>> i just mentioned it, lowe's. >> laparoscopic surgery, trxc. this one is getting some great love today >> target. i can't tell you if the next move is down after today or up, but i think if you look out six months it's higher. >> lady and gentleman, always a pleasure and honor to be with you. that does it for "halftime." "power lunch" begins right now. >> i'm melissa lee here's what's on the menu. history made, the bull market officially becomes the longest ever after all this running higher and higher, is the bull starting to get tired markets, free education, politics and the economy billionaire investor, philanthropist ken langone joins us to talk about that and more. plus tariffs hit home. we are live at a company that is feeling the pain it's already laid off a third of its workforce. "power lunch" starts right now

and indeed, "power lunch" does start right now i'm tyler mathisen, glad you could join us on a busy wednesday. stocks may be modestly lower today, but still a record-setting day with the bull market officially becoming the longest in history and if stocks can recover from this slight downturn, actually the s&p and nasdaq are higher, it would be the fifth straight day of gains energy, consumer, discretionary, all the leaders. telecom, industrials, they are your laggards right now. treasury is on the move. the 10-year yield hitting the lowest level since july 6th. leading the dow right now, exxon, american express and chevron. retail, though, the big winner today led by target, urban outfitters as well, the etf and xrt an all-time high who said retail was dead and on pace for its fifth straight day of gains. melissa. for the last nine and a half years nothing has been able to stop the markets so could d.c. turmoil be a threat to the longest bull market ever

bob pisani is at the new york stock exchange hi, bob. >> short term, washington is not an immediate threat, at least short term here, so look what we've got right now. we have stable inflation, we've got a neutral fed, no credit stress, strong investment in the form of buybacks, mergers, acquisitions and dividends growing and strong earnings. none of this has changed if economic conditions were to weaken, we might get a pull back so maybe we had a garden variety of correction of 10% in the next three or four months but the bigger worry is what would induce a bear market, a decline of 20% or more now, most strategists are not going to insist that their clients sell on a garden variety 10% correction, but a bear market, if people thought we were heading down more than 20%, you'd be seeing calls to sell out there. this is all very well studied. what kills a bull market and what induces a pair market the two killers of bull markets are one, recession and, two, the fed suddenly raising interest

rates. if it were to raise the funds target well above the 2-year yield but none of this is happening right now. none of the internals of the market are really showing up here the advance decline line is at a new high buying interesting is strong, selling pressure is still weak guys, right now i don't see any indications that the market is particularly worried about this. china getting a little bit better, though we've seen the dollar weaken and maybe we'll see the chinese stock market start to lift its head this year that lifts the markets. the president responding today to the big events involving his former lawyer and his former campaign chairman eamon javers joins us with the president's latest comments. >> reporter: that's right, tyler. the president offering some comments on twitter about both of this is former associates who were found guilty yesterday, treating them differently, though, in different sets of tweets based on whether or not it seems they offered evidence that might be pejorative to him. here's the first tweet from the president on paul manafort

earlier today, the president taking a sympathetic line saying he feels very badly for him and then saying that he, unlike michael cohen, he refused to break and make up stories in order to get a deal. such respect for a brave man says the president so praising paul manafort there despite his guilty conviction on eight counts yesterday on felonies saying that he didn't cooperate with federal authorities. also a tweet here about michael cohen himself saying michael cohen pled guilty to two counts of campaign finance violations that are not a crime president obama had a big campaign finance violation and it was easily settled, so the president there suggesting that the crime that michael cohen pled guilty to and now faces jail time for was not in fact a crime. so we'll see what sarah huckabee sanders has to say about all this the white house press spokesperson is coming out to the briefing room at 2:15 east coast time to answer questions historically the white house has been pretty buttoned up on this, not answering any questions, passing it all to the outside legal team of rudy giuliani and

others we'll see if they change tactics today in the wake of yesterday's extraordinary events, tyler. >> thank you very much, aim eam javers on the south lawn. kayla tausche has the very latest this is all happening as the u.s. and china restart trade negotiations. >> yes, there are a lot of irons in the fire, melissa the u.s. says there is no deal at least yet, but mexico's delegation says those major issues could be resolved within a matter of hours during talks today. officials representing mexico's outgoing and incoming administration suggest they were targeting the end of this week to resolve talks with the u.s., but that canada would be needed at the table to be part of any so-called deal >> we are trying to solve the issues that are important between the u.s. and mexico. that will lead to a tri-lateral meeting with canada.

i think if the handshake happens when everybody is done. >> it will happen when >> it makes sense when everybody is done. >> one u.s. official suggested the news about michael cohen's pleading guilty could play into any potential white house announcement, depending on how the president's reaction evolves, whether he wants to take a public victory lap on trade or recoil privately. talks with china are still taking place in the background, but they aren't really expected to yield anything. the white house telling cnbc it expects the next tariffs against china on $16 billion of goods will go into effect tonight at midnight, despite those talks taking place tyler. >> kayla, thank you very much. stocks a little bit lower today, though the s&p 500 and nasdaq a little higher the dow is lower still setting records because the bull market is now the longest in the history so does the bull still have some legs and can investors trust it?

let's bring in phil bock, ceo, and rob morgan, investment officer. welcome to both of you, good to have you here. phil, let me begin with you. as bob pisani just pointed out, bull markets die for one of two things, one, a recession, two, rising -- rapidly rising interest rates neither of those seem on the horizon, so do you think that this bull just ambles along? >> everything we're seeing is positive all the indicators look good consumer spending, consumer confidence, customer satisfaction broadly, which we believe is a measure of tility they are all at or near their all-time highs there is some worries about inflation but spending is outpacing inflation, at least in the business sector it is. so we remain very bullish on the economy overall. >> rob, how about you, overweight stocks, over bonds right now, and just stay the course >> absolutely, tyler i think when bob pisani was

mentioning two factors, rammedly rising rates from the fed as well as recession, those can really be connected in a lot of ways because eventually, and not any time soon, but eventually the fed will probably raise rates and overshoot their target and push the economy into a recession and the stock market would correct well in advance of that but i'm with phil and bob. i've got a target of 3,000 on the s&p 500 this year, 3,300 next year. so full steam ahead. >> phil, you can be a believer in the continuation of this bull run, but you might not necessarily believe that there is a lot of reward to the upside when you take a look at the risk/reward and the balance here what's your take on where we are in the markets and if you had to put -- name your sum of money to work right now, would it be invested in stocks >> well, the market is a little bit expensive, p.e. is almost at 25 in the s&p 500. they can go higher

they can always go higher. we think ultimately even if the stock market gets ahead of the economy a little bit, ultimately the stock market is a good gauge of economic conditions as long as the economy is strong, we're bullish on the equity markets >> you're bullish on technology specifically, phil should we be concerned, perhaps, that there is overownership across etfs of these tech names that have led us higher? does that matter in terms of the characteristics of the bull run? >> absolutely. coming out of the longest bull run in history you don't want to get complacent just because we think the market is strong right now, that doesn't mean you can buy anything and hold it and expect it to outperform the market or match the market when we look at market cap weighted index funds and you have such a strong trend of index investing, which in aggregate it's great, people are saving money on fees, but there are a lot of risks people are overlooking. if you look at the overallocation to the technology index and the top names, right

now the top 50 names in the s&p 500 have a higher weighting than the bottom 450 combined. apple alone has a higher weighting than 119 stocks in the s&p 500, so you don't want to chase last year's trade. you don't want to chase these fang names if you think the valuations are high. >> how should we be thinking about the u.s. stocks and is the discrepancy or divergence something that i ought to be taking advantage of by putting money to work internationally or in emerging markets? >> tyler, and i guess my theme related to that, i'd call it trade war insurance. yes, we've had obviously -- i've had an underweight on the international space for some time related to rising dollar, trade war insurance, what have you, and your question is should we start shifting some of that i think it's a little too early for that i would continue for u.s. investors to underweight the international space. another piece of this trade war

insurance is overweighting small cap growth stocks versus large cap value stocks the large cap value stocks tend to be the big multi nationals that could continue to be heart in a potential trade war. >> we have to leave it there rob, phil, we appreciate it. nyu medical school is offering free tuition, yes, free, to all students forever. coming up we'll talk to the man who is fundsing a big part of this program, home depot founder ken langone joins us he has a lot to say about trade, the president and much more. on this record-setting day for the markets, here's a look at some of the staggering returns if you had invested $10,000 back in 2009 one of the biggest winners, netflix. today you would have earned more than $600,000. wow. ow lchisacinwo who would have thought,

