4.5% dividend yield, chsz agood as it gets in corporate bonds. i like the story >> stephanie >> kohl's really great quarter i'm a buyer where. >> regents financial just consolidated in the gains of the last year. i remain long. power lunch begins right now >> the market cap milestone. where does the giant go from here in the face of the nfl anthem protest is now the face of a new nike just do it campaign and it's working a lot of backlash. nike shares taking a hit today will the controversial move pay off, or is this going to turn into a nightmare for nike? and then big tech set for a big fight on capitol hill. lawmakers ready to call for new regulation the chairman of alphabet will join us live power lunch starts right now

the dow down almost 160 points earlier. crude oil hits its highest level since mid-july topping $70, but wti has given up its earlier gains, and check out tesla and facebook this hour both of them down. both taking a hit on downgrades. more on these two just ahead tyler. >> all right contes contessa, thank you very much. welcome, everybody i'm tyler matheson we begin this hour with amazon the internet giant's market cap hitting $1 trillion for the first time ever. josh lipton following amazon's remarkable run hi, josh >> tyler, the stock needed a price of $2,050. it did so this morning the stock we know has been on a roll here, and it's up more than 70% so far this year

an amount larger than 82% and aetna just to give you context you pull that chart even longer, and you can see the trajectory amazon is up more than 135,000% since its ipo. $1,000 invested in amazon's ipo will be worth some $1.4 million today. better than the performances, by the way, of all the fangs. remember apple reached $1 trillion in early august after posting a strong quarterly report the two are now neck and neck in what some are calling the new for comma club, rs referring to the market cap of these companies. only a difference of $20 billion in market cap separating them. the street bulled up on ma'am amazon 96% of financial analysts rate amazon a buy morgan stanley just last week did raise its price target to $2,500, saying the company is fast-growing, high margin revenue streams like advertising, aws and subscriptions will drive higher

profitability. tyler, back to you >> all right, josh thank you very much. let's dig deeper into this historic milestone to do that we're joined by mark mahaney from rbc capital markets. what's your price target on the stock, and are you thinking of raising it >> modestly higher it's 2,100 this is a milestone. it's gone up and down, and it's got an enormous amount of volatility what's happened this year, however, is that we've reached after two decades record high gross margins and record high operating margins because as josh was mentioning, the influence of the really high margin businesses and high growth businesses advertising and aws, this is a different amazon than we've seen in the past i'm more in awe of what i'm watching and having watched it over the decades, hats off to

the management >> you have a $2,200 price target when a company adds $65 billion in market value and five or six trading sessions, does that make you swallow hard >> well, it does i think it certainly gives a reason for pause, but as you alluded to, we're at 2,200, which is modestly higher i think the key here is that the thesis has really, we would argue, reached somewhat of a positive inflexion point if you rewind a few years ago, there was these major concerns with the earnings and cash flow volatility today i think the company has come into a model where there's a higher margin and revenue or essentially poised to continue

i think it went beyond that through organic growth and targeted acquisitions. i think they have pretty much shown they can be very disciplined to execute on that front. i think that's why i think the company zeshs a new look from investors that have been skeptical. i would point to amazon web services that we think accounts for at least one-third of that $1 trillion in market cap. >> the risk, though, to technology, mark, at this point may be capitol hill. the president said these companies, including amazon, are in an anti-trust situation, that he won't comment on whether or not any of these companies should be broken up. how concerned are you that i understand amazon is not one of the companies called to capitol hill tomorrow, but that amazon falls into the crosshairs of the president and congressional leaders maybe just because of its size >> i think that's absolutely a big risk i think there are two major

risks here with amazon one is regulation, and one is competition. really quickly, in that cloud computing business, i mean, they've got two massive competitors in both google and microsoft. i think that's the area of greatest risk to the story going forward. when there are going to be these platforms and they're more powerful and bigger and more influential, and they should be at least scrutinized for potential abuses of power. i haven't seen that in the case of amazon, but the larger the company, the greater the potential. they should be scrutinized >> tuna, what do you think go ahead >> i think it's fair to bring up the exsteshl risk. it's overstated, right i think people tend to, you know, throw amazon in with the likes of, you know, facebook or google, et cetera.

