the cloud, so huge runway for growth here, i think the company is going to be focusing on operating margin improvement >> pete. >> you know how much i love home depot, lowe's, going over 110 soon. >> that does it for us on "halftime. "power lunch" starts right now. >> we'll see you in a couple of minutes. welcome, everybody, to "power lunch. here is what is on a packed menu for a thursday everyone will be very poor that is what the president says will happen if he is impeached he brought it up what would the markets do if that dramatic event occurred we're a long way from it but the president is even talking about it game off the latest numbers show fortnite's massive growth may be slowing down have we hit peak gaming and if so, what does that mean for the multibillion dollar industry you heard of milking a cow or a

goat what about a snake we'll introduce you to a person who does just that, milk snakes and has taken many trips to the hospital as a result "power lunch" starts right now >> and welcome to "power lunch." i'm dominic chu. stocks are mixed the dow is off its session lows right now, it did fall by more than 100 points at one point this morning if the nasdaq holds on to the gains, it would be the sixth up day in a row for that particular index here tech and telecom are the sector leaders. materials and financials are lagging within the dow caterpillar, dow, dupont, worst performers, home depot and microsoft leading the way higher the retail in spotlight again today, williams sonoma, soaring on an earnings beat. wayfair as well, and l brands, seven year low after giving weaker than expected guidance.

tyler? >> we begin with president trump with a warning about the stock market ayman javers has that story. >> new news here this hour as well in terms of this legal swirl around the president nbc news confirming that dow jones report from earlier in the hour that david packer, the ceo of american media, the company that publishes the national enquirer, has received immunity from federal prosecutors to talk to them about these alleged hush money payments that were brought up in the michael cohen case michael cohen, you remember, earlier in the week pleading guilty agency the president's former attorney to counts related to what prosecutors said was ultimately a campaign finance violation in terms of issuing those payments the president said he didn't know anything about those payments until later, not clear when he found out about it michael cohen says that the president was involved in the decision to make the payments and in fact directed cohen to make the payments.

now, we have david packer who will be testifying his version of these events in this classic he said, he said dispute between the two men. now, the president also, as you mentioned, raising the idea of impeachment in an interview with fox news that was broadcast this morning. here is that conversation. >> i guess it is something like high crimes. i don't know how you can impeach somebody who has done a great job. i'll tell you what, if i ever got impeached, i think the market would crash i think everybody would be very poor >> so a lot of moving parts here, but the president there saying the stock market would crash if he were impeached, saying everybody would be poor, predicting dire consequences to the action of the congress which congress so far has not even contemplating that. >> thank you very much you'll be following all the news from the white house this afternoon. >> markets are lower at this hour, not all that worried about

a potential impeachment, right look at the movements in the stock market bob pisani on the floor of the new york stock exchange with more on that it seems like is there is a calm in the market despite the legal worries surrounding the trump administration and everything else. >> that's very much true there might be some debate about the president's legal troubles and whether or not it will impact the stockmarket no doubt that china tariffs do, even today, the position of new tariffs, however small, very predictable reaction dollar goes up, and certain sectors of the stock market go down metals and mining, again, this is very predictable. u.s. steel, free port mcmoran, alcoa, all down. we saw countries that are commodity heavy, trade in the form of exchange traded funds also weaker today. very predictable 1% to 2%, this happens all the time any time china tariffs come in

jd.com, sina, alibaba, terrific earnings report on the upside as you see. everybody else on the downside the only reason we're not down more than 4 points on the s&p is generally big tech is holding up fairly well, d micro, invidia, facebook. the story again, not washington, but china and the tariffs. guys, back to you. >> thank you very much, bob pisani from the floor of the stock exchange is the president right if there were to be an impeachment, would stocks sink or is this a tech long stock market ryan dietrich is the senior market strategist and brent is the strategist with wealth management there is an idea that the markets are -- are teflon, there is nothing that can take them

down is that the case and is the data historically there to support it >> first off, thank you for having me back should that news come out from the president, there could be some downside volatility that's what we don't know. what do we know? the s&p is right at the january peak, right? we have been up four months in a row on the s&p 500, entering the season of september and october during a midterm year. a pullback could be very likely. what do we also know the s&p is higher april, may, june, july and potentially could be higher in august. we took a look at what does that mean the final four months of the year have been higher every single time, five out of five times, 1950, up about 10% on average for the s&p. could be a really good sign, yes, volatility still, but the bulls really could be in control the rest of this year. >> go ahead. >> let's bring you to this conversation, with the seasonal tailwinds in place, is it a time when investors and some of your clients should be looking at

perhaps adding to exposure or is there more caution in your voice now? >> well, there is more caution as you go through an economic cycle and we're getting closer to the end, but not there yet. we think there is future gains i guess as far as the president, i think a correction could happen if he does get impeached. but i would note and take exception to his comments about a crash. he mentioned the consumer and the consumer being poor. i think that's not likely because the consumer saved much more money and debt to equity levels are back to 1987 levels i think a crash is associated with something gone to the consumer and now i don't see that happeningment broadly speaking, the economic fundamentals still remain in place and we believe that pulls markets with it, while there may be a correction, it is unlikely it will be a crash and we think higher highs are in the future. >> brent says correction, not crash. how much of this stock market and the gains that have happened over the last almost two years are directly attributable to mr.

trump? >> well, you know, that's a great question we think what is probably more attributable is the fiscal policy that president trump brought in is this a couple of quarters of good economic growth and stock market gains because of the fiscal policies in play. we think no. we think this is going to expand look at the productivity number we saw last week capex is coming back what we saw in the recent earnings season. this is an old economic cycle. let's talk about market technicals there is a theme that only a few stocks are leading the market higher we see the advance decline on making new all time highs with the value index, the average stock, making new all time highs, there are a lot of stocks participa participating. >> let me turn back to you impeachment is something that is way at the very least, way over the horizon, if it ever actually comes to that. but between now and whatever

point that is, there are other worries in the market, aren't there, including slightly insipid inflation, rising interest rates, the potential of something that worries the fed and that is trade friction aren't those much more sort of proximate concerns to investors than the other one >> absolutely. i think what i worry about most is rising inflation and a bond market which is ignoring it. if you recall back to the beginning of the year, before we started talking about tariffs, the market correction was driven by rising inflation expectations and rising ten year treasury. i worry that in the future at some point bond yields have to bear some semblance to reality with what current inflation is that may cause the correction that could come in the interim term i guess the most important thing i keep pointing back to is i do think, and even though the president said jerome powell is being too tight, if you look at current monetary policy, real

interest rates, not nominal, it is real. real interest rates are still negative on every single nudge of inflation i challenge you to show me some time period in the past where real interest rates are this negative, this far into the cycle. and i think societally the fed changed, inflation is no longer the boogie man as it once was in the 1970s and '80s that was the fed's biggest concern they fought every single time they would make sacrifice economic growth. i think the enemy is not in deflation. >> thank you very much a news alert out of washington back to eamon javers. >> a rare statement from attorney general jeff sessions sessions responding to president trump's blistering criticism of him in an interview that aired this morning on fox news the president said that sessions had simply never fully taken control of the department of justice, saying that sessions never should have taken the job

