>> thanks for being here. >> delta warren buffett mentions delta. this is one that will do well in the next couple -- >> and -- >> adobe >> dow down 70 don't forget, warren buffett was on the network today "power lunch" has that story right now. >> i'm melissa lee snapping a four-day winning streak plus growing crisis that could put a rid on this recent rally. mark your calendar apple expected to release its new iphone september 12th. there will be a major first for this apple event details ahead. warren buffett speaking first on cnbc with our own becky quick, stocks, economy and all the highlights, straight ahead. >> dangerous jobs. special series ending with a jolt meet the man putting his life on the line every day in repairing the world's highest voltage power lines, wow

"power lunch" starts right now >> welcome to "power lunch." i'm tyler mathisen glad you could join us on a sweltering thursday here in new york stocks under pressure, dow down triple digits earlier, down now about 66 all three of the major averages contemplating their first declines in five days. the nasdaq has turned into positive territory, as you can see. it did hit a new record high earlier. amazon, one of the big stock stories of the day, shares hitting 2,000 for the first time ever it was only may of last year when amazon hit 1,000 for the first time a closer lock at where that stock goes from here that's straight ahead. we're seeing some hu -- it doesn't say huge, it says hu double digits in retail. hu or not? >> it's hu for sure. >> hu.

>> i'm contessa brewer broader markets taking a breather today but nasdaq makes another all-time high. bob pisani is at the new york stock exchange what's the driver there, bob >> tech and health care. definite pockets of weakness lets show you new highs. not a lot of them but almost all in technology and some of the same names we've been putting up for a while. apple, nvidia, microsoft, visa we would like to see a few more of these happening in the absence of that, tech holding up as well health care has just been a monster in the last month or so. right across the board i'll put up a few etfs biotech one, pharmaceutical stocks, health care equipment stocks have been strong, right across the board enormous in health care, another reason that the market is holding up on the down side, strong dollar, weak emerging market currencies, argentina or turkey or south africa weakness in those markets are translating into weaker overseas

stock action here in the united states, emerging market, eem, etm. metals in mining when the dollar is stronger we get problems there internet stocks, as i mentioned before, tech holding up. a lot of debate about the dollar and what impact it's having on the global markets dollar started moving up in late march, early april and ever since then, the emerging markets have had a tough time people want to know why is the dollar so much stronger? the fed has been raising rates of course, they've been ending that expansive monetary policy the dollar supply has been constrained. that's the big thing in terms of supply and demand. remember, we've got a strong u.s. economy so there's a lot more demand for dollars. bottom line, guys, we have supply/demand issues with the dollar and it's impacting our markets here back to you. >> bob pisani, thanks. apple is setting the date on when it will unveil its next

generation of iphones. in san francisco with the details, josh lipton. >> mel, circle this date on your calendar, september 12th, when apple is hosting its next big special event at its campus in cupertino. gather round is all the invite says apple, as always, is tight lipped reports from the media and street indicate free new iphones could be on the way, high-end model with a 6.5" display, largest iphone by far. the iphone x has a 5.8" display. i talked to gene munster who thinks that cook could charge $1,150 and maybe all the way up to $1,300, depending on the configuration. also anticipated, that ceo tim cook will take that stage and unveil an upgrade to the iphone x and what some are calling a

budget-friendly phone with a 6.1" screen. the new high-end phone, munster thinks, will sell well as the iphone x has, giving new lift to the company. >> thank you, josh >> warren buffett speaking first on cnbc with our becky quick about the stock market, the economy and the fed. becky is live in new york now. hi, beck. >> i contessa, good to see you guys we've been watching the last self-d d several days the market hitting new highs. investors start to think wow, maybe things are getting too expensive and some investors will stop buying at that point but not buffett. >> we're buying stocks this morning. i would rather buy them cheaper, but i've been buying stocks since march 11th, 1942 and i reallybought them under every president, seven republicans, seven democrats

i bought them quarter after quarter. some of the buys were terrific some of them weren't at such good times i don't know when to buy stocks but i know whether to buy stocks and assuming you're going to hold them, wouldn't you rather own an interest in a variety of great businesses than have a piece of paper that will pay you 3% in three years or short-term deposit that pays you 2% or something of that sort >> as for the u.s. economy, buffett says it continues to strengthen across all of berkshire's businesses, but he also sees inflation. >> we've seen more in the way of cost increases in the last year. if you go across all of our businesses but particularly building materials. we sell paint. the can it comes in is a lot more expensive than it was a year ago. >> that part of the conversation led us to the discussion about

what to do with the federal reserve, what's been happening there. president trump has expressed his displeasure at the federal reserve continuing to raise interest rates warren buffett said he would love it up to powell to make decisions on that. >> i love the fact that powell is the chairman of the fed he gets a lot more figures in than i do. i may get a little faster than some things, the fed may work their way through. but he will see it and he will do what shall in his judgment, is best for the american economy over time. there's no question about that and maybe he will make mistakes. i know i'll make mistakes but he knows what his job is and he'll do it. >> back to what he's buying, he says that he has continued to buy a little bit of apple even after those most recent s.e.c. filings we saw and he says they've bought back shares of berkshire hathaway

back to you in the studio. >> the interview took place a couple of years ago -- couple of hours ago and you're still at the bar there. >> do you want anything, ty? >> i see the titos behind you. bring me one on the rocks. this is his birthday and he is how old again? >> that's right. he's 88 years old. he mentioned he bought his first stock in 1942, citi services that's going back 66 years he has been buying stock over that entire time 88 years old today. >> and as sharp and with it as i can remember i mean, he is an ageless soul. i'm going to have a cheeseburger and coke. >> yeah and bringing stuff back for you, ty. >> becky quick, thank you very much buffett still likes stocks over bonds, nothing new there really will fears about the emerging markets derail this rally? let's bring in andrew slimmen

with morgan stanley investment and samantha roe, with jp morgan ets. we got the morgans covered here, samantha and andrew. andrew, i want to bear down with both of you on particular items i have in my notes you say, andrew, right now, we could sit here all day and talk about a correction and direction of the market. you say the fat pitch to hit right now is the rest of the world over the u.s why? >> simple reality is that the spread of performance between the s&p and the rest of the world, europe and asia, is as wide as it's been in the last 20 years. the goal here is to buy low, it seems to me that the area that's done very poorly is the rest of the world relative to the s&p. >> so, samantha, you take a sightly different point of view there, at least in terms of your weighting. you're a little more overweight

in the u.s. than the rest of the world. your fat pitch, you believe, are because of where we are in the cycle. small cap value. they have not been the big players. >> they have not we think, given stronger growth, stronger dollar, rising rates and firming inflation, value does tend to outperform growth when you look back historically. we can argue the cycle has been different but this is the economic environment we're in right now. we think value is poised to start to pick back up versus growth. >> if that's the case, isn't the opportunity for value buys right now in emerging markets? and how do you factor in value versus risk? >> right so it's going to definitely be an international story that we would want to look at. we're focusing on the u.s. right now, because we want to have a bit of a quality bias and given trade tensions and worries, the way that's played out is the spread that andrew has alluded to u.s. markets are doing better and we don't think that discontinues itself. we think that the u.s. continues to outperform international,