i think the company itself, i think, we would argue is a somewhat less exposed on that front. when you talk about break-up of the company, now, that's a possibility, and i would also point to amazon web services as a potential candidate for that i think investors frr know that the -- are somewhat different and the likes of facebook and others and we think that risk has been somewhat overstated >> do you see any risk at all in the continuing diversification of amazon pursuing these businesses, mark >> there's going to be execution risk by the way, we're looking at it when it's crossing this $1 trillion market cap, you know, level, and we assume that everything has gone great. they've had plenty of misses along the year the fire phone, i still have one of those there have been some examples of where this company hasn't succeeded. they're throwing out -- they're throwing out a lot of spaghetti. turns out some of the spaghetti

clumps have stuck well, advertising aws retail my guess is their mechanics major investment cycle will go intologistics and become like an aws for shippers accident for any distribution company, for manufacturers, for retailers that's going to be a separate set of competencies. i don't know how well they'll do in that. that's the next investment cycle that i'm going to be worried about in terms of execution risk >> we will find out. >> or financial services for that matter or automotive or any number of other areas where i would not count them out i think it's proouchk that they can leverage the scale and right now i would say it's the fly wheel in the whole disruptive, you know, kind of move that they're making they're trying to sustain that base and make it much more attractive for them. >> i don't know whether you

mentioned it that would be medical insurance, health insurance they got millions and millions and millions of names. they know where people live. they know a lot of about them. they can buy an insurance company and make that their business mark mahaney thanks. we appreciate it, tuna guys, thank you. >> thank you a bold move from nike making colin cammer nick the face of its new controversial ad campaign the stock moving lower today in response in fact, it is the biggest loser in the dow right now sarah eisen has more on nike's bold bet sarah. >> melissa, consumer companies usually try hard to stay away from politics and controversies, but nike just put itself firmly at the center of the culture wars just days before the launch of football season, nike is including kaepernick in its 30th anniversary campaign of just do it his face, as you see it, appearing on some west coast billboards the and across social media.

>> stocks falling. will it really impact the business after speaking to nike, i can tell you that this refresh of the ad campaign, just do it, it's aimed squarely at millenials they're trying to communicate what they think is an inspirational messable to younger generation that's why it features other fighters across the sports space. lacy baker, for instance, a skateboarder, who has broken through some gender barriers shakim griffin, a linebacker, amputee. clearly, including kaepernick became the only story that matters here now, here are some facts behind nike's business calculation. two-thirds of nike wearers are under the age of 34 years old. 45% are under 25 years old that's according to npd group. and there's proof that kaepernick and his message are marketable remember, last may as the nfl

controversy was flaring, despite the fact that he wasn't on a team, his jersey was still in the top 20 sales no doubt, though, this is a polarized country. this is a calculated risk that nike is taking kaepernick is the face of the protest of the national anthem that president trump has railed against. he is embroiled against a suit against the nfl owners for collusion to keep him out of the league something he is accusing the owners of. no comment yet from the nfl, but nike has just signed a long-term deal to kwout outfit the players that go through 2028 it puts pressure on that relationship as well, guys >> any shot they lose that contract any language in the contract that could allow the nfl to end it >> i haven't read the contract, but i don't think anyone is talking about that just yet. i think the real debate, melissa, is there's a lot of heat right now on nike, and you are seeing the boycott

you are seeing the images of people burning their socks and their sneakers is this a temporary phenomenon, or is it going to be something more lasting in terms of a risk that nike has taken to its business a number of the analysts are trying to figure it out. oppenheim oppenheimer, wrote a note saying short-term maybe a little hit, but long-term, this is a resident message, especially with the younger community that nike is targeting, and that is the future consumer, and he actually sees it helping nike sales down the line. >> look, they didn't get the attention with the other athletes, sarah, that you had mentioned. it's not like you saw a whole big hash tag meme on twitter or snapchat or any of the other social media that the young kids are using these days that i don't know about at any rate, they got attention for it that had to have factored into the calculus >> certainly the nike spin is kaepernick is not the face of this ad campaign he is just one of the many athletes you mentioned

in less than 24 hours, nike received more than $43 million worth of media exposure. just got that stat from apex marketing group. i don't know how they're measuring it, but clearly, everybody is talking about the new just do it campaign. >> how much market cap have they lost a lot more than $44 million? >> billions at this point. >> that's true the stock is still up almost 30% this year, but no question about it, this is causing a hit. we have to go back and look at some of the boycotts and whether they really have any lasting sales impact dick's sporting goods, for instance, changed its firearms policy remember, a little bit of softness in recent quarters because have that. obviously, this is a completely different scale and a completely different consumer base. >> thank you we have much more on this in the hour or so to come appreciate that. in the meantime, september starts on a down note. the dow down one-third of a percent. is this the start of the september swoon. a gentle swoon we're going to talk to the chairman of alphabet about the president's criticisms of the company. a huge interview with john hen

