or changed 9% dividend yield, 11 times earnings >> mr. weiss. >> guess what else has nasdaq exposure, biotech. i like it, continues to move, i watt more. tilray is completely bananas, stay off drugs. >> that's always good advice. folks, welcome i'm tyler mathisen rally on trade talks between the u.s. and canada are resuming and the american economy is having its best performance in nearly four years. will september be a green light for the bulls? september can get tricky sometimes. facebook under fire from employees over its liberal culture. this comes as president trump warns facebook, google and twitter they are treading on troubled territory is big tech facing the dreaded "r" word as in regulation? and rising risks are cnbc's special report on how

increasingly severe weather impacts america's real estate. today the growing crisis in miami. "power lunch" starts right now welcome to "power lunch," i'm melissa lee. let's get a check on the markets. nice gains across the board. the rally rolling on for the nasdaq that is hitting new record highs. amazon and google helping to fuel those gains morgan stanley raising the price target on both of those stocks, now becoming the biggest bull on the street morgan boosting amazon to 2,500 a share, alphabet to just over 1,500. we'll drill down on names getting crushed. you can see the carnage there. cannabis stocks are smoking now, tilray leading the rally on the back of its strong revenue growth. i'm contessa brewer, here's what's happening more clues about the health of housing. signed contracts to buy existing homes fell for a seventh

straight month in july mortgage applications are also falling. shares of roku are under pressure after amazon reports it will launch a similar video service. and shares of square rising. guggenheim raising its price target to $100 naming square its best idea. >> thank you very much records once again for the nasdaq and s&p 500 the dow getting closer but still about 500 points away. the rally rolling on at the new york stock exchange where we find bob pisani. >> hello, old friend in the traditionally slow month of august, optimism or trade is the gift that keeps on giving. it happened again today. let me show you the s&p 500. look at that circle. that's when we got word about canadian foreign minister chrystia freeland making optimistic commentary saying progress was being made by the united states and mexico and canada to resolve their trait

differences and the market just started lifting. now we have word prime minister trudeau in canada said there may be the possibility of a deal on friday the bottom line is it just keeps working the trade story overall. about 10:00 a.m. the dollar tended to drop this also happens on optimism on trade talks. the dollar down and that helps a whole bunch of things, particularly material names, steel names, energy names tend to rise. so there you go, materials and energy stocks are on the doupsie the trade stuff starts moving and the market moves in general, broadening out tech also moved up health care, a defensive name, also has been doing well this is what i say when i talk about the broadening out of the market what i'm waiting for here is to see some real big numbers of new highs, individual stock highs. we haven't seen that yet but we're getting very nice tech breakouts, adobe, paypal, visa,

microsoft, salesforce, cisco, apple, for example big cap tech breaking out. the last leg of this giant move up that we have seen in the last few weeks is going to come in the next few days. i would estimate about 25% of the s&p 500 is less than 2% from historic highs they are not there yet, so all of a sudden i anticipate in the next few days if this continues we'll see a lot of new highs outside of the tech field. back to you. >> all right, bob, thank you. the u.s. and canada are getting back into trade talks and headlines crossing just moments ago from that deal may be close eamon javers is at the white house with the latest. all right, what are you learning >> reporter: actually in ottawa, canadian prime minister justin trudeau is speaking this hour and we're getting some news out of those remarks, reporters saying that he has said he recognizes there's a possibility of getting there on a nafta deal by friday. that's the date that everyone has been looking forward to in terms of getting this done in time to have the deal signed by

the current president of mexico and not his successor. he also says in terms of the dairy industry, he's not going to negotiate in public but he'll defend what he calls supply management in the dairy industry trudeau saying any nafta deal has to be the right deal for canadians. here in washington, d.c., similar positive comments from chrystia freeland. she's negotiating on behalf of the canadians right around the corner from where i'm standing at the u.s. trade representative's office. here's what she said just a short time ago. >> we had a good conversation with three mexican lead officials who came to our embassy last night and that was very productive we now need to have some good deep conversations with our u.s. partners and that's what we're doing. >> reporter: so you heard both trudeau and freeland say they're not going to negotiate in

public that means we have very few specifics to go by here. all we can do is wait for the smoke signal to come out of the u.s. trade representative's office that they have a deal or not a deal meanwhile we'll watch the mood ring in terms of the comments that we get out of the negotiators. all of those comments right now seem to be in a very good mood indeed. >> do you know if it's going to be white smoke or black smoke? >> we don't know and what color the mood ring is going to be. i mangled that one. >> so many metaphors. >> eamon, thank you. we are just two trading days away from closing out the month of august. we've seen record highs recently led by technology. the nasdaq is on pace to have its biggest august percentage gain in 18 years is that going to continue into september? lindsay bell and scott clemons join us. lindsay, i will start off with you. when we get back from labor day weekend, we've got a lot of events in the first couple of

weeks of september alone we've got potentially -- we had this potential nafta deal coming this week but also the next round of china tariffs, the end of public commentary is september 5th. we've got tech executives marched up to capitol hill how should we position ourselves as we intercept? >> i definitely think the china trade discussion is going to be front and center, especially for the market you see how the market is moving on the positive notes we're getting out of the nafta talks and you also saw last week the market moved over 400 points higher on the dow when news came out that the u.s. was going to talk with china. nothing came out of those talks. if these $200 billion in tariffs go into effect in september, then we are going to have a major problem. the way we are still positioning, though, is for that cyclical second half to do really well. we've got tech, we think they'll continue to lead the way you see them pick up after second quarter earnings where

some of the big fang stocks stumbled but the rest of the sector was able to make up for that we think semis will continue to drive that sector higher. >> how do you assess the risk/row warisk risk/reward of the tariffs if that next round of tariffs on $200 billion of goods on china goes into effect, does that impede the market's ability to go higher? whereas if there is progress, some sort of surprise meeting announced before the midterm elections, maybe the market goes higher how do you think about this? >> this situation reminds me of the old adage that on wall street and perhaps in life as well, whereas the most anticipated risk is least dangerous. the least anticipated risk is most dangerous i think the threat of a trade disruption falls into that category of most anticipated risk does it pose a risk to market sentiment? there's no question. when you look at the underlying supports of market activity, how strong personal consumption is

we saw the consumer confidence numbers yesterday. how strong corporate earnings are. that's the tide coming in. trade may be the waves crashing on the shore but the fundamental tide is still coming in. >> what is the least anticipated risk that may be the most dangerous? >> tyler, the two things that i'm watching, one of which is the potential for trade or tariffs to begin to increase consumer prices to such a degree that it forces the fed's hand to raise interest rates more rapidly than they otherwise would. not an expectation and probably not even a 2018 risk, but as we get into 2019, that's a risk worth watching the other risk worth watching is the degree to which even the uncertainty around trade and tariffs causes companies to scale back hiring plans or expansion plans. we'll listen for that but those are two risks that could derail -- >> both trade derivative. >> no question. >> lindsay, as we head into what could be a more volatile

september, what sectors do you like >> like i said, we really do like tech. we're leaning cyclical for the second half of the year because the later part of a bull market is usually led by cyclical name. so we've got industrials and energy we think the energy names took a little hit on earnings because of the some of the issues with getting the oil out of certain regions, but we think supply will continue to support oil prices going forward so we like that sector. industrials, it's a cap ex story you saw caterpillar sales growth 25%. companies are spending on cap ex, the most they have spent since the great recession. we've seen it flat to negative and now we're seeing growth there. ceo confidence is still intact to the extent that can continue, industrials will continue to do well. >> got to leave it there, guys, thank you, lindsey and scott. news alert in the bond market, 7-year notes up for auction. it wouldn't be a day without an auction, would it, rick?

