twitter looks like it wants to get into that post earnings gap. >> nice to be back with all of you where. >> don't miss a new cnbc documentary. it's with melissa lee tonight, and it is on bitcoin boo or bust? that is tonight. >> i'm so there. >> right here on cnbc. look forward to the second night out. have a great rest of the day power lunch starts now >> thank you, scott. thank you, gentlemen i'm melissa lee. records to the s&p, nasdaq, and russell today as investors cheer a trade deal between the u.s. and mexico the details on the president's deal and the summer surge straight ahead howling the alarm. the wolf of wall street jordan belfort joins us to discuss why he thinks bitcoin was a scam, and he would know, right he was a former scammer himself. and serve as a u.s. open kicks off, tennis legend martina navratalova joins us on set. the state of the game and the biggest challenges and what the industry is doing to keep

audiences engaged. "power lunch" starts right now >> welcome to power lunch. it is another record day on wall street the s&p 500, nasdaq, russell all hitting all-time lifetime highs. look at nasdaq above 8,000. the dow, in fact, back above 26,000 consumer discretionary, health care, tech etf they're at record highs. facebook, netflix, alphabet, apple, amazon, most positive impact right now on the nasdaq 100. netflix, the biggest mover in that group, as you see there up about 2 2/3%. financials also on the move. morgan stanley, goldman sachs and citi leading as yields rise.

three-quarters of car content will come from the two countries, and about half of car content will be made by workers earning at least $16 an hour a mauf aimed at disinnocent viesing outsourcing from the u.s. ag cullral tariffs will remain at zero, and most importantly to the market, this deal will not automatically expire after a certain amount of time it's called a commercial understanding between the two countries while president trump calls it a deal and one that's an alternative to nafta without canada here's the president in the oval office >>. >> negotiations will start i'll be calling the prime minister very soon, and we'll start negotiation, and if they would like to negotiate fairly, we'll do that.

you know, they have tariffs of almost 3 opinion% on some of our dari products so we can't have that we're not going to stand for that it's a tremendous amount of money, and it's a very simple negotiation. >> leaders have been cautiously optimistic about today's announce am. the number two senate republican john cornyn called today's announcement preliminary and both he and the top lawmakers on trade, orrin hatch, say a deal would have to involve canada senior administration officials say ideally canada will be a part of any end deals, one that would be notified to congress by the end of this week, and signed into law by the end of november. we'll see whether they can work out those contentious issues that you heard the president mentioning there >> thank you, kayla. >> stocks are the big carmakers

rallying phil is adding to the story. hey phil >> the reason we're going to show you what those two stocks are -- they're up having one of their largest gains. each having their largest gains in several weeks, if not several months it's because they are the two largest importers from plants in mexico into the united states. there's a little bit of a relief rally here that there's not going to be some huge massive 25% tariffs, and also some certainty involved for mexico, the importance of this negotiation is one that kayla has been talking about for some time. look at the auto exports 2017 it was estimated a little over four million vehicles that were exported out of mexico. the overwhelming majority of those headed to the united states it's not just the auto manufacturers. it's also the part suppliers the three biggest part suppliers out there, among the three biggest, making in a, leer

up 3.5% today. there is the certainty not only manufacturing in this deal between the u.s. and mexico, but also because of this agreement in terms of content, either in the u.s. or in mexico, to a certain extent that ends the back door that many felt was opened with chinese and asian part suppliers moving parts into mexico that eventually were put in vehicles that were sent up here to the united states. this agreement apparently we need to look at the details, could close that door and that would certainly be good news for the parts suppliers. >> in terms of the key issues remaining with negotiations with canada, what are those for these auto parts makers as well as the automakers >> the same thing that they were with mexico. locking in agreement especially with regional content. and the automakers who had the biggest exposure in canada, you're looking at general

motors, and toyota which has a huge presence. phil lebeau in chicago for us. stock car rallying today the nasdaq crossing 8,000 for the first time ever. the dow back 26,000 as well. bob pasani is at the new york stock exchange hey, bon >> optimism on trade and earnings we are broadening out. the rally is broadening out. you know about the major indexes. they are hitting historic highs. most important thing i watched, again, at record highs new highs breaking out and fairly modest. that's the one thing i'm not seeing i expect that will happen if the rally continues. most importantly, the average stock is hitting historic highs. no, it's not fang names that are doing well the average ones how do i say that? why do i say that? look at the s&p equal weighted index. 500 stocks all equal weighted. essentially sitting right around that high of the old january 27th high. one of the big ones, though, the value line geometric index, this is one of the granddaddies of index. it's about 1,500 stocks equal

weighted and the important thing is that daily change is very close to a median stock price change, that's why a lot of professional investors watch it. it, too, sitting at an historic high this is what i mean when i say the average stock, median stock is now moving pretty well. trade optimism has really been the mover of the last few weeks. if you look since the middle of the month, u.s. dollar has moved out, and predictably a lot of things have moved up, internet stocks, emerging markets, metals and mining, semiconductors all have risen this is predictable moves when you get optimism on trade. these are the kinds of things that move. the same tame we've seen momentum stocks coming back into the market techs have a little bit of a hiccup a couple of months ago. sisk yoi, netflix, amazon, visa all up this month. finally, this is part of the great rotation even low volatility names. your pharmaceutical stock, your overall consumer staples names have partly contributed to the rally as well, and you put that together, tyler, all of these factors, you get very big momentum back to you.

>> all right, robert thank you very much. a late summer surge on wall street it's bob and others have detailed where is the opportunity now to buy? here to take us through this sandy, the villery balance fund and -- global investment strategist with brinker. let me start with you, sammy how important is the apparent resolution of the trade friction between the u.s. and mexico to your market outlook? investors don't look uncertainty. now i think people can kind of dig through the rubble a little bit and find some of the names that maybe they were under valued for other reasons that are company-specific in the way that i do, and put them away

>> we don't look at things fro a top-down approach, but if there's individual stories that are cheap because of those macrofactors, then it is an opportunity to buy i think a lot of the semiconductor names have come down they've been under pressure, and there's some good values there that we like a lot certainly an opportunity in my opinion. >> if you have you been beeg into this rally, and if so what? >> we've been overweight u.s. equities and small caps in particular for some time, but we also have a buy and store em, and that's hurt the last couple of months. bob pasani was talking about the weakness in the dollar, the sentiment improvement with trade. we think a lot of the weakness in the end has been driven by higher rates here at home. a lot of this has been just a flagrant quality people worry about the trade rhetoric, and if that's tread rhetoric dissipating, and if you look at em equities raud broadly and sentiment and flow perspective, they've been really, reallyioned, and we

think that adds to in particular, especially a trade rhetoric improves and offers meaningful up side to the end of the year >> as the trade rhetoric improves as well, though, tim, is that less of a reason to continue to invest in small caps >> you know, as people start to look further and -- that may take some of the bloom off of small cap's rose if you look at the structural tail winds for small cap right now, the tax, the deregulatory environment, incremental buy-backs here at home, we still think small caps in the end if we had to pick two specific equi equity niches, they are still -- >> i hate to take on the role of debbie downer here, but essential there has to be some headwinds here when you are looking at geopolitical problems, the president problems with some legal issues, constitutional issues, midterm elections coming up, and a lot of political friction there. sandy, what do you see as