and criticizing sessions for recusing himself from the russia investigation. now sessions issuing this statement in response saying, i took control of the department of justice the day i was sworn in, why we have had unprecedented success and affect waiting the president's agenda saying while i'm attorney general, the actions of the department of justice will not be improperly influenced by political considerations i demand the highest standards and where they are not met, i take action. attorney general goes on to praise the men and women of law enforcement and say i'm proud to serve with them and proud of the work we have done in successfully advancing the rule of law a rare rebuke here from jeff sessions to the president of the united states, not something we're you used to seeing out of sessions who has taken the president's criticisms in stride and stayed quiet about it, now responding directly toe to toe with the president of the united states on the issue of whether or not he should have been more aggressive in the russia investigation. sessions saying he's going to

resist all political influence at the department of justice. >> if the president is so aggrieved with mr. sessions, why doesn't he just fire him >> well, that's something that the president could do he's felt both frustrated with sessions in terms of his recusal from the russia investigation, he hinted in that fox news interview the president did that democrats, attorneys general, as president, were more loyal to the president and protected the president from any crimes or allegations of crimes they may have committed the president hinting tha ininge model, frustrated that he took himself out of the picture because of his own meetings with russians during the campaign in 2016 the president also, i think, hamstrung by the idea that politically firing jeff sessions could be a deep negative for him and could be enormous blowback on capitol hill where sessions is well loved among fellow republicans and in the republican base. the question is, does the president want to take a step

that could have negative consequences for him, even if he feels that that step in his mind is entirely justified. we'll see how the president responds to this this is not a president who is used to getting this type of rebuke from the people who work from him. >> thank you very much the news keeps on coming the latest shots fired in the trade war between the united states and china, each side hitting the other with a new $16 billion round of tariffs is the back and forth going to continue how will it end? durynge maybe surprisi inst that could benefit. "power lunch" returns very shortly. an energy company helping cars emit less. making cars lighter, it's a good place to start, advanced oils for those hard-working parts. fuels that go further so drivers pump less. improving efficiency is what we do best. energy lives here.

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click, call or visit a store today. the trade war intensifying with 25% tariffs on $16 billion worth of goods this latest round brings the total value of chinese imports subjected to tariffs to 50 billion. and vice versa and takes place as both sides are meeting this week hoping, hoping to hash out a deal meanwhile, economists and reuters poll and a moodys report warn that a prolonged trade dispute will hurt economic growth more on this with patrick savanic, our cnbc contributor ron insana patrick, do you see any evidence that mr. g is backing down at all? >> i think they're eager to find out what the administration wants. >> that's not clear? >> clear that the administration

wants fundamental changes in chinese behavior, but in terms of actual concrete -- what are the concrete deliverables that china needs to make in order to delay or lift these tariffs? that's not as clear. one reason it is not clear is because there is some disagreement within the trump administration about what the criteria should be if you remember, go back two months ago, the last round of negotiations, afterwards, the trump administration implied there was a deal, but that deal evaporated and reports are that the reason it evaporated is because there was disagreement within the administration about whether it was -- whether what the chinese was offering was acceptable or not. >> do you see the impasse here tracing to the fact that the chinese don't really understand what we want it is pretty clear to me, pat, with all due respect, that the -- what the president really wants is for the trade deficit, the bilateral trade deficit to shrink one way or the other. >> request to have it reduced by

$200 billion fell on deaf ears in china almost everything we asked for, the chinese refused to exceed to the strategic mistake of the united states is not lining up europe and others affected by intellectual property theft, technology transfers and things like that, going through the wto process to take china to task, a more effective way to approach this most trade policies have been chaotic at best. trying to renegotiate nafta without canada and without the senate which will be required as well i don't think we have a trade policy per se. either with china or in a broader context. >> china is going to wto and filing a complaint against us. >> yeah. let's talk a little bit, if we might, about what a win would look like for both sides if we get to that point where there is some understanding of who wants

what where is victory declared by the u.s. administration and by xi in beijing? >> the trump administration could take a few small concessions and say we declare victory. that's what they did with south korea over the free trade agreement. or they could insist that there is a fundamental readjustment in the global economy and rebalancing. however, that's not something that trade sanctions and what the u.s. is aiming at is going to solve because that's a function of consumption, investment and savings in both economies and you need a structural approach to that. >> how does the political realm enter this whole calculus? as we get closer and closer to the midterm elections, does that make the trump administration more hardened to stick to the big things to declare this a win as opposed to the smaller concessions which then uses a win scenario >> i don't know how to answer that except to say given the

events of this week, a win is a win is a win, you think politically going into the midterms, whatever they walk away with and say we got china to concede to this or that, and the structural reforms the real solution to this at the end of the day, ip and technology transfers notwithstanding, if you want to cure the trade deficit, open the natural gas spigot and sell more of that to china the trade deficit goes away over time, right? and so that number changes and so i don't know why the administration wouldn't take that as a victory. you can't necessarily get every product that you want in alignment so we produce most of it and sell most of it. >> these are midlevel talks happening right now. these are not summit level talks. how does the playbook develop now? what can we expect out of these talks that gets us to that level where president trump and president xi are actually sitting across the table hammering out a deal >> there are two worrying things

i hear from the trump administration right now i think might put us on a path to greater conflict and not a resolution the first is that the trump administration keeps on saying that the chinese are going to run out of bullets because they -- because we import more from china than they do from us, that china is going to run out of things to put tariffs on and therefore won't be able to retaliate that strikes me as playing checkers when really the game is chess. the second thing is they keep on implying recently that the chinese economy is -- if the u.s. gives it a kick, that the chinese will be down on their knees and begging for mercy. i have been talking for years about the problems in china's economy. they're serious. but i think this really oversimplifies the dynamics of those -- >> cut off the nose to spite the face that would be terrible for the u.s. and the u.s. stock market if we were to actually kick out

the third stool and have china's economy wobble >> right >> or crash. >> or crash. >> the stock market has come down dramatically. as we read and heard, the president seems to be playing this card. we have got them where we want them so we're going to punch them even harder. from a global trade perspective, that is not a winning hand and it would come back to haunt the u.s. economy. >> i think it is a fundamental misunderstanding of the vulnerabilities and the chinese economy and what they mean also for the global economy >> they have $3 trillion. >> it strikes me as similar to you want -- i'm not saying you can't put pressure on china. i'm not saying there aren't smart ways to do it. but you need to be prepared with a realistic idea about what the results will be and what the response is going to be. this strikes me as, you know, the economic equivalent of saying it, we're going to be welcomed with confetti when we march into baghdad and problem solved and that kind of fairy tale leads to -- >> on that note, we have to leave it

thank you very much. speaking of tariffs, food is a big target for tariffs soybean, pork, potatoes and more that can make restaurants a winner aditi roy is live in san francisco. >> hi there. corn corps te tortilla chips ar. we'll explain in a live report well jd power did just rank them highest in investor satisfaction with full service brokerage firms...again. and online equity trades are only $4.95... i mean you can't have low cost and be full service. it's impossible. it's like having your cake and eating it too. ask your broker if they offer award-winning full service and low costs. how am i going to explain this? if you don't like their answer, ask again at schwab. schwab, a modern approach to wealth management.

talking a lot about the potential losers of a trade war.

some industries could benefit. aditi roy joins us from a restaurant to explain. >> these corn tortilla chips and the slow cooked pork here are some of the staples at this local mexican food chain and now the ceo of this business says some of these items are cheaper because of the tariffs here's why the tariffs from china and mexico are causing some of these supplies to pile up. these supplies from pork to potatoes and that's because there are a lot more expensive to ship overseas as a result, it is driving prices lower for some domestic buyers like restaurant chains. the ceo of this particular business says his total costs have gone down between 1% and 2% as a result of the tariffs plate iq is an analytics firm for restaurants which found the top six food items, they're the following, the firm looked at $250 million of invoices from up to 3,000 restaurants and predict

that over the year restaurants will save $19 million on pork, 9 million on potatoes. nearly 4 million on corn, more than 2 million on cheese the owner of this eatery says he's going to use that extra savings and reinvest in growing his business on everything from advertising to r&d back to you. >> thank you very much, aditi roy, for that. a lot of dynamics at play in the food market. coming up, we're about to head to the big fed summit in jackson hole, wyoming. we'll hear from protesters who aren't happy about what the fed has been doing do they agree with the president? >> every time you go up they want to raise rates agn.ai i don't really -- i am not happy about it you always pay your insurance on time.

