medallions as collateral pef we have to see the indication there is. and tax fraud we see that in the manafort case where the jury is in deliberations right now in virginia across the river from where i'm standing one of those is offshore bank accounts not disclosing the accounts and then not paying taxes on the revenues generated in the accounts. that's something we see time and time again in the white collar

cases. >> jonathan deents at wnbc is very good. thanks, amon. >> yes. >> coming up the activist who fell for a fake page on facebook and why why he said facebook dropped the ball when the site was exposed. he joins us live next. -here comes the rain.

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facebook has begun to assign users a reputation score predicting trustworthiness and a scale of zero to one according to the "washington post" that comes after facebook said in july they suspended 32 pages appeared to be created by american active its but wrn. one examples, the resister page described by facebook as a tal in a coordinated influence operation. joining sus brendanened orsing era d.c. bake activist who interacted and had the work deleted while trying to build support for the antiracism march. >> thank you for being here. >> thank you for having zblee you were interacting with the page kwhapts. >> back in january after the state of the union protests we were approached by mary smith who was the admin that we coordinated with

and she asked me if i wanted to be an admin on the page. i never met her. but she joined -- she invited me to join and i vetted the page and it looked like a legitimate page but again we don't have many good metrics on facebook or twitter besides a check mark to decide whether something is legitimate and followers is really the only metric we were able to use and i would say that you did describe it accurately and you know, we have -- as activists in d.c. we have very little amplification to reach all the folks we wanted to come into d.c. to drown out the -- the nazis and alt-right coming to the town on august 12th when facebook took down the page ten days before the event it left us concurying around looking for ways to get those. >> and they took the page down because they believed what

>> they took that page down because they thought there was disingenuous behavior on it. the thing about zbhoo what does that mean? >> the event was created by this resisters page without my knowledge. and when i found out a few days later that a d.c. event was created by this resisters page i confronted the page admin, again, mary, and shes willfully handed over the panl to all the local groups that are legitimate and definitely -- yeah, i know the people like i'm a real person so i think -- i think. >> but you don't know mary you don't know mary have you ever met mary you ever talked to her on the phone. >> of course not of course not. >> what do you know about mary you said mary smith, wow that's a pret pretty innocuous name did you find out anything else about her? let me ask you something do you feel duped. >> i had a lot of feelings right after i found out.

i feel more duped by facebook. i feel as if facebook could have given us a chance to have a conversation about this page and the ramifications. they did not see how much they would impact d.c. local rgers and our ability to get the word out about this counterprotest to the. >> once that page was created, even if it was by an outside actor, whoever, facebook hasn't said it's the russians though they see some similarities between previous russian interference we don't know that for sure. once the page was created you said it was actually doing a lot for the local activists. and that's why you are angry taq it down. do i understand that correctly >> yes yes and when you're a local activist you don't have all the dollars that the rich white toxic white men around the country organizing for the alt-right side and the nazis we don't have that money to pay to promote on facebook. we don't have the money -- we

have only organic amplification and that requires to us literal put the labor in when the page came down that was a lot of local d.c. organizing labor that just went down the drain. >> you said you feel duped by facebook and yet i'm curious, if the -- if the admin or the person who put the website up in the first place -- put the address up in the first place was this mary smith, why would facebook have known that you were involved in it and why would they have sought out a conversation with you or other fellow local activists who were working loosely in concert with this mary person? >> so facebook did try to reach out about eight hours before the page takedown at 6:00 a.m. >> to reach out to you. >> yes directly to me as one of the page admins for not only the

event that was created by the resisters page but also as an admin of the resisters page. apparently i was the only real person thank you for bringing me on the air i could demonstrate i'm a real person. >> thanks for coming can i ask you one more question. >> of course. >> i think this whole situations raises the bigger question which is there is all this complaints, talk, about the russians helped drive the outcome of the election right? is president trump in power because of russian influence but when i listen to you, if this was indeed a russian page, it doesn't sound like they influenced you in any different way. they just influenced you to do what you were going to do anyway right? >> yes and i think these pages like the resister's page, the purpose was to gain as many followers as possible and it's a very attractive page to be invited on when you have

20,000 followers that we can reach out to and really the only thingdy on that page was trying to reach out to those -- use the followers as a way to amplify the message of local organizers. and i think that there was really no ill harm done by the page a and in the end facebook did the harm by bringing -- taking the page down and not really communicating at all their intentions to do that until after. >> that's very interesting because so many activisting believed there was so much influence from the russians. brendan thank you for your story today. i appreciate it brendan orsinger. >> thank you. 'soiome you we are doing more on what gng on -- straight to break. we'll be right back. are you taking the tissue test?