even though fundamental markets abroad do look good. it's strong. >> small cap tends to be what sectors? >> financials and a consumer element to it as well. >> andrew, you know, we've had currency crises, at least two in the past month or so, argentina overnight and turkey as well and a strengthening u.s. dollar. >> sure. >> how does that play into your we like overseas more than the u.s. thesis? >> that is why these markets have performed poorly. but in the last couple of days -- last few days we have seen -- not today but we have seen the dollar come off a little bit and i think it has been coincidentally with the jackson hole meeting where there was some concern about a flattening yield curve and perhaps the fed being a little bit more dovish in their outlook i think the strengthening dollar -- that's priced into these markets. and if we get any type of dollar

weakness here, i think these markets would start to recover the other thing i would say, certainly trade fears, tariff fears are out there. but that again -- there's a lot of bad news priced into these stocks all i'm saying is just that spread is so wide, i think that's where the opportunity is there. >> i don't want to leap too far ahead of you, andrew or samantha, either one of you. i can't help but infer from what you're saying -- andrew, i should point out you think in the domestic market, consumer staples and utilities, risk-off trades, are the way to go. i can't help but infer from what both of you have said that you think that momentum sides of the u.s. market, the high growth, the ones that have led the market are overpriced. am i wrong on that >> short term, they are. we've had very strong markets. consumer staples, they just

underperformed recently. short term you can get a rotation into those more defensive. longer term it will still be led by these momentum stocks short term, they're overbought here. >> doubleheader question for you, samantha. do you agree on what i just laid out there for andrew, number one? number two, do i hear a little canada in your voice >> i am canadian. >> i thought so. will canada and the u.s., do you think, get a deal? >> i don't think they'll call it nafta. i think they'll call it something else but bilateral agreements are going to be better -- agreements with mexico and canada would be better given supply chains. that's the way we see it we like the momentum factor still but we'll pair that with the quality factor. >> go canada that's what i say. samantha, thank you very much. andrew, always great to see you. >> good to see you take care.

coming up to currencies -- to countries with plummeting currencies, how argentina and turkey are dealing with their problems plus caught in the middle of a trade war with china we'll talk to the head of a company that needs presidents trump and xi to make a deal. you always pay your insurance on time. tap one little bumper and up go your rates. what good is your insurance if you get punished for using it? news flash: nobody's perfect. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident.

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currency crisis in argentina, peso falling more than 10% versus the dollar more than 50% so far this year

and seema mody has more on these peso problems. what's behind it >> argentine peso at an all-time low, to stop inflation from rising this morning it raised interest rates to 60% from 45% after urging the imf to speed up its $50 billion bailout program. why? the stronger dollar is making their government debt more expensive to pay off the peso now the world's worst performing currency this year down 50% turkey, also dealing with runaway inflation and faltering economy seeing its currency down another 4% today the indian rupe had a record low as oil prices continue to rise india, of course, a big oil importer economic troubles pose political troubles for the leaders of these countries that have, in the past, pointed to economic data as evidence of their

success. argentina's president macri's popularity has declined in the last year. he is up for re-election in 2019 as is president modi of india. >> macri had run on this platform of a strong economy for him, especially, it's troublesome with just a year to go. >> overpromised and underdelivered he really campaigned eon this promise of turning around the economy. unfortunately debt continues to run up so that puts them in the same position they were in 2001. >> seema, thank you. joining us now, head of strategy at wynn brothers. great to have you with us. is there a contagion transmission mechanism to the united states? >> i think that's what the good

news is. at this point, there is not. the reason i say that, look at the five worst performers this year argentin argentina, turkey, brazil, russia, they have a huge amount of baggage as seema pointed out, political risks. malaysia, thai, thailand bear market is focused on the countries that have the worst fundamentals any kind of warts out there will be found if you have your house in order, things are going okay, you'll hold up relatively well. >> in terms of china's move just this week, i want to say, as this week is flying by, in order to prop up its currency, support its currency, does that help the emerging markets vastly, the fact that china has stepped in and supported its own currency

>> china was basically sending a signal that they don't want any sort of unintended consequences. i think it was a good move on their part again, you know, i go back this whole overall backdrop rising u.s. interest rates, trade tensions as you mentioned, slowdown in china. these are all, to me, negative factors for emerging markets that's really why we've been in a bear market since march. >> stronger, definitively stronger by year end where do you think we could see that dollar index? >> i think that the fed is continuing to hike rates two-thirds price, i think they'll do again in september. the pressure to take the dollar higher remains my view is that the strong dollar story will go into 2019 to me, the game changer -- it's anyone's guess but the game changer is when the u.s. goes

into recession that could be in late 2019, some say in 2020. we don't know. that's when things could change. the fed will be able to cut rates aggressively things will get a little dicey for the dollar things are okay going into 2019. >> cap on the dollar index is a product of recession that seems dismal, win. >> the party has been going on nicely i don't think it's a disaster but we haven't defied the laws of economics at some point we have to pay the piper and have to have a reboot in the economy i don't think it will get terrible, a recession like 2008 but at some point the gas runs out. we're in a huge fiscal shrug keeping the economy going but that will run out at some point as well. good news is that the fed since they've been hiking rates, they have the leeway to cut rates if and when it comes and still be dollar bearish that's a long ways away.

>> win thin, brown brothers, harriman one iconic brand trying to remake itself by getting back to basics what campbell's soup is doing to get going again and why investors aren't necessarily buying into it >> plus the best part about my job, i get to do it with my two feet firmly on the ground. we'll show you the dangerous job of power line workers who do feofr work suspended hundreds et in the air. stay with us it's single-origin kenyan coffee from the nyeri highlands, 6,000 feet above sea level. but how do you really know that the beans journeyed to the port of mombasa and across the pacific? that you can trust they're 100% authentic? ibm blockchain. a smart way to track every step, ensuring this coffee did indeed come from 6,000 feet above sea level. and not a foot lower. ♪ ♪

sarah eisen has campbell story for us. >> trying to reinvent itself today, the company announcie ii it's putting its international and fresh food businesses up for sale and leaving the possibility on the table for a full sell of the leftover company what is leftover soups and snacks mainly. we're talking brands, campbell's on soups, pepperidge farm. the business isn't doing particularly well. in fact, it's doing worse than the overall package food industry, which is challenged right now. organic sales for the latest quarter, shrinking 2%.

the company did host a 90-minute call for analysts today. that was exceptionally long. mclaughlin saying the company lost focus, depended too much on m & a but said several times that all options are in play going forward, leaving the door open for a potential sale. we know what activist shareholder dan loeb has reportedly been pushing for. who would buy the company and would a leaner, more focused company with a cleaner balance sheet, which is what campbells is trying to do with today's moves, be a better target? a lot of analysts remain skeptical. ken goldman of jp morgan says the point is that the company considered a sale, decided not to go that direction that indicates no buyer is currently prepared to pay a

meaningful premium future very much still up in the air, guys. >> all right sarah, thank you sara eisen at the nyse ceo caught in the middle of a trade war. the u.s. putting tariffs on his made in china products but moving out of china is too expensive. so, what does he do? we're tracking all the big retail movers today. signet jewelers, dollar tree, abercrombie and fitch. what's moving those names coming up right here on "power lunch. it's absolute confidence in 30,000 precision parts,