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welcome back to "power lunch. quick check on the markets here, markets have been holding on to this very tight and narrow range. the dow is down by 75 points, s&p 500 down by 3 and the nasdaq is higher, but barely, by about 4 points alibaba seeing a big reversal today. the chinese e-commerce giant was higher by as much as 5% earlier before falling into negative territory. some concerns about spending as alibaba posted a record low profit margin. it is hovering near the flat

line and a number of other chinese tech names moving lower as well, jd.com, tencent, billy billy down more than 2%. take a look at the chinese internet etf, ticker kwbb, on pace for the first negative day in more than a week. to sue herera for a news update. >> here is the news update at this hour, everyone. in just minutes from now, vice president mike pence is due to deliver a speech at nasnasa's sc center in houston. he's expected to give an update on the trump administration's plans for human space flight and possible return to the moon. former national security agency contractor reality winner who pleaded guilty to leaking a classified report on russian hacking has been sentenced to 63 months in prison, the longest sentence ever given for a leak of national defense information to the media a juror in the paul manafort trial says a lone holdout kept the former trump campaign chairman from being convicted on

all 18 tax and bank fraud counts a juror said despite overwhelming evidence the holdout deadlocked the jury on ten of the counts. another setback for sears holdings the struggling company says it will close an additional 33 sears and 13 kmart stores in november amid slumping sales and growing losses you're up to date. that's the news update dom, back to you. >> thank you very much, sue. hurricane lane is bearing down on hawaii right now. though it has weakened it is still expected to be a very, very strong storm. nbc news steve patterson joining us live from waikiki in hawaii it doesn't look bad now, but it will get worse. >> that's what officials are warning about at this point. this is this calm before the storm. you look around here, not a lot going on the winds are starting to pick up at this point

what is happening is happening right now on the big island. that rainfall started to touch down in some places, 10 to 20, 30 inches are predicted. right now, though, officials are worried that this false sense of security here may be happening for residents. maybe people aren't heeding the warnings we have seen people, though, getting geared up with supplies. that is the big ask. gear up for maybe up to 14 days worth of food and water and so we have seen residents heed those warnings officials are worried about these impacts. damaging rain, wind, high surf, torrential rainfall, flooding, landslides, all of that is now being warned throughout the island the path of the storm is expected to connect with the big island, oahu and then make landfall with maui all of that is prediction model at this time but the outer bands of the rain are starting to hit at this point, right now back to you. >> steve patterson live from hawaii with the latest on that

upcoming storm there will be ripple effects coming up, an interview with new hawaii airlines ceo peter ingraham at 3:30 p.m. eastern time don't miss that. >> president trump has been critical of the fed and chairman jay powell his nominee, for raising interest rates that's a hot topic at the fed summit this week in beautiful jackson hole, wyoming. steve liesman joins us now with a couple of people who might agree with the president on that point. steve. >> an odd situation here we have been talking to the protesters opposing plans by the fed to raise interest rates. this is their fifth year at the summit i'm joined by shawn sebastian, the director and marshall steinbalm from the roosevelt institute. the way tyler put it is odd, you

agree with the president about not raising interest rates. >> i'll tell you our position since we met five years ago, four years ago, is that the fed should not be raising interest rates until we see wages going up with productivity and there is no reason to raise interest rates when the fed is still undershooting the inflation target we have been consistent for four years. donald trump criticized janet yellen during the election for keeping rates low. now he's president and criticizing his own pick for -- for raising rates. he's completely incoherent and self-serving so it is on both counts, we're being exactly who we are and being exactly consistent. >> the topic of this conference is interesting i don't know if you had an effect on this, but this idea of monopoly power and the effect of the rise of the big firms, the big tech firms and the idea it is not proven yet and marshall you've done work on this, maybe explain the general idea, which is not -- not an out there idea,

many mainstream economists thinking that maybe the monopoly firms are keeping a lid on wages. >> that's right. what shawn said about how there has been slow wage growth in the economy has caused a sea change in the economics research that has been done to try to explain what determines wages in the economy and one of the things that people have focused on is exactly this rise of market power on the part of employers so when employers exercise market power over their workers, that's called monopoly, markets in which employers are concentrated and few employers account for a large share of hiring, those labor markets have lower wages and many labor markets in the economy, the majority of labor markets in the economy are characterized by high concentration. >> it is increasing, right the number of bigger firms and has this winner take -- i want

people to know, this is not an out there idea there were papers presented on this at the american economic association, annual conference, and will be several papers presented on this inside you have a graph on the back of your shirt, can't turn it around because of all of the wires and everything, but it shows we had productivity go like this, but wage growth go like this what is the gap? >> the gap is that workers -- workers bargaining power has been undermined by the dismantling of unions. and market power has made corporations more powerful, more wealthy and had greater bargaining power than ever so when we're talking about bargaining for wages, workers don't have collective bargaining power and oftentimes, the only game in town you don't take the wages, there is no one else to go to. >> marshall, you have -- in one of your papers, you have a map and the map shows a lot of red in the country that red is not for

republicanism. it follows the areas it is for market concentration the only places where workers seem to have a competitive edge, the ability to bargain, is along the coast. the rest of the country according to your work is really what is the right way to put it, subject to a single or very few employ employers. >> that's not how the economy is supposed to work according to the economics received wisdom and the models the fed has been relying on which when they make the forecast about how there is supposed to be an imminent wage price spiral the labor market works differently than the way -- >> is it a failure of antitrust legislation? >> among other things, yes >> let me follow that up are you -- should facebook and google be broken up? >> i think -- >> that's the kind of major firms we are talking about that happened. >> there is a large degree of market power throughout the economy that is characterized by the tech sector, amazon in

particular is a company that we know engages in exploitation of its workforce and in inducing suppliers to also exploit their own workforces i think antitrust needs to play a role in making the economy work the way it is supposed to. >> you say no fed rate hikes until wages met, productivity growth they're at 2% now. should they be cutting rates >> they need to be stopping rate hikes, talking about doing a rate hike in september and one in december. neither are necessary. >> let wages catch up. >> let wages catch up, yeah. >> that's a point of view from the fed up folks there are some with concern over the rise in rates here and they will consider this monopoly power over wages >> that is a fascinating topic thank you very much. appreciate it. what a beautiful spot it is out there. i can't think of a prettier place. >> right >> to discuss economics.