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stocks starting the month lower. is this the beginning of a september swoon? bob pasani at the new york stock exchange certainly a big week ahead for investors. >> stocks are starting september

the way we ended in august with dollar strengths and trade concerns about trade wars. you get dollar strength and predictable moves. i call they the 2 perz moves take a look. sector that is are weak, you get emerging markets that are weak you get china internet stocks that are weak. you get mining and metal stocks that are week. all down about 2%. tech is a little weak. energy is strong with oil at 70, but it's come off the highs, and you can see it turn negative it's true it's the worst month down 0.5 5%. since 1950 there's been 30 years where it's up 37 years it's up 40% of the time in september. bear that in mind, and bear in mind a lot of these old chestnuts we keep using, they don't work very well anymore the s&p is up nearly 10% the midterm presidential cycle being weak for the second and third quarter. that's a very reliable indicator. usually we're down in the second and third quarters it hasn't worked either. we've been up 10% since the beginning of thesecond quarter here there are threats to the rally no doubt we've got emerging markets

we've got trade war, and we've got the federal reserve raising rates. i think the biggest threat is stocks aren't that cheap anymore. prices are a lot higher since the end of the first quarter, but the upwards earnings revisions we've seen seeing are stalled out. the forward pc, these are forward numbers. that was really cheap. today not so cheap 17.1 that's a little bit higher than the historical range we'll see how that goes for the next few weeks guys, back to you. >> all right, bob. thank you. >> despite today's losses, the s&p is still on pace for its biggest quarterly gain in nearly five years the gains just keep on going let's bring in quincy crosby, chief market strategist with prudential financial and peter around son cio with anderson capital management great to see you both today. quincy, i saw you nodding when he was talking about the relative value of these stocks, and they're not cheap right now. you're actually predicting a bit of a pullback come fall. >> well, there are so many obstacles that the market has to go over or go through that that chances are there will be some

pullback volatility will kick in, says and i think as long as the economic data, underpinning this market demonstrates that the economy is solid and strong, remember, that's the tug-of-war. those that are saying now will see the slowdown the ism number today was very strong it was a surprise to the upside, and we're going to go through that if we can see that the economic underpinning is strong, i think buyers are going to come in on any weakness where. >> and a lot of, you know, when we're talking about here the challenges ahead, the headwinds, you think we're in for a little bit of a rough -- and then we're going to pull out of it and see a year-end rally >> typically, the -- october, november, december is probably for active fund managers who are struggling right now against passive investing. that is their window dressing. hedge funds who were not up with the top hedge funds. that is where they go in and performance enhancing, just takes over

santa claus rally. >> so, peter, let's get to you when we talk about what is to come, a lot of the challenges that people will cite in autumn and going into winter have to do with politics and the midterm elections and this potential for leadership and control of the house of representatives and the senate to change for you that's not a concern why? >> well, if you really dig into the numbers and look back at history, it just doesn't seem to be statistically significant to hang your hat on rules of thumb like that, i just think it's very, very dangerous. you know, i wish it were that simple i wish we could have natural laws that have these predictive powers, but as we're seeing, you know, a lot of these natural laws just aren't natural you know, i was a physics major. i always look for cause and effect in predictive powers. in a lot of these numbers and trends that we've looked at from the past history, they're good to think about it gets you in an analytical

manner, but it doesn't help you get any clarity as to what the future is going to be. >> so what are you watch sng. >> well, i am focussing on basic -- the fundamental that is a lot of people have taken their eye off the ball let's just talk about gdp growth greater than 4%. unemployment under 4%. eps outlook looks very, very strong a little bit about active management i'm an active manager, and i've been doing very, very well year-to-date picking individual stocks, and sometimes i think that's an art that gets lost in all the other news and noise frankly that we're focussing on right now. >> all right peter, thank you so much quincy, appreciate you coming in a dire warning about what could happen if or when the market -- the next market crash occurs j.p. morgan predicting something we haven't seen in this country for 50 years plus, casino stocks falling today despite a big month. atat is sending the stocks lor?th's coming up on "power lunch. ♪