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♪ welcome back, everybody. i'm sue herera here is your cnbc news update this hour. hundreds of family and friends of senator john mccain gathering for his memorial service in phoenix, arizona, this hour. a bit later today, mccain's body will be flown vee ra military transport to washington where he will lie in state at the u.s. capital. before a celebration of life service takes place at the

national cathedral on saturday negotiations between the u.s. and canada continue today canadian foreign minister addressing reporters last hour, saying both teams continue to be optimistic about those trade talks. new video coming in from a partial building collapse at a water reclamation plant on the south side of chicago. first responders are on the scene. at least one person is reportedly hurt. we'll continue to update you as this story develops. justice department says harvard university puts asian-american applicants at a disadvantage through a subjective, quote, personal rating in the admissions process, according to a new court filing it alleges the school limits the number of asian-american students it admits and is holding them to a higher standard than students of other races. we will have more on this story in the next hour of "power lunch. stay tuned for that. that is the news update this hour meliesa i'll send it back to you. >> thank you so much

let's get a check on the marks and how they're moving at this hour. dow and s&p in the red just barely, the nasdaq is eking out a gain of 20 points. off the session lows, the dow. the nasdaq is trying for its fifth straight day of gains, hitting record highs on track for its biggest gains since 2014 and nasdaq having its best august, no surprise, since 2000, apple and amazon hitting fresh record highs in today's special. julia boorstin has our market flash on pan dora. >> shares rising again today, up 6% to a 52-week high after a baron's article said they're holding their own. raymond james note finding pure play services such as pan dora have a stronger competitive position because they are device agnostic, helping to drive pan dora shares up 6% yesterday.

the stock is now up 37% since august 1st the report, though, did not help spotify. those shares are trading pretty much flat. back over to you. >> music to pandora investors' ears i would say thanks, julia. courtney reagan. >> specialty players are split than what we saw big box and department stores. dollar tree shares down sharply after gouidance falls by more than a margin. dollar tree said it would look into nonchina suppliers, changing its product mix and negotiations, all things to help offset those tariff costs. dollar general shares are lower, too. after they did actually beat estimates on earnings revenue, comparable sales and reiterated their earnings forecast but didn't increase it as it continues to remodel stores,

build new locations, update its merchandise, all of this to compete with target and walmart, shares down 1.4% abercrombie and fitch, profit and reiterates its earnings forecast revenue and comp sales disappointed u.s. sales did rise. hollister was stronger and if shares had gained 56% year to date, down 16% today i want to end on an up note. shares significantly higher after doubling, so that was a nice surprise for investors. higher by 26%. tyler? >> courtney, thank you very much to the latest on the trade drama. canada, u.s. and mexico try to hammer out a deal involving all three of them before a looming deadline eamon javers is following the story for us eamon? >> reporter: all sides have said they won't negotiate in public to our detriment, they pretty

much kept that promise we don't have a lot of visibility about what's going on over at the united states trade office cameras are staked out there, waiting for any developments on a moment-to-moment basis coming out that door. christina friedland has come out to give reporters on the sidewalk an update on negotiations not a lot of specifics but a lot of optimistic noise here about the progress that they've been making here is her most recent update from just a little while ago. >> we continue to be encouraged by the constructive atmosphere that i think both countries are bringing to the table. there is a lot of goodwill it's a lot we're trying to do in a short period of time we're working intensely. >> chrystia freeland is saying a lot of goodwill in these negotiations at the white house it's fingers crossed time they cut this side deal with the

mexicans and they're prepared to push for a straight bilateral deal if they have to have that but they do want the canadians in this deal and hope that negotiations go well people in the building behind me probably have a little more sense of what's going on in the office than we do standing out on the sidewalk, guys. it will be down to the wire here. >> a very hot day standing outside, too. >> that's right. >> eamon, appreciate that. forced to raise prices on his product after the first round of tariffs and now is left with no other option than to cut his profit margins ceo of brilliant, u.s. start-up that manufactures devices in china. aaron, tell me what you make. >> brilliant is a new kind of smart home control and it replaces a standard light switch, gives you control overall of your smart devices from anywhere in the room. we've been working on this over three years now and are just launching it to market in a matter of days. >> three years of r & d.

was there any way for you to factor tariffs into your business plan? >> absolutely not. this took place over a period of years. decisions were made long ago in terms of what features to put into the product, how to price it, what channels to bring it into and a matter of mere weeks before launch, suddenly, we learned it would be subject to precipitously announced 25% tariffs and it was many possible to incorporate that. >> what's the cost to your profit margin? >> well, we did raise prices to compensate partially, but we felt we couldn't raise prices beyond the point that we did because it's a product that is more of an apple premium product than carteer premium product, which would have turned it into a luxury product we want to democratize this. for a company that, as a start-up, will still be unprofitable for some time to come

profit margins don't mean less profits. it means bigger losses. >> so, initially you raise your prices by $50 per device so if you were to raise the price and pass the total cost on to the consumer, what would that have been? >> right now, the product sells for between $299 and $449, depending on which model you get. it would have had to go beyond that by another 25, $50, which we felt made it a different type of product. >> so $100 in total if you were to pass the entire cost of all the tariffs on to the consumer on to what was, what, maybe a maximum $500 product >> yes. >> is there any other locale where you could make the product? could you make it in the u.s., in mexico and i assume you've looked into that and it was cost prohibitive or just the techniques and talent were not there? >> exactly it's not just the cost china is a unique place.

the whole supply chain for consumer electronics is based in china. that's where the components are coming from. that's where the distributors are. that's where all the various pieces of the ecosystem are. taking it somewhere else would not only cost $1 million and take us six months, it would defocus our entire organization. start-ups are like sharks. sharks got to swim to survive. start-ups got to keep innovating to survive we're a 30-person company. to take the whole company and dedicate moving it to somewhere that was riskier, expensive and lower quality would derail us. what's more, moving to the united states is absolutely not an option because the perverse effective these tariffs is that it's not only a tariff on things that are manufactured in china but on components and raw materials that are used to manufacture in the u.s it has the effective moving production away from the united states as well as away from china. >> what are you going to do? >> we've raised the price.

we've cut our margins. right now, we are advocating for a change in the tariff regime and hoping that it stops if it doesn't, we'll have no choice but to stop and move production elsewhere in the world. >> thank you for sharing your story and your story of what brilliant is facing right now. appreciate that. >> thank you to the bond market right now, rick santelli is tracking reaction at the cme. hi, rick. >> we're hovering at 2.87. highly unchanged but still significant. this could be the 14 session that we settle in the 280s certainly looks like it. what's more fascinating is that before we had this run we had a long run in the 2.90s. then the one three percenter that happened in august. look what's going on in booms. they were down five basis points mostly because it was a sloppy ten-year italian auction their yield shooting up close to