rick santelli tracks it at the cme. >> you know, tyler, nobody loves auctions more than me. considering how everybody is rightly preoccupied with deficits, maybe it would be nice to go a few weeks out one. we completed 104 billion in supply with 31 billion 7-year notes. the auction, the results 2.844 that's a tad lower that the offered side lower yield, higher price. so 2.844 was the pricing 2.56 bid to cover. that's the best since january of '18 owe almost the west of the year here's where it gets a little negative 64% is average for indirects on directs, 19%. that's 6 points higher than the 10 auction average we've had a couple of 19s but you have to go back to august of 2014 to find a higher number

b plus, boy plus was the grade a nice way to finish off in front of a holiday weekend if there is a sell-off coming, you would see it after the last auction. we'll have to wait and see, contessa, back to you. the u.s. economy recording its best performance in almost four years can the economy keep rolling on, or will the trade war derail that momentum? plus, the president heats up his feud with big tech the head of the internet association joins us with a response to the president's criticism of google. that's coming up on "power lunch.

green numbers for stocks one reason why is that the american economy is logging its best performance in nearly four years. gdp in the second quarter growing at a faster pace than originally thought coming in at 4.2%, up from 4.1 in the initial reading of t reading. will the strong economy continue toward the end of the year and what about after that? joining us now is austan goolsbee, former chairman of the council of economic advisers under president obama and lahnee chen gentlemen, welcome, good to have

you here austan, how sustainable, if at all, is 4% plus growth >> 4 i don't think is sustainable. some significant chunk of this upturn was rebound from a bad number in the first quarter, but i think strong numbers, let's say 3% plus in the near term might be sustainable for one year or something like that. that's what at least i'm hoping. >> lahnee, how much of this growth, the 4.2% in this quarter and what austan hopes might be 3% is traceable directly to federal stimulus into the pipeline, tax cuts and spending? >> well, i think you're seeing high consumer confidence i think that has something to do with the tax bill. i think you're seeing high business investment. i mean 8.5% annualized if you look at the most recent numbers we have today, which suggests that businesses are investing, i do think the immediate expensing provision in

the tax bill had something to do with that. so i do think that you're seeing some effects of the tax bill now, the question will be how long those effects can remain and whether in fact those effects will carry on into 2019. pretty sure we'll see them the rest of this year. >> what do you think does the sugar high continue >> i think that we will begin to see some of this wear off in 2019 i think the challenge here is figuring out exactly how much of it will remain and how much of it goes away >> lahnee, i've got to ask you, though, we're seeing deficit spending just skyrocketing now the cbo estimates the annual deficits are going to reach $1.5 trillion annually by 2028. how concerned are you eventually that what we're taking on just overbalances us? >> yeah, no, i'm very concerned about this problem the deficit hawks have all flown away there's nobody in washington who's really sounding the alarm on this, certainly no one in congress and not the republicans who for many years took fiscal discipline as a hallmark of

their policy platform. you're not seeing that anymore i think this is deeply concerning because you're seeing a lot of this not just from the tax bill, but you've got a ton of overhang from entitlement spending, from medicare and social security. as those bills come due, increasingly problematic -- >> and the president wants a new space manager, infrastructure spending and a lot of money spent on the wall. that all has to come out of the government's pockets >> right i mean there seems to be no end in sight here. so obviously we're in a phase where we're much more comfortable in a policy-making capacity spending money than saving it. hopefully that turns around at some point >> who could have predicted that if we cut taxes without paying for it by $2 trillion, the deficit would get bigger oh, yeah, everyone every economist said that and the administration promised us it wasn't going to happen. >> the math is pretty straightforward on that, but the results, more immediately and when it comes to the midterm elections, if you were advising

a democratic candidate who's vying for a house seat or some other office, what would you say to them? they would have to make the case that you want a change, even though your job is good, you might be seeing some wage gains, the economy is good, you're feeling good how do you make that case? >> well, look, i think you're right, they shouldn't try to say the economy is bad the economy is not bad but i do think the issue of wages is a real achilles heel in the economy right now. real wages for the median family, that is right in the middle class, is actually down since the president has been in office so i think the president has got some susceptibility let's call it to criticism on that front. >> do you think democrats are going to be worried here about how much credit the president and republicans in congress get for a booming economy? after all, the tax cuts resulted in a lot of employees walking away with a $1,000 check in their pocket.

>> no, that's not correct. if you look, a lot of employees did not walk away with a $1,000 wage increase. real wages are down since the tax bill went in place so i think the president for sure is going to say, look, the unemployment rate is low, the growth rate for this quarter was high and i did that. and the democrats are going to say they told you, they promised you that average worker wages were going to go up by $4,000 because of this tax bill and they're going to keep asking where's my $4,000? and i think the answer to that is going to be harder for them to give. >> for the record, dozens and dozens of corporations offered their employees bonuses after that tax cut does that translate change in midterm election votes we have to wait and see. >> gentlemen, we leave it there. appreciate it. >> thank you ick's sporting goods misse earnings estimates and pointing fingers at under armour.

we'll have other big retail movers. as the overall markets continue to rally new highs for the nasdaq and s&p 500, "power lunch" returns after this. 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 online equity trades and a satisfaction guarantee. if you don't like their answer, ask again at schwab.

as a business owner, you need to comply with countless regulations and laws to keep your workers safe and happy. but if things go wrong and an employee takes action against you, legal fees to defend yourself can be huge, even if you're not at fault. employment practice liability insurance helps cover these costs. trusted choice independent insurance agents represent multiple insurance companies and customize coverage to help protect you and your business. announcer: to find an agent, visit trustedchoice.com welcome back to "power lunch. here's dick's sporting goods taking a hit, down 2.5%. the retailer missing its numbers and also blaming under armour which impacted that stock today as well. courtney reagan has that story.

>> dick's is calling out its own teammate today dick's sporting goods beat on earnings but its sales -- it's comparable sales and its revenues really took a hit and it points the finger pretty squarely on under armour the ceo said, look, our comps were down 4 percentage points. they would have been up 1 percentage point under armour, in fact, was responsible for 3 percentage points of that comp decline. the other 2 percentage point drag was lower sales of its hunting business and electronics business the latter of the two it's largely exiting. dick's sporting goods shares have come back, still down 3%. under armour shares also took a dive on that initial release it's not the only retailer move. teen retailer american eagle reported a pretty strong quarter, at least for earnings and revenue. comp sales up 9% but some weak guidance and some decelerating sales in its aerie brand. that's pulling down shares of american express we'll round it out with express,

actually had a pretty good report beating on earnings, revenues nice comp sales, strong online sales, now a quarter of the total sales. those shares under pressure, they had run up about 17% in the last three months. back over to you guys. >> thank you very much, court knee. so does silicon valley lean left the president says it does and says google and others are silencing conservative voices. we'll hear from the head of the industry's trade group. we'll also talk with senator mark wnearr. "power lunch" will be right back siness. the ibm cloud. the cloud for smarter business.