>> to discuss wages andmonopol power over wages. >> and productivity. >> if you're going to do it, do it there. >> and fly fishing >> thank you gentlemen, thank you big lineup of guests to come robert kaplan, he comes up later today. james bullard, loretta mester and many more will come tomorrow pasta lover, take your marks, including dom here. in just minutes from now, olive garden is about to put on sale its never-ending pasta passes. a new feature this year. we'll explain. the most unusual dangerous job we ever had on "power lunch," a snake milker, but not getting milk, he's extracting venom. we'll tell you how much he gets paid i can already tell you it's not enough we'll be right back.

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and olive garden's never-ending pasta pass is back. that's what it looks like. the passes go on sale minutes from now for 100 bucks, you can get unlimited pasta, soup, salad and bread sticks for eight weeks. and this year there is a new addition, a one year pass that costs $300

only a thousand of those available. olive garden says last year's passes sold out in just seconds. and that's the look right there. 16 minutes and 12 seconds before people can log on. you might need a high speed trading algorithm to do it. >> they ask for an i.d.? >> correct. >> they ask for an i.d you can't share it, each chip in 100 bucks. >> like a subway card. >> scam it. >> that's a lot of pasta i would take it. >> there you go. time for this week's dangerous job. snake milker why do we need to milk snakes? for their venom. morgan brennan explains. >> i actually have been on the respirator several times i had my heart stop four times my finger was dangling >> this is jim harrison.

>> i was in a coma i went into acute respiratory arrest twice. >> he's spends a lot of time in the hospital with work related traup traumas. >> no, no, no. >> jim is a professional venom extractor. >> showing his teeth pretty good. >> jim spends his days wrangling the world's deadliest snakes the tourist attraction/research facility he runs with his wife, home to the largest collection of venomous snakes in the world. >> the last bite i had was from a south american rattlesnake i don't remember leave the parking lot. >> why risk life and limb in the first place? to help mankind, of course. >> king cobra venom is used for pain medication research, it is also used in cancer. >> that's right. there say theory in the medical

world that venom can destroy cancer cells much like chemo does a prospect that created a growing marketplace for venom and vendors. jim sells an estimated quarter of a million dollars worth of venom each year to pharmaceutical companies and research labs. >> king cope ra venom runs $100 a gram. >> raising 2,000 snakes has its costs as well. in addition to the zoo standard expenses, jim spends $25,000 a year on mice because, well, snakes got to eat. >> not something you get rich quick. >> no, you're not. on average, snake milkers earn around $30,000 a year. but, jim, well, he's far from average. he's chosen to pump all of his venom earnings back into the zoo, leaving himself with a paycheck of absolutely nothing >> there is a reason i don't take a salary.

i do it just to try to save lives. most people when they think of venom, they think of death i think of venom, i think of life i basically volunteer my life to save other people's lives. >> yes, jim harrison has picked his poison in life and is sticking with it paycheck and pointer fingers be dammed morgan brennan, cnbc business news. >> i don't think you can make a valid risk/reward argument for that >> zero dollars, death. >> he says life. >> true. >> we have more of these dangerous jobs coming, maybe the best for last, power line workers, they fly in on a helicopters to fix power lines make sure you tune in next week. look at that that is -- i want to know who shot that. >> that's what i was thinking. >> exactly. >> death defying conclusion. we have it next week on dangerous jobs. >> ever since apple reported results on july 31st, the stock has gone almost straight up,

rising 13% so far in august, could be the best month in fiv years. some analysts have been concerned about valuation, we'll talk to one who isn't raising his -- who is raising his price target this morning. the first sign of a crack in fortnite's armor is on the slides we'll tell you about it when "power lunch" returns. no matter how much you clean, does your house still smell stuffy? that's because your home is filled with soft surfaces that trap odors and release them back into the room. so, try febreze fabric refresher. febreze finds odors trapped in fabrics

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some say that by the time parents learn about something cool their kids are doing the -- the kids have moved to something else i know about fortnite. so does that mean we have reached peak fortnite? not in my house. julia boorstin looking at other indicators to find out clue me in here, julia. >> the fortnite explosives revenue growth slowed dramatically which is why the research says the peak may be behind us. fortnite revenue grew 2% from june to july down from over 32% growth between march and april and 71% growth between february and march. other bad news for fortune according to twitch metrics fortnite lost the top stop of most watched on twitch after dominating the first half of the year and august it's falling behind another game. the question is whether the

market for this game is saturated whether players are simply moving to other games with battle royale moedes such as public g pmt we will see how it bodes for the big game make eshs embrace of battle royale modes that fortnite popularized. ea's game and call of duty both launching in october both have multiplayer ploeds similar to fortune. fortnite is attracting younger games. for everyone, grew 22% year to date according to m p. d. p trends to watch. >> stick apprehend what does this fortnite data mean for the global phenomenon in e sports, let's bring in the coveder of the website polygon i'm picking whaup julia mentioned in terms of who plays fortnite mostly young folks are these guys in school maybe doing other things during the summer and there will be a seasonal uptick once fall comes. >> yeah, so i think that's part of it.

i think kids are away, traveling, vacation what have you. fortnite is a very social game doesn't get a lot of that press. but kids play it together. they'll bring all the friends together and play together you don't really have that environment. but when the school year starts you will see more of an uptick. >> in terms of in game purchases, julia what have we seen for are the fortnite, it crossed a billion dollars? >> it crossed a billion dollars in may we have seen the rate of growth slowed dramaically, the question is whether maybe there is a set market for this type of game obviously it's a pretty big market but how much bigger can it g et? one question i have for russ is how you think these games coming out from activition and ea this fall do when they embrace in massive multiplayer mod. ing 100 people can play in the battle royale mode is there that game for

electronic arts or active vision. >> call of duty that is that in moede as well. fortnite though is free. and that's a big difference -- a big difference for people getting the downloading getting people playing those games will do well they needed those modes to be competitive in the space but i think the fortnite numbers are a little weird because they have not externally released the numbers. a lot of in is from data groups that are speculating the numbers. but they could be soft i do think you will see another spike with fortnite. but those games as well. you'll see them do well. >> my son is a big fortnite player, russ and i think you have nailed it the idea of being able to play against other players is what really gets them excited when my son comes back and says, i won! evening i won against other players, it is really over the moon >> yeah, absolutely. and it's also like people --

kids are interacting with one another, friends of theirs in these games. i don't think that gets a lot of attention these days >> russ, how do we know a peak is in. when i was growing up there was mortal combat and street fighter. what are the signs the peak is in for the game? >> i would say twitch was a good mention. you look at twitch which is right now the biggest streaming service on the planet. whatever game is up there is generally a good sign like this is a game people are interested in doda is mentioned peaking in august a big competition going on now that's helping that. i wouldn't be surprised in september, you started to see fortnite back on the list. >> julia, at the same time there is competition for those who like gaming, who like to watch gaming i mean it's not just fortnite and pubg, the big tournament is this weekend how and seecan't iablizing.