3.25 dollar index, like bonds, it is starting to form its new range, very similar to its new range, august volatility. speaking of august, dollar versus the chinese yuan. granted the dollar had a nice pop today. contessa, back to you. >> rick, thanks for laying it out for us coming up, the conclusion to our series on some of the world's most dangerous jobs. and we saved the best for last power line workers imagine, these are guys that get lowered out of a helicopter to repair a power line high above the ground you won't have to imagine it we're actually going to take you ke a ride and show you what it's li it's next on power lunch alerts -- wouldn't you like one from the market when it might be time to buy or sell?

with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today.

time now for another dangerous job that i would never do i do not like heights. i do not like electricity. power line workers is what we're going to look at morgan brennan has their shocking story. >> you always have to be alert, remain on your a game. it doesn't take much focus to stop your heart. >> installs and repairs the world's high voltage power lines, with more power than 400 electric chair. >> there's little chance of survival if you get into something bad. severe burns you can lose arms and legs and you're not going to go home. >> in fact, dozens of power line workers die each year. but for these guys, the danger is amplified even further because they do most of their work using helicopters you see, john and his teammates are what you call aerial

lineman. their employer specializes in servicing power lines that can only be accessed by chopper in some of the country's most unforgiving terrain. >> helicopters and power lines are dangerous. when you put the two together you have double danger. >> john and his teammates headed to a rusted out service tower high in the appalachian mountains. hopper traveling at breakneck speeds all while wielding chainsaws. >> so many things we have to watch for. it's mind boggling. >> to make matters worse, most of his work is done hovering at an elevation most chopper pilots are trained to avoid, called the deadman's curve. >> when i'm about to do something and i think if i cut this corner i can do it faster i remember my kids and wife at home that stops me in my tracks because i don't want my kids standing over my casket because daddy took a short cut.

>> he said he knew he wanted the job the moment he saw the team in action. >> there's not a whole lot of jobs where i live. the good lord blessed me when he moved me here. never one time are have i been on an airplane or anything before i hired here. >> average worker makes 67 grande year, aerial linemen can make a lot more. >> i probably make around 90,000 to 100,000 a year maybe. i'm not one of the top paid guys to me it's not all about the money. i get paid to do something, keeping the national grid going is very important. i can get emotional thinking about it i am privileged. i have been blessed. >> morgan brennan, cnbc business news. >> we show a lot of dangerous jobs we had a snake milker, gator wrestler, bridge painters, these folks who work on power lines. my most -- to me, either the bridge painter or that would scare me. >> because of the heights?

>> elevation i don't like that. >> you're out automatically. >> automatically. >> cannot do that. that's terrifying and kudos to the cameramen who shot that. equally terrifying. >> i thought the snake milker was the most terrifying to me. it's not just the whole snake thing but catching it, having the mouth open, sticking it on the jar, getting the venom out of it. >> he said his heart stopped several times, right >> yeah. >> he said he had been bit -- look at that cobra. >> i like to live dangerous. i could do any of these. >> all right if you missed any of our dangerous jobs visit our cnbc.com website to see them in their full and unabridged glory. >> chrystia freeland is speaking out about nafta negotiations. >> win/win outcome for the long term we have our eye s resolutely on that prize and are not focusing

on any other factors [ inaudible >> joining your talks? >> are you coming back again >> yes. >> rather perfunctory performance by the foreign minister of canada, continuing to talk and working on their mutual shalls and that was the end of that report from what i can tell. >> trump and trudeau have said they're confident in their friday deadline. >> it has to do with what, the period of getting it signed before mexico's current president goes out of office or to hit some window in the united states legislatively or -- >> both. combination of both. >> technical reasons for that. >> keep watch on that. >> heat debate getting new life today. are colleges, like harvard,

discriminating against asian-american students, or are they doing what's necessary to create a diverse student body? mystery chart, stock up 36% in one year. here is your hint. it could benefit from the stronger economy but it could be hurt by higher interest rates. we'll talk ttho e ceo next on "power lunch." an energy company helping cars emit less. making cars lighter, it's a good place to start, advanced oils for those hard-working parts. fuels that go further so drivers pump less. improving efficiency is what we do best. energy lives here.

welcome back to power lunch. i'm julia boorstin twitter announcing new policies around issue ads there are already rules about transparenty for political advertising. but these expand that call for rules to advertising about national importance. gun, health care, griming, abortion national security, social security taxes and trade to buy out on the topics advertisers have to gothrough the krert attention process verifying the location in the u.s. to ad transparently they label the issue ad as show who promotes them. it's increasingliest evident the social media manipulation was not focused on specific candidates as much as it was on

sowing discord through issues. this comes ahead of jack dorsey heading to capitol hill to testify on wednesday he will mention this as how twitter is bolstering efforts. >> thank you julia as the economy grows some analyst say that could be a boom for commercial real estate cvre group is a real estate investment firm and a real estate investment management division, buying a 49% stake in three ggp malls earlier. shares are up more than 30% over the past year. they reported double digit earnings and revenue growth in the second quarter and raised guidance that's the profile you want if you're the ceo of a company. we have him. cilentic tp is president congressional on the good results. >> thank you tyler. >> what does this reflect especially, does it reflect the booming economy, the surprising

resiliency of retail in does it reflect the tax bill what. >> it reflects a couple of things first of all, our company is taking market share around the world. we are doing well. putting in place an offering for the clients that we think is difficult for competitors to duplicate. we are in an industry that's good serving two clients, investors in commercial real estate and occupiers of commercial real estate, both client groups growing. and of course the economy is doing better than we thought it was going to be doing. a lot of good things going on. >> who are the competitors, if you had to list three who are they. >> jlo wsh curbman and wakefield and a company called nurm, frank. >> let me ask you an obtuse question, going to something you must be thinking about, that is the changing nature of work and where people work, what they do in the buildings that you own or invest in, how is the change nature of work as evidenced by

companies like workday changing your business? >> tyler, we manage office space with 9 million people in it around the world we study this very closely there are two things going on that are particularly interesting at this juncture number one, the obsession with the experience in office space and the place people go to work, creating a better experience to attract and retain employees big deal it's been a big help to our business because we work in that area. >> does that mean the physical experience of the -- >> the physical experience and the ability to connect people to amenities through the use of technology, use of apps, really a big deal and the technology companies of course are very focused on that in the space that they have. secondly there is the coworkering or flexible space dynamic where companies like we work are buying space wholesale and selling retail to individual users or small groups of users real important change in the industry

probably something less than 5% of the space out there today is occupied on that basis but we think that could north of 10%. >> you bought a stake in three ggp malls reemt does this reflect the strength in the retail secret? we see it in retail stocks is that what's going on with the properties. >> part of what's going on there is we thought they were good malls and good investment opportunity. secondly, the headlines around retail we think are a little bit more negative than the reality still 85 plus% of all the product consumers buy they buy in bricks and mortar people love to go somewhere, love experiences and retail is not going away yet there is a lot of negative sentiment because of the growth in ecommerce we saw that as a goodbying opportunity. but we think retail is a meaningful assets class indefinitely and there are some good opportunities out there now. >> bob we have to leave it there congratulations on the good performance. good luck have a agreed weekend. >> thank you very much. >> appreciate it. >> up next back to the birthday

boy. more thoughts on markets from warren buffett as he turns 88 years old today. plus the department of justice sides with a grew are you group suing harvard, claiming race-based discrimination. could this case change the way colleges look at prospective students we debate the heated hour on the second hour of power lunch with tripadvisor, finding your perfect hotel at the lowest price... is as easy as dates, deals, done!