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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. in an unprecedented move new york university is offering free tuition to all current and future medical school students regardless of need or merit. the school has already raised more than $450 million of the $600 million that it anticipates it will need $100 million of that came from home depot founder ken langone and his wife, elaine

mr. langone joins us on the cnbc news line to talk about that and so much more ken, thanks so much for calling in you're a generous guy, i know, but this is a lot of money why are you doing it >> it's the right thing to do, maria. before we start let me congratulate you you on your new career. >> thank you, very kind. >> just keep going back to why we did it, there's a critical need coming at us in the next 15 years with the shortage of doctors, particularly in the primary care, pediatrics, ob/gyn, the areas of medicine where the pay frankly isn't that good. we're looking at these kids, they're going to spend the next four years in medical school, which is a very challenging time then many of them will go on to specialties. before they get really started and they have families by then, they're heavily in debt. we just think that the best way that elaine and i can impact all the people that we'd like to help in this country, which has

been so good to elaine and me, is this program. i want to make it clear, yes, elaine and i were major donors, but we've had literally hundreds of people join us in this effort so it's a real team effort and we're excited about it the most important thing is that these kids when they're done are going to be able to pick a specialty or pick a field of medicine they want to go in, because that's where their passion is and that's where they can do the most good >> sorry to interrupt, ken i would imagine that this would certainly attract a lot more people to apply to nyu how do you anticipate this might change the composition of the student body if you're able to offer students free tuition for all four years of medical school >> well, let me say we have no shortage of applicants last year i believe for 93 positions we had 10,000 applicants and the average scores of these

kids and the gmat scores are off the charts so we didn't do this to stimulate more applications, we did it because we think those that we ultimately pick and those that want to come, it's a joint relationship here. we think we're giving them a good start in life to leave here debt-free. we think it's the right thing had to the other thing is more importantly, i am praying and elaine and my's fervent hope is that other medical schools will join us in this effort we're only one out of roughly 150 medical schools in america we don't move the needle but if we got more and more medical schools to do this, just project out 10, 12 years from now when the shortage is going to start to hit, just think of the impact that we'll have on older people who are all living longer, we all have more health care needs the older we get. these are all the good things that can be accommodated by

having these kids off on their own, not worrying about -- after the ceremony the other day, a mother came up to me, she's a doctor herself she told me she's 35 years out of medical school and she's still paying off her medical school debt and now she's got a child and she's going to have to help carry the burden. well, as of that morning she had that problem but by the time noon came around, she realized she no longer had a tuition responsibility to nyu. >> forgive me for interrupting because i'm curious about it there are not only doctor shortages but there are doctor shortages in certain kinds of practices and in certain regions of the country i would expect that you would hope that the fact that graduates from nyu would be leaving without tuition debt would mean that they would be freer to go into lower-paying specialties and into lower-paying and more challenged locales around the country and

wouldn't be sort of inevitably drawn towards the higher-paying specialties, becoming a dermatologist in bergen county or wherever? >> tyler, that's a very good point. let me say this. if the medical school profession collectively joined us, the numbers will work. there may be still a great need in the community in rural areas, there may be a great need for pediatrics, for primary care, but the fact is that there's going to be a greater number of people in the pool and the likelihood is that you're going to have people opting to go into those areas. and i think -- look, the odds work, the numbers will work. now, will there continue to be shortages in certain parts of the country? probably so. but at least you're going to have a much bigger pool to be involved in trying to address those issues.

>> have you reached out to other medical schools and are they going to go along with it? how far are you along in that process? >> what's that >> other medical schools, have you spoken with anybody at those other schools and asked them to come along yet what do you think is going to be the return on that petition? >> well, i don't know. let me say this, i did get an e-mail last week after we announced it from somebody who's a member of the board of trus e trustees of another medical school and he was glad to hear that we had done it. every time he suggested it on the board he was part of, they said it was undoable he said now we know it is doable and you're showing it is doable. look, i have no doubt over a period of time the pool is going to get bigger and the number of medical schools are going to grow i hope that rather than us being recognized as a leader, number one or whatever you want to call

it, we're more interested in doing whatever to get our brother and sister medical schools to join us we live in the greatest country on earth, by the way i'm saying something very positive here because i've heard other people in the last couple of weeks say we never were great. i'm sorry, if you look at my life and elaine's life and you look at the opportunities we've had and where we are, there's no place on this earth better than america. and i think everything we can do to help this continue to be a great country, we all win. this was elaine and my way of saying we want in, we want to be part of this this has to happen and let's make it happen and i'll say it again, we had any number of people join us in this effort. it was a major effort with a lot of generous people involved. >> this is all great stuff, ken. we really appreciate it. we'd like to move on to what you think about what's going on with trade and how the president is progressing with his attempts to change the relationship with both mexico, canada and also

with china what do you think about the process and the progress >> well, let's talk about the problem. we have been at a disadvantage with our trading partners for a number of years and it's been allowed to slide wait till next year, wait till next year, wait till next year nothing ever happened. if you look at the trade deficit we have with china, if you look at the tariffs that are imposed on products of ours that go into germany and in turn the products that germany sends into the united states, there's an imbalance here now, i'm not going to challenge the president's style or his way of getting things done i am thrilled that we're addressing the issue in a positive way, that we're not going to continue to let it slide. the president made a good point last week when he said it isn't the people that are running these other countries, it was our leaders who kept giving them what they wanted and no pushback no saying, hey, come on, let's make this a more level playing field. we've got to fix this. and i think -- i'm excited about

the prospect of mexico because i think what will happen is if we make a bilateral deal with mexico, i don't think it will be long before canada comes in and we make a deal with them and all of a sudden we're back to nafta again. i'm encouraged by what germany is saying. i'm encouraged that we understand, although we have no facts to go with it yet, that china is beginning to move but for too long we've been patsies, and now it's time to level the playing field. as i said, i'm not going to cha e -- challenge the president and his style. he has his way, i have my way. his may be more effective than mine, mine may be more effective than his. >> ken, do you take a look at the cascade of tariffs scheduled to go into effect at midnight, another round of $200 billion worth of goods sometime in the fall and say maybe this pain might not be worth it? for instance, in home depot's latest quarter and it was a stellar quarter, they did cite increases to the price of

washing machines because of these trade tariffs. do you get concerned perhaps that corporate america might not be able to bear the brunt of this >> no, i don't, because over the long run this has to be addressed. i think you can't just sit and talk and have no consequences. i always worry about the people that threaten and do nothing we're saying right now, guys, it's a new day and it's a new game and you're going to have to work with us that we have a deal with you in your country that's more equal, more level you go back to the history, we did a wonderful thing as a country. in 1945 after the allies won, we didn't strip germany, we didn't strip italy, we didn't strip japan, we said we're going to help these countries get back on their feet because we learned a horrible lesson after world war i about what happened in germany with the hyperinflation and stripping them of their industrial capacity. we weren't going to let that happen this time and we didn't but that was then and this is

now. germany needed to have the edge. japan needed to have the edge. china needed to have the edge. these are now extremely successful economies and we need to deal with them on a very equal basis. and i think, frankly, what do you do you sit and say if you don't change, we're not going to do this and then you do nothing the guy says why should i change, they're idle threats no i'm sorry, i think that what's going on -- i worry if this tactic becomes a strategy then i'll worry, but i don't think we've given this thing enough time to play out and i think eventually good sense will reign free trade is good for everybody, us and our trading partners both. >> all right, ken, thank you so much for calling in and congrats to you and your good work and you and elaine and what you're doing for the medical students at nyu much appreciated. >> well, it's been our honor we're blessed to live the american dream and this is our way of saying thank you. we live on the greatest country

on earth don't forget that. >> i agree with you completely thank you. all righty, target, lowe's, lazy boy, a company after my own soul, are huge retail winners today. plus we will talk to the head of one of "ink" magazine's fastest-growing companies abou how her business is disrupting the yoga industry. stick around, "perun" llow lchwi be right back.