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let's take a look at where the markets sit right now at nine minutes before 3:00 on a day where the s&p 500 set a record high. it is up 0.3% right now. and nasdaq motoring ahead by almost 0.5%. >> it's been a rough year for those stocks and we're not just

talking about tol brothers all up double digits year to date, but can the group rebuild? jack joins us now. jack, is toll brothers indicating something to us should we be looking at these stocks a lot more favorably or investors looking at these stocks a lot more favorably than weave. >> we think so year to day trend has been with rising rates and home builders themselves have been pushing it pretty aggressively. and the markets themselves for it buyer to afford that home will slow demand the other problem is we've had a pretty thin inventory position on the existing side so some of the weaker top line numbers we've seen here year to date can chaels be explained by

less inventory rather than less demand >> and we talk about toll brothers and ware talking about sort of a niche player in this market they only turn out a certain number of homes. they tend to be much more higher end. >> i think what you're starting to see in the home builders is less consistency amongst the companies or uniformity around the companies. what we're look at now is business models, balance sheet health and that sort of thing. the first time low cost entry level buyer and then the upper end. i think where we've seen mixed results and mixed news is really that trade up buyer. where a rise in rates may affect their decision to trade up but i think the barbel if you will, the low rates and higher

are showing pretty strong trends we look holt and also like lanar. >> president trump's former lawyer michael cohen has reached a plea deal with federal prosecutors. nbc news has learned the expected pleas will include tax fraud, bank fraud and a financial charge mr. frankel, thanks so much for calling in what do you make of this report -- let's not call it an announcement, and what do you think he's going to get in exchange for all of that. >> he's going to get certainty to the extent there's potential he could face charges in new york, i think that's still an open door. obviously the general expectation is he's going to be cooperating with prosecutors

and ultimately in terms of sort of the larger interest around the investigation of the administration and in particular around the investigation around the president everything is really going to turn on what can mr. cohen say about what did the president, people close to him actually know? this is about bringing closure and the government's expectation in that process is going to be his cooperation in whatever investigations may be of continuing interest for the government >> i realize you're talking about the president of the united states and his former personal attorney, but how unusual is it to see a personal attorney make a plea agreement like this to then cooperate with a government to disclose sensitive information about their former client? >> well, it's extremely unusual. but i think one of the things we have to be mindful of is that a lot of the function for michael cohen was performing what were

somewhat non-lawyer functions. in other words, it did not relate to then candidate trump seeking advice from his counsel and counsel giving advice. we're really talking about, you know, michael cohen doing work outside of the true attorney-client relationship and it is not uncommon in fact, earlier this year recently we've seen martin's lawyer convicted for securities fraud. >> so he'll go to jail >> the charges as we understand what they're likely to be as you've reported are showing charges for which he would and should go to jail. that's all part of the plea negotiation. but even employing the sentencing guidelines if we're talking about bank fraud and tax fraud, setting aside the campaign violations, which may be a felony, those are for jail.

check please is next

all right, well it's time for check please and after more than a century behind bars nabisco releasing a new animal crackers box in the

havana rather than cooped up in their circus cages >> i've got the box. >> this is the new box no cages anywhere. >> i thought they were just called animal crackers, but their barnhams after the circus. >> thanks for watching "power lunch. >> "closing bell" will follow it up for you right now time for "the closing bell." i'm david faber in today for wilfred frost. the s&p 500 hitting an all-time high we'll monitor the market as we close today and see whether we can hold that ally i'm leslie picker in michigan how one auto parts maker is getting caught up in the trade war. ahead how this american company may be forced to move production overseas i'm sara eisen in for kelly evans. would you put a microchip in your hand for your j