hello, everyone, i'm sue herera here's your cnbc news update for this hour. white house counsel don mcgahn will leave his position this fall president trump making the announcement this morning, adding he hopes the change will take place after the confirmation of brett kavanaugh to the supreme court mcgahn has cooperated with special counsel robert mueller, reportedly sitting down with his team for about 30 hours of interviews pope francis making his

first public appearance at the vatican since a former vatican diplomat alleged that the pope himself knew about a cover-up of accusations of sexual abuse against a now disgraced american cleric presiding over his weekly general audience in st. peter's square, he did not reference the accusations directly. yahoo! and aol are reportedly scanning e-mails for data to sell to advertisers together they constitute the only major u.s. e-mail providers that still scan user inboxes for marketing purposes the company tells cnbc that the practice only applies to commercial e-mails in users accounts like those from retailers. they are not scanning personal e-mails between friends and family. and a tractor-trailer in new jersey flipped over on its side in what police are calling a road rage incident officers say a person in an suv observed the tractor-trailer driving erratically and got in front of the truck to try to slow it down the truck then hit a median,

flipped over across the highway. both drivers were given summons. no one unbelievably was injured in that incident. you are up to date that's the news update this hour contessa, back to you. >> that is pretty incredible video. >> it is, dash cam video. >> crazy. so let's get a check on the markets. the nasdaq leading the way hitting another record high. you can see the dow industrials up a third of a percentage point. s&p 500 up 15 points and the nasdaq is up 66 now. by the way, on pace for its biggest august percentage gain in 18 years. the s&p 500 also hitting a record high. facebook under fire for a lack of diversity in the workplace. conservative workers say there's an intolerant liberal culture at the company. this complaint comes at president trump continues to

attack google for liberal bias >> google is really taking advantage of a lot of people and i think that's a very serious thing and it's a very serious charge i think what google and what others are doing, if you look at what's going on at twitter, if you look at what's going on at facebook, they better be careful because you can't do that to people you can't do it. we have tremendous -- we have literally thousands and thousands of complaints coming in. >> joining us to respond to these complaints is michael beckerman, the president and ceo of the internet association. google, facebook and twitter are all members of the association mike, great to have you with us. >> thanks for having me. >> there's a lot to go into when it comes to big tech, but let's start off with the allegations against google and its algorithm. an algorithm is only as good as the programmers who program it how does google prove there is no bias in this algorithm especially when it's basically a black box? >> first off, as a conservative and somebody who spent decades

working in republican politics and campaigns, it's something that i'm particularly interested in and attuned to. it's clear that the platforms are not politically biased and certainly don't have bias towards conservatives. if you look at the evidence and you look at how different candidates and campaigns and individuals have used all of these platforms other the last few years in particular, it's been a great way for conservatives to get their voice out. >> i'm sorry to interrupt, but what is the evidence exactly just because it has been a good platform for conservatives to get out their message doesn't mean that the algorithm is fair when you type something in >> when you do a search, after the president made his accusations, i tested it out myself i put in trump news and the first thing that came up was fox news an then right below that was actually the tweets from the president himself complaining about the platforms. and so the fact that you're able to see complaints about the platforms on the platforms is one proof point. the other, it's really not in the business interest of the companies to pick one political

side after the other the whole purpose of all these platforms is to be open and transparent and allow all sides to flourish and that's what's happening. >> i did the same thing you did, michael, and i saw what you saw. if i looked through onto page 2, 3, 4, 5, the top 100 pop-ups, that's the wrong word, search results for the phrase trump news, most of them were from what people on the right, the president might call the mainstream or fake news. a lot of cnn, a lot of "new york times," reuters, bbc and so forth. there were not many, if any, that came from readily identifiable conservative news sites other than fox >> if the complaint is about the news coverage that the president is getting, that is a completely different issue. >> no, it's about the search results that pop up and where they come from and why they tend

to sample the way they do. >> the search results can only be responsive and only represent the news and the coverage that's out there and they do that in a way that is not biased they do it by a way that has the most relevant and not politically biased things at all. sometimes you might have fox as your first search and other times it might be cnn. if you have an issue with cnn's coverage, you can look and click on a different news source. >> so when we're talking president social media algorithms, i mean what you get is this letter then today on the heels of the president's complaint about google complaining that their conservative voices within their company culture are silenced that they feel like they don't have the opportunity to speak out. does silicon valley have a problem on its hand with the culture and potentially implicit bias >> the political views of

employees does not translate to the way the platforms operate and the experience that individuals across the country and around the world have on the platforms. it's certainly not in the business interests to pick one political party or one ideology over another that's not something that's happening on the platforms again, if you look at the campaigns that we're seeing now and over the last few years in particular when social media has really flourished in the campaign and political sense, conservatives in particular have been able to get their voice out and have built audiences of millions and tens of millions and the president is a great example of that. the reason the president loves social media so much and uses it on a daily basis because he can talk directly to his supporters and anybody around the country, around the world, without a filter that's what happens on these platforms and that's why it's a great thing for freedom of speech and democracy around the world. >> michael, thanks for joining us michael beckerman with the internet association. meanwhile, google's ceo facing heat from both sides of

the political aisle on capitol hill for refusing to testify at a senate intelligence committee hearing next week on social media and russian election meddling senator mark warner of virginia is the intelligence panel's top democrat and says google is making a great mistake by offering to send only a senior vp instead of a higher level official welcome back, senator warner, nice to see you. >> thank you thanks so much. >> why is google making such a mistake as compared with twitter, which is apparently sending its ceo and facebook which is sending sheryl sandberg, the coo or number two in the company why should google sendi the top person >> well, we had a hearing that included the lawyers, and i have great respect for kent walker, who is google's top lawyer but we heard them last november when we were opening up this question of russian interference what we hope to do next week is not simply look backwards, but

look on a forward basis. what are the ideas on how we fix this issue what are some of the tools that maybe you don't have to legislate, but we could get cooperation from the companies should we have a debate about when you were contacted by a post, should we have a right to know whether that's posted by a human being or posted by a bot or automated account should we have a right to know if somebody says they're posting from boston, massachusetts, but it's actually being posted out of st. petersburg. should there be a geo indicator on that post we want to talk about solutions. we've asked for the most senior executives my concern is and i think google is really missing the bet, they ought to be part of this discussion and dialogue. facebook and twitter have stepped up they have taken a series of actions. google has not taken as many actions. chances are we're going to have an empty chair there and i think there will be a lot more questions raised that could have been dealt with if they'd send a

senior decision maker and not simply their counsel. >> when i listen to what you just say, senator, and i hear you say, well, maybe it ought to geo locate where the post came from and other such indicators of authenticity or whatever, and then i hear down pennsylvania avenue the president saying we're going to take a harsh look at google's search results and how they are derived, this suggests to me that capitol hill and the administration are thinking actively about a different kind of what i would call meddling or regulating the internet am i misunderstanding something here is there a real threat -- >> i think you're partially -- i think you're missing the point let me try to break these under two cat dwoegoriecategories >> it won't be the first time i missed the point. >> i think your previous guest tried to explain it but i don't think the president understands