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welcome back to "power lunch. stocks are mixed right now with the dow the only index in the red. it is lower by about 38 points the s&p 500 is higher by 1.5 points and the nasdaq higher by 26 points. telecom, industrials and real estate, those are the worst performing sectors i would guess interest rates are higher because of that because those are the interest rate sensitive sectors. energy is the top performing sector as oil rallies more than 3% now let's get over to sue herera with a news update. >> indeed i do here's what's happening at this hour, everyone hawaii is preparing for a category 4 storm as hurricane lane moved towards the island. many residents have begun stocking up on food, supplies and water. tropical storm-force winds, heavy rain and large swells are expected to hit hawaii beginning today. new video just released shows a helicopter crash in arkansas last week that left one pilot injured.

it shows the chopper going down just as it lifts off of a launch pad at a training facility the pilot sustained a head injury and had to be extracted from the wreckage. verizon is being criticized for allegedly throttling the data of firefighters battling the massive california wildfires this summer. one department used its network to coordinate trucks and personnel until it reached its data limit and verizon slowed down the data speeds the company says it was a customer service error and rapper post malone is recovering today his private jet made an emergency landing in upstate new york yesterday after it blew two tires while taking off from a new jersey airport the plane circled the tri-state area for hours because they had to burn off a lot of fuel. they were headed to london, so that plane was full, before they landed safely, and that is good news the first thing he said, guys, i need a beer and wine together. who would blame him? back to you guys.

>> a little harrowing. sue, thanks. investors shopping for retail stocks today, the sector etf xrt hitting an all-time intra day high the winners, target and lowe's target reporting the strongest same-store sales growth in 13 years. lowe's beating estimates but same-store sales disappointing la-z-boy is surging after reporting better-than-expected sales. best buy, dollar general and cost costco we interviewed the ceo brian cornell and he said the consumer is the very strong, the strongest he has seen in his experience. >> a result of the strong economy. when i look at that sector, do you remember how everybody left it for dead, do not get in here, all these guys are going bankrupt it's a lesson we learn over and over again when everyone else is terrified, if you can get over that, it's

often the best time to buy. >> absolutely. retail not dead. as the markets have soared to record levels in an unprecedented bull run, a lot of the focus is on big names but smaller stocks have also seen huge gains, cintas, the uniform makers, up more than 1,000%. the company's ceo is about to join us, plus we'll look at our trade war collateral damage with the story of a maker of beer kegs hit so hard by tariffs that at cut a third of its workforce. th's coming up on "power lunch. adults are just kids with much, much better toys. introducing the 2018 c-class sedan, coupe and cabriolet. the thrills keep getting better. lease the c300 sedan for $399 a month at your local mercedes-benz dealer. mercedes-benz. the best or nothing.

welcome back to "power lunch. everyone talks a lot about big cap tech and microsoft and apple have accounted for 38% of the s&p 500's gains since a low in february through august 8th. they're not the only companies making money cintas is hitting an all-time high this week, 35 years after their ipo. we have the chairman and ceo scott farmer with us now scott, welcome to the show congratulations on your anniversary. >> thank you very much it's great to be here. >> you know, a long time ago and i'm sure even today cintas was looked at as a barometer of the u.s. economy because you do provide uniforms for other

companies. so what are you seeing right now? >> well, the economy obviously is in very good shape. the job market is very strong. i think that one of the things when i talk to business people that i hear most is that they're having trouble finding people to fill the jobs that they have you know, that's good news for all of us, but we obviously benefit from that because we need people out there to wear those uniforms and use the other supplies and services that we provide while we're out there too, but it's been good. >> from where do you source most of your uniforms >> we source all over the globe really so it depends on the different types of items that they are, quotas, tariffs, that we deal with in different parts of the world, but we source globally. >> so you led me to my question, which is really why i was interested and that is are you experiencing or do you expect to experience any sort of supply

dislocation or cost increases as a result of tariffs on imported uniforms >> well, i'd say it this way so far it hasn't affected us very much. we're monitoring where it's going to go from here. my concern more than how it's going to affect our supply chain, because wearables and garments and things like that aren't high on the list for tariffs, is how it might impact certain industry segments that are customer based and what will happen with our customer base. at this point we have not seen a big impact on our company. >> the stock is up a lot wow, take a look at this since the lows, more than 1,000%, it's had a great year. how do you grow from here? do you have to wait for the economy to get even stronger do you need the global economy to grow stronger or are you trying to take market share from competitors? >> well, the really, really good news about our business is that

we provide products and services that we think every business needs. in fact, it's hard to think of a business or industry that doesn't need one or more of the products or services that we have we do business today with about a million business customers across the united states and canada the way we look at it, there are some 16 to 18 million more businesses out there that don't currently use our products and services that we can go after and we're targeting that group that in my opinion is the great growth opportunity that we have as i look out into the future. >> what about tv anchors, have you thought about that >> i'm sorry >> what about tv anchors >> yeah, sure. >> we can wear nice little mustard-colored blazers. >> with yoour names embroideredn it. >> scott, was it your father or grandfather who founded the company? and i wonder, as is the case in

comcast, the parent company of this network, it is a family business in some ways and you now are running it i guess as a second generation ceo of the company. how does that affect you in terms of the responsibility you feel to the business, if at all? >> well, it does historically my great grandparents started a small landry business in cincinnati, ohio at one point my grandfather was involved in the business my dad came up with a new concept, really a uniform rental concept. started a business eventually bought the family business that merged it together so my dad is really our founder. but it is. i'm in this laundry business i'm a fourth generation family member and, you know, to me it is -- it's sort of the roots of the family, the core we feel a responsibility to our employee partners, to our

customers and to our shareholders so it obviously impacts us i think what it does, though, is it puts us in a situation where the culture that we've built in this company over a lot of years and in starting as a family business remains in the company. and i think that's one of the strengths that the company has, that a lot of people like and enjoy working in this type of a culture. and i think that's one of the great benefits of family owned or family founded businesses, when family is still involved. >> is there another generation of farmers >> there is. i have -- they're very young i have two nephews that are in the business they're in their early 20s my son is in the business as well, he's in his early 20s. one is a sales manager two of them are now sales reps they have been through our management training program. they started at the bottom and will work their way up

who knows how far they'll go. >> fantastic tell me about the regulatory environment now compared to when the business was started could it be done today compared to when your dad did it? >> that's a tough question i would say that it's a completely different regulatory environment. would it have been as easy i don't think it would have been as easy. could it be done it would take a lot of hard work, a lot of effort, a lot of breaks but, you know, we are where we are right now and i do -- i do think that today as a public company, we have a great opportunity to access capital and do the things that we need to do to continue to grow the business as i look out into the future. >> fantastic. >> scott, thanks scott farmer, ceo of cintas. >> thanks for having me. larry kudlow is speaking to cnbc about the paurkmarkets. >> reporter: we're getting our first reaction from a senior

white house official to what we saw yesterday in terms of that michael cohen guilty plea and that paul manafort guilty verdict. larry kudlow, the national economic council director offering some comments just a little while ago to cnbc.com, putting it all through an economic lens and explaining why he thinks we're not seeing as dramatic of a market move as some might have expected, given the drama inherent in the news larry kudlow saying the economy is everything when it comes to markets and confidence, and i think that markets frankly look through all these various political issues there's no change in policy coming and that's what really matters. keep your eye on the ball and i think the markets have done a good job so larry kudlow there offering a thought here on what the markets are looking for, which is no change in economic policy from the trump administration and so, therefore, with a strong economy, we're not seeing a dramatic reaction in markets to this dramatic political news, michelle. >> yeah, it seemed to move lower yesterday but not my much. kind of a shrugging i guess. thanks, eamon.

when you think of yoga, it's supposed to be quiet and peaceful, not meant to be disruptive but up next, we'll talk to a woman who is disrupting the yoga industry nama stay with us. "power lunch" will be right back you always pay your insurance on time.