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>> cnbc.com hugh song has dramatic predictions >> big dramatic. somewhat bearish look, he has been known as the -- >> marco has been known as the man who can move markets, and something that he has been seeing in the markets the past couple of years is really bothering him, which is what happened e what happens when trading -- when trading declines and liquidity falls away right? we have these sharp, sharp

crashes. he is basically predicting that when -- you know, when the recession occurs, you're going to have these flash crashes. instead of the markets coming back really quickly, you are going to basically have sustained and more severe flash crashes. that's a concern i would think >> what causes these liquidity shops? >> he basically points to a couple of different, you know, culprits they're all basically in the realm of what's changed in the market structure, right? what's changed you have had, you know, trillions of dollars, probably $2 trillion move into passive from active, right he is saying a lot of money is drained from value investors kbho who can deploy money opportunistically to, you know, snap up shares electronic trading desks, right? you've had human traders be basically replaced, you know, essentially by algorithms, and these algos, they don't look at value. they basically only care about, you know, if markets are going away, they're going to step back and bring in their bids. liquidity tends to vanish in the times of stress. >> this is the market structure

now. there's nothing that could be done about this. >> yeah. >> that seems more concerning, you know, to an investor, i would think. >> and his major point is that these markets have not been tested yet if you have had flash crashes that happened in the back drop have a huge economic boom, right, a really steady economic growth, so what happens when this -- when these algorithmic markets encounter something that's less than ideal >> the thing that got my attention was that he says this was less a prediction than a warning. >> basically, look, in j.p. morgan, to be clear, you know, they're not bearish on these markets today. j.p. morgan says s&p is going to be a $3,000 by year end, and marco in particular thinks that the risks like the rise really at the start of the second half of next year to be clear, you're not calling for doom and gloom right now he is just saying cycles always end, and when they do, there are things to be concerned about >> the real test will be when we have the volatility spike, you know, and that's when this will

really be tested with vol below 14 now, it's still pretty tame. when we see that spike, i think that that's when the scenario really come sbooz you play >> as a matter of fact, he thinks vol spikes and stocks drop at the same time. these are the things that are for the great liquidity crisis >> hue, thanks cnbc.com >> all right, when twitter's jack dorsey and cheryl sandberg appeared at congressional hearing tomorrow, they will be sitting next to an empty chair no one from google will be there. up next, we'll talk to the company's chairman about that. the president's attacks on tech and much more. a big interview coming up with john hennessy. ayitusra your go risk having your clubs lost or damaged by the airlines. sending your own clubs ahead with shipsticks.com makes it fast & easy to get to your golf destination. with just a few clicks or a phone call we'll pick up and deliver your clubs on-time,

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today, life-changing technology from abbott is helping hunt them down at their source. because the faster we can identify new viruses, the faster we can get to stopping them. the most personal technology, is technology with the power to change your life. life. to the fullest. . welcome back let's get a check on the markets. stocks down on this first tragt day of september historically the worst month of the year for the major averages that nasdaqs drop as the biggest since mid-august there you can see the dow industrials off by a quarter of a percent. the s&p is off by one-third of a percent, and the nasdaq off by .4%. amazon, really the big stock story of the day

the company's market cap hit $1 trillion for the first time ever joins apple and a rather exclusive club let's get over to sue herrera now for a news update. sue. >> thanks so much. here's what's happening at this hour, everyone quarrelling and confusion marking the start of the senate confirmation hearing for supreme court nominee brett cavanaugh. protesters disrupted the proceedings and democrats tried to block the hearing because of documents withheld by the white house. republican chairman chuck grassley shut down the democrats request for a delay. >> we're going to be in session tuesday, wednesday, thursday, friday, saturday, sunday until we get done this week. it gets pretty boring to hear the same thing all the time. >> chicago mayor rahm emane well says he will not seek a third term in 2019, saying it's not a lifetime job the "chicago tribune" reporting he had already raised more than $10 million for another run.