how search algorithms work what search algorithms generally do is track the number of searches and type of searches you make and reinforce whichever political view, whether you lean right or lean left, they always try to make and this is one of the concerns people have about becoming in a sense addicted to some of the news feeds they make whatever story far right, far left, the next one has to be even more horrific and there are biases, but it's biased toward whatever direction you lean some of the comments about what pops up -- let me finish, please, is that some of those may pop up because there are more hits on a particular story and fox news would pop up, but chances are you might see a nn story pop up higher than a daily beast story not because of the algorithms choosing but just the number of hits we see. that is what mr. trump has been talking about. what we've been talking about is that we realize, and listen, i've been in the tech business

longer than i've been in politics i don't want to undermine american companies because we know we've got chinese companies right behind frankly one of the questions i've got for google, there's a series of senators who ask them why they're building a separate basically biased search engine just for china and they have not gotten back to us on that. but this idea when over half of americans receive their news through social media, how we make sure that americans have some sense of source and origination of that news we're not coming with specific proposals, but we are trying to solicit ideas because as we've seep, the russians, the iranians and others did not stop using this tool in 2016. this is going to be a problem that's going to be around for a long time. final point and i'm sorry to go on for so long, we're just seeing the first generation. what may happen next is when you combine a cyber attack, when someone breaks into equifax and

gets your personal information and then provides a live stream video on fake technology of a politician or business leader and you've opened it up because it's got your personal data and you see an image that may not be real frankly it will be a greater effect on business we've got to in a sense get ahead of this in terms of ideas and that's what our hearing on tuesday or wednesday will be about. i sure wish google would participate. >> senator, a quick answer are we better off in our defenses against foreign meddling in our elections in 2018 than we were in 2016? what's your sense? >> absolutely we're better off, but our potential adversaries are also getting better. again, we can break that into how people communicate, but we can also break it into the fact, for example, there are three companies that control 90% of the voter files on the back end. i think there ought to be some ability, it doesn't have to be government, it can be an

industry, independent entity to make sure that those are safe as well so we're better, but this is my fear in a way and i'm a big supporter of our national defense, we just put forward a $713 billion defense budget. my fear at times is we're buying the world's best 20th century military when much of the conflict in the 21st century may be in cyber and misinformation and disinformation. >> we have to leave it there senator warner, always appreciate your time thank you. mark warner of virginia. >> thanks so much. up next, our continuing look at how weather is changing real estate today we go to miami where beach front property is losing its appeal diana olick will bring us that story. >> ty, rising tides and extremely changing weather are changing the value of homes and face of igorodnehbhos even on a sunny day. i'm explain, coming up next on "power lunch."

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beachfront property is so incredibly valuable, but rising water has both buyers and investors heading for the hills quite literally. diana olick joins us with a look at miami in her continuing series, rising risks >> hurricanes have always been an integral part of miami's history, but rising seas are its future and water is already starting to change the future of home values, both in and out of the danger zone. this $25 million waterfront home is the epitome of miami beach paradise, but it is paradise at a price, because rising tides and increasingly extreme storms may already be lowering its value. in fact, this home just five miles inland in miami's little haiti could actually be a better investment, according to a controversial new study.

>> what we see here is a theory of climate gentrification. >> jesse keenan tracked the values of more than 100,000 single family homes across miami going back 45 years, and in a published study coined the term climate gentrification. >> so you're saying home prices are already falling 10% because of climate change? >> 10% to where they would have been had there not been climate change. >> evidence he said that climate change is altering home values on the coast and inland. >> the higher value properties are worth more now, increasingly, will be worth more in the future. >> because multiple predictions like this one from climate central are dire the ocean overtaking vast swaths of miami in just the next few decades. precisely why climate gentrification, that is wealthier investors, displacing residents in high elevation neighborhoods is already

happening in little haiti. fabiola is a realty investor and activist in the area. >> you see new people buying up properties, raising their property values and property taxes, pricing them out. >> on this street most of the homes are valued around $100,000, but this home renovated by an investor is listed for sale at $559,000. its value has almost doubled in just the last three years, and the neighborhood around it is upgrading as well. >> you have long-time commercial tenants who have been here 10, 15, 20 years and new investors and developers no longer want their rent checks. why? because now they're redeveloping it. >> part of what's behind the gentrification here is just the current trend taoward urbanism, but it is also scenes like this last year, miami narrowly missing a direct hit from hurricane irma valuable properties in growing

downtown were underwater. >> i would say water for a firm like ours is becoming a decision-maker as it relates to strategies for investment. >> miami native david martin is a commercial and residential developer. he just finished a waterfront condo and is building more next door he said these towers will help protect miami from water. >> we look at areas that are on the beach and along the coast and say how can we fortify these buildings? how can we create incremental tax revenues from these areas along the beach or along the coast and start reen veinvestino start making the neighborhoods more resilient. >> miami is investing $200 million into resilience, installing pump stations and upgrading its infrastructure miami beach is on track to spend twice that, raising sidewalks and sea walls. the money is coming from new

bonds. voters raising their own property taxes to protect their property but martin is starting a new project on much higher ground. a $162 million residential and commercial development on five acres adjoining a metro rail station. >> are you hedging your bets >> i think there's opportunities in both areas. >> because while values are rising up here, demand is still high on the coast. real estate agent danny hertzberg doesn't fully buy the climate gentrification thesis, but admits his clients are more wary of rising water >> the main change i see is that people are a lot more focused on new construction modern homes. the newer homes with our new code are at a higher elevation, so that's been a change. i don't think people will give up the beauty of living on the water. >> another recent study from the universities of colorado and pennsylvania found that homes exposed to sea level rise nationwide sell for approximately 7% less than unexposed properties that are at the same distance from the beach. the discount, it says, has grown

over time driven by sophisticated buyers worried with global warming. to see this piece again and rest of our series on rising risks, check out our new page on realtycheck stuff, thank you for bringing it to us. up next. we're going to go live to washington state to talk with stetr s ncnshicoer ay with us

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show me decorating shows. this is staying connected with xfinity to make moving... simple. easy. awesome. stay connected while you move with the best wifi experience and two-hour appointment windows. click, call or visit a store today. we have talked a lot about the tariff impact to soy bean farmers. but the threat of a trade swear putting more pressure on the prices of other crops. growers are seeing huge price declines for chick peace, lent ills and chick peace all of those crops hitting their lowest prices in more than a decade now that china and other countries are getting their supply from elsewhere, what is going to make them want to come back to the united states even when the tariffs are eventually lifted presuming they are. let's bring in the ceo of the u.s.a. dry pea and lintd i will council as well as the american pulse association and also the owner of pickle flat farms it was news to me that pulses

are dried peas and chick peas and lent ills and things like that the me where business stands for formers who are producing dry peas >> it is a tough condition right now. actually we just finished harvest in most of our growing locates across the northern tier of the united states you know, prices are really at, you know, almost record lows we have -- 2006 was the last time we saw pea prices dip below $10 a hundred weight it's not good conditions for pea growers right now. >> i want to talk about china. first off, your number one export market is india, which has slapped on a 50% tariff on peas, 44% on lentils, 65% on chick peace. what has that done to the market in washington state and across the country? >> across the country it really