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but prevagen helps your brain with an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. healthier brain. better life. "ink" magazine out with its annual list of the 5,000 fastest growing companies in the country. they include technology, health services, retail and all the things you'd expect. but the focus of this year's issue is the booming boutique fitness industry with three companies making the top 100 the magazine's cover features the co-founder and ceo of y7 studio whose yoga company is debuting at number 80.

let's bring in sara lawson levy. >> thank you for having me. >> you're disrupting the yoga industry, how? >> we do things pretty differently. what really frustrated me about the yoga practice was that i really felt a barrier to entry the space was created for people that thought that maybe yoga wasn't for them and i was one of those people we practice in a dark, haelted candle lit room and we use the beat of the music to drive the breath and pace of class, so you're constantly moving and there's always something moving every time you go. >> how many studios do you have? you started with how many? and now you're how many? >> i started with a small pop-up in brooklyn about five years ago and now we have ten studios in manhattan and two on the west coast in los angeles. >> wow, that's incredible growth. >> thank you. >> in a city that's got, i can attest, a lot of yoga studios. >> yeah. >> definitely. >> and they're sprouting all over -- i live in the suburbs,

and they're there as well. i'm curious, what kind of music do you play? is it contemporary hip-hopy? because i think of yoga as very kind of ambient, chill, buddha bar. >> in all the classes i'd attended, everything was sort of an afterthought, especially the music. it was always in the background and not really brought to the forefront. >> ding, ding. >> exactly and what i wanted to do was inspire people to move and get through those tough moments in class by hearing that banger of a song that they love to dance to so we really use the music as a motivator. we play everything from edm to hip-hop and there's definitely ambient music at the start and end of class to calm things down. >> chill you down. >> absolutely. >> or heat you up. speaking of heat, is it exclusively hot yoga or super

hot yoga or medium hot how spicy is it? >> i would say probably medium hot. we use infrared heating technology, which is basically just a more efficient way of heating the body so it heats you from the inside out, which basically means that it speeds up your metabolism quicker, it circulates blood quicker and really gets out those toxins more traditionalef than a traditional hot class would. >> are you finding that your customers are using this in conjunction with other forms of workout, like rowing or boot camps, et cetera, or are they customers who really love yoga and keep going back? >> it's interesting, because what we're finding is that we get such a wide range of people. i think that yoga traditionally has been thought of as a supplement people use it to stretch, they do it once a week when maybe they feel like they need it and i'm really trying to change that perception of it we're moving constantly in the classes. by the peak of class you are out

of breath, you may need that break. we really try to focus on the core class we do which is a flow vinyasa based class. >> you're mostly new york, some l.a. how fast are you going to grow and where? >> i want to grow really fast. chicago, philly, d.c. are definitely on my list. they're amazing markets for fitness. >> do you have investors who are willing to help you do that? >> we do, yes. we're self funded up until our sixth location at the end of 2016 and we closed private equity around the end of that year. >> was it family was it friends and family? >> that was me it was my credit card, thank you, chase bank. >> how hard was it was it hard? was it hard to start a business? it's always hard to start a business how hard was it to start a business >> it was really, really tough i actually had a full-time career for the first two years of y7. i had no idea that this was actually going to be a business

or even a thing that people liked to do. so it's been a really wild ride. and it's just been fantastic. >> revenues have gone from what to what today? >> i'm sorry >> revenues have gone from what in year one to what today? >> honestly i couldn't from what to what, as of today. >> our revenue in year one was so small, and nothing. but i know we've grown a ton we are doing great we just got valued at i believe $12 million. so it's been really incredible to watch grow. >> $5.6 million revenue for 2017. >> for the year. >> for the year. >> yes. >> that's president pretty nice. >> fantastic, congratulations. it is a great country, isn't it. >> thank you so much yeah namaste. >> namaste sarah lawson levee. >> our trade war tour continues in pennsylvania today with the manufacturer of beer kegs. who better than kate rogers to pick up that story kate, lift the keg.

>> reporter: hi tyler. thanks for that. the american keg company is facing lay rofs due to tariffs we will tell you much more after the break coming up on "power lunch. [phone ringing] need a change of scenery? the kayak price forecast tool tells you whether to wait or book your flight now.

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today we continue our trade war tour about companies affected by tariffs. that's why we have these better kegs unfortunately, they are empty beer kegs. >> this is a problem. >> the company that makes the kegs, they don't brew the kate to go in them. kate is live where the kegs are made in pottstown, pa. at the american keg company. >> reporter: that's right. the american keg company found itself on the negative end of a ripple effect of the trump administration aluminum and steel trves. when the trves were leveed they were hopeful because all of these tanks were made 100% from domestically sourced steel as demand increased so did the price b. 20% now it turns out kegs imported from china are $20 less than the ones they are making here in pennsylvania. >> the price of steel shot up the roof the availability and the lead times to get it from the mill had increased.

i mean, it was looking pretty grim from right -- immediately it affected our whole process, the a. people it's had a pretty dramatic effect on our company. >> reporter: they say they have lost about 20% of their business and had to layoff about one third of their staff that's why the company is lobbying to have an import tariff placed on the finished steel kegs coming in from china. >> some sort of import tariff on the imported finished chinese kegs coming in would be amazing for us it would level the playing field. and that's all we have been asking for in this whole thing we just want to compete. we just want a level playing field well it comes to keg pricing. >> reporter: their ceo paul zacher was in washington, d.c. just today testifying in front of the u.s. trade representatives hoping to do just that, to have a tariff put on those chinese kegs and hopefully level the playing field so they can get production ramped back up and maybe hire back some of the people they lost. >> i'm sure this is a company

already facing head winds with beer consumption down across the united states. who is eating the costs? are they able to pass it on to their customers at all. >> reporter: that's a great question what is interesting, this is a small business a lot of their customers are small businesses as well, small craft brewers and win reese. they were trying to pass it off to the customers but there is only so much the customers can take before they will look for a cheaper alternative. some customers want the made in america products but allis abouts know they can't afford to eat those costs. it is a difficult situation and interesting to see the ripple effects of some of the policies and how they affect different businesses. >> pottstown pa at a keg factory. in the second hour of "power lunch," first the minutes from the latest fed meeting what they are, look at as they consider raising interest rates.

then white house press secretary sanders is hoeding a press conference scheduled at 2:15 we will all over those two big stories. and much more. "power lunch" is back in two ♪