>> there are only 24 hours in day. but there are so many leagues as you mentioned, the overwatch league from activition nva 2 k league, i think there is a lot going on in the gaming space. but look at the way people are spending their time, the question whether gaming is competing with other things like social networking. one reason i heard speculated about is a reason why the social media companies such as snapchat and facebook he slowed growth is because of the popularity of the games like that. the question is whether 40 fortnite is competing with snapchat how many hours are three in the day. >> that's true great discussion russ of pofl gone on our julia boorstin. >> tiger versus phil for $9 million. it's winner take all where is that money coming from? we tell you and we are talking basketball with rapper ice cube.

it's the big three basketball league catching on in the second season he is joining us, plus caterpillar and bowing be the biggest point decliner is trade weighing on those stocks and others it's going to be a good day, get it, in the second hour of power lunch, kinning after this. or where you trade, you'll only pay $4.95. fidelity. open an account today.

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i'm melissa lei here is the menu np impeachment, interest rates and increased trade tensions the three i's are front and center for the markets what should we be folksed on and apple on pace for the best run in five years. one analyst think it's on pace for the best run he joins us np a slam dunk ice cube's basketball league growing rapped i hadly with ratings jumping over 100%. he joins us ahead of the championship game to talk about it and more. "power lunch" starts right now yes it does. well to the second hour of power pipe tyler mathisson stocks in a narrow trading range dow, the biggest looser as you see but not by much. off the session lows in the nasdaq eeks out gains it

would be the sixth straight update right now it's eeking a tiny gain materials, financials energy, the lagrds, right now, technology, the only sector in the green at this moment among the s&p sector trade sensitive names by free peter, knew month mining all down more than 2% on this day fresh tariffs were put on china. and vice versa and some nays at all-time highs. ross stories sysco med tronic and f 5 networks dominic. >> i'm dominic chu for more on what's moving the markets. let's get to bob pisani. and this feels like an environment where people are getting out of the economically sensitive sectors and perhaps into more defensive. >> we have talked about this before the impact of the washington, the political situation, may have an uncertain impact on stocks but china trade does time and time again you put china trade-in the headline, even modest new tariffs imposed

today and they are modest you see a predictable result dollar goes up and certain sectors of the u.s. stock market go down. tyler was mentioned steel metal stocks you see u.s. steel free port usually down this happens whatever the tariffs come in. the commodity sensitive country, australia, emerging market countries, anything around china, anything in south africa, anything in brazil, again it's very typical to see 2% drops whenever tariffs come into the headlines. the other one of course is china internet stocks. they have been bouncing recently as the dollar has been a little weaker but today all of them down again. this is typical. the 2% effect from china tariffs. the own thing helping and the reason the s&p is only down 3% is the big cap tech names holding pup you have microsoft, nvidia, facebook apple all holding up back to you. >> thank you bob. bob pisanien president trump saying the stock market would crash if he is impeached

he gets pushback after the president's interview with fox news eamonafter was a rundown and was there a lot. >> and a lot going on right now. because over the past couple of hours we had this really unusual public dispute now erupting between president trump and his own attorney general jeff sessions you remember earlier in the day the tape came out of president trump criticizing sessions saying he had never really taken control of the department of justice and saying that he wished sessions hadn't recused himself from the russia investigation. well sessions fired back within the hour with a statement of his own saying in part, i took control of the department of justice the day i was sworn in while i am attorney general the actions of the department of justice will not be improperly influenced by political considerations to add to the drama of that back and forth, jeff sessions is here at the white house right now he is participating in a meeting on prison reform we're told it was previously scheduled. but nonetheless the president and jeff sessions it's possible

they're in a room together inside the west wing as we speak. so we'll see if that yields any further developments also today we are learning that david pecker the ceo of ami, the company owning the "national enquirer" has received immunity from federal prosecutors in order to cooperate and tell his version of events surrounding payments to a former playboy playmate and a adult actress allegedly as part of the election all that and the week's developments in terms of the former lawyer and former campaign manager accepting guilty plea and being convicted are on the president's mind. he issued a statement in his interview on fox news today about the idea of witnesses cooperating with the government. the president says that's flipping, and he is against it here is that comment >> if you can say something bad about donald trump and you'll go down to two years or three years, which is the deal he

made, in all fairness to him, most people are going to do that and i've seen it many times. i've had many friends involved in this stuff. it's called flipping and it almost ought to be illegal. >> so the president there saying flipping and cutting a deal with prosecutors to lower your own sentence in exchange for providing information almost ought to be illegal. the department of justice which is headed by jeff sessions uses that tactic all the time to convict mob bosses and other fraud sisters, presumably jeff sessions might have an opinion on that different from the one that donald trump has. nonetheless, the two men in this very public dispute today. and now behind closed doors together here at the white house. >> mr. sessions obvious lip rebuked by the president multiple times, including in this morning's interview about his recusal from the russia investigation. what -- what is his gam bit in

issuing the statement he did about an hour or so ago? is he effectively inviting the president to fire him or saying i'm here and i'm running it my way. >> it's certainly an assertion of independence, tyler jeff sessions has taken all of this very much on the chin over the past year or so. he has been subject to an enormous amount of criticism and people speculated why doesn't he resign why does he continue to take this and clearly sessions fell it was important to stay in the job for his own reasons. this is different, though, the first time we have seen sessions respond this forcefully and this publicly to the president's criticism of him and it comes at a time in which there is speculation on capitol hill that the president might be moving to fire him or others so it's a fascinating dynamic. something has changed here we don't know exactly what it is. >> you do ask the question, why does he stay in the job if his boss hates him >> clearly he feels it's important. you can speculate as to why. perhaps it has to do with the

ongoing mueller investigation. rod rosenstein, his number two, is running that in the absence of an attorney general who is recused. maybe sessions wants to keep rod rosenstein running that investigation. and he might feel he is making progress on issues important to him inside the department of justice and doesn't want to give that up. >> eamon, thank you. >> you bet. >> according to a routers poll economists expect growth to slow in the united states over the coming quarters. saying the trade war will inflict damage on this was echoed by kansas city fed esther george in jackson hole she told steve liesman bring a downside risk to the economy. >> i would cull it a downside risk at this point because we don't know -- and i know uncertainty can be a negative for the economy on the other side, if this wraps up sooner and we do have businesses that say i'm not wrd about it. >> let's bring in katie nixon,

northern trust welt and daniel demartin o booth ceo of quill intelligence and a rm former dallas fed advisers. danielle, beginning with you, how big a risk to economic growth is the trade friction or war? and how soon might we expect to see it unless there is some progress or resolution >> well, you know, tyler, i think we are seeing it we had the market composite manufacturing services survey out this morning and that -- they commented that growth is slowed to the slowest pace so far of 2018. so we are definitely starting to see as well as in the earnings season a little bit of the fallout. and that's on top of the fact that critical industries such as automobiles and housing -- we had another disappointing report this morning that's one that fed policy makers concerns that was voiced in the yesterday minutes but we have housing down at a february 2016 low right now. so it's not taking too much to

tip this economy but to esther george's point, we have still an economy that in some sense is roaring. initial jobless claims remain at 49-year low and that means the fed should continue on the rate hiking path which she said early yerl in the interview. >> katie, let's agree with what danielle said that we are seeing many so of the slowing here. how many tenths of a percentage point does a trade war shave off an economy growing nearly 4% right now. >> it could shave as much as 100 basis points. >> or a full% cut it by 25%. >> but it's distinguish important to distinguish between the economy and stocks and the impact on the stock market could be more acute perhaps than on the u.s. economy, both direct and indirect impacts on companies. we know we have an s&p 50 oh getting over 40% of revenue from