hurt the market significantly. we have seen a drop in pea prices here about 25% of our value from where it was here in april when the steel and aluminum tariffs went on in india they also put a surcharge on the steel and aluminum tariffs in response to the steel and aluminum tariffs it's really had a dramatic effect on pricing. lentils, lentil pricing since april have declined 40%. and really, the whopping price deline be that in contradict peace. we have seen almost a 50% decline in chick peas since april 4th. >> let me make sure i'm understanding completely here. maybe it is as simple as this. the price that you can get, that you can command in the market for these agricultural goods has declined because demand has fallen off in foreign markets as a result of tariffs? is it as simple as that? >> well, you have to consider that in peas, lentils, and chick

peace, we average -- the average exported of those crops here grown in the united states is almost 70% so when you start messing around with -- >> when demand dries up for the dried peas your prices come down, right? >> yeah, we are -- you know, we have 800,000 metric tons of dried peas s ts to ship this y. if you don't have the markets to go into or the markets are uncertain about what is going to happen in the future, they tend to look for alternative suppliers to hedge their bets to make sure they can cover their needs. >> are the trade groups talking to you about how to resolve some of these issues. >> well, you know, we have been working very hard with the administration, of course, telling them how dire, really, it is that we get these trade disputes resolved. it's critical for our industry,

actually, that we have these markets to go into because we export the majority of these pulse crops it's critical to have open and free and fair trade and these tariffs certainly are hurting our industry significantly. >> farmers as a group were trump supporters do you think they still are? >> well, i think, you know, many farmers did support the president in our membership. all of them are taking a real strong look at this right now because it is impacting their bottom line. >> uh-huh. >> you know, there are many people who feel right -- that there are some trade, you know imbalances and some negotiations that probably could have been done a little bit better farmer believe that as well. but you know, this is certainly having an impact of the profitability of the form community. that's being noticed >> right. >> and we hope that it gets resolved in a hurry. >> tim, thank you so much for sharing your time and your perspective today. appreciate that.

>> absolutely. keep eating that hummis. the s&p at a record high, folks. and it's taking your 402k account with it. don't quit your day job just yet. you still may not have enough sad.ve the second hour of power begins and we will tackle that question and we will tackle that question and more right after this. (vo) progress is in the pursuit. audi will cover your first month's lease payment on select models during summer of audi sales event.

i'm melissa lee. here's what's on the menu. the rally is rolling on. we have more on all time highs for the nasdaq and is s&p 500 today. what is driving it how do you play it how long can it last as thestock market continues t climb so have retirement account balances good for you but dig deeper into the numbers and it shows it is still not enough why, and what americans can do to save more. and baseball's cut a conversation with the mlb's department of investigations on the shocking corruption he has found in the organization. "power lunch" starts right now good day, everybody. welcome to "power lunch. i'm tyler mathisen glad you could join us for a wednesday. another rally on wall street

with the s&p and nasdaq hitting record highs if we close higher today it will be the fourth straight day of gains for the three major indexes. there is a fourth there as well. consumer discretionary, materials, they are the leaders. telecom is the only sector lower by half a pass within skrepgsary, amazon is at an all-time high at almost $2,000 a share other names at all time highs, paypal, mastercard, visa so the payment space, as we call it, hot on this hot day. juggernaut, that juggernaut continues to deliver, hitting another lifetime high today. that would be apple. there it is, up more than 1% contes contessa. >> i'm contessa brewer we begin with another day of records for the markets. bob pisani and mike santelli are at the new york stock exchange mike, the stocks are continuing to drift higher. people are talking about another meltup like we saw in january. how do you see it?

>> it strikes me as premature to label this move as a medicalup but i completely understand why the comparison is taking place it seems like it is an effortless i didly relentless daily leiftation almost every day. although we are only 1% above the highs that capped this market for seven months. i think one thing that distinguished the january move is once the market was overextended and overbought and sentiment gauges showed you people were too bullish it kept going up we haven't gotten to the point where we are overstretched and it keeps going up. it is a low volatility rally but maybe too soon as september comes to say a medicalup is on. >> we had a volatility blow up in february. nobody anticipated that. what's amazing to me is in a slow time of the year,s that he slow time of the year, trade is the gift that keeps on giving. i have been saying that all week it happened again today what he the canadian foreign minister came out before the cameras at

10:00 -- there is the circle, freeland coming out the market gently lifted to the upside. the dollar redakotably dropped on this. this is another thing that typically happens, the dollar goes down and all of a sudden we had a move up, a nice move up in materials and energy those are the stuff that move normal will he on trade. to mike's point about a mental healthup or maybe to your point on a mental health up, look, we had tech also rally, and health care, which you cannot say is trade related also rally health care has been strong recently this goes to the sort of meltup theme here where the whole market is starting to lift and broaden out over all tech has been great, apple, cisco at new highs the only thing i don't see, i have been complaining for the last week about this is we are not seeing big individual stock breakouts. but i estimate 20% of the s&p's 2% from a historic high. that needs to happen after another 30 or 40 points this the s&p. >> gentlemen, thank you very much bob, mike.

it appears meantime more and more people are starting to believe in this rally. according to the investment company institute u.s. stock funds attracted the most cash in two months last week, netting $3 billion. so, should you keep pouring money in riding the rally? let's bring in a chief investment strategist with janney month month and a portfolio management officer with dynamic funds welcome to you both. you said two out of three chance this year that the s&p 500 would hit 3,000. you are feeling good about that right now? >> i do, tyler our ensemble forecast which accounts for the other third doesn't pull it down a whole lot. it's still around 2940 roundly speaking either way, directionally it played out per our script. while i am not so pollee anna to think that the market is not a little overbought here it is

facing a lot of issues related to potential rv that could up mine this tranquil period. but i still think we will see higher highs before it's said and done. >> mark thinks the market is not offerly frothy and warrants putting more cautious money in how do you feel? >> we can have debates whether the bull market started in '09, whether it started in '13. whether it took a break in 14 to 16 we can talk semantics. at the end of the day what is going to cause a sustained downturn is the ep of this profit cycle that's either going to come from businesses investing too much and too much supply, or the federal reserve getting too tight. in either case, neither of those are on the horizon imminently. so the profit cycle continues and the market can continue. we have gone sideways since january custom has allowed the e to catch up to the p which got a little bit extended towards the

end of last year for the most part since the financial crisis investors pulled out nearly a quarter of a trillion dollars out of equity funds and have been tepid in terms of coming back and participating in the market. >> mark, as you see new highs yet to be made on the s&p 500, what sectors would you put money in at this point in time do you still believe in technology for instance. >> we do matter of fact, software technology to be specific. obviously you can see it today by way of the revision to q 2 gdp where actual business investment was revised up to the previous number of 7.5% annually to 8.3% on an annualized basis businesses are flush they feel good about business conditions not only today, but into the foreseeable future. profitability continues to run at a heavy pace. i think that's a reason for them to continue to make investment typically software is disproportionate beneficiary of that spend

we also like almost anything consumer facing. we are bullish on the state of the consumer and expect them to continue to spend at an above trend pace a couple of thing you can nibble at in that sector, particularly around the experiences one company was mentioned by tyler, royal caribbean, which is a favorite of ours relative to the prospects for bookings going forward. >> gentlemen, we have to leave it there mark, noah, thank you as well. now to a pair of retailers under pressure shares of under armour and kick's sporting goods are falling. kick's sporting blaming underarm ar for its weak sales. the ceo said we experienced continued declines in under armour sales as a result of their decision to expand distribution let's drill down with susan nielsen. you have a sell rating on under armour with a $9 price target. the ceo said while he continues the see continuing declines in