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we have a check on the markets here the dow is in the red, done by about a quarter of a%. the s&p 500 about ten points away from the record intraday high set in yesterday's session. almost flat right now. and the nasdaq is higher by a third of a%. energy leading today up 1.3%, as well as information technology fed minutes are out. >> members of the fmoc are laser focused on trade and showing new interest in the housing mark in general part pants agreed economic growth in the second quarter had been strong with momentum in consumer and business spending. they see no change in their inflation outlook, that being near 2%. they did say they expect gdp growth to slow in the akd second half of the year after being boosted by an outsized increase in exports in q 2. residential construction appeared to have softened, they said they said it weakened affordability, higher mortgage

rates, and delays in building approves where have we heard that before? as for monetary policy they said it would likely be appropriate to raise rates or in fed speak take another step in removing policy accommodation many say using the word at dative would fairly soon no longer be appropriate. tariffs were a concern the policy already said it lead to a delay in investing. others said it hadn't yet but might. others said tariffs would be a short-term upside pressure on inflation. all participants said the ongoing trade war and proposed trade measures were quote an important source of uncertainty and risks. they added if there were a prolonged trade war there would likely be adverse effects on business sentiment, investment spending employment and purchasing power of u.s. households

there was no decision to keep the federate unchanged. >> let's bring in our panel. michael farris, and lindsey beeggsa. on the one hand, robust economy. at the same time fed officials worry a trade war poses the biggest threat to a strong economy. what does this mean for interest rates? >> i think the fed was generally omt mis, noting we saw trend activity in the second quarter and yet they pointed to the one offs that led to the increase to 4% also, the slowing momentum in the housing market and many officials pointing to downside risks not from fundamentals in the economy but from fiscal policy as you noted particularly talking about trade. while some did point to the impact already taking a toll on the economy, the uncertainty

surrounding the potential negative impact could force the fed to slow the pace of increases. opening themselves up, giving more wiggle room in term of the longer term pathway for rates. the fed is going the look at what is happening in the economy as well as their expectation for what's going object happening in the economy. september rate increase baked n. but the end of the year rate a question mark. >> that was where i was going. did anything in there help you decide about december? or was it just as questionable before weette got these minutes? >> i think it is more questionable i think the fed is pointing to downside risks is setting the table for we may or may not raise rates at the end of the year depending on how the economy is faring. if we see the trade war take a toll, and see a further pullback in the consume e further pullback in business investment the fed is equally willing to pause or delay that additional

rate increase. i think the fed is again giving themselves more wiggle room in terms of expect algs for poatioy >> is that what you hear, michael. >> it is what i hear you are hearing that the fed issing roing they have painted themselves into a very uncomfortable corner right shhh they have good economic growth right now. we have a 4% number. it's probably not going to continue that way. but if the fed had come out with something more dovish -- i would be interested in what lindsey thinks -- if we had heard they said they are going to do only one more rate hike and not do anything in december i think the stock market rallies hugely and that further builds a bubble that they have got to worry about down to road, doesn't it >> it come but i think the fed is going to be cautious in their language. they are going to remind investors as the chairman did

with the two words, for now, that they have not committed to any pathway. that it's going to depend on the evolution of the economy in terms of growth, inflation and the other fundamentals driving the domestic economy as you said they did seem to paint themselves into a little bit of a corner. and now they are walking back from that reminding us they have not committed to anything. these are expectations, forecasts. but certainly taking more of a dovish tone saying look we are going to give the economy more room to run. that's a positive for the equity market. >> michael how do you weigh it it is sort of a push/pull. on the one hand they say we will respond accordingly and maybe that december rate hike will be in question. maybe we will reconsider that. at the same time we are also hearing loud and clear that tariffs are a potentially a risk to the economy. >> i think there is no question. i have been leaning for quite a while to say i think there is a

good chance they will pause after this september rate hike i'm not sure if they should. expectations are still that they should raise, you this raise three more times that's 3/4 of a point on top of this range that's already 1.75 to 2 if you go to 1.75 it takes you to a ten year yield at a 2.82. you pretty much have the fed inverting the yield korve or if the yield on the ten or the 30 doesn't move up then the 30 now is still under 3%. the yield curves are remained robust i think they are in a tight place. if our yields go higher the money comes in and the dollar gets very strong if the dollar gets very strong we have a head growth of gdp again. that's the corner they are painted into. >> if december is less certain the conspiracy theorists are going to wonder if the fed

wrasse listening to president trump complaining about another rate hike? >> i think the fed is clear that they are watching the data they are not listening to comments from political officials, whether that's the president or any other they are going to be watching the health of the economy. and they are going to base monetary policy on the data. >> okay. >> and the evolution of inflation and growth they are very clear they are going to maintain their autonomy from federal government. >> michael, always good to see you, michael fehr. >> nice to see you, best of luck. >> listen see, you too. let's get the market reaction from bob pisani who joins us from the new york stock exchange hey bob. >> hello, melissa. modest reaction. up about three points on the s&p. the vix down just a smidge dollar is down just a smidge i will tell you looking at this the one thing that surprised me is there seemed to be a heavy emphasis on the possible impact of tariffs talking about potentially inflationary down the road seemed to be a lot of emphasis on this, more than we have seen

in prior fed minutes i didn't see any discussion when they might want to pause robert kaplan from the dallas fed had just given a speech where he said it would probably be appropriate for them to pause when they got to the neutral rate that would imply two or three more rate hikes. kaplan said we should just stop at that point. i don't see any discussion from them whether that would be appropriate. it would be nice to know how many people feel that that's the case that's the issue, how many more times are they going to hike the rate finally, wouldn't you like to hear the paragraph, members discussed how they could get the president to stop telling them what to do it would be nice to see that they actually had a discussion around that. >> i think we will never know. >> i think that would embolden

the president even more. >> yeah. >> just ignore him. >> thank you bob. let's check on the bond market rick santelli tracking the action at the cme. rick >> tyler, if you are watching up on the board and looked at 2s, 5s, 10s, 30s you wouldn't have seen much. there could be a late reaction i don't think so in august the dollar index adequately posed out there it did lose a little ground but not really much. i think there was a big issue in this report. what is neutral? i'm not sure what it is. i think we got a hypothetin the minutes that they maybe need to stop using the word accommodation. i think that is a hint and i think that kind of hints at where neutral is everybody is probably right, two more tightenings we arrive at a neutral rate will they advertise that probably not so much but over time through fed speak

i think that's the conclusion we will draw. there is bright news here. i know mr. fehr said maybe they would say they are not going to raise anymore and stocks would rally. it is not the level of rates, it is the path of rates, that's what bugs money. they are still probably too low. in the fact the fact that stocks could withstand this is a very good length thing. woe are standing by for the white house press briefing the first one following the conviction of paul manafort and the guilty plea by michael cohen. we will cover that press bri briefing live when it begins first, to eamon javers the president weighing in on twitter. what did he say and how is it pertinent? >> not just on twitter the president conducted an interview with fox news earlier today. they have begun to air some of the segments of the interview. in one of the chunks of

interview the president denies a central chunk of testimony from michael cohen his former lawyer explaining to a judge yesterday that he committed a crime in conjunction with and at the direction of donald trump. now, today the president says that's just not true here's that excerpt. >> later on i knew later on but you have to understand ainsley, what he did -- and they weren't taken out of campaign finance. that's a big thing that's a much bigger thing did they come out of the campaign they didn't come out of the campaign they came from me. and i tweeted about it i don't know if you know, but i tweeted about the payments but they didn't come out of campaign >> you heard the president there. he was asked did you know about the payments and he says later on i did later on i did michael cohen testified yesterday that he committed that crime in conjunction with and at the direction of the president which means that the president knew about it at the time that payment was made otherwise michael cohen coop have made the payment at his direction. a real division here on the

facts of the case. the president also arguing here that ultimately it can't be a campaign finance violation to issue a payment to a woman to keep quiet about a sexual affair because that has nothing to do with the campaign, according to the president of the united states clearly, prosecutors saw it very differently and we saw the results of that yesterday, tyler. >> where do those tapes of conversation between mr. cohen and mr. trump on the matter of the payment -- how does that fit into the time line that cohen paints and that mr. trump paints >> well it's clear that mr. cohen has a number of tapes. it's also clear that investigators have heard those tapes. they confiscated those when they raided his office and his home earlier this year. that was a raid that caused the president an enormous amount of stress and the president reacted angrily to it. now prosecutors reportedly have copies of those tapes and understand the full exend tent

of what is on them we know that cohen released a piece of the tape which appears to be the president and cohen discussing in person the idea of paying somebody for her silence. the context of it is not entirely clear but that tape appears to have been taken before the payment was made, which would indicate f that time line lines up and can be verified, that the president knew about that payment before it was made not, as he says today, later on, later on he knew it. >> eamon javers, thank you very much. coming up we will bring you the white house briefing live seasons it begins. >> plus, facebook pulling hundreds of pages linked to russia and iran. less than 1-days to the midterm elections how facebook is beating down bad actors. >> what brian cornette said about the quarter. on this record-setting day for the markets here's a look at some of staggering returns if you had invested $10,000 in