potential challenges for the market >> yeah. i mean, so one issue is that if we solve all these trade war issues, then you are going to see if the fed is almost a foregone conclusion, they're going to raise in september. december might be also a foregone conclusion if all this uncertainty is put to bed, and we don't have to, you know, then -- if you see where inflation goes and that sort of thing. definitely a lot of issues around the white house, et cetera, but we're just laser focused on finding good quality names to trade at reasonable prices, and we're going to buy those and sort of try to forget about the macroclouds, et cetera >> head winds? >> yeah. you know, you think about seasonality, september and october as the two weakest months for u.s. equities you have the fed likely going again in september, and then you have the constitutional stock and the special counsel investigation. if you put all that together, we wouldn't be surprised to see a bit of a pullback in to the fall, the calendar tells you that is probably going to happen as you step back and think about fiscal policy, earnings,

hopefully improving trade rhetoric, you know, at brirngbr capital we've been overwatt u.s. equities, and we think that positioning continues to make sense. we wouldn't be surprised to see a bit of a pullback over the next eight to ten weeks or so. >> tim and salary, thank you very much. the bond market right now to your notes are up for auction, and rick santelli is tracking it at the cme rick zhoo hi, tyler yes. we have 104 billion of coupon supply we start out with 36 billion two-year note, and the grade, c-minus. charlie minus. not a bad auction, but nothing very spectacular yield 2.655 was basically the -- 2.89 better to cover -- 43.8 indirect is a little worse than ten auction average. the really light number was 13.7 on the direct. that was the lightest since february of this year. dealers say 4 -- contessa, we

will now go to the five-year note auction tomorrow. back to you. >> all right, rick thank you. president trump says the trade deal with mexico will be very special for farmers up next, we talk to a representative from indiana who has just met with farmers in her district what are their concerns? does this deal fix the problem as we head to break, a look at the stock today. all-time highs today american express, nvidia, union pacic,fi csx power lunch is back in two we have a question about your brokerage fees. fees? what did you have in mind? i don't know. $4.95 per trade? uhhh and i was wondering if your brokerage offers some sort of guarantee? guarantee? where we can get our fees and commissions back if we're not happy. so can you offer me what schwab is offering? what's with all the questions? ask your broker if they're offering $4.95

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stay connected while you move with the best wifi experience and two-hour appointment windows. click, call or visit a store today. president trump announce aid new trade deal that could pave the way to replace nafta altogether trump says the deal is a win for farmers. >> mexico's promise to immediately start purchasing as much farm product as they can. they'll work on that very hard >> in indiana the problem goes beyond mexico, though. it also involves canada and china. with us now is republican representative jackie wilarkski of indiana i understand you just finished a town hall with the corn farmers

in your state. what do they have sos about this deal with mechanics do >> skbro there's a lot of united spirit here, and we're all, including me, very grateful thankful to president trump and the ambassador for getting it so far. they need to know that, you know, ve, very quickly they can kick up this production, and they're going to be certain what the details are of that bill i stand with them today and just pretty much say that, you know, in our districts we're the largest manufacturer end users of aluminum and steel and that has everything to do with china, and here the retaliatory actions of china are taken are still going to be an impact. while the farmers are happy and optimistic, as am i, we still have a couple more places to go here before we can say that we've really, you know, won this battle and put our farmers on top. i'm -- i am cautiously optimistic that this is really good news for our farmers. >> the u.s. chamber of commerce

with the three industries that are most affected by retaliatory tariffs are from indiana are about metal and yachts to canada i just did the yacht story how important is canada coming on board and making a free trade deal for the state of indiana? >> well, canada is an important player, but i do believe that canada will come to the table. there's a lot of things we do. the state of indiana is the fifth largest exporter for a state of 6.2 million people, we are a large player of seeing the end users, producing things, selling things into whatever market we can get into in canada. sure they play a role in that. i really do believe that canada will come to the table. >> what about china snl the president is talking to china

right now, and tactically, but i imagine that there are a lot of farmers who are worried about chinese retaliation. >> they are. as am i. i joined a letter with the chairman of the weighs and means committee two weeks ago to send to the president to say, please meet with president chi. go to china and meet you two sit down at the highest level and let's just strike a deal a deal that's fair everybody knows china has been a bad player stole our intellectual property for decades, and that china is a bad player that's where the eyes should be. i'm speaking up for the jobs in my district because that's my responsibility >> the farm bill, i know that you signed it, but the farm -- followed by more than half since 2013 there's a $12 billion dielt on the table to help support farmers during this brewing trade war? are we doing enough for the nation's farmers >> i'm grateful, as every farmer

that is here is grateful for that supplemental package, and no one is going to say they're not, and it's smart on the president's part to stand with them as they stand with him. at the end of the day nobody wants open markets quicker and faster than the american farmer, truly the hoosier farmsers they want to grow and compete and do what they're trained to do supplement the package they're grateful nothing will take the place of getting in that market and excelling, and that's what we do here in the state of indiana where. >> how strong among farmers is support for the president? >>. >> i think it remains strong i think when i talked about patience, they're standing patient. when you are a family farm, the marnlins are small very dependent on whether crop insurance in my district this is real america they believe in the president's plan or the policy they're just fearful of the uncertainty, but this is a good step forward to getting us there and getting us to hang together. they're supportive >> representative, great of you to join us today we really appreciate your time

>> thank you so much >> president trump is claiming victory on trade at least with mexico big tech companies are hoping the administration can do something on immigration why the industry could lose thousands of workers and what they want the president to do about it plus, we talk bitcoin with the man who inspired the movie, the wolf of wall street. >> the question is it's all legal.

>> employees are able to work in the u.s. under a provision of the visa that the government has indicated it may revoke. thousands of h 1v 1 workers companies from amazon that rely heavily.

>> we spoke with one holder, and her husband is an h1v1 worker at facebook she says the high cost of living, they are forced to leave the u.s. if she can't work. >> it's the administration really feels like by highlighting it for us >> two huge interviews coming up on "power lunch. first, jordan belfour -- wait until you hear what he has to say.

the sport is struggling to stay current with the times power lunch.