overseas the direct impact of a trade war with china would be. >> and yet you have kept your allocations very strongly in u.s. stocks. >> we have, tyler. and our perspective is that at the end of the day there will be -- there will be an agreement. there is sort of a murlt destruction element to this escalation of a trade war with china. there is just a bit too much to lose on both sides. >> that's a nice thought, isn't it. >> we think that cooler heads will previously at the end of the day and there will be some kind of agreement on the most important points which clearly are around technology and intellectual property. >> danielle, at this point what do you think the -- do you think the odds of a rate hike in december have gone down given what we heard from the minutes and given what you said in terms of the recent datawe have gotten >> you know, they have slipped a bit since prior to the minutes release. but by the same token they rose for the january rate hike. i think that the disparity we are seeing coming out at jackson hole is that peel like esther

george as she said this morning and jay powell would prefer gnat neutral rate be 3% i think that the dovish enclave there in jackson hole would prefer it be closer to 2% and that september poepgsly be the last hike of the the cycle but, again, if the unemployment rate keeps dropping i do not foresee jay powell as stepping back in december and/or possibly in january, because we are still a far ways away from 3%. >> katie, the consensus trade for months now -- i can't go back how long -- has been small cap u.s. stocks with limited exposure to international markets. is that still the right way to go given the outlook for what we have for trade tariffsen a everything else? the economy right now. >> kerrly the risk is high right right now on the trade front which tends to put you away from large cap stocks exposed from a valuation perspective small cap look like they really rallied and reflecting good news to danielle's point we are seeing some indications that

perhaps we are close to peak growth in the u.s. which is where the small cap stocks are most exposed. >> katie, what dom really wanted to ask you is who is winning the northern trust open at ridgewood and can you get him tickets. >> no problem. >> i'm not saying it. >> we are all set. danielle thank you very much good to see you. >> good to see you tyler. >> and katie nixon thank you as well. >> thank you. well the weather may be hot this mere but housing numbers are ice cold diana ol ig in washington with the details. >> hi, this is on sales of latest in newly built in july. a slight gain were the expectations but the opposite. and that after a frort realtors show as drop in sales of existing homes new home sales in july totaled 627,000 annualized about 18,000 less than expectsed a 1.7% drop from june. june was revised up slightly but this is the slowest sales pace since october of last year. also, another tick up in the

supply the number of homes for sale hit the highest in almost a decade and at the current sales pace, the supply of newly built homes is now at 5.9 months almost the highest in a year still with all that supply, the median price of a newly built home rose 2% annually that's the crux of the problem. afford ability builders are not putting up the lower end product. you see that in breakdown. sales of homes priced below $300,000 fell. but the priced above 750,000 rose and that's why toll brothers reported strong earnings they play on the very high end of the market all this bad data leads to you ask, is the housing recovery over if you want the answer it's on cnbc.com back to you guys >> heading over there to read more about it. diana thank you so much. here is what's coming up on "power lunch" another road block for pitcoin. the s.e.c. gichg the thumbs down to a series of bitcoin exchange traded funds

we tell you why that's tragt ahead. the face off on the fairway tiger woods and phil mickelson going head to hit for $9 million. you have to pay to watch it. the details copping up rapper, hollywood star and entrepreneur ice cube precip willing for the big three basketball seaso tn,he numbers and the roaded ahead power lunch back live after this break. >> announcer: this cnbc program is sponsored by tdameri trade. hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade

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check out shares of apple. the stock keeps getting better on pace for the best month in five years can it keep rally process. the gb out with a new note targeting the price from 245 to 250. saying it's good things on the horizon. joining us is dan from gbh welcome back to power lunch. >> thank you to for letting me be here. >> what is the primary reason for the price target move. >> it's twofold for us definitely the iphone cycle, the trifecta iphone cycle. we call it 350 million to 220 for street is for 2019 is achievable number. expectations are set what i view as conserve to

hittable but really the lynch pin it's the software services piece. because that's the key to the montization of the install base. we think $50 billion of revenue by 2020. i think that's key to the rerating we expect to see. >> how do you separate recurring revenue threw services versus what he get from the app store. >> it's a good question. we try to parse that out our opinion on the sum of the parts, the services business is worth about $400 billion in terms of looking at the sum of the parts here that's the focus right now it's always traded within a tight range. some will fret about is it sort of expectation going into this iphone cycle we think expectations for the first time in a while are set well for september in 2019 but the software services, that really creates a goldilocks scenario for apple li apple over the next 12 to 1 months. >> i see apple doing things interesting. they have tested their pricing power. pushing the price up up and up

and people are willing to pay $1,000 for the phone do they have similar power on the software and services side. >> in our opinion there is pricing power. s you see more content and services coming in there, potentially streaming services and more. >> once they've got you you have a an inincentive to stay and pay. >> similar to a prime member for amazon once in you are in when you look at apple going forward, you see the asp increase that continues into 2019 and i think fundamentally that long with the montization ob the services side, that's the one-two punch that i think the bulls are starting to look forward to over the next year. >> megacap technology investors not just apple, microsoft, you name them they're namerred with smaller units growing fast can move the needle. with apple how well do they have to execute to get the target and

investor expectations to match up with what they are doing. >> it's an execution story especially on the services side. steady state iphone cycle, that's something definitely within the band. but no different than dell has done to microsoft. expectations for the cloud they need to execute. that's the key on the services side for apple over the next 12 to 18 months as well as do they put more content in there? is there pricing power and making sure especially with the china head winds there is no snafu in the supply chain which is a lingering worry. >> are wearables what services were to apple a few years ago? is this an underestimated sort of piece of the apple pie? >> in your opinion it's -- ultimately when i look at apple, the sum of the parts, i think one of the things that's really starting to now be realized is that full full monetization of the echo system -- what you see is across the install base you start to see not just domestic but internationally they are

monetizing it's a montization story and that's part of the rerating we could see in apple along with just the buyback program and just a massive cash allocation strategy. >> dan, thanks. >> thanks. >> dan ives, gbh. >> we have a market flash for you. look at sharts of fire eye surging more than 8% to the highest levels of the day on news that google has hired the cybersecurity giant to help identify influence campaigns on its platform we are looking at the shares right now. a pick up in volume, 9.7 million shares traded, 8% to the up side see if that continues. >> all right alibaba taking investors on a wild ride despite a big earnings boat. should shefr investors stay away from the china stock or is now the time to buy? trading nation is ready to debate plus the simpsons predicted this back in 1993, a casino has come to springfield the first resort casino in massachusetts opens doors tomorrow we will take you inside.