2009 one of the biggest winners, ggp. today you would have earned more than $900,000. "power lunch" is back in two we just got married. we're all under one roof now. congratulations. thank you. how many kids? my two. his three. along with two dogs and jake, our new parrot. that is quite the family. quite a lot of colleges to pay for though. a lot of colleges. you get any financial advice? yeah, but i'm pretty sure it's the same plan they sold me before. well your situation's totally changed now. right, right. how 'bout a plan that works for 5 kids, 2 dogs and jake over here? that would be great. that would be great. that okay with you, jake? get a portfolio that works for you now and as your needs change from td ameritrade investment management. whenshe was pregnant,ter failed, in-laws were coming, a little bit of water, it really- it rocked our world. i had no idea the amount of damage that water could do. we called usaa. and they greeted me as they always do. sergeant baker, how are you? they were on it.

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you are looking live at the white house press briefing room. sarah sanders is expected to take the podium any minute now the question, is will she address the court drama surrounding two of the president's former close aides we will carry the briefing live or at least parts of it when it begins. >> in the meantime, shares of target hitting all time highs after stronger then expected earnings the ceo spoke about what has been driving the gains, and what's to come. >> we are still in the early stages of rolling out our strategy i expect next year wool remodel more stores, another 300 stores. we will open up more urban stores on more college uses, introduce new brands, our fulfillment offerings will continue to mature next year you will see even

more. >> a analyst has a neutral rating and our retail reporter joins us great to have you here what start stood out to you in the quarter for target it's interesting because there has been a thesis in retail so long that not everybody was going to be able to grow yet we have amazon, walmart and target all doing well. why is that share coming from? >> retail is a big market. $3.5 trillion. each if amazon is half of the growth there is still plenty of market target is winning. i think the surprise out of their quarter was how strong traffic was. it was the best traffic number in years at the end of the day they are one of the ones gaining share right now because they are getting more customers to shop with them both on line and in the store. >> when we were talking about the death of retail all of these guys going bankrupt, amazon is going to destroy them. look at how their sales are declining. look at what happened this quarter. maybe it was a meek and stinky

economy and the consumer wasn't into buying anything and actually the real story is that you needed an economic boom. >> a strong consumer helps if retail sales were stuck at 3.5 the last years and now they are growing 4.7%, closer to 5% that covers a lot of ills. however i think there is one thing. not just with target you saw it with walmart last week the companies are struggling to get margin expansion target's margins were down a little bit this quarter. the economy is hot consumers are strong but there are some risks out there. there is a lot of competition in part due to amazon we think tariffs are a risk. >> i think it's interesting that gross margins now, investors are okay with seeing some gross margin reduction because now they can see results for what's going on in the store and on line we talk about having online sales being more expensive than the same sale in store when you are grabbing share not from amazon or super somebody

else investors seem to be okay with gross margin erosion. they didn't for a while and they were treated much differently than amazon for instance. >> of the companies that reported so far, which one either positive or negative surprised you the most in other words, which one did better than you thought they might? i was surprised about coal's. >> and lowe's. i thought it was going to get lifted by all the boats and it seems to have been left behind. >> you have seen sales beats of 100 to 200 basis points. i think where we separate the rubber on the road on that is which companies are able to leverage it and which ones not and which has traffic. target's traffic number was up 6% walmart had traffic up over 2.5. i don't want to pars one over the year retail is big and fragmented sears continues to fall every day. there are plenty of companies

like sears that used to have $50 billion in sales that now have only $15 billion. >> jcpenney, too walmart for me was the big one we saw walmart first, so i was less surprised about what target did. especially the store traffic numbers. as they grow on line, their on line sales was at least they have been over three and a half years and it didn't cannibalize what happened in the store i think that's important because target is putting so much money into their stores. coming up, will the white house address the court drama surrounding two former members of the president's inner circle? we will find out when we carry the briefing live with sarah sanders there. you can see the white house briefing room. plus these four stocks have been negative since the 2009 lows isowheimtouy n t te b or should you stay clear trading nation takes a look, next hi, i'm joan lunden with a place for mom,

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we expected at white house press briefing to begin about ten minutes ago. but it is running a little bit late will the white house address the news of former trump larry michael cohen turning his back

on the president and the conviction of former campaign chairman paul manafort we will bring you that briefing for as long as it seems relevant as soon as it begins. time now for trading nation. wall street celebrating its longest bull run in history today but it hasn't been good for all stocks we will look at some of the biggest losest since the 2009 bottom mosaic, and these stocks have been at lows since 2009. >> what do you do with all of these? some of them are related to commodities. those are down do you buy any of these. >> i like the miners as a non-time sensitive way to hide from the kmod decrash and

you get dividends while you are holding it copper comes back, so will fcx newman mining is a different story. it is a bet on two things. inflation comes back so gold rallies or we have massive risk why have flows and gold rallies. either way those are both interesting opportunities. >> sir, what would you do with any of these stocks? would you buy any of them or stay away. >> it's hard to believe something is still down from 2009 but we don't think they are going to stay down forever i like fcx it is trading at seven times earnings there is growth in emerging markets internationally and domestically once we get through the trade wars and the tariff wars, hey, look it is an inflation hedge. if inflation rises these stocks are going to do well as well we like apache and fcx going into this the next 12 to 18 months. >> alrighty. two ideas there. thanks so much

for more trading nation head to our website or follow us on twitter. we are standing by for the white house press briefing let's look at the markets. the dow is at session lows, down by more than 90 points the s&p 500 down by 2.5. the nasdaq in the green up by a quarter of a percent "power lunch" is back in two >> announcer: and now the latest from trading nation.cbs.com and word from our sponsor. this hurricane this morning we encourage all those in the path of the storm to listen to the instruction of state and local authorities as it relates to evacuation orders and shelter locations. the president is equally concerned for the well-being of all hawaiians and has directed fema and administration officials to remain in close coordination with the state of hawaii and stand ready to

support them in whatever they need also this morning the president had phone call with prime minister abe of japan. the two leaders committed to maintaining strong sanctions on north korea. they also expressed they look forward to seeing each other later this year and to continue these important conversations with allies. lastly on behalf of our administration i want to extend prayers to the family friends and loved ones of mollie tibbetts the nation watched over 30 days as they have searched for mollie a sophomore at the university of iowa sadly the individual believed to be responsible for her murder is an illegal immigrant making this an unfortunate reminder of why we need to strengthen our immigration laws the bible tells us we need to heal up our wounds the tibbetts family is grieving and we are grieving with them. with that i will take your