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are. >> hello i'm sue herrera. here's your cnbc news update at this hour. the national parks service says it has evacuated liberty island and the statue of liberty after an apparent construction mishap sparked a fire the fdny responded the fire has since been put out. no word on any injuries. more inspection koomgs out on the man injuring two and at the madden video game tournament overnight authorities identifying the gunman as 24-year-old david katz from baltimore, maryland. he was an avid gamer, according to reports, and he won the madden 17 buffalo bills

championship in 2017 >> four days later and the rain continues in hawaii. this after hurricane lane spared much of the state, but it was the big island of hawaii that got hit the hardest, seeing more than four feet of rain that triggered widespread flooding some neighborhoods have been left under water throughout the island several major landslides were also reported, and several other roadways remain closed autonomous taxis hit the streets in tokyo it's what's called the world's frs. a driver sits behind the wheel just in case the company is aiming to develop driverless taxis for reasons including overcoming a driver shortage that's the news update this hour guys, back to you. >> still someone in there to chat with on your taxi ride. >> exactly >> the important -- >> the important part. >> thank you >> let's get a economic on the markets on this recordsetting day. right now the dow is up 254

points weave been up to 80 in earlier trading. the s&p up 21, and the nasdaq now up 6 9d points materials, financials, and industrials, your top performing sectors. goldman sachs, caterpillar, dow, dupont, and jp morgan are leading the dow, and semis among the big winners here it is has been ae rough year for bitcoin. the currency is up -- the only thing more volatile than its price might be the debate that surrounds it a new cnbc documentary, bool or bust, i talk to the bulls, the bears, and even a wolf jordan, the wolf of wall street himself, explains why he thinks bitcoin is a scam, and he ought to know. >> i was a scammer, i was. >> jordan belfort, aka the wolf of wall street

you know he served two years in prison for securities fraud and money laundering, but he says he is a changed man, and he is sounding the alarm >> i say a portion of my firm was not legitimate, and that portion was based on the manipulation of stocks i had it down to a science, and it's exactly what is happening with bitcoin >> there are two things that dictate manipulation >> they convince people to buy stocks >> what this trade will do is search as a benchmark for future business >> you also control supply, and bitcoin especially very large

and it's owned by a small number of accounts. we don't even know how bad it really is. for these average people who are really, you know, with a good heart and walks in saying i do it because i believe in it, and the long-term thing just run >> we don't need that center let's bring in jordan. >> i know all about it, but my problems with not just bitcoin, but the current crop of crypto currencies is really having to do with the fact that the world's governments are not going to allow this to happen. traction at any level. i always go back to this quote by -- way back in the day that if you control the nation's money supply, you don't need to write the laws

it's outrageous to think that they will allow this to take hold that's my biggest issue. >> do you did you ever enshat between bitcoin, which has the biggest market cap in terms of crepto currencies and some of the smaller coins, the ico's for the world. >> the bitcoin itself is not a scam, i don't think. what's happening is there are scams around it. these are perpetuated by its very nature of the dark market you can't see what's going on behind the scenes. you know, people dive into that, and use it to rip others off it's not that bitcoin is a scam, but it's nature allows scams to occur, and that is what's been going on >> it might even be better off for bitcoin in this long run to step in as they've done in terms of setting up chatrooms for penny stocks, et cetera.

snoo the central banks don't want it. why now allow an anonymous bank that lends itself to make money laundering very easy to hard to track down there's no way that it's entered -- i don't believe any shot in the world they'll let it happen >> that's my opinion sflo so you think governments are going to step in and squash it >> they already have, and it will get far more aggressive, and we don't know how bad it is yet. >> there are huge problems, regulatory >> how much as a former money laubd irer, how much easier is it to launder money with a crypto currency than with using a standard banking system?

>> it's significantly easier because, again, you know, by its very nature there's no central authority regulating it. that being said, at a certain point it has to be converted back to a regular currency, and that's when it becomes vulnerable you know, either way it's just -- look at it logically you know, the government has spent so much money and resources to try to stop money laundering why on earth would they say, oh, yeah, let's just give up control of the money supply. let's just let anyone have anonymous -- there's no way -- it defies logic, and also, the issues, it's a massive waste of energy it's an inefficient thing for the merchants to do. it's expensive and slow. it just -- it makes no sense there's no good reason why this should exist other than pure speculation where more people are involved, and you can make money on the other only investments. i don't see any reason for it. >> if you think it's a scam, does that mean that there should be criminal charges against so-called scammers >> of course, there should be. listen,ing i was probably -- 95% of the people on bitcoin are

legit, but it's the 5% that kill you every time 24eshd go to jail, and those that aren't scamming, i feel bad. does there need to be a huge scam does it need to be a big swindle like the one that you staged >> my guess is that you you're going to find probably with this tether that is linked to bitcoin, if -- there's one my guess is there was never one for one. >> i would be shocked. the evidence that i have seen right nows says they're not, and it issues these opportune moments. when you need it to be there, it was issued i don't know it doesn't -- listen, very smart people besides me are saying it

defies logic, and also, remember, i made this 20,000 right? it's just as useful at -- why is it going up to rapidly doesn't make sense >> the original wolf of wall street by the way jordsan may be speaking out against the 5% in the bitcoin kmoint community who might be scammers. we have got the other side of it as well. they say this is a true alternative. like africa where there are very few options when you want to transfer money, for instance, or transact the documentary premiers tonight 6:00 p.m. eastern time on cnbc

also, visit cnbc.com for more sneak peeks. >> and coming up we look forward to that tonight at 6:00. coming up, much more on the market as we see a big rally in stocks today the dow above 26,000 again it first appears to that level back in january. s&p 500, new record. lots of record highs for individual shares. nasdaq, crossing 8,000 for the first time a day of some history on wall street stay with us h school. really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer free access to coaches and a full education curriculum- just to help you improve your skills. boom! mad skills. education to take your trading to the next level. only with td ameritrade.

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open kicking off today and this year there are some new rules designed to speed up the game. we'll talk tennis with tennis legend martina navratilova what the sport needs to do to keep younger fans engaged. they will be in studio they're live and they're next. it's absolute confidence in 30,000 precision parts,

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>> the s&p, nasdaq, russell all at lifetime highs. the nasdaq crossing 8,000 -- not 800,000. 8,000. zhoo that would be something >> that would be something >> for the first time. for more on today's moves, let's bring in art cashin, director of floor operations with uvs financial services art, welcome when everyone starts talking about how great things are, that's when i start to worry just a little bit. is there too much consensus and too much rosy glow around this market or not >> i think we're getting near the border, but not quite. what you have to watch for now is when president trump announces that he has spoken to prime minister trudeau, and if the market goes up again on that, then we're getting -- i think you want to keep watching

them here. you had alarian on "squawk box" now saying he thinks there's a 65% chance that we are getting a very favorable end to the trade war tariff fight, and things are going to work out, and i think that kind of belief is growing around people, and i think that's why you got new records here again, not to discount it because it is august it's on light volume it's more of a seller's boycott than the fire stampede >> yeah. >> as you look at september and october, those historically chb tricky months, to say the least, for the market i guess the thing that worries to the extent anybody is really worried right now is pace and magnitude of interest rate hikes. >> yeah, no. i think so yet, poul was rpowell was reass, and he was more dovish than people thought

if you throw -- he thinks they should stop right now. not even raising september there is a dovish-leaning fed for now, at least, and that is also working out that's the interesting thing we've had the dollar weaken slightly over it is last two weeks, and that's helped stocks out too. >> all right, art. thanks good to see you. >> my pleasure >> art cashin. >> the 50th u.s. open kicks off today in flushing, queens, as tennis fights to keep its audience in a rather crowded sports landscape eric is at the u.s. open looking at what the sport is doing to hold on to its fans and presumably, eric, to make sure that the younger fans are getting attracted to tennis early on >> that's right. younger fans, we know especially, have a very short attention span, and that's been one of the big things as far as tennis is concerned. the state of their business. the thing you're going to snow especially this year for the first time ever, the entire u.s. open will have a surge flot.