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good afternoon, everybody i'm tyler mathisson welcome to hour number two. on the menu, technology on the spotlight. mr. buffett bought more apple. amazon oh 2000 a share and trump takes on the social media giants as he has been doing much of the week we have it covered for you and admission denied the justice department says harvard illegally discriminates against asian-americans. a look at what it could mean for future college goers affirmative action and college admissions and if you've been waiting for the right time to buy a mansion, who hasn't, now might be that time we will tell you about the megaprice cuts for megahomes get out your -- get out the checkbook. power lunch starts right now

♪ welcome to my house ♪ ♪ baby take control now ♪ we can't even slow down ♪ >> i'm contessa brewer why stop at one mansion sign me up for two or three. the dout appear s&p in red right now and on pace for first declines in five sessions. the ntds reversing course and now higher with the nasdaq hitting the all-time high today. amazon and apple among big movers in tech both hitting lifetime highs look at this apple up another 2% on the day amazon up.8% crossing the 2000 mork the first time ever retail on the move dollar tree sinking despite the earnings beat. bvh also lower as current quarter guidance missed opinion sig net jeweler soo soorpg as. and atlas falling below $300 as the drama continues there melissa. >> thanks contessa i'm melissa lee. let's start with the markets bob pisani opinion mike the

markets are taking a breather today? what do you think. >> seems that why. orderly, mild in terms of a decline in terms of a decline after a good run eight% or so the average stock is lagging a little bit today you start to see it show fatigue, bob, i think. >> yeah. >> of course we are paying attention to what's going on overseas again you have a little bit of sloppiness in emerging stocks markets and currency not a huge influence but stopping the rally a moment. >> positive on the day here. you just can't keep it down. because we have tech doing well. a number of tech names at new high apple and microsoft doing well we have health care just on fire, mike i mean every little part medical devicesance pharmaceutical and biotech every day keep going up. this has been a monster holding the market up. yet the dollar issues and the emerging market issues hurting

the metal stock and the emerging market look at the local country etfs down today but by and large pretty amazing. mr. buffett's comments about apple. we love the fact that mr. buffett says fog inis books he talks stocks down buy them cheaper nonhe praises apple of which he owns 5% apple moved $2 on that we were doing the math here. 240 million shares. >> over half a billion shares. >> half a billion. half a balance dollars 240 million shares times $2 is $$40,240,000,000. >> he he was buying recently and that was the signal he should know the effect. >> talk the become down. >> very good. >> all right mike, bob thank you. and that big interview on cnbc today warren buffett speaking with becky quick about the stock

market on the economy and the fed. becky is life with the highlights here becky. >> contessa let's run you threw some of the things we talked about the market he says he likes it he has been buying stocks even this morning. talked about the economy and says it continues to improve based on everything he is sue seeing through the berkshire businesses and the federal reserving he thinks jay powell is the right person for the job doing a great job. we talked about a recent tweet from trump, she said it's the one where we talked about how business leaders have been asking him to get rid of quarterly reports to look at doing that and focus instead on the long-term. we spoke to buffett about that as an vfr he likes quarterly reports and looks forward to reading through them and digging through and getting information. but he agrees with the idea of looking at the long-term for that he specifically focused on the idea of how he wouldn't mind getting rid of quarterly earnings guide zbloons i do not

like guidance. and i think the guidance leads to lots of bad things and seen it leads to lots of bad things i don't think quarterly reporting itself -- it's the promising people what you are doing every quarter. i can't promise what's going to happen we're in the hurricane season. and uktd change our earnings dramatically with a storm or something of the sort. so i think it's a very bad practice to be in in the game of earnings guidance. it's a game. you know, people play it as a game and then people adjust the numbers all that but i like the figures quarterly. and i hope -- i hope that stays. >> you guys also talked about what's been happening with tesla shares down a little bit we talked about buffett about tweeting asking him why he didn't do it more often. there was a fake account able to get from 20,000 viewers to 200,000 subscribeners 24 hours doing that by tweeting thiks that sound the like buffett.

he himself almost never tweets he said i don't have anything i want to tweet people or anything i'd like to get out there to him. if you look at what he said he asked about elon musk. he said well it hasn't helped him that much. that stock is down today too and we will watch that and talk more about the technology buffett is using in the next hour on "closing bell." >> interesting and sensible distinction between the value of corporate reports and the value of quarterly guidance. and it really is a good way i think to think about it. >> yeah, you know, it's one thing- you don't want less transparency i think that's part of the point. if you don't have to report on a quarterly basis you don't have to give the investors as much transparency i don't think too many people like the idea of less transparency but you are right, it's hard to figure out where things are going to be in three months. it pushes people to do things they might not do otherwise. and maybe fumbling the results around the quarter he says that he jamie, dimon,

the business round table are in favor of getting rid of quarterly earning guidance but not necessarily the reports. >> hang out at the bar we'll be back to you later. thanks very much. >> been here all day. >> keep it up. >> stocks taking a pause for the record rally at least a couple of the indicators so far the dow and s&p 500 trading lower. the nasdaq turned higher and setting another intraday heit. >> president trump tweeting today saying the news from financial markets better than anticipated and more good news coming what kind of good news would we want et cetera bring in our guests a portfolio manager with slate stone welt welcome to boepgt of you bob beginning with you back in january, you made some very preskrient predict was about the s&p would do and the cld clild of a and you

nailed it. and financials industrials right abright and right you've been a little shy on prediction of 30 ob 40 for the s&p do you think we get there this year. >> i do. i think the s&p is probably going to trade up to 3,000 i hope it gets past my 30, 40 number only about 4% away from it if we get past it i think we start to see some concerns build around sort of the midterm elections. you might see a pullback, maybe 2875 i mean that's just the number. i have no idea if 2875 will be the year end close but that's what i'm thinking going into next year there is going to be a little bit more concern about maybe some changes in congress. about maybe a slowdown in the earnings pace, maybe the federal reserve, less repatriated cash coming back from overseas and fuel buybacks process. but i think the market sees a nice gain this year in the range of 7.57% and tacks on maybe

5.25,.55% next year. >> jerry what do you think bob is optimistic with caulks in the wind. >> i would put myself to the right of that. i'm outright bullish the president is talking about things the market hasn't focused on yet we peaked out in january at that time the market wasn't discounting the earnings surge we had we have gotten that. the market trades at 16 times where it was close to 18 times when it peaked out there is a 10% move just to bring us back to fuller valuation. and i wouldn't even call that excessive. but the more exciting aspect is the fact that the rest of the global economy is poised to turn china is really stepping up all of the inincentive is trying to put in its economy europe looks like it's had its stall out of turkey and greece

and those issues and the consumption around the globe is following all the liquidity that the central banks providing provided the economies. and you are likely to see continuing higher expectation for earnings play out. and that doesn't hurt markets. that's what drives markets higher and that's a surge that we probably still haven't seen the greatest part of you want to be in front of that. you do not want to sit here up 30, 40 or higher wondering if it's going to continue you probably want to get in right now and you want to get in before the holiday >> okay. so bob, speaking of the holiday, here you have all the pofrlt managers coming back after their long vacations time for fall cleaning, clean out the closet what goes? >> you know, i think you have to be a little careful here right now. i mean, just like mike said, leading into this segment, you know, up about 8% since june so you know, i don't think you jump in with two hands and two feet if you had new cash coming into

the market you sort of wait until people come back from vacation see where the market wants to go there are concerns about trade out there. china, whether or not canada comes onboard. i think you stick with the cyclical processes consumer technology, health care but then maybe think about taking profit off the table. just a little bit if a position is too large and move into defensive areas. i hope jerry is right. i really do. i hope i'm wrong but i don't see the rest of the world being in the same type of situation that we are. we're in a great position for trump to negotiate these trade tariffs. but i don't think the rest of the world is ready to handle interest rate increases. we had major -- major countries that are still at zero% interest rate what happens when the countries not doing so great start to raise rates. that's what concerns me. i hope jerry is right and i'm wrong. but i don't think i am.