ua goods he continues to be enthusiastic about product improvements specifically the up ovation related to the hover shoe what is going on with under armour >> no surprise to us, our check on the stores earlier in the year show that under armour lost significant space in dick's. based on the results for dick's quarter i think sales were down 30% in their stores. this stems from the fact that underarm audio went into cole's last year which disrupted their distribution they did not segregate very well they have the same products in coal's as at dick's. that led to the decision to take out space for them at dick's their comments on improved performance in 2019 -- we are skeptical on that. under armour has been talking

about improved product for some time now it was supposed to be this year, then the back half of this year. then fourth quarter and now according to dick's it's going to be early 2019 we are skeptical on their ability to innovate and drive new product across the distribution channels. >> the stock has been ripping this year. up 44% so far this year. what are you underestimating about the store? what do you think you missed >> i think the stock has been up for the profit improvement operating margins are under pressure the thought is they could get back to 5 or 6% event margin, almost double to where they are at now for me auto i believe that's all pricing at this point with the stock trading at 67 times for lucky, single digit top line growth that seems pricey. you are looking at 35 times

forward multiple stock even if they reach that next year. i think it's going to be harder for them to get whack to double digit growth in this environment. we are going into more of a fashion cycle where over the past decade we have been in this athletic cycle athletic has grown high single digit which clear under armour benefitted from. but that's going to drop to a single digit growth going forward. >> what are people doing, you are saying they are choosing fashion fashion rather thannately sewer way. >> yes american eagle, who just reported this morning, plus 9% comp ambercrombie doing better with positive comps a lot of the fashion retail remembers making a comeback. denim is back. the retro trend is driving logo wear back. i think that's starting to take over in this fashion cycle i think the consumers have stongd their closets with black

yoga wear. >> that seems like a problem for the entire space, lulu, nike, a problem for adidas as well, no >> i think lulu has done a really good job adding more fashion infused life-style apparel. and street wear is popular right now, which i think they can play in that area same with nike they have always been -- done better at infusing fashion into their product. under armour on the other hand has always been more traditional athletic wear that started out like these other guys, you know, as traditional workout apparel, but they haven't really been able to move into that street wear type look and i think that's what is making them struggle. >> susan, we will leave it there. susan anderson with b riley fbr. coming up a chinese rival to tesla launching a billion dollar ipo. gm's dream for electric cars and china may be stalling new details on aston martin'sor, po.

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welcome back to "power lunch. an electric edition the power run down now phil lebeau joins us from chicago. we want to start out with neo, a

chinese rival to tesla, launching a billion dollar ipo how worried should tesla be. >> i think it's too soon to be worried about neo. as far as an audio maker that could threaten tesla in china, the world's largest electric vehicle market, if you are going to get into vehicles, you should be there yes neojust delivered their first vehicle. keep in mind this is a very early stage company. whether or not it has the vehicles that will attract buyers, that remains to be seen. >> they have got 16,000 reservations though, phil. that's a lot of cars >> that's a lot of reservations. but whether or not those people have to put money down, and in a country the size of china, i mean that's a drop in the bucket i'm holding off before i say they are a true threat to tesla. >> let's switch to gm. reports perhaps their dreams for

electric cars in terms of hitting their production targets may be stalling in china it has to do with the battery. >> the battery manufactured by a 123, there is a report that the company delayed its initial manufacturing of its next electric model in china. we have not been able to get a comment from general motors about this keep in mind this is a company that's going to be launching 20 -- 10 i should say evs all electric vehicles by 2020 in china. s that key part of the growth strategy in china for general motors whether or not this is a huge hiccup remains to be seen because it's not uncommon that you have a company that will push back the beginning of production on a vehicle. now let's see what happens three months or six months down the road does that mean that gm has to dial back plans for china when it comes to electric vehicle we will have to wait and see. >> they can't just switch battery providers, right >> no, no. >> the car is built around a specific battery >> absolutely. yeah, you are looked in.

it could be analogous to saying you know what that engine doesn't work on the v 6 model we are planning let's take another one and throw it in there. >> we are also getting details on aston mar tip's ipo. >> right. >> it's getting into evs too it seems like everybody is. >> they were talking about this. when we were at the headquarters in england they mentioned look we plan to develop a luxury electric vehicle actually they are going to have a couple of them in their registration statement they said we plan to come out with a luxury electric suv and a luxury electric sedan. they realize luxury electric is where it's at. everybody talks about the mass market model we are a long ways from that taking off yes, you have the volley and the leaf but their sales are not growing nearly as fast as many believe the luxury market will. >> before you go, it is been a good summer for airlines

labor day promising a good end to the summer season >> according to the industry strayed association for u.s. airlines by its estimate this will be a record we can wrapped around labor day basically today through next tuesday, they expect 16.5 million flyers worldwide that would be a record for all the u.s. airlines not only here in the u.s. but all their flights overseas friday will be the busiest day for them guys, we shouldn't be surprised by this. the number of people who are flying here in the united states continues to move higher and higher and higher. look at this this is data showing 2017. well over 800 million. -- other 2016. i'm not sure what the estimate is for this year but i want be surprised if it is a close to 900 million this year or next year in terms of passengers that's why you see all of the airlines, whether you are looking at spirit, southwest, american, they are all moving higher, particularly over the last month. >> are they adding more capacity >> limited amount of capacity. that's part of the reason why

investors are encouraged they are not just flooding the market with more planes because they are greater demand there. they are trying to be as strategic as possible about adding capacity. >> why elbow room is is a thing of the past. phil, thank you. >> you bet. speaking of the airlines one of the biggest holders of airline stocks is warren buffet. tomorrow he sits down with becky quick. tomorrow at 11:00 a.m. on squawk alley. still ahead today, $2,500, that is now the highest price target on the street for tech giant amazon shares are higher as a result. co onomen w? now should you get in? now should you get in? trading nation is nextthreats c. the ibm cloud. the cloud for smarter business. the ibm cloud. the line between work and life hasn't just blurred.

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amazing. i like it. never gonna happen. welcome back to "power lunch. time for trading nation. look at amazon, rallyinged to yet again after morgan stanley

became the biggest bull on the street giving them a $2500 price target it sits $4 shy now of $2,000 the stock is about $40 billion away from a trillion dollar market cap will it get across that finish line if so, how soon? boris, i will begin with you if i own amazon now, what should i do with it, if i don't, what should i do about it >> here's the thing. it feels like it's going to take on $2,000 today. right? we are four points away. it is a run away train i think the market is betting on the fact that christmas is going to be very good and it is the ultimate momentum stock. i would not want to chase it at this point i think it's too dangerous at this point, i don't want to sell it outright but if i was going to sell it against the other trillion dollar company apple.

if we get pullback in the market i think the market is going to run to the safety of cash rich companies and an cell going to outperform amazon. my view is it is a great stock for a long term to hold. it's definitely going the correct. if you want to trade to it the short side sell it against amen as opposed to selling it against the market. >> marcus. >> i don't see it as attractive. the stock moved up 8% in the last eight days. over 100 poinds points it's on a parabolic uptrend. it's difficult to fight the end from however there are momentum gauges to look at to decide whether or not it is the right time for intermediate investors to be in the stock one of the strength of rsi i have been looking at it over the last years it's now at 89.5 it is the highest level overbought than it has been since 1999 at that time, amazon had a

difficult time as did most stocks in 2003 and 2003. even in the weaker indexes, when you see rsi over 75, it happened six times since 2015 five of those six times it was down more than 10%, as much as 20% in the two or three months that followed n. general, the stock is stellar nobody disagrees with the longer term story it's a wonderful company that's done a lot for retail. i just don't know about pushing my bet really on the stock currently. so i think really it's best to let the stock pull back. 1650 is the level i want to buy it, before $2500 i think it goes down first. >> clear instructions mark thank you very much. same from you, boris for more trading nation, head to our website or follow us on twitter. coming up, some facebook employees are fed up with the culture bias at the company. they call it an intolerant liberal culture bias we will talk about that straight ahead.