questions. >> sarah, michael cohen under oath pleaded guilty to among other thing paying stormy daniels and karen mcdougal during the campaign. he says he did that at the direction of the president of the united states. did the president commit a crime? >> as we have stated many times he did nothing wrong there are no charges against him. we commented on this extensively. >> then why not report these payments >> again i am not going to get into the back and fort worth details. i can tell you as the president has stated on numerous occasions he did nothing wrong there are no charges against him in this. just because michael cohen made a plea deal doesn't mean that implicates the president on anything. >> can you stand there today and say that the president never lied to the american people. so many people now look back at the tape of him on air force one saying he knew nothing about these payments when in fact we now know he knew everything these payments has he lied? >> i think that's a ridiculous

accusation the president in this matter has done nothing wrong and there are no charges against him. >> the president said to fox news that this could not have been an illegal campaign contribution because he gave the money. he put more than $60 million of his own money into the campaign. so how do you draw the line between -- i mean maybe this didn't flow through the campaign but how do you draw the line between what was a campaign contribution and what might have been a payment to somebody for other purposes >> i'm not going to get into the back and fort worths of the legal part of this i would refer to you the president's outside counsel on that as i told cecilia, i can tell you what the president stated a number of times. he did nothing wrong there are no charges against him. just because michael cohen has made a deal doesn't mean anything with regards to the president. >> the president tweeted this morning in frustration that michael cohen broke. perhaps you can shed more light on that. the implication is that michael cohen gave up something that the president would rather stay secret

is that what we should read into this >> the president expressed his views. i don't have anything further to add. >> can i ask one more question is the president now planning on or intend on pardoning paul manafort >> the many of the case doesn't have anything to to with the president. doesn't have anything to do with his campaign doesn't have anything to do with the white house. >> sarah, i was going to ask about manafort but let me ask it in a slightly different way. has the pardoning of manafort come up? >> i am not aware of any conversations regarding that at all. other than actually when he was asked by a news outlet earlier this week and he said that he hptd been thinking about that at all. -- hadn't been thinking about that at all. >> in times like this, the white house is often trying to figure out whether there need to be internal adjustments to deal with some of the political issues you are going to have now with the hill, with voters,

internally, with lawmakers is the white house making any adjustments in terms of responsibilities of chiefs of staff, of communications to donors, communications to supporters, how you intend to kind of response respond both protectively and offensively to the crisis that you are now in >> i wouldn't view it that way at all and would disagree with the premise of your question the white house is focused on the same things that we were focused on the first day that we got here and that is growing the economy, which is doing extremely well, protecting our borders, strengthening the safety and security of all americans. those are the things that we are focus on that day one, january 20th, and those are the same things we are focused on root now. jake. >> thank you sarah i would like to start off by congratulating you. this is your 100th briefs and

there is no way what you are doing is easy. >> thanks. >> axios wrote i quote several republican operatives working on the midterm elections -- are you familiar with any republican operative who is would concur with this thinking >> not that i am aware of. i think the thing that's going to encourage people is the lack of a message by democrats. they have nothing to run on other than attacking this president. and not only does the president and the record that republicans have had over the last year and a half under his leadership is a great one to run on. we have an incredible story to tell the economy is booing record numbers just today. we are going to continue focusing on the things americans care about i think that will be certainly what encourages them and certainly what will help push republicans to do well in november >> yesterday the president stated that, quote, israel will pay a price for the jerusalem

embassy. not sure that's an exact quote should israel be concern the price they may have to pay may not be one they are prepared or willing to pay at this point >> we think the president's decision was the right one to move the embassy, something other presidents have promised and failed to do >> what price are we talking about? what price might israel have to pay? >> i don't have anything further four john. >> since the guilty verdicts yesterday in the paul manafort trial the president said kind things about mr. manafort. he called him a good man a good person feels badly for what happens to him he tweeted today unlike michael cohen he refused to break makeup stories in order to got a deal he tweeted such respect for a brave man. is mr. manafort a civil candidate for a presidential pardon >> once again that's not something that's been up for discussion i don't have information for you. >> the kev gnaw nomination democrats are saying the

nomination should be put on hold because of the legal developments yesterday the hawaiian senator put out a statement saying this president who is an unindict conspirator in a criminal matter does not did you ever the courtesy of a meeting with his nominee what is your reaction to that sarah? >> this is a desperate and pathetic attempt by democrats to obstruct a very highly qualified nominee. the hearing date has been set for september 4th and judge cavanaugh will be there. steve. >> sarah, the trade talks between the united states and china are resuming the president earlier this week expressed low expectations for those talks. i'm wondering if that has change skpds what you would like to see come out of those discussion >> we are -- as you said, these conversations are continuing i don't have any announcements on them. they are ongoing certainly what we would like to see is better trade deals for the united states. the president wants to see free, fair, and more reciprocal treat between other countries,

particularly with china. and we are going to continue in those conversations. >> sarah, does the president feel betrayed by michael cohen is he concerned about what he might say to robert mumer? >> i don't think the president is concerned at all. he knows that he did nothing wrong and that there was no collusion and we are going to continue focusing on the thing that americans care about and that we can have an impact on. >> one more question, on trade do you anticipate a deal between mexico and the united states on nafta this week? >> i am not going to get ahead of any potential announcement. for decades, nafta has harmed american workers and cost the u.s. billions of dollars we are focused on making sure we deal with and address those problems we will let you know when we have an announce men. >> in his interview today the president said he found out about those payments that michael cohen made later on but he is on tape discussing how to make one of the payments with michael cohen, so before the payment was made how do you explain that?

>> once again, i commented on this pretty extensively. what i can tell you about this is that the president has done nothing wrong, there are no charges against him. there is no collusion for anything beyond that refer you to the outside down up sell. >> how can you explain something that the president said today on the grounds of the white house that seem to contradict audio of the president saying that. >> i have addressed this a number of times. because you continue to ask the same question, i am not going to give you a different answer. there is no collusion. that's what i can tell you about this if you want something further i would refer to you the president's outside counsel. >> does the white house maintain that the president did not have an affair with stormy daniels or stephanie clifford. >> we addressed this several times. >> you said there had been no discussion for a potential

pardonening of paul manafort so you are not ruling it out entirely if there have been no discussions at this point, it's possible there could be a pardon for him in the future; is that correct. >> the only comment the president made on this was when he was answering a question by a news outlet earlier this week and he said no, he was not considering it. >> that was before paul manafort was convicted on eight of the 18 counts at the time that the president was asked that i'm something you now that he has been convicted on those counts. >> i'm saying now that there have been no discussions on that matter. >> on a different point last time we were in here you read off some exofficials and one current officials who the president was considering taking away their security clearance. wanted to follow up on that and ask you first of all, who is conducting that review to determine whether or not those security clearances would be pulled second of all i wanted to ask you about a tweet that the president said saying he thought potentially james clapper is

being nice to him so he doesn't looiz lose his security clearance. is that a threat that if clapper isn't nice to him that he would lose his security clearance. >> i don't have anything further on that front. >> who is doing the review. >> a number of people are involved here at the white house. >> in his tweet about paul manafort this morning the president seemed to be praising him for essentially refusing to cooperate with federal prosecutors in a way that would implicate him as president doesn't that seem to indicate that loyalty to him is more important than abiding by the law in an investigation. >> not at all. the manafort case doesn't involve the president, his campaign and has nothing to do with the white house the president expressed his views. >> moi's lawyer said there is no evidence that they will like to present about foreknowledge of white house hacking. does the white house maintain

there was no hacking during the 2016 campaign. >> i am not aware of any, no. >> sarah, two questions for you as well. given that five convicted felons are linked to the president or his campaign and given the promise that he would hire the best people. does that mean he didn't fom up on his promise. >> he has hired thousands of people in his lifetime he has had tremendous success. he is the president of the united states. i think he is doing quite well. >> let me follow up, i understand you don't want to answer the same question a million times and you said the president did nothing illegal but i didn't hear a response to the question, did he lie to the american people when he talked about this on air force one. >> no. and the president addressed this a number of times. >> a couple of questions president trump says he feels badly for cohen and manafort one of the money pleaded guilty to crimes, the other was found guilty of crimes, including tax fraud, which robbed the american