mercedes benz unveiling its much anticipated suv today. the mercedes eqc is a direct appeal to millennial who's have flocked to tesla it will be closely followed by similar debuts by bmw and audi that is the news update this hour i will send it back to you, melissa. >> all right, sue herrera. the 2016 election twitter ceo jook dorsey and chief operating officer carol sandberg have agreed to testify, but it's unclear whether larry paige will attend they planned to originally second kent walker, but the committee wanted somebody higher up first to discuss this assault on silicon valley is sean hennessy. he is out with a new book "leading matters." lesson from my journey these are great lessons. i do want to start off with the news can you tell us definitively >> that's not the current plan, as far as i know, but this is a

management decision, and they could change their mind at any moment skbro i think the management team decided they wanted to send kent, who is the senior global affairs person >> do you think google has done the best it could do to explain -- to respond, let's say, to the -- to last week's allegations that search results were somehow infected with political bias they relied on trying to explain their alga wirits i can't understand it. >> i think they are very complicated. i this think political bias is never entered the search results and how search is determined.

>> algorithms are programmed by people, and this google algorithm has been a black box i mean, every year there are so many updates for this algorithm. it still remains a black box how does a company, you know, effectively explain there is no political bias when it's hard to understand >> it is difficult to understand i think we have many, many people who basically are constantly tuning in the algarhythm and looking at what is the search most people want what's the result they most want back that's what drives that search process? i think the algorithm also, it's critical to understand that it has protections in it against people who try to mislead the search result and get their web page to rise up by creating links which are not real and things like that

>> how do you determine what results we get -- we're getting into an alalleyway here. if it i put in trump news last week on a day that came up, i would say out of the hundred that i looked at, 85 or 90 were from what i would call mainstream media cnn, washington post, "new york time times", abc, bbc, fox news they may not think of themselves as mainstream, but to me they are. very few were from alternative how do you determine that those are the ones people want most? >> well, so based on two things, one is what do people actually -- which site do they actually go to when they do a search are they passed two or three of the things at the top of the search list, the top of the result, and go to one further down then that's an education that maybe that one should rise in

importance we drive it by that. we drive it by the number of references within the web. how many people referenced a story that appears whether it's in fox or the "new york times" or the washington post how many people reference it that's an indication of how many other people are reading that story. >> can i ask you more broadly, we're watching twitter and facebook going to capitol hill tomorrow there's been a lot of speculation about how lawmakers might regulate these social media companies or these tech companies? should there be more regulation? is it time to consider new restrictions and new rules for these tech companies >> i think it's very hard to contemplate how you can regulate the tech industry without putting an anchor on this very fast-moving industry, says which would harm our competitiveness with respect to other parts of the world. >> you mean global companies >> global companies. they are global companies now. i think you have to be very careful. look at copyright law.

it's still stuck in the 18th century. it hasn't been updated to reflect the way in which information is now conveyed to people >> if you were a lawmaker on capitol hill, what would you ask? what do you want to know from these other leaders about where we're going? >> i think there are good questions to be asked about how do people who are paying for various things affect what people see whether it's a news feed or search is it crystal clear whether or not somebody is paying for something in order to -- it rises up and you see it, or are you seeing it because the algorithm determine that's what people most want to see? >> do you feel there's an inflexion point happening right now when it comes to public trust and technology before there was just faith in the technology companies, and now it seems that there are questions about the motivations and it might have started even earlier than with facebook and the hearings on capitol hill, the concerns about interference with the election. now there's, you know, questions about the algorithm and we're

not sayingthat anybody does or does not do something, but these questions are now out there. now there are hearings about how twitter decides who deserves to be on the platform and doesn't three years ago this might not have been a conversation that would have made it to capitol hill, but today it is. >> it's the rise of socialees. i think the world has changed dramatically you think about the old days and silicon valley when we're building products for other technologyists or business users. now we have built products that touch every single person's life every day. that has a greater responsibility there's no doubt about it. we have to think about how do we build those products and how are we going to make -- >> if i were an investor listening to you, we're looking at facebook too. they're spending a lot more money. they're hiring a lot more people in order to sort of suss out what is fake news, what is not fake news. what's going on with the platform in fact, facebook got downgraded today in part because of that very reason. it seems like maybe the hay day