an nba shot clock. they want to keep the pace going. 25 seconds after a point ends, you better be serving. that's starting today. another thing. there's a big debate in the ten iks community. should the men's match be best of five or best of three to keep the pace quicker kblo i really believe in the grand slam, that he makes long matches and matches that stay there. no, ma'amly more than -- >> another thing we talked to him about is the fact that a lot of people would want to see him and roger federer play each other in a pay-per-view match just like tiger woods and phil mi mickelson are doing for golf here's are his thoughts on that matchup. >>. >> a couple of things. maybe in the future you have something else

and, yeah, work as well. why not repeat at some point something special and especially for -- >> then, finally, one thing the u.s. open -- the u.s. tennis association is doing for setting up the tennis -- it's in orlando. they expanded their national campus they want to get kids and they want to get families and get them playing on these in a low cost way they're hoping that will grow the sport from the grassroots level so they can finally make it to here >> our next guests know a thing or fwo about tennis. one is a renowned champion, and another runs a television network dedicated to the sport joining us now tennis legend martina navratilova, and ken welcome to both of you >> thanks for having us. >> eric was just talking about some of the renovations at the national tennis, and this is the 50th u.s. open where, before that it was closed to professional players the renovations are really quite amazing, aren't they >> it is remarkable. the usta has done a spectacular job, and the new armstrong

stadium, we had no room, and now we have two. it's really remarkable ash stadium now, armstrong as well >> and chord so that if it rains, we -- which it's been doing a lot up here in new york this summer, you are protected let's talk about then we will bear down with you martina. they are up. and that's rare in broadcasting these days. >> not for us it's not >> who is the president. >> why and how are you -- why are they up? and how are you protecting your -- your business against the cord cutters >> well they are up because of martina appear her team. >> yes. >> and that's only partially being self-serving the reality is that it's part of who our brand is we are the overnight success it's probably. >> success built after 13 years. >> you got it exactly. numbers are up distribution is up radically we doubled the distribution in 18 months. up to 60 million homes will you hear more announcements soon the tipping point is happening if terms of young viewers we

were focus ds on it all away we were talking about it we have been omni channel and platform since day one we streamed when no one knew what streaming was today we built this to be -- cord cutting we could accommodate. but we record nevers this is a channel where we have tennis panhandle plus, thousands of hours of live coverage available. and because tennis is always on it's a perfect solution. >> what about the sports itself? is there something about the sport itself atracking and keeping the younger audience it's not just about multichannel and offering clips on twitter, et cetera. >> i'll let martina jump in. the thing i would say is look at we have players competing between 60 and in their -- you know, roger pushing the limits in his late 30s, god for bid it's a sport with always great exciting young personalties. the aging came a little bit with the aging of broadcast television this is a perfect which to

balance that and we see the average go down a lot. we are using celebrity and all the things you normal normally did celebrities love tepp zblies the u.s. open is on track to become the highest grossing tennis tournament in the world how does that happen >> well i think next year will be the next major and just keep competing. but i think the biggest reason is the social media, the internet, the international aspect of the sport. we have so many more players from all the countries playing that you never heard of. we have two greeks playing in the main draw. one of them could go very far. >> box office, yes. >> it's just been so much more diverse all the way around and i think because of the internet the connectivity and the accessibility of the players to the spectatorers and the younger fans make a difference. >> let's talk a little bit about the best player in the game. you're the best player in my book of all time on the women's side by far.

>> thank you. >> serena williams, she was out of the open last year because she was pregnant, gives birth. some people quibbled with the idea she is seeded as high as she is even though her world rank something lower and on those numbers doesn't justify it is this much ado about nothing. >> yes, absolutely with serena, if i'm playing i don't want to play her early in the tournament i don't want to play her actually actually. you have to seed her at least a little bit higher than the ranking bus she hasn't played enough tournaments to get the ranking. >> she got to the finals in winlen. >> i don't think anybody is quibbling. i don't think serena cared whether she is 25 or 17 as she turned out she has to beat seven players on the way to win the tournament. >> i want to ask you about the game overall, but particularly the men's game i believe that three of the greatest players of all time. >> playing right now. >> on the men's side are playing right now. three of the top ten of all time

for sure but there isn't an american man who is regularly competitive at that level why hasn't american tennis, particularly on the men's side but also the women's side not generated -- that's not quite true with the women's side because of serena and sloan stephs. >> all four fiernlists were americans and one wasn't. >> tennis is more international. i think the other countries have caught up. number one and number two it's cycle al and years ago. it was great and then they have to retire. and it takes a while for new guns to come through we got lucky american tennis was lucky with pete and andre and john mcen roe pvc. the young generation hasn't quite caught up. >> absolutely. there isn't a country you go to around the world, unless it's

switzerland, spain, or serbia who doesn't have o ask themselves that question and you just answered it you are looking at a situation where it's been hard to break into a semi for over a decade. well over a taekd. in fact we made a film about the roger/rafa rivalry strokes of genius getting a buzz. and martina is one of the stars out. it talks about the fact that in 2008 that rivalry was thought to have culminated at the '08 wimbledon final. >> still here. >> then ten years later they are number one and two onning six of the last seven majors and novak is back. all of a sudden the challenger as he was seven abeight years ago. breaking it up it's a remarkable run. you have to look in the context of history >> can we talk about tennis equality in pay? i had interviewed serena and venus about breaking through the barrier, which is good news for

tennis and now female athletes, the highest paid female athletes are tennis players but i had sated as a commentator you earned $15,000 from the bbc for your role in wimbledon where john mcen roe was paid as much as $200,000. is there challenges in tennis for pay parity. >> that was settled and john worked more but still it came to he was making about three to four times as much as i was for the same amount of work once we knew that it was hello and bbc fixed it and everybody is happy now. that was unusual i think overall women's tennis is leading the way in the equal it i. >> and sponsors you expect to see the sponsorships even out in the long run. >> eventually. again, you know, the corporate world is run by men. so many countries women can't compete. we're still paying catch upbut closer to equality than ten years ago. >> final question. if you played serena how would you take her on?