>> jerry of cassel ark and bob with slate stone thank you very much. >> thank you. coming up, does harvard discriminate against asian-americans? the university is being sued over it. and now the justice department is getting involved. we have the latest, the implications for higher education. and we debate it next. plus techer to it up in august but could the president put a target on tech companies and te rail that. and megadeals on megamansions who doesn't want want one be, the biggest price cuts at the top. what it means for the xulury market ahead power lufrm back in two minutes. (indistinguishable muttering) that was awful. why are you so good at this? >> announcer: in cnbc program is sponsoreddy td ameritrade. i had a coach. math. ooh. so, why don't traders have coaches? who says they don't?

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the justice department issuing a statement supporting students suing harvard university over affirmative action policies they claim discriminate against asian-american applicants. a major development for the case which could have serious implications for affirmative action as a whole. what does say about the state of the college admission.

the sarah harborson former associate dean of admissions for university of pennsylvania welcome to you both, ladies. specifically this has to do with the personal rating based on a -- and a compilation of teacher recommendations, personal essays as well as admiration interviews. susan do you think there is a problem with the system? because right now asian-americans students are getting the highest when it -- highest marks in on extracurriculars as well as scores academicdy but the lowest ratings for personal ratings. >> thanks for having me. i think it is definitely very challenging for schools like harvard or krall yale or others where it is not a numbers game it is very much a holistic process. with that is going to be bringing in subjectivity and so it is difficult when i was at yale reading between 20 to 40 applications a day many of the students i was reading were asian-americans and i think one of the challenges you see for

asian-americans is as one myself is often times maybe the model student that's upheld in that middle upper class asian-american demographic can look very similar on paper i think on both sides i would say for asian-american students for the system as is really need to think about how they can build their narrative and distinguish themselves and at the same time i think colleges such as harvard and many others are having to rethink what does diversity look to them and how are they reading the iks zbrs full disclosure i went to harvard and also an interviewer for harvard. i'm told by the admissions office you are the only point of personal contact that applicant will have with the admissions office it's up to me on the personal rating and a lot of other scores to you know give a view of the student that the admissions officers might not get from other parts of the application sarah from that respect, is it the student? does the burden fall on the

student? is it just the system overall that's flawed? does there need to be another view into the applicants >> you know, these students, asian-american students for decades have been afraid to self-identify. so many students did not the indicate they were asian-american on the application, afraid to talk with it in interviews or even write a college essay about it even though this is a holistic admissions process at the the selective universities it needs to be fair what has gone on for decades is something that needs to change and it's been happening for a very long time this has been brewing. there has been no transparency in this process. this is very private everything is done behind closed doors. and the one office on a college campus you would think would be the most welcoming and open and treat students with the most decency would be the admission office there needs to be major changes. >> sarah and susan, i'm very

interested to marry you talk about where race or ethnicity should figure in the admission process if at all, and how you as admissions officers or formers, think about it. i mean, what's the -- how do you thread this needle by -- and being fair and creating a diverse student body? >> here is the thing admissions officers are making assumptions will students whether race is identified on the application or not. it comes down to the student's name, background, who the parents are. it's part of the process whether it is listed on the application. i think the bigger issue is that this process has become so fast-paced, there isn't as much training as i think most deans of admissions should have within the staff. and frankly the admissions office and deans, the modern-day dean needs to reflect the

applicant pool that these elite colleges and universities have and, frankly, race is part of a student's story. and it is still an important part of the process. but we have to figure out a way to do it fairly and evaluate students with decency. >> susan, how would you change it to make it fairer >> yeah, so i think it is really difficult. i mean i think that is the magic, you know, question or whoever has the answer because as a holistic process, as sarah mentions, admissions officer you are bounzing variables diversity in terms of race, socioeconomics, in terms do you want five harpists on the campus, 10 harpists on the campus each school is going to have to stlugle with that. the reality at the schools there isn't necessarily a hard and fast quota but they're also not completely numbers agnostic either after everyone put the tentative

semzs numbers would be run to see where are we in general will go at the ethnic categories in other areas as with pel. >> one last question, sarah, what does diversity look like for a college like harvard or evaluate universities out there? should it be the reflective of the applicant pool, the broader population even the composition now of student bodies don't necessarily reflect the broader population of the united states >> yeah, i mean, every college campus wants to have the most diverse student body possible. but diversity is represented in different ways it can be geographic university if it's socioeconomic and even extracurricular university it's what the student can bring to the table the fact is though that these students have been discriminated against for years. and it was the way the process was going on there was no transparency or accountability so something needs to change within the admissions office and it starts from the top down.

>> yes, the lawsuit will be a fascinating one. i can tell that you. there was a lawsuit pending when i was applying to harvard. so this is a real issue going on for a while. thank you so much, susan and sarah. thank you. >> all righty thank you both. coming up will you lieu lemon out with earnings after the bell the stock downward facing dog ahead of that but tracking for the best year in eight years the best year in eight years is now the time to get in on we're voya! we stay with you to and through retirement. i get that voya is with me through retirement, liu. trade nation is neck hen. so, that means no breakfast? voya. helping you to and through retirement.

welcome back to power lunch. a market alert let's head to bob pisani at the new york stock exchange. >> we were watching the market slowly lift waiting for announcement on possible deal on canada and the mexico. and not happening right now. we dropped about 7 points in the last ten minutes or so there are headline ou the president said tariffs next week. obviously it's working applying pressure with canada and mexico or appears to be working and the spt doubling down trying to apply additional pressure. predictable things happen.