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let's get a check on the markets now. all three indexes on pace for their fourth day of gains. within the dow, microsoft, visa, apple, and mcdonald's are leading at this point. some of the big movers here, box sinking on weak results. american eagle also lower as it gives weak guidance. and finally let's take a look at the argentine peso, which is falling nearly 8% against the dollar it is a new record low as the country asks the imf to speed up its credit line let's get to sue sue for a cbs news update. >> here's what is happening. just in the last hour a motorcade with the casket

carrying senator john mccain's body arrived at the arizona state capital for a private ceremony as well as an afternoon and evening public viewing on the day that would have been his 82nd birthday. today marks the 13th anniversary of hurricane katrina which brought floods and devastation to new orleans and states all along the gulf coast. more than 1800 people in the region died, becoming one of america's deadliest and costliest hurricanes ever. look at this video look closely that was taken at sun rise from a beach on cape cod. it shows a shark fin very close to the shore this is not far from where a neurologist was bitten by a shark just two weeks ago stay out of the water. and big cities offer big salaries but it will cost you to rent there according to data posted by rent cafe all of the top 50 most expensive zip codes are in new

york, california, and massachusetts with the number one being 10282. that is manhattan's battery park city the average rent there is just over $5600 per month and that's the average if you can find it that's the news update at this hour melissa back to you. >> even as a jaded new yorker i think that's high. >> it's high, right. >> yeah, 5600s on average. all right, sue >> terrible. >> thank you more than 100 employees at facebook are reportedly uniting against what they call an intolerant liberal culture the group is being led by a senior programmer who claims the company's culture does not support any believes that suppose left lining ideology we have seen similar claims at companies like alphabet. does this fit with the president's accusation that tech is biased against conservatives. joining us dan and jeff. suspect this a problem for social media companies if you are in the business of social media, shouldn't your

company reflect society, whether it be race, religion, or political persuasion >> well, i think there is a couple things here one, there is a big difference between -- well n theory there should be a difference between how an employee base feels and whether there is implicit or explicit bias in how people feel and then also, the products that they are building. are those products biased toward in this case, in trump's tweets, biased towards conservative versus liberal news? you can zoom out though and see how it might add up. >> so is it a problem or -- i mean, you are saying it is not a problem then >> i mean, it could become a problem. i would say the interesting thing is that companies like facebook especially as they have grown from thousands to tens of thousands of employees have used their employee base as one of their strongest assets it's almost a cult and you know, if you look at a lot of these big silicon valley companies they could be accused of group think or of a

monoculture. so i don't -- you know, i see enough people saying that it's hard to have opposing thoughts in silicon valley that maybe there is something to that as to whether it is a problem, you know, we will have to see what -- right now, there is idle tweets of vague threats. i could see how regulation could become a problem for these companies but i don't know if you can directly tie those things together. >> we talked to a number of people today so far john dan makes some good points in that it's not in the company's interests to put out a product that is biassed. the company is not in the business of serving one party or another party. they have to serve everybody and that is in their best business interests so does it matter whether employees are left leaning or right leaning for that matter? we could have the same conversation if the cult of thought was perceived at facebook to be right leaning as opposed to left leaning.

>> yeah. this is the important point. this is not a matter for public policy at all. it is not a matter that a politician like the president of the united states should be involved in. this is a personal business matter it is a private company. used to be a time in this country when conservatives actually said keep government out of the affairs of companies. let them run them according to the profit motive. you just pointed out the other side of this do we really think that google corrupted really or distorted its prime product, the search engine, just to make a small bill point it is a very dangerous thing to do i suspect that we have strong reasons to think they would not do it for the business reasons on the other hand, president trump offered no evidence at all that they had done it. he just asserted that they had so this is -- we have to keep it in mind. this is a private issue. and i'm sure on facebook side if you look at that letter they are pointing to their managers and saying, look, we need to do this, we need to make these changes for business reasons so once again, no room for politicians or public policy.

>> john, i want to follow up with a different kind of question there might well be an opposite question at another kind of industry where left leaning people would feel uncomfortable and stifled that they were not able to exist comfortably in the environment, whatever that industry might happen to be. one of the other issues that swirled around the social media sites has been the, quote, censorship of posts or messaging that some people more notably on the right have said have pointed out or removed the posts of right leaning individuals. how do you feel about that and as the publisher, whether it's twitter or instagram or facebook -- instagram is own by facebook, or facebook, doesn't the publisher have the right to knock out anybody, whom ever they damn well please to knock foutd for basically whatever reason >> let me go back to my original comment.

this is not a public problem these are areas protected by private property and also by the first amendment. the companies can be lun by their managers however they want to it might make sense to try to reach as broad as audience as possible i think that's probably the case but if they want to for example, according to their community standards, if they want to remove content they certainly can do that. what we don't want is the government getting involved on either side to force them to do things you mentioned people on left sometimes feel bad about this. we could have it another two to three years an area where a left leaning president is getting involved to help groups within the platforms. >> but that's just the point is the president making this a public issue i mean when he puts a target on google for the search results that the president is getting when he searches trump news, doesn't he make it a public issue? >> yes, but that's -- what my point would be, he's trying to make it a public issue he is trying to do something

which is essentially a cultural war or argument here but he shunt be doing that remember, he took an oath to preserve, protect, and defend the constitution how does any of this preserve, protect, and defend the first amendment? i don't see it he should be back down on this and shouldn't get involved with what these private companies -- and he shouldn't get involved in trying to determine the speech or the editorial decisions of these companies. this is completely contrary to the culture of our constitution. >> great discussion. thank you dan and john coming up, the good news the market rally is giving retirement accounts a nice bump. the bad news, there is still not nearly enough being saved. and the ugly, wait until you hear just how little some tiesavtoete rere he riron next

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now through august 31st. only at your authorized mercedes-benz dealer. welcome back to "power lunch," everybody. the market rally has been helping retirement accounts plump up but there is still not enough being saved. bob pisani joins with us the outlines hi, bob. >> good news and bad news. good news, the value of retirement funds has risen as the market has risen the bad news is, the results are still pretty poor.

fidelity recently reported that the average 401k was worth $104,000 in the second quarter that's up 6% from a year ago the average ira balance increased to $106,900. that's up 7% from 2017 that's good news but we are still not saving nearly enough for retirement ativan guard, the average 401(k) account for an investor 65 years and older, $209984 the median balance is what you want to look at. half have more, half have less among those 65 and older it is $64,81 average that out over 20 years i mean you can expect to live into your 80s at lease that's not a lot to pull out on a yearly basis $3,0004,000 on the median level. why are the savings so low.