what would you do. >> come to the net. >> because you were the best net player. >> i have to psi spots about coming to the net. but still come to net and tri to make her hit the balls she doesn't want which is low and wide but the hard part with serena is getting into the point she has the best serve ever and big returns as well. once you get to the point i think i'm okay i would have loved to have played her in the prime. >> would have loved to have seen it ken, martina thanks. >> thanks for having us. >> less than three weeks after saying funding secured elon musk gives up the plan to go private but that's not the end of the issue. the trouble the tweet is causing coming up. and the results of the classic car auction are in and the numbers are huge we'll tell you what the big items sold for all over the big market rally. the second hour of power is two minutes away

i'm tyler mathisson welcome to the second you are hour of power on the record setting day for the mechanic here is what is on the menu. it's a record breaking monday. nasdaq above 8,000 the first time s&p, russell 2000, all-time highs. the drivers for the late summer bull run straight ahead. and nafta no more. the president announces a trade

deal with mexico excluding canada for now and scraps the name the president says altogether terminating. is it a good move or will it isolate the ally canada. we deent debate that the world record for a car not speed or horsepower. the ferrari gto sells for $48 million there it is at the weekend auction. we pru viewed it last we can not the only car to break records. the numbers ahead as power lunch part du starts now. >> ♪ shut up and drive snoebs shut up and drive ♪ ♪ >> and welcome to power lunch. melissa lee, a record day and wall street with the nasdaq abrussell and s&p all at at all time highs .nasdaq crossing 8,000 first time snpd 500 aladding .8%.

and russell 2000 he'd eeking out a rice. the materials among the leaders ewe titles the worst perform he is. materials m the etp, the i about b the b on pace for the best day of the month now up nearly 12% this year. and the semi stocks wow, rolling led by amd that stock is nearing a 12-year high that stock on track for the best monthly pormtz since november 2009 contessa. >> thank you melissa i'm consequencea brewer beginning with news out of washington that a trade agreement is reached with mexico eamon javers is live at the white house with the details. >> we know that none of in is official until congress votes ultimately no clear time line but we get new details on the agreement between the u.s. and mexico by the u.s. trade representative robert lighthizer the important the points, starting with the time line, we

are told no sunset provision in this deal. that was a key negotiating point. but it lasts 16 years. and every six year a review period in which all parties can raise concerns and say we are getting out of this deal in ten more years if we don't fix the concerns it gives a process for uping throughout the period of time that the deal is in force. it has to be approved by congress the steel and lum enough number tariffs in place remain because the section 232 tariffs are not addressed in the agreement also, on the auto side there is rule rums of origin in terms of parts that go into making an automobile 75% of the car content must come from the region, the region in which the deal is done up from 629.5% in the original nafta deal a certain amount of the labor producing the cars must earn $16 an hour. and a certain amount of steel and aluminum in the vehicles must come from north america now the big question here is what about the canadians

well the president addressed that in the oval office a short time ago here is what he said. >> we will give enethem a chanc for a separate deal. we can have a separate deal and put it in this deal. i like to call this deal the united states mexico trade agreement. it's an elegant name nafta has bad connotations for the united states because it was a ripoff, a horrible deal for our country. i think it has a lot of bad connotations to a lot of people. >> the president there saying he wants a new deal and a new name for that deal. we saw a warm phone call there between the president of mexico and the president of the united states they talked about hugs toasts, and the president assembled a lot of the rest of us beginning that conference call having trouble getting the president of mexico on the line at the beginning but got it worked out. >> thank you very much eamon eamonafters at the white house the trade agreement leading the markets higher at this hour. and throughout the day let's check in with bob pisani

at the new york stock exchange following numbers and action. >> the rally is broadening that's the most important thing happening. today it's about trade but this is going on a couple weeks now. look at the sectors melissa showed you those the important thing when you get tech, materials, industrials and financials all moving 1% or missouri that's a powerful rally. that's dragging the market along with it. today, of course trade predominates you see big ig o big industrials moving on traded kaerlt pill couplens, oshkosh, big industrial machinery companies all moving about 2%. that's a typical move on positive trade talk. no tariffs perhaps on mexican car imports, obviously the car companies are going to be doing better gm and ford, warner, mag that all up 2, 3, 4% overall. again, emerging markets, another typical 2% 2% is very typical on positive

trade talks. mexico, south africa, brazil, etfs you can own them all. all 2% this happens fairly frequent when you get positive trade talk the bottom line is it's not just trade but the rally broadening in general sometimes you'll see value stocks come up sometimes you see tech sometimes you'll see consumer staples. but it's moving and not just the major indices hitting new highs. the advance dlak is getting high but the average stock with representative by things like the s&p average stock index is hitting historic highs that tells you that it's not just fang stocks anymore the overall market broadens out back to you. >> bob when you see the move in financials today on a flatter yield curve than we have seen in a while, about 20 basis points at this point that tells you. >> that's a sprites. >> that rotation is under way. >> right again the broadening of the market overall

normally that might not happen when you see the flatter yield curve that's not good. but this is dragging everything with it. >> bob, thanks bob pisani and nyse. the russell hit agnew high kevin o'leary has been a big believer in small caps and joins to us discuss that trade and throw in tesla as well kevin, good to see. >> you great to be here melissa. >> small caps caught a bid this year on the thinking that they're more shielded from some of the international macrofactors, the trade issues if the trade issues seem to come to an end or if things become better on the trade front, does that spell the end of the small cap trade? >> no. i'm going to bet and i have continued to stay on this trade, that for the next two years the full impact of tax reform will play out in enhanced cash flows in small caps. because what we have seen now is primarily driven by a

deregulatory -- deregulation removal because a lot of the states that were in with california, texas be, florida, new york where the small businesses operator headquartered have had relief of regulations we never talk small things like restaurants and like restaurants in the back and frosted glass that never get on the radar that cost a lot of money. they are moving. and that's why you see the momentum but i say there is 20% more cash to come to the companies in the next 24 months in tax reform i bet they continue to outperform not only the s&p but maybe even emerging markets. there is tremendous value to be unlocked in small caps in america. >> is there a valuation point can be we have o kevin in terms of small caps, russell however way you want to measure the valuation of small caps where it becomes more challenging to make the case >> yes, you're making a good point there. but let me point something out there is 2000 names in the russell 2000

the majority do not make money and many of this them are reits. both of are not attacked by tax e.r. a reits are not affected by tax reform you have to do a fair amount of work i'm talking on book when i say this but ousm only has 238 of the names. that's how i own the russell 2000 that's made by the russell 2000. because i asked them to. >> kevin where, you're an astute observer of canada and politics. what do you think unfolds there with respect to a trade deal between the u.s. and canada? the president used a lot of bluster with respect to mexico now parental there is an understanding there. he has been similarly frosty from time to time with the prime minister trudeau in canada what do you think about the prospects of a deal there? >> i watch this closely, tyler, because i'm invested in both countries obviously. and if things started to go sideways for canada after the g