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welcome back to "power lunch. time tor trading nation. i'm sarah eisen. chinese internet stocks in the red today quickly reversing a rally led by alibaba the stocks pummeled. bear market territory or worse should you buy mark tuper with strategic welt advisers and mark newton with newton advisers. how do the charts look. >> which mark. >> mark tuper. excuse me. >> chinese stocks in general have just -- having a rough time because the investment climate in china isn't favorable we like baba growing faster than amazon and priced at one third the multiple that signals a good long-term buy. they posted an awesome quarter beating the top and bottom lines. they showed they are not affected by the trade war and still down the earnings showed that the chinese consumers actually still strong but what i think it's

suggesting is that there are fears of the chinese economy on a going forward basis. our thoughts are that overall weakness in the chinese economy, slowing retail sales and weak currency push the stocks lower so we would not be buyers right now. but we do like the long-term prospect for baba. >> whether they deserve it or not mark newton mark tuper paints a negative picture around sentiment. proxy for china would you touch the stocks. >> we are getting close to bottoms and many are off 17 and 25% in the last few months what's interesting is you note the dollar started to turn up sharply this spring. and that directly coincided with chinese equities losing luster we have seen pullback in the the past couple days it looked to bounce that failed as of to do. near term i see the chance for weakness and particularly in the next three to five weeks but many are down to decent

levels pl. alibaba for example near 175 or 176 or baidu many are attractive levels to buy technically. i don't think the worst is over. but there is a bottoming process at hand. and the dollar if it pulse down that should help a lot of the em space and particularly china i think a lot of the names do deserve consideration for intermediate term trade on the long side. but you have be to patient. >> and watching the dollar as always thank you mark newton and mark tuper. for trading nation you can head to the website or follow us on twitter ijts next up, united states and china ramping up tariffs. we take you liver to the busiest shipping port in america what could be the front lines on the trading war. how it could get hit. >> the latest from trading

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the only index in the green right now, the dow is down by just about 70% or a quarter of%. s&p down but 2.5 and the nasdaq up by 8. materials financials energy are the wortsz performing. and the tech is the only one in the green. within tech ahmed synopsys and n individually are leaders sue herera for the update. >> here's what's happening at this hour. authorities oh found a tunnel stretching interest from a home in mexico to a former restaurant in arizona it's 22 feet deep, extending to 590 feet long. they say it was used to move illegal drugs from mexico into the united states. migrant mine erps disembarks barked from an italian coast guard ship last night as a political dispute continues about what to do with the rest

of the migrant remaining on brody. the interior minister said he will not let the migrants come ashore until other european countries agree to take them in. the more than 170 migrants were rescued from an overcrowded boat a week ago. here at home, american airlines is changing carry-on restrictions for cheap face father the passengers will be allowed to bring a bag onboard starting september 5th. and a truck carrying 7,000 pounds of live lobsters rolled over in brunswick maine this morning. many of the lobsters were packed up and hauled way they won't be sold because unrefrigerated for take a look. the driver was taken to a hospital with non-life threatens. >> you might call it a crustacean cleanup dom, back to you. >> lobster roll perhaps. >> very good. >> thank you very much

the oil market closing for the day. let's get to jak deangelis at the cnbc medicatedty desk. >> crude prices pretty much flat on this session. this is after that 3% move higher yesterday on the steep inventory draw no surprise there is a pullback today alonged is the stock market as well pl the the inventories were not drawing with seasonal patterns yesterday bucked the rend. but it doesn't mean we're not seeing the drawdowns and see them stop in a week or two post labor day. under $$68 a barrel. crude is in the exact range predicted. some telling me it would take a geopolitical issue to spike over session low 67.32. in the last week a 3.5% bump back to you. >> thank you very much. today the united states levied 25% tariffs on $16 billion worth of chinese goods china nounlzed intention to retaliate. the ongoing tariff fight will be felt across the country especially where the goods are shipped in and out of the

country. we are joined by gene soroka, the executive director of the port of los angeles. welcome. >> good afternoon. >> i'm guessing this has been an extraordinarily business summer for you, as importers and exporters -- but mostly comporter tried to bring in goods to beat whatever tariffs were applied am i right about that? and do you have big backlogs >> you're correct but the port is running more fluidly than ever we have seen not only the normal peak season rush for back to school goods, fall fashion and year end holidays, but exactly as you stated, the cargo moving in with purchase orders advanced to void potential tariffs. but with the work we have done thus far in creating the port opt myselfer with general electric transportation and the way we see goods with a deeper line of sight and have better planning with service providers has allowed us to move more cargo than ever.

in july the best july ever with more than 833,000 container units and the fourth best month in the history of the port of l.a. >> how much material that comes in and out of the port of l.a. and long beach could be subject to the tariffs what percentage? >> if everything goes through, tyler, at this point we estimate about 25% of all of our laden cargo could be accurate impacted that could be container lined up from l.a. to new york and back. >> wow that's a lot of goods. what do you expect to happen >> well, we have a couple of thoughts number one, 50% of our nation's imports go into the manufacturing stream and those are the exact companies and jobs that we are trying to raise the level of competitiveness for throughout the entire dialogue. >> they're not finished goods. they're not finished goods, right. >> that's exactly right. and so where we fully support

making sure that these companies are competitive, creating great jobs, we want to get down to business and let's get to some negotiated settlements and move cargo our business doesn't handle uncertainty well and everybody is moving to try to get ahead of this curve. >> what are you anticipating, gene in terms of the volumes coming in in the near future i mean, there has been as you mentioned with tyler, a certain amount of full poured in terms of the cargo coming into the country. what are you anticipating in terms of the traffic coming in, the goods coming in, given that pull forward, plus the new tariffs that are going into effect >> yeah, for the next couple of months we see the volume remaining strong i am concerned if this continues to go on in a pro tracted fashion we may see a lighter fourth quarter than we have been used to. >> gene, dominic here, what about the ideas of warehouse availability we talk about this idea of no backlog. often times it's because of putting it somewhere

is there a shipping concern that we are running out of space for all the stuff coming into the ports. >> you're exactly right. there is a tipping point at some juncture in and around los angeles and southern california is the world's largest warehousing complex, more than 1.8 billion square feet of transload facilities, warehousing and distribution centers if more goods stack up you could see a bottle neck in that area through the visibility tool and the collaboration that we have cross the stake holder groups we are trying to keep that as fluid as possible. we have to watch it closely. >> what percentage of the goods inbound or outbound are highly or moderately perishable >> good question on the agriculture sides, which is the second largest commodity grouping on the export part of our business, extremely important to us. and watching that, again, having a deeper visibility in the supply chain to what our co-ops

and ag organizations want to do is crucial unfortunately we have witnessed times in the past where bottle necks and congestion will hit that commodity sector and we don't want to repeat that just through all of this work that's happening now. i like our chances to make sure we are doing it the right way. on a perjury basis you are looking at 12% to 15% tyler. >> thank you very much, going to we appreciate your time. and i'm sure we'll be checking back with you from time to time. coming mink up next on the show ice cube and the big three league one day away from crowning a new schfrp. how has the league performed in the second season? and the exploding popularity for hoops helping the bottom line there? r nvsaonipofafr oucoerti ts f te the break. bumper and up go your rates. what good is your insurance if you get punished for using it? news flash: nobody's perfect. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. switch and you could save $782 on home and auto insurance.