>> many part pants don't contribute the full amount they are allowed to contribute. it is amazing. many don't participate at all. only 72% of eligible employees are enrolled in their employer's savings problem. given that employers try to match a contribution that's like passing up free money. investors need to save a lot more and mandatory enrollment in 4 01 ks when you join a company has helped. what can you do to ensure you have saved enough? let's bring in abni that's a bleak picture particularly when you look at the meadian numbers. $64,000 is not going to last you more than a couple of years in most markets what can people do, aside from either taking advantage of the catchup provisions for people who are what, 55 and older and boosting the amount they put in? >> so, i would recommend

starting early, saving more, and saving frequently. and when i think about youngsters who are just starting out and are in their 20s, that's when you really put money away and really pack the punch. >> the compounding factor works miracles over time. >> exactly. >> so do it when you have time on your side. >> on your side. a 25-year-old, if they put even a little bit aside, $5,000, $10,000, and over the course of time come up to that maximum $18,500 that we have in 2018 it really builds up. by the time you are 45 you could have 3/4 of a million dollars. >> how do you convince a 22-year-old who is landing their first job and is probably not earning very much money that they should take a chunk of it -- i mean $5,000, if you are earning $25,000 or $30,000 in your first job is a significant

chunk of change. how do you convince them to put that in savings for when they are not going the see it for 40, 50, or 60 years? >> exact he loochl that's a disincentive for the youngsters. i tell them to start saving between 10 and 15% of their gross income not the money that's coming into the bank but the money they see on the offer letter. and 15% of your gross income seems like a lot if you think about it, it could be doable if you bring lunch from home. if you cut out that coffee shop. >> young people will say they do that to pay their student loans. >> yes, and that's a big -- >> and their rent. if they live in a metro area like new york, boston, chicago bob, for long time i thought that what this points up is the difference that i think is lost between defined contribution plans like a 401(k) and defined benefit plans which are the standard pensions. by virtually any standard those

old-style pensions are really the better -- the better savings vehicles but they are not so prevalent anymore. >> no. only one in three americans actually has a defined benefit plan that's a traditional pension plan and they don't collect that much from them. about $10,000 a year is a typical amount collected for the pension. so that's still better than a lot of people collect from their 401ks, believe it or not i think here's the important thing. contessa brought this up we don't need to put aside 20% of your income when you are young, start small. the average contributions by the way to 401(k)s are about 7% a year usually it is an employer match. you put away 3.5% of your income and the employer match is the other 3.5% that's found money there we have to start with this what is shocking is people don't even do that people who are contributing, only a minority still do not

contribute the full amount and 30% of people who could contribute don't contribute any money at all wouldn't you all agree, the first thing is the education to tell people 3.5% free money every year and you still don't have enough state of mind to go ahead and do that? there is a education process we still have to push forward here. >> is that education changing? do you feel like in high school now kids are getting a view on savings for retirement, investing in the stock market, and how that benefits your financial wealth over the long haul >> not enough. not as much as needed. i think even youngsters in college right now don't have that sense even today and it's changed a lot but having a mandatory education around savings for retirement, around long-term savings is extremely crucial. we know that below the age of 25, only about 41% of participants, employees,

participate in a 401(k) land, which leaves 60% who are not doing it. >> it's great to talk to you thank you for coming in and lending your perspective bob thanks for bringing us the story. it is illuminating makes me think i have 5-year-old twins at home. we need to start the retirement talk right now if you want more on retirement planning, go to retirement planning.cbs.com/straight talk. >> slash, dot, slash >> still ahead the dark side of america's national past time a former boston detective was hired to clean up major league baseball what he unvecored went far beyond his original mandate. that story is next who would have thought,

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♪ welcome back to power lunch.

a former boston detective was hired to help clean up major league baseball. what he says he uncovered went far beyond performance enhancing drugs. what did you find out? >> eddie dominguez is out with a new book detailing his experience as a member of the investigative team from 2008 to 2014. he was part of a unit formed after the 2007 report on sterroid use in baseball. in the book he says he found illegal activities including gambling, age and identity fraud, drug use and human trafficking. he says baseball leadership interfered with the investigations department. in one case he says he personally wanted to take down alex rodriguez for steroid use. he says it is still rampant today according to league wide home run records being broken. >> fathers and mothers who want to raise their kids the right

way to push for baseball to take a deep check into issues to bring into question the integrity of the game. >> major league baseball says dominguez is a disgruntled employee who they fired. >> that's pretty harsh. the drug use, steroid use i don't find that surprising. human trafficking? >> it relates to the foreign players that come into the game, how they are getting into the united states, the people around them. are they getting money. are they funneling them through. there is stuff like that when you get the international players coming through. >> thank you very much. appreciate it. another headline in the world of sports today. cleveland browns player charged with insider trading. >> if he did he probably lost money being from the browns. they are so bad. >> he played on the eagles for five years. he won a super bowl for the team. he was a starting linebacker in

that super bowl. now he is on the cleveland browns. he never played a game for the browns yet. he was charged with criminal information related to insider trading. he worked in tandem with a junior analyst who tipped him off to upcoming m&a deals. it is expected he will plead guilty. he put out a statement saying he is sorry and he knows what he did was wrong. the nfl saying it's investigating the matter. while the browns are saying he will not travel to detroit for the final preseason game on thursday. no word whether he will play in the regular season. >> jail time or a fine >> people i talked to said he probably will not face jail time. if they paid the money back and set an example, maybe he does community service and tells up and coming athletes don't do this. he has made $20 million in his career so far. >> let's try to get him on. >> he might get suspended by the

nfl. >> and the person who was tipping him might face legal jeopardy. >> he was a writer on blackish. he is no longer a writer on blackish and now is a hollywood writer type. we'll have sootto see what happ to his career. >> i thought baseball had very tough testing for p.e.d.s. >> they are saying it is so advanced that the science is ahead of the testing. >> the ability to cheat the test gets better. >> thanks. check please is next.

time for check please. more from the sports world. the heat at the u.s. open so intense yesterday, melbourne australian open intense that officials allowed a ten minute heat break in the middle of djokovic's first match. novak did not disappoint. >> do you really want to know? ma >> it was quite wonderful feeling. battling with a guy for 2 1/2 hours and then you get into the locker room and you haven't finished the match and you are naked. it was quite a magnificent feeling. >> magnificent feeling that ice

bath. >> meanwhile, they fined a female player because she changed her shirt on the court in between sets. they said it broke the apparel rules or whatever. the u.s. open said it didn't. we didn't fine her. they warned her. >> you say the men change their shirts on the court all the time. >> they said anybody can change their shirts. we're sorry this ever happened. >> the ice bath. you know that commercial where the bathtub is next to each other? >> i'm watching amazon. it hit 1997.34. we are about ten bucks away.

>> the story i'm watching is about the red tide. this is in the gulf coast of florida. last week when i was there it was all anybody wanted to talk about. >> look at that slush. >> thanks for watching power. >> closing bell right now. it's time for the closing bell. the nasdaq hitting a record high as one analyst predicts that amazon could hit a $1.2 trillion market cap. we'll break down all the movers as the tech heavy index hits a record. i'm phil lebeau in chicago. labor day is just around the corner. i will break down which airlines are the weekend's high flyers. >> extreme weather is changing the value of homes and the face of neighborhoods. we'll have the details coming up. >>