7. that was a bad meeting it's fair to say, this is personal observation, the replace between trudeau and trump is probably not constructive as a result of what occurred in those three days in quebec city. kudlow also slammed hard and after that the canadians were no longer invited to discussions around nafta and the mexico situation now canada is asked to take a deal particularly negotiated around automotive without them at the table it's essentially a discussion that goes like this, take it or leave it that's very difficult for trudeau because right now he is back in election mode. he has an election to deal with in 14 months he wants to look strong and trump specifically said today in his press release that was verbal with the mexican president that he wanted in $270 peppers dafrs removed off dave o dairy. trudeau can't do that because 78 seats out of the 334 in the

canadian parliament depend on the subsidies. he loses the election ifs if he wednesday over like that i think it's very difficult. these are nasty discussions. >> kevin, turning to tesla initially when elon musk tweeted that he was considering taking the company private you thought that was brilliant to use your word looking back now now that it's over, now that there is the s.e.c. investigation into elon musk, class action suits against the company, now the stock is lower, compared to the levels it was at on august 7th, the day of the tweet, what do you make of it still brilliant. >> i still say -- i still say it's a brilliant move because there was no telling the stock is going lower it has infinity p.e. personal opinion no chance it goes private. makes no sense it has the best capital structure now to raise money, whether debt or equity, the stock an infinity p.e. you could call elon musk brilliant because he is in a industry that trades generally 15 and 17 times process.

and he currency that's priceless. i assume what's happening is he has to bring in new drerks with lpgts backgrounds in automotive motive that's smart for him he won sloo sleep on the floor in the factory anymore. but the opportunity to expand in china is interesting at the end of the day if you get to use the infinity p.e. stock stock to raise money even though it's controversial and everything remember one thing this company has no legacy in kbugs construction nothing hold going back from changing the margins in the automotive industry forever. there isn't isn't a single engineering in the plan that worries about kbugs engineering they manufacture new conceptuallyic from scratch. and i love the car and neverbu the stock. >> all right kevin thanks. kevin o'leary of shark tank. >> as we have been discussing a trade deal with mexico is helping to fuel a rally on wall street today will the rally continue into fall and if so where does your money work hardest for you bringing in kevin monn be, the

president andchief investment officer alat walsh and mark, great to talk to both of you we heard kevin talking about opportunities in china for tesla. but already kevin tesla says it's hiking its price of the cars in china and has to because of the tariffs how concerned are you that the president said today now is not the time to negotiate about china. >> i think the threat of pro longed trade wars has served as a brake on prices. once we see positive negotiations on the trade negotiation as we did this morning we are seeing the emergency brake lifted last week we saw the emerging markets 3% when the u.s. markets up 1%. today emerging markets up 2% i think that's tremendous progress in terms of the trade negotiations now the next two cs, canada first and china second china is clearly more complicated but if we get

positive reports out of those negotiations there are up side for u.s. and international stocks. >> and art, what do you think? can canada come to the table with any leverage? >> yeah, contessa, i think the mathematic has been held back for most of the year from january 26th coming in last we can with the marilyn head wind on trade and not seeing the exit ramp at all. i think the first good news we are willing to negotiate with mexico transmits into a administration willing to negotiate with canada not escalate europe and then taqle china. china is difficult not this year's business. but the incremental success is giving incremental increase in the mechanic neither of us wants a destructive trade relationship we are too important logistically and we can get something done with canada next. we don't escalate to autos with the you're zone. we have proven we want something accomplished there then the real problem china dumping steel and aluminum on the theft of ip.

>> art, kevin, thank you for the cliff notes today. appreciate it. >> all right coming up what satellite he is gps technology and a language processing can tell bus the health of the chinese economy when the country's government isn't telling us much. and how you can leverage that for your portfolio plus, the etf using artificial intelligence to pick stocks. it's the first and only one of its kind how is it doing? that's the story maid. and the 2018 pebble beach classic car show in the box, the record books a look at the cars and cash spent on them ahead. power lunch is back in two short minutes. 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.

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investors from 7.9 billions into emerging equities in july, $5.3 billion went to china acre the institute for international finance. to get an edge on the cash and where is going black rock emerge willing equity strategies is focusing on gps and satellite imaging of chinese construction sites. why. jeff chen is from active equity. berate great to have you with us. >> thanks for having me. >> what sort of picture do the images paint versus the data from the chinese government? >> so what we are looking at is really china get as much

tlernltive data source as possible, given that people are certainly looking at official government statistics. but we think that alternative data sources such as gps tracking vehicle moving around or looking at satellite image looking at content on the ground can give us a potentially different view and what's been interesting is certainly what we are looking at is there is a significant slow down in the second quarter but we are seeing stabilization coming into july and august. so i think the sentiment certainly has been negative on china. but when you look at the fundamentals, that gives you a slightly different picture. >> there is a short fall in this isn't there jeff, in terms of measuring a country's effectively economic growth and activity by things you can see from the air not necessarily within a factory which would be much more tech focused, correct? >> absolutely. i think it's also got a timeliness to the overall data in the sense that gdp forecast

pmi tend to be lagging but satellite image and the gps information are happening now. to great extent it's a now casting type of information. essentially giving you a sense where the economy is right now as opposed to three months back. so from that perspective this information can be potentially more timely. and could be better for predicting future stock prices >> it's like looking at an aerial photo of a parking lot from the a u.s. mall and concluding whether the business is good or not when you consider these kinds of non-traditional data collection points, what percentage of your overall analysis is derived from the non-traditional data points if you know what i'm saying as as opposed to conventional ones. >> i think we are you know, moving towards a sort of percentage higher and higher but roughly speaking it's the 40, 50% of the data sources come from this alternative data

sources. >> interesting. >> and every month the data we track is probably larger than the library of congress in washington, d.c. and i took my daughters there and it's a big place we are processing a lot of the kind of larger set of information. and trying to see how is that different or similar from the public information we have in the traditional economy indicators i think it's. >> sorry, jeff but do you think approaching research in this way puts any pressure add any sort of impetus to the chinese government to be more transparent in reporting? >> i think china is certainly pushing more and more into the big data, artificial intelligence i think a lot of the information they are also trying to track. and the interesting thing here is really when we look at satellite image it's essentially looking at metallic content on the ground how much metal is moving around. if a building is come up, more instruction moving around opinion the objectivity of in information is something that

everybody in the world should embrace. >> fascinating thank you for sharing. >> thanks very much. we have a news alert and uber jackie deangelis has those. >> good afternoon. toyota is set to invest about $500 million uber technologies part of an agreement between the companies to work jointly on the terror driverless vehicles, according to female familiar with the matter, coming from dow jones. now remember toyota's investment values uber at $72 billion, a little bit higher than softbank earlier. toyota is up before this news. and next talking chips not the kind you eat, the electronic kind, the best versus the worst. it's amd versus applied materials in trading nation next your brain changes as you get older. but prevagen helps your brain with an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory.