the big momentum names, apple and microsoft and nvidia hitting new highs momentum usually movers down quick. 7 or 8 points. we saw predictable movers down in china internet stock. semi conductor stock moved down. china internet stocks moved down emerging market stocks like eem, the china internet etf, the there is the eem emerging markets which have been weak all day. of course we have had dollar issues and emerging market currencies weak overall metals and mining stock of course same situation. slight downturns with the global moves up see if we can get more headlines on that back to you. >> bob what's interesting about the reaction the markets, albeit, it's a few points in the s&p 500, is that september 5th was always the end of the public comment. that was the deadline. and we knew this was coming. and no further talks at least according to the

chinese until after the mid-terms. so it almost seems it shouldn't be a surprise to the markets that we could see the tariffs go into effect on $200 billion worth of goods next week. >> i think everyone -- you know, the market is sort of levitated itself into believing that in the long run there is not going to be any truly damaging trade war issues that are going to occur. warren buffett mentioned this during his -- his annual meeting. and sideways brought it up today that he didn't feel it was a long-term issue. that they would come to agreement. the market comes to feel that way. who can blame them when you watch the nafta negotiations i think china is more complicated. and definitely they have a different set of priorities than mexico and canada does >> all right bob, thank you let's get over to sarah eisen for trading nation hi, sara. >> high, contessa looking at lulu lemon for trading nation. coming out with earnings after

the bell but make no mistake the athletic apparel making is it on an incredible run just because it's down today it's up 74.5% on the longest quarterly win streak ever. gina sanchez and bill baruch with blue line futures. this is as bullish as a chart as it gets. do you chase it or wait on earnings. >> well, you're right as bullish as it gets to define the significance where it is you have to back the chart out. look at the high in 2013 to the low in 2014 you get a range this there. and looking for how it gets to the unchartered territory, you extend that range above the 2013 high and that brings you to 129 i'm watching this 129 level very closely. the chart has had an extreme hockey stick like formation in 2018 and it's consolidates well and moves higher if you look at the 550% retramt

from the low to the high recently that comes in at 129. i am bullish i have to be buolish on will you lieu above 129 and i would buy a re-test to 129 but below there "i" dernd for the immediate term momentum. >> gina they obviously figured out what the consumer wants in this environment even without a ceo for most of the year this is the first quarter unthe new one are you a buyer? >> so, we're going to take a devil's advocate point of view the company has been sit hitting on all cylinders but the problem is the stock is running faster than the company that's challenging because we think as we go into the second part of the year, into the last quarter, we think that the -- gnat market is turning more defersive. now law lieu lemon could benefit from that. they are a premiere stock. however we see morehead wints in momentum and works against them when well priced that is our caution. >> all right got it guys the

stock down 1.33% from earnings tonight preponderate more more trading nation head to the website on trading nation bill and gina thank you. coming up buffett et buys apple. amaze willing tops 2000. the trump takes on google. the trade straight ahead plus papa john's board firing back it's the pizza drama that keeps on delivering. we'll have the latest straight ahead. >> announcer: and now the latest from trading nation.cnbc.com and a word from the sponsor. >> short elk selling can help you profit from stock's decline. because it involves unlimited risk you must have a plan. first, screen for poorly rated stocks showing weakness versus the broad markets. second, look for the stocks with the poorest technical in that group. and finally, incorporate risk management techniques into the order to limit potential losses.

welcome back to power lunch. let's check on the markets the dow and s&p on session lows following news the president backs $200 billion in china tariffs as early as next we can

week right now the dow is down half a percentage point the dow is 1111 points or. and the nasdaq off by a third of%. caterpillar and nike the worst palming. the let's look at the emerging market eem at session lows on the back of that news. we'll watch. let's head to sue herera for the update. >> here what's happening at this hour. memorial services force more john mccain continuing today at the arizona state capitol in phoenix. former vice president and democrat joe biden giving a tribute to his republican friend at the service >> but the way i look at it, the way i thought about it, was that -- i always thought of john as a brother we had a hell of a lot family

fights. >> later today senator skbhan's remains will be felon to washington and he lie in state in the capitol. president trump saying civilian employees of the federal government will not receive raises in 2019 in doing away with the 2.1% across the board pay increase scheduled to take effect in january, the president said he was working to, quote, put our nation on a fiskically sustainable path process end quote. as many as 85 villages were flooded in myanmar after a dam failed and forced more than 63,000 from homes. stayed media reported that days before that breach authorities gave the all clear to the dam, despite residents 'concerns about overspill. and a pike in gas prices is expected this holiday weekend. triple a says this is the most expensive labor day weekend in the past four years. the national average is expected to hit $2.84 a gallon, about 48 cents high are than last year.

that's the news update this hour mels aifr back to you. >> sue thank you. a tech trio warren buffett i bought more apple amundsonen crosses the 2000 mork and the president targets the big tech junts preponderate this time around it's alphabet in the cross hairs we'll talk about that with mall meeks the chief investment officer and portfolio manager of sloid doll and holst. >> you would be inclined carb wishy-washy this close to selling amazon and apple why. >> well the way i look at it is those are leadership companies, particularly amazon that i want to own what i would recommend because the stocks are trading at pretty high valuations in my view, is that maybe you take some money off the table appear reduce your position but "i" going to continue to hold the core stakes in the companies and some of the other fangs. >> let's unpack the stocks individually and amazon you could have used

valuation as the argument against owning it for virtually its entire lifetime. why does valuation come into play right now what specifically are you looking about the amazesen picture that concerns you? >> well, valuation at 2000 a share. sure, you probably couldn't make a valuation case at $100 a share. however momentum continues particularly in amazon westbound serviceance what they are doing in westbound services and the traction they have not only in the space but vis-a-vis the competitors gives them a growth ramp and we know that jeff bezos is ruthless and does a good job disintermediateiating nonnon-internet industry zplees sounds like a reason to buy and you say you hold but wouldn't recommend fresh money in. >> that's right. no fresh money i would rather by it on a dip because all the stocks, no matter how well regarded they are, what i think about thm fundamentally long term will have a bad day

they are volatile names. when they dip sometimes i add to positions. when they rice lake now sometimes i trim the stakes back but i keep the core positions in most of the fangs. >> is it -- is amazon and are the fangs sort of must own core holdings for you >> yes, i think so and out of all of the fangs, the one that i'm frankly most worried about is apple and the reason i'm worried about apple at $228 a share, even though there is one southside price target out there as high as 275 is the bulls on this story have been latching onto the growth of the services business now, that business is growing robustly it's not growing at a cloud type rate which i like much more. but what folks don't realize is the services offerings within apple, they're not sold

separately the ecosystem which is good to have is based on the number of iphone users we are seeing a slowdown in the iphone and the global smartphone market and what happens with a lag is you have a slowdown in the services business because they are tied at the hip and that's one of the things i worry about for apple long-term. where i see a longer growth runway for the cloud services businesses at amazon, google, alibaba and microsoft. >> how are you regulation on the likes of google from the government. >> you know, i think that story recently is trump just being trump. the way i look at it is i'm very worried about tech and tariffs and the trade war with the chinese. i'm mot so much worried about accusations that google and other social media sites are -- have been biased against the conserves. because you think about it, what is on a social media site either god or bad content, it's

implications to politics, that was a story of many weeks and months ago when mark zuckerberg and facebook were testifying in front of congress. so i think that's kind of old news but i do continue to worry about the chinese and the tariff battle. >> paul meeks. thank you paul. >> thank you. another day another act in the papa john's pizza drama. the company board responded to an open letter by the founder with its own letter. with me is kate rogers trying to dissect the latest back and forth. >> we are hearing from the board in the open loor the independent special committee firing back at the founder late last night this in an open later. saying john schnatter is promotes his self-interest in the expense of others. the the axes and his words have had a effect they stay that schnatter supported rich richie's