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nba players may be still be enjoying the off season. but big three basketball is gearing up for the championship game tomorrow in brooklyn. the three on three league is in the second season and attracted a lot of high profile former nba players and is apparently doing a good job at filling seats as well pb, hitting a in new audience attendance record in dallas last week 16,000 fans turned out to watch the playoff

round. what's driving the interest in let's bring the coveder and ceos of ice cube and jeff cube, maybe i start with you are you surprised things have gone so well for this particular league >> i mean, not surprised we put a lot of hard work into it we got some great partners who are, you know, helping us bring the league to this -- to the world. and you know, we were hoping to be in this position, you know, we believe in three on three basketball we feel like, you know, in the summer there's an audience out there for the league and now people are starting to come to the party. so we are pleasantly surprised. >> jeff, how have you grown attendance in the sports popularity it's only two years old at this point. who is the demographic and how has that changed if at all over the past two seasons. >> actually, our demographic is

young compared to the more established sports three-on-three is accessible kids play in the street. it's the most popular played support in the world cube and i spent a lot of time going over the rules played into quickening the game, making it fast, exciting and you know, we are doing great with 18 to 34. i hear from all my friends how their kids love it you know, so even though when we first came out with it people thought, oh, older guys, getting the nostalgia crowd. cube and i always believed in the support. and the sport is showing itself to resonate with a younger fan base. >> i couldn't agree more process. my son who is 12 is a huge fan watches all -- not all but a lot of the games he likes it. he likes that he can hear the

players talk and trash talk sometimes. but cube will you explain to me which my son is so bloody fascinated with brian skabrina. >> he is the white mamba he is a cult figure. he gets between him and dr. jay they get the biggest applause in the building youngsters love three on three they play at school you a all the time. >> it's their game. >> i remember being at school playing a lot of three and three trying to get in the game before the bell rang. the sport has a fan base that's young already because they do it, you know it's hard to get a five on five game most of the time. >> cube, i want to get your thoughts as well on this this is about building a pipeline of players in the future we have heard about maybe kobe bryant, maybe black mamba is

there a possibility of lebron james years down the line? how do you plan on building the pipeline of talent to keep the league going. >> the way to keep it going is that the players have fun, which they are i mean, the reason we have taken a quantum leap this year is originally people thought we're going to have -- you know, get together, you know, see your old friends and play some three-on-three and then a professional league broke out. people raemzed year two that you have to train, you still have to have the hunger to play. you know, the kobe's, jason terry's, vince carters, younger guys who are playing overseas, you know, when january and february roll around, if they got that itch and they are ready to workout and they really want to play they will do it. every year we have guys telling us now they are going to do it and disappear.

and guys say they are not going to and then they do. so we know that it's a sport that's working and the guys are having a good time that's part of why, you know, kids, they don't want to see people not have a good time. and i'm a knicks fan. >> it's tough to be a knicks fan. >> i get credit for hanging in there. >> let me ask sort of a business-related questions you are putting fannies in the seats. you have tv contracts. what do the players get paid to play >> they get paid a flat salary everybody gets paid the exact same, players and coach, flat fee. and then we revenue share. you know, you come in first. you get first place money. you came in 8th, you get eighth place money. that's the real prize is you know this league growing,

getting to place where this revenue sharing is, you know, nothing to sneeze at and we'll definitely see the league grow, you know, just from that you know. >> and tomorrow night's game 40 features three's company and power. three's company coached by the great michael cooper and power coached by the even greater nancy liebermann prance the biggest star in women's bub. >> two new coaches. >> two new coaches and famous names every one of them. i'm routing for nancy liebermann, not because she is a female coach but because she went to college in my home state of virginia at old dominion university. >> there go. i got one last thing cube, interesting about this we have lebron james starting up the hbo special about the barber shop setting are you looking for hat tips or royalties about his barbershop versus your barbershop.

>> the barbershop is there for everybody to enjoy i think everybody has learned something going in and out of a barbershop process have at it lebron. we did our three movies. so have at it. >> all right ice cube, jeff, thank you for joining us. >> 8:00 tomorrow fox. >> 8:00 on that network, live. >> that which shall not be named. thank you for joining us here. >> thank you sticking with sports it's called one of the biggest head to head matchups in golfing history, november 23rd, thanksgiving weekend, tiger woods phil mickelson, play a winner take all match for $9 million in las vegas. the faceoff will air exclusively on, yes, pay-per-view television on turner sports br direct tv and at&t u verse. mickelson said the format will be match play and there will be challenges during the match.

for example, a longest drive or hey, i bet you won't make that putt, something like that. can you imagine the regular weekend nas you a that game of yours. >> you you know what's interesting is the way golf is televised, sthot to shot to shot but this is two guys walkings course and they have to walk three hundred yards for four shots. four 1/2 hours they'll pig it out. >> i don't know, melissa you and i would do pretty well. >> i don't know how to play golf you would do well but not with me. >> save my thoughts on this. >> exactly. >> i'll save my thoughts on this match. $$960 million resort casino, the first of its kind set to open in spinningfield mass tomorrow. contents aire brewer has all the chips with the story. >> so brand-new, tyler, navgt the slot machines still have spit sparkle on them they haven't been played yes yet. it's a new casino with old

bones. we tell you why coming up why mgm bets on the 300-year-old new england town coming up on "power lunch. to improve short-term memory. prevagen. healthier brain. better life.

a $960 million luxury casino resort set to open for the first time ervin massachusetts springfield, to be precise contessa brewer is there in springfield, massachusetts, with a look inside. hi, contessa >> yeah, this was a revolutionary project for mgm. nearly a billion dollars to revitalize three city blocks, save historic actecture and incorporate seamlessly a high tech casino into 300 new england town it was ravaged by tornados in 2011 but all of that wreckage, the blue tarps covering the

roofs got mgm's attention, and today people will work they went from four employees to 16 with a contract to dry-clean unifoorms from mgm springfield her business more than doubled >> just trying to stay afloat was the main goal. and now our goals have shifted into possibly growing and hiring people and giving benefits to people that really deserve it. >> mgm's ceo told me it was very important to him to promote these partnerships and really highlight what makes springfield special. >> every single one of our properties is curated to the local environment. that's why we embrace local partners, why we hire local businesses, why we insist on our diversity. >> and this property now becomes

the city's biggest taxpayer worth $25 million in taxes and contributions annually match and the mayor said importantly it's a real catalyst for bringing new developments into the region >> how are they going to make money here this is not exactly a big metropolis and it's not all that close to boston. >> no, it's about 90 miles from boston so it's a bit of a drive. and don't forget next year there will be competition with those boston gamblers, but mgm says, look, we're a premier entertainment company first and foremost and they did a news conference up stairs and they said we're not in the hotel business. we're in the holy s-h -- you get where i'm going here and to say nothing the dr. seuss

museum is here >> tyler's on the next out >> it's a lot of competition, though >> well, i would wager that they have raised the holy s-bar i see what you did there thank you, cteonssa. we can leave now almost check please is next

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at your local mercedes-benz dealer. mercedes-benz. the best or nothing. earlier on we told you about the olive garden unlimited pasta pass they have now sold out they sold out in less than one second according to the company. and this is big deal i will say i was five minutes into the 2:00 hour and the eight-week passes had still been up >> you had the site up like at 1:30 refreshing it >> i didn't buy one because i'm not very close to an olive garden >> i want to talk about phil versus tiger in this golf match. i would pay a lot more attention to the $9 million on the table was there money. and number two, for guys who are probably worth how many --

>> gazillions of dollars >> i hope they take that $9 million of winnings and give it to a charity i think it would be the right thing to do for guys who don't really need $9 million >> but i would still watch thanks for watching power and thank you for joining us this hour. it is time for "the closing bell." i'm sara eisen in for kelly evans. thoughts on trade and president trump's comments on the fed and interest rate policy it's a cnbc exclusive. i'm josh lipton in san francisco. alibaba's big reversal why the chinese stock turned south this morning the new popular video game fortnight may have reached