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♪ ♪ our new, hot, fresh breakfast will get you the readiest. (buzzer sound) holiday inn express. be the readiest. ♪ busy day and o on wall street and also busy at the white house. president trump meeting with the canyon president in the meeting room. >> thank you very much. >> thank you very much and thank you for the warm welcome. as you have said, we have strong relations that stretch back all

the way to our independence. and we are here to cement that partnership. we are here to strengthen it the support we have received as a country, especially with regard to our security and defense cooperation has been immense, a really good opportunity to speak with white both in his former capacity and current capacity and we worked well together. and i want to take this opportunity to appreciate that but more importantly as we work on the aspects, what's the most important what makes our country survive is the trade and investment partnership and this is what we want to deepen much more as we go forward so i'm looking forward to this discussion and looking forward to seeing how we take our relationship now to the next level. >> good. >> foor the mutual benefit of of our two peoples. >> well you are here on a special day because the stock market is up almost 300 points

today. we just signed a trade agreement with mexico. and it's a terrific agreement for everybody. it's been in the works a long time it's an agreement that a lot of people said couldn't be done and we did something it was very special. great for our farmers, workers and our stock market just broke 26,000 for the first time ever in the history today we have the highest stock price we have ever had and we are very happy about that i said that was going to happen. and it's happened. everything i said is going to happen it ends up happening. you picked a good day to come we're in a good mood. >> let's hope we try some of that. >> we'll bring it to kenya thank you very much, everybody thank you.

>> press let's go make your way out. press let's go let's go we're finished. >> thank you. >> they always end on such an unruly note. the president pleased that the stock market sits at a record high and the dow above 26,000 as he notes. back above it now once again time for trading nation. call it the tale of two chip stocks advanced micro, soaring 40% over the past month while applied materials sinks. will the divide continue in eric wold is oppenheimer. and bappsa with the group. what do the charts tell but these two. >> this is a great example and the desertion in the semi equipment industry i plotted both these charts on the same panel so you can really

see the differences and the bifurcation taking place first up, amd. that's the top panel this had a terrific run. let me start off saying this is not a tactical idea just given how far it's run in a short amount of time however, our strategy is based on letting your winners run. and this is a winner so if you are in the stock there is nothing to do very little resistance to point onto until it gets back to $40 this was the peak back in 2000 applied materials on the other hand already rallied to the 2000 high last year now turned lower here the trend is broken. now, i think it depends on the market if the market continues strong which we think it does i think there is a floor here but if the market if proved wrong there i think there is additional downside risk given the broken trend. stay away from that. >> all right thank you very much arie, miebl your thoughts. >> as compelling as thes dharts

look we believe technology continues to drive the markets higher which drives demand for semi conductors. that being said amd needs to take a break it's been a three-bagger since april. we recommend you swm out amd at amet nine times next years areas you get a dividend of 1.82 while you wait we think over the next 1 to 18 months you will be better off in amet. >> staking the ground there michael. thank you to you and for more trading nation, folks head it the website or follow us on twitter at trading nation still ahead, what's the president's trade deal with mexico what does it mean for the future of nafta what does it mean for farmers and manufacture zbleers plus crazy rich asian and dinosaurs and superheroes making the american box office great again. but is the greatness short lived? a look at whether the hot strategic can continue

taking a check of the markets right now, a record-setting day across the board. the dow up more than a% opinion a s&p 500 up .75%. financials having a good day city group and jp morgan all seeing a pop of 2% or more on the session. and auto stocks moving higher following the news the u.s. and mexico reached a deal. fiat, ford, toyota all up more than 3%. sue herera has the news update. thank you very much melissa. here's what's happening. events are planned across the country to pay respects to senator john mccain. on wednesday, mccain will lie in state at the arizona state capitol followed by a service at

forth phoenix baptist church later this week the senator will become only the 30th american to lie in state at the capitol rotunda in washington, d.c pope francis declining sunday to confirm or deny claims by the vatican's retired ambassador to the u.s. that he knew in 2013 about sexual misconduct ails tweens the former archbishop of washington. but we rehabilitated him anyway. francis says the 11-page text by archbishop vigano speaks for itself and he won't say a word about it what we have known about pollution caused by plastic bags, utensils and straws. but that is the number one man made contaminate in the world's ocean. cigarette filters more than 60 million collected oh on the world's beaches over 32 years. and jimmy and rosslyn carter get to work building homes in

northern indiana for the 35th carter work project. this year's event focuses on constructing or improving 41 homes in and near southed bend still at it after all the years. contessa back to you. >> you know what's amazing about cigarettes that people think the world is their ashtray just throwing them on the street. >> that video was sickening. but there you have it. >> there we go thank you sue. the oil market closed for the day. let's get to jackie at the commodity desk. >> crude prices higher again today. longside stocks renewed strength in crude from prospect of solid demand that coincide with the stock strength the dollar weakness supportive of the trade the session high 3 cents high of the p making its way back up despite the strength in crude prices gas prices are two cents layer over the last two weeks. the national average for a gallon of regular 2.91 still

under $3 back two tyler. >> the u.s. strikes a trade deal with mexico. president trump calling this the u.s./mexico trade agreement. paycheck the way to replace nafta altogether the president saying the deal is very special for farmers and manufacturers. joining us with reaction douglas, of the of the american action forum and gerd bernstein at the center of budget and policy priorities. douglas, take it away. was your initial to the deal such as we know it it seemingly goes a lot to the auto manufacturing business and auto parts manufacturing that's why car stocks and car part stocks are higher. >> well, i think if you step back, the starting point for the whole discussion is an area where there are very little trade barriers tariffs by and large between the u.s. and canada and mexico and are low. there aren't enormous gains coming out of any of the deals getting a deal is avoiding going

backwards. i think markets reward that. but i don't see it as a tremendous step forward. given the authorities of the president, he can't negotiate a bilateral deal with mexico he can only modernize nafta. given the range of issues left with canada we are far from over the finish line. so this is good news in that progress is, you know -- negotiations continue ab, progress being made but it's not a big deal. >> i've been dimly aware of the idea that he can't negotiate a bilateral deal how does he get around that- that sort of legislative stipulation, doug? >> he can't get around it. the congress has delegated to the administration trade promotion authority. it does it with parameters they can't negotiate anything they want. the parameters were allowed to design tpp to go forward which is a missouri modernization of

nafta. all that is fair game under his authorities. but he can't go to mexico and say let's have a deal. he has to get that ratified from scratch on capitol hill. and so they're a long way from anything assemblings passing the congress. >> president president, jared. it's good for american farmers and works what's your view. >> starting with the workers he has a point. i checked in with friends in the lain community this morning and they said they hiked what they were seeing. doug is definitely correct about the tariffs. there is a lot of stuff in nafta that, of course, american workers, american manufacturers have long disagreed with rules of origin, the higher wage stipulations apparently in in agreement, and taking down of the investor dispute slmt, which i understand is out of the u.s. mexican part of the agreement, those are big deals for the part of the community that's arguing not so much about tariffs but about things in nafta they have

long disliked. i agree with doug's point, by the way, about the political machinations of this and how we are not nearly at a deal but two points on that one i think what the markets are saying is they really like free trade and don't like the kind of chaos that trump creates with trade wars any time the trade war seems exacerbated markets sell off and vice versa as we see today but i think it's the case that trump would be perfectly willing to pull out of nafta appear do a bilateral with mexico and canada because that's what he likes it's a long complicated process as doug said with you i don't think trump would necessarily sustain that path. >> i want to agree with jared on reading the psychology of the markets and this i think every step from a trade war investors reward i think jared has done the analysis on the auto workers and those sector correctly