appointment. but when they didn't support his him. they say he denied directions not to speak about the nfl controversy last year. separately we obtained this. a letter that schnatter sent to papa jones of earlier in the month in which he alleges a fraternity like environment among border members and zbees kpees. there is a investigation under way. the special committee told me in response to this letter we received once again, john senator is making reckless salacious allegations in his attempt to regain control and serve his ooeg on interests. >> here is my question if poppa john's schnatter's babe are baby why would you want to see that baby cut in half? why is he doing it. >> a source familiar with his thinks told me he has two main goals. number one retain board seat number two direct the company toward success

you can criticize his actions and say why is he doing this because it seems the actions are impacted the company and the stock negatively the store sales for the month of july down over 10% got a 7 to 10% drop the rest of the year these things negatively impacted the company. but in his thinking according to sources he wants to direct them in his own way. >> he criticizes the company to for having what a fraernlt-like. >> fraernlt like culture. >> but that didn't occur out of thin air, did it i mean he has not been gone that long. >> exactly now steve richie took over last year if you remember after earnings john put oit a statement saying steve was act as a ceo for a fuel year before that. papa john dpid that. says schnatter was ceo over until it was taken over. a lot of back and forth. >> thanks. >> decision day for electric scooters in santa monica what the city is dngoi and why

other cities are paying attention to it. s... to find the best deal on the right hotel for you. tripadvisor.

on the matter. a announcement on the matter adidi roy on the scooter beat. adidi. >> it's a fun beat to be on. hey there. santa monica has been on the front lines since a few months ago. byrd and line dropped the devices on city streets without warning or permission. and today city officials will announce which two bike tai share companies and which skoorpt companies will be allowed to operate under a license when they have a pilot program that launching next month. 18 applications have been filed. earlier this month, both bird and lime launched a protest called a day without scooters. that after a city committee recommended uber and lyft as the top choices for the pilot program. now scooter users say they are easy and maneuver well and more affordable than a car or public

transportation but there are critics out there. all you have to do is look at social media it's slathered with images of scooters around. after lose user leave them once finishing the rides. saying they are creating tripping and road hazards. it has deepened pressure on lawmakers to put in regulation d.c., dallas have put in regulations. san francisco and los angeles, the regulations can have a deep impact on the businesses for instance if requiring things like helmets or lower the speed limit. it would require some of the companies to make them costly hardware changes back to you. >> what a take away there. right thank you. adidi. did you see the pile of scooters according to the recent study only one in ten employees at the largest tech companies are black or latino. and men are earning 82% of all undergraduate computer science degrees. one company hopes to help solve that problem with apprenticeship

programs the first software development apprenticeship backed by the department of labor. heather is the coveder and ceo of the company tech tonic group. what does it take to have the coding boot camp, the apprenticeships certified by the department of labor? >> well, first of all, there is a set of standards that we have to abide by. and previously it would have been plumbers and electricians had to fill out the forms with the department of labor and set a list of standards in place but when we came along and wanted to be the apprenticeship we had to rewrite the applications to be applicable to software developers. it was an 18 month process for us to get through this we like it's intensive because it holds a set of standards and guidelines that not everybody can be a part of and that sets our program a little bit higher than everything else out there for training software

developers. >> a lot of the coding boot camps are prohibitly expensive casting upwards of $14,000 taking place in high-rent cities in the nation. and you're in boulder, colorado does having the dbt of labor tamp stamp of approval cast a wider net. >> we are background agnostic don't care where you come from, if you have a college degree or self-taut software developer we will pay people on day one. that's part of being a dol apprenticeship program you have to pay people to be in the program. we can take people who are barrista a few months ago and pay them a liveable wage in the program and train them to be great software developers. >> how long do does it take and is there a color war. >> it takes six months to get through the program. >> about six months and the cost

of your program we saw the average which is about $11,000. >> the cost of the program is disappear are zero we pay people on day one to be part of the program. >> what happens to the people once he they get through the program and how do you get them to stay at your do you get them at your company as opposed to start at another company for training >> the way it works is a lot of companies come to us to build our software developers. and at the same time we're training apprentices who can also be software developers who will start pair programming with our senior team, and our clients then have the option to take those apprentices in as full time employees so we're not only creating our employee's software but a pipeline of talent for them they can take in-house. and this helps our clients hire more diversity, more tal squnt give them a consistent screen of

developers trained on their programs >> we talk about the skills gap here on cnbc have you learned anything that could be applicable to the shortage of skilled workers? >> one of the thing we realize is that you don't need a college degree to be a great software developer. if you have a passion and love for creating things and building things on the web, you can learn this skill band be a software developer. there's no need to go for a full full on four-year degree and i would say to the companies bringing people onboard more open minded and giving people a chance who don't necessarily have the credentials >> all righty, coming up if you're in the market for a mansion, there are some deals to be had right now, and robert frank is here with that story. >> it's worth $62 million for a california mansion that's not the price but the price cut.

that means bargains for billionaires we'll show you the biggest homes with the biggest price drops right after this break

welcome back to "power lunch. if you've been looking to get a deal on a multi-million dollar

mansion, who isn't, now might be your time. robert franks joins us with all the details. >> a deal is kind of a relative term here. johnny carson's estate in malibu, a study from red fin found at the top of the market homes priced at $10 million or more, 12% of listings had a price drop in the second quarter. actually twice the level in 2016 now, price cuts totaled $1 billion for the top 500 listings with the discounts starting with the late johnny carson's estate in malibu. going from 81 to a mere $65 million. the zip estate that just got a chop of $27 million, now at $38. and a price slash of

$13.5 million, and now just -- and now listed for $11 million just been reduced by $3 million to $8 million. now, the biggest price cut was a $250 million house listed in 2017 just reduced by $62 million. now just $188. at i wonder what he paid for th house >> a lot less. >> check please is next. we're the most isolated population on the planet. ♪ hawaii is the first state in the u.s. to have 100% renewable energy goal. we're a very small electric utility. but, if we don't make this move we're going to have changes in our environment, and have a negative impact to hawaii's economy. ♪ verizon provided us a solution

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let's take a look at the markets and what happened in just the last hour you can see them all off very sharply on a lookbering report that the president has told aides to get ready to apply $200 billion tariffs an on additional $200 billion worth of chinese goods. there you see the nasdaq that was in the green there's the industrials now off 150 points and the s&p which was struggling to stay positive or get positive, you can look at that decline there on those trade worries as we continue to negotiate with canada. >> again, a bit of a surprise since we knew the deadline for the comment was next week. it's worth noting apple still up 100% >> i'm just looking at the advantage that apprenticeships

could be for the nation in terms of finding skilled workers and making sure you have employees with the background you need and apprenticeships paying people to learn what they need to learn could be the key. >> learning a skill is a lot more economical than going to four years of college. welcome "closing bell. i'm wilfred frost at the new york stock exchange. we'll break down those headlines and what it means for investors coming up. it's been exactly four weeks since apple became the first u.s. company to hit $1 trillion. now amazon is on the brink of joining the club what it'll take to hit that milestone ahead. the clock is ticking for the united states to sign a trade deal with canada the latest on those negotiations