public of tax dollars they were owed why does he feel bad for either of these men >> once again, the president has expressed his views on this matter and i have nothing else to add on that. >> just to follow up on that, does he believe there is an intrinsic problem with the justice department or does he only believe if someone who is close to him is a victim of the justice department >> i think we have certainly seen a lot of concerns come out of some. activities of people that worked at the department of justice, whether it is peter strzok or lisa page or james comey we have walked through those a number of times. certainly i think it's given calls to a lot of americans some of the activities those americans engaged in >> the president paints them as a victim as if his own justice department is not doing its job. >> again, certainly, the president has expressed his views on this matter and he's raised concerns about a number of other problems that he is seeing within the department

of justice hunter >> i wanted to follow up about the earlier question about the president's comments on fox news with regard to the payments to miss daniels and mcdougal. when exactly did he learn about them and also, are there any other payments he has now become aware of or are those only two women who received money for agreeing not to repeat their stories of alleged affairs with president >> once again i have addressed all i'm going to say on the cohen issue. for those specific questions with more details i would refer you to the outside counsel. >> can we bring them in here for the briefing >> they don't work here at the white house but i would encourage you to reach out to them john. >> thank you sarah going back to the security clearances, all signs -- [ no audio ] the last two big espionage cases

of the cold war. the score bit case of 1961 and felix block of 1990. the secretary of state pulled the security clearances of people accused of espionage. [ no audio ] -- role in -- removal of security clearance. >> certainly, the president has --having all security passes turned in when someone leaves government service. >> i am unaware of that policy

to be able to consult with individuals on national security matters. but they do feel the team here that we should look at the security clearance -- my understanding is that there are roughly ----

>> that he could run it in reference to the mueller investigation. what did you mean by that? >> the president has said many

times that he has chose tony remain uninvolved in this process, and that's where we are right now. >> is that an indication that he is thinking about taking action against special counsel robert mueller like revoking his security clearances. >> i am not aware of any conversation around that. >> is it an indication that the presidencies himself as above the law? >> not at all. >> thank you sarah some legal experts and lawmakers are saying the president's corrupt and that there are grounds for impeachment case is the white house concerned about that, that that could happ happen and also does the white house take those allegations seriously? >> certainly we take allegations seriously. the idea of impeachment is frankly a sad attempt by democrats. it's the only message they seem to have going into the mid terms. i think it is another greatry mindser of why americans should support other like minded candidates like the president

that are actually focused on continuing to grow the economy, continuing to secure our borders, continuing to focus on the safety and security of all americans. i think that the biggest contrast you could possibly make is the message of the democrats, which is nothing more than attacking the president and looking at cheap political stunts while this white house and republicans in the house and senate are focused on doing good things for the american people >> thank you sarah earlier this week the president had tough words of criticism for jay powell the federal reserve chairman can you tell us the last time they met face the face and whether or not the president brought up that criticism with powell directly? >> i believe the last time they met -- i would have to double-check was right around the time that jerome powell took his place on the federal reserve board. >> has he spoken to him about his concerns about them raising rates. i am not aware of any conversation. >> on venezuela.

is the president plan on getting involved at all. millions are fleeing the country. what is the u.s. stance on venezuela? >> the united states continues to support venezuela's neighbors and provide emergency aid and shelter to venezuela, and also continues to stand with the people of venezuela. and we are going to keep all options on the table and we will keep you posted if we have further announcements. thank you so much. we are going to wrap up here so we can all join the president for the medal of honor ceremony. >> taking a lot of incoming on what happened yesterday with paul manafort, the former campaign manager for president trump being convicted and his former attorney pleaing to fraud charges as well. eamon javers asked sarah sanders about whether or not the president that spoken to jerome powell directly about his

concerns over raising interest rates. apparently the answer was no good job, eamon. we will take a break we'll be right back after this

let's take a check on the markets. it became the longest bull run ever. the dow is lower by 81 points. s&p 500 just about flat but down. the nasdaq is up by about a quarter of a percent. the s&p 500, by the way, had hit

or was about 12 points higher yesterday for the interday high. anmewe have a very special edition of check please and that is next. at fidelity, our online u.s. equity trades are just $4.95. so no matter what you trade, or where you trade, you'll only pay $4.95. fidelity. open an account today.

you'll only pay $4.95. with tough food, your dentures may slip and fall. new fixodent ultra-max hold gives you the strongest hold ever to lock your dentures. so now you can eat tough food without worry. fixodent and forget it. check please. >> it is a very special check please because today we say so long for now to michelle cabrera accepting a very new opportunity she will tell you about. she will join us from time to

time as a contributor. and to say we will miss her, her story telling and the very sharp points of view that made you re-examine your own thinking is a gross under statement. in her 20 years here there is no show she hasn't hosted and no story she has not attacked with gusto. here is a look back and to use a phrase she adores, take a listen. ♪ >> for the first time ever a major media company is set to merge with a major internet company. >> there are more registered helicopters. >> 200 workers will live on this out at sea. >> only 15 companies were traded here. now there are more than 40. >> bernie madoff has been arrested. >> there is a lot of tear gas in the air. >> they are living in tents.

there is very little running water. >> mark cuban is here. we know that for hillary clinton. when it comes to donald trump he brought knight. >> a mining operation like this one requires a lot of electricity. >> the north koreans committed to the complete de-nuclearization of the korean peninsula. >> should we be cutting taxes on the eve of a possible war which is going to cost money and when we are facing deficits you are comfortable with children being separated from their parents? >> look at that. >> she is going to kick your butt. >> i know. >> you are having a hard time keeping up there. >> i didn't know you knew how to curl. >> this is the last time this set will ever be used at cnbc. >> here is what is on the power

lunch menu. >> kevin o'leary still polishing his trophy. >> why do you have a banana in your ear >> happy anniversary, michelle. >> paris france. >> havana, cuba. >> athens, greece. for cnbc in new york. >> where are you going >> applause in the news room, by the way. >> can we show the newsroom? everybody is clapping here. >> thank you, guys. thanks. i promised myself i wouldn't cry. i am going into the world of corporate governance. i will join the board of

directors in a company in texas. tom hicks is on the board, well known investor, former head of dallas reserve. i thought it was a good company to be in. we talk so much about corporate governance. we criticize it a lot. i have thought the next step maybe should be corporate governance because boards need help. i think they need help with messaging. and how does whatever they are going to do play in the media and how it will be received. >> this board will get a -- the conversation is not going to air. what was your favorite story or the one you are most proud of? >> the greek financial crisis was an incredible challenge to try to explain. economists will always come on and say greece will have to go

through a fiscal deficit and fiscal adjustment. it means cutting budgets. there are massive recessions. to try to translate economic speak into what it means for people on the ground was super important to me. the most important interview to me was milton freedman. it was fantastic. >> i will say for all of us, we are teary eyed because we are going to miss you. >> i'm going to miss you, too, so much. it has been really, really great. >> you will be coming back. >> i will a contributor and on several times a month. >> here they come. >> thank you, guys. thank you.

>> there is no better business in the world than cnbc. it has been an incredible honor to be a part of it. thank you for everything that this place has done for me. >> we are all better off for having you. >> thank you, guys. >> thank you, michelle. >> thanks for watching power. > we'll throw in our congratulations to michelle on an amazing career. we will miss her. >> yeah. i worked with her all 20 years. i will miss her a great deal. she is going on to good things. that's hard to follow but we will try. >> welcome david