but i want to know the irony the wage stipulations, the content stipulations, the sourcing for iron and steel in north america, those are all non-tariff trade barriers. and for the administration to claim the strategy is to get the agreements with lower barriers to trade while negotiating trade bar years that doesn't hang together. >> doug, i want to just turn the conversation with your forgiveness, jared, to your friend and -- and colleague, john mccain. you were his economic adviser during his 2008 presidential run. your o-s of a man who gave really his entire life to the service of his country. >> well, let me just take this opportunity to thank jared for a nice note he sent me about the pass of john mccain. it's a class ac and i do appreciate it. john mccain was a gigantic figure and everyone knows so much about his tremendous dedication to liberty. his desire to have democracy

spread across the globe, his vast commitment to the freedom of people. but his fantastic interest in engaging in politics, going to townhalls and talking about policies with american people i think was one of his strengths he was genuinely committed to enhancing the power in the average person he didn't like big powerful entities stepping on the little guy. he was constantly trying to promote their interests. if that meant having more competition in the market to help consumers that was great, the small c conservative in him. and it was very real but it meant he had to regulate a large entity that needs it he believed that that too i always thought he was misunderstood. he was genuinely conserve and deg indicated to the republican party. but more than anything else if he thought he had had to reach across the aisle to make people better off that's the way he serve. >> i only had the pleasures of meeting him one or two times

and he was wickedly funny. >> yes. >> can i tell of an anecdote. >> can i say jared i can't tell one because. >> here is one you told me doug and i once had a the heated debate early in the morning like 6:00 and i got under doug's skin. doesn't happen too often but doug got volatile and the debate ended. doug's phone rings doug telling me it's john mccain saying doug what are you getting so excited about? and you know i thought that was just pretty characteristic that he would take the time out to call a colleague, doug and tell him hey, chill down. and the man -- boy, we are allis missing him. >> all right guys. >> you could see the smirk and the smile when he said it. it was over the phone. but i knew exactly how he looked. >> thank you, gentlemen. and on that cheerful note --

anyway, thank you. >> coming up there is an etf using artificial intelligence to fix stats and it's beating the market look at how ai is trading and whether active traders should feel threatened duncan just protected his family with a $500,000 life insurance policy. how much do you think it cost him? $100 a month? $75? $50? actually, duncan got his $500,000 for under $28 a month. less than a dollar a day.

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well, active managers beware because the robots could put you out of a job he can which bot as ticker aieq is the first and only one of its kind using artificial intelligence to pick stocks. how is it doing? so far the etf is up 15%, outperforming both the dow and s&p. here to tell us more is the coveder and c.o.o. of equi bot artificial intelligence you have to put human parameters in the first place how does it work. >> the high-level concept is it mimics the progress of the army of research analysts working around the clock specifically that means pulling in financial statements on six thousand u.s. companies using ai to analyze the team. using ai to. a million social media posts and articles every day. >> i covered the gaming

industry you have little boyd gaming on here up 4% one of the top ten comes in at number nine. they look at individual companies and saying here is how geopolitical factors can could influence it appear a drad deal with mexico might influence bau it's computers doing the work what's the advantage. >> yes the advantage is to get all the information right, millions of news articles, social media post-ings to distill the information into one mind and it's impossibled to do that across the army of analysts they doept know what they are thinking the scale and speed it's replaceable with human humans. >> how are the algorithms are they to value value over growth. there are certain biases embedded in the algorithms in the way that they're programmed. >> yeah, so -- so it does recognize a bunch of various

factors capitalization, valley versus growth. but it's more than that. those are individual data points who the manage team is how they execute on the strategy, the various events happening within each individual company. all of those are equally important to whether we invest in a small cap company or. >> it was a rocky start though because when you first launched it was -- it was underperforming. what made the turn around happen >> yeah, so i guess it goes back to the machine learning element. right in the background we are running thousands of hypocritical portfolio was be test portfolios we learn from every trade we make and didn't make and also across the hypothetical poermts >> how does it turn over. >> we look at 1 to 2% a day within the portfolio. >> annual turnover rate that's very high. >> that's correct. >> 300% something like that sfl there are some efficiencies about utilizing the et

f to wsh out some of the capital gains. but it's a i whoer turnover process. >> he is had what's the fee is on the etf. >> 75 basis points. >> 75 basis points that's on the high side isn't it. >> it depends. >> well it's 75 basis points >> it's on the high side, isn't it >> it depends. it's an active etf compared to an index >> you have to remember maybe we don't have a total of 13 analysts but we have a total of 13 engineers >> you've got to pay them. >> exactly >> thank you for coming on and explaining a little bit how the robots are going to replace us coming up it is the weekend car collectors wait for all yearlong, the pebble beach car collection just wrapped up >> it was a huge week at pebble

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welcome back to "power lunch. the 2018 pebble beach car auction is in the books and it was one for the record books robert frank was there he's here now with us to share in some details. a big whopper. >> it helped we had those intreble markets on friday just lifting everyone's mood. and that helped the bidding in pebble beach over the weekend with 13 cars selling for a combined total of $370 million now, a big reason was this car it's a 1962 ferrari 250 gto that became the most expensive car ever auctioned fetching

48.7 million it was a great result for the seller i asked why anyone would ever pay so much for a car. >> it's very hard to fathom, but you're in a space where you have collectors and car collectors and fur furoarry are a collective car it's an amazing car to have. >> and another car to have was gary cooper's dusanberg when it sold at $22 million, twice the estimate vintage jeeps, trucks and vans did well newer super cars, not so much. they failed to sell, and my

favorite car the ferris bueller ferrari, it's a rhelplicca that sold for $407,000. it's interesting what they call the blue collar collector and they love the old jeeps, the broncos, the trucks and the lower mileage the better just get in reverse for a long time and it'll take the mileage off. check please is next farm, , to jar, to table. and serve with confidence that it's safe. this is a diamond you can follow from mine to finger, and trust it never fell into the wrong hands. ♪ ♪ this is a shipment transferred two hundred times, transparently tracked from port to port. this is the ibm blockchain, built for smarter business.

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all right, time now for check please and unmowed lawns the sign of a strong economy and tight labor market, yep, it's because and this is according to an article in the wall street journal there's a big demand for these h2 visas and not a lot of competition for labors during the summer months. you get a contractor to get your flowers clipped and your lawns weeded not enough people to do it >> call my son >> i'm looking for a premier of a blockbuster tonight here on cnbc, and as a lead up to the special we've got a couple of special guests

roger ver, and charlie lee, the founder of light coin. all leading up to that special >> all right, thanks so much for watching "power lunch. >> "closing bell" starts right now. it's time for "the closing bell." i'm wilfred frost at the new york stock exchange. it's good to be back we've got stocks soaring to record highs on news of a trade deal between the u.s. and mexico all the details straight ahead i'm seema mody at the nasdaq the tech heavy hitting 8,000 for the first time ever. i'm break down the key movers. netflix is the third highest grossing app on apple's app store. the streaming giant is reportedly creating a system that could change all that and we've got the tesla short seller who said he was adding to his short position the day musk tweeted