of technology is over. i mean, even if at the margins tech companies have to be more responsible, that sounds to me like more spending that sounds to me like more lobbying that sounds to me like dealing with potential new regulations that's not the free and clear blue sky days of technology, you know, five years ago >> you are right it's not the free and open way in which we operated for so many years. things are going to have to change the flip side of that is that we're standing on this threshold of artificial intelligence it's going to change the world in dramatic ways and create new opportunities for great leadership and responsibility >> i want to throw a grenade into our control room. i want this conversation to go longer we haven't touched on your book, number one we haven't touched on a couple of other things that i i think are really important the next one that i want to ask you about is how your board is addressing and talking about the threats to democracy pose the by

foreign actors trying to manipulate our elections what are you doing what is the conversation >> certainly that's an important conversation, and we need to insure that our democratic system is not biassed by foreign actors, and we have got to insure that the methods we use to allow people to post things, to run ads that we really understand exactly what's happening. >> you have a better understanding now than you did three years ago, twoers yoo ago? >> i think we do if you look at the way youtube has reacted to questions of videos that shouldn't appear and certainly shouldn't ab as opportunities for people to run ads against, says that required both some new technology, deploying some of the a.i. technology to try to screen out videos, but also a lot of people who go and look at those videos and decide what should be screened out and what shouldn't? >> just a couple of years ago you ended a long tenure as the president of stanford. wondering what you think about unemployment where it stands right now and the fact that a

lot of the students who graduated from stanford may have graduated without ever having held down a job. i mean, summer jobs that i grew up with are becoming quickly a thing of the past. how important is that for turning out a work force that knows how to act in the workplace? zblie think it's vitally important. my first job in high school was stocking shelves in a beverage aisle. that was a great lesson -- learning, working with people from all different backgrounds, and doing important work that's a good lesson, and it's good for young people to get that lesson. >> i want to can you about diversity. what is alphabet doing to address concerns in silicon valley, in your company about underrepresentation of women in engineering jobs, about sometimes a hostile workplace, and if you would, as a former university president, flick in your response to the idea that harvard is coming under serious

criticism for the way they select people who come to that school computer science is now the larnl it's major for women at stanford that's a real breakthrough that took a lot of community building so that women didn't feel isolated and they were the only ones in the classroom that helped. i think we'll see that now move into the mainstream. there are certainly challenges particularly in tech-rich companies. the tech disciplines are still underrepresented in many cases among minority communities we have to work on that. we have to build a better pipeline from the universities into the kidnaps, and then we have to work on things like implicit bias so that the companies are aware of that in the hiring process >> want to switch i think to the book, right? >> yeah. >> we're running out of time we do want to spend time on this book ten skills effective leaders

must have. one of them we don't have quite enough time to go through each individual one one of them is courage stand up for something how does politics factor into that we're seeing now corporations weighed into the political sphere by thrusting their companies into taking a stand on something. >> auto even if it means bringing your company into a -- >> that's a decision they have

to make whether or not that is a worth while cause to endorse >> what is an authentic leader, and who is an authentic leader in -- and who is authentic in -- >> i just think we lost wucht great authentic leaders in our country in john mccain a person who would work with colleagues who would work to represent the best interests of all the american people. not just his plilkt party, and not just the people who voted for him. that's what we really need >> all right, john thank you. >> great >> thank you >> appreciate your time. >> my pleasure >> good luck with the book let's get to sue herrera she has breaking news on twitter. sue where are. >> indeed i do the written testimony by twitter's chief executive mr. dorsey has been released and basically there are a couple of key headlines on this. he says basically he will tell congress the company "does not use political ideology to make any decisions. that's in the written testimony.

he also says a review that he has undertaken of the company shows no statistically significant difference between how often republican and democratic members of congress's tweets are viewed. that's according to the testimony. he says basically let me be clear about one important foundational fact. that they do not use political ideology to make decisions in fact, from a simple business perspective and to serve the public conversation, twitter is actually innocentiveized to keep all voices on the platform he will be testifying on basically september 5t this is the written testimony and those are some of the key headlines surrounding them ty, i'll send it back to you >> thank you very much, sue. sue herrera reporting. gaming stocks moving big this at nt?ur wh'sex

>> welcome back to power lunch they are tracking the action at the cme. hi, rick hi, contessa intraday chart, we're up wille almost three basis points in a ten-year note hovering half a base point under 209 the last time the tenures closed above 290 was the 8th of august. it it's been 17 sessions, including the last one today would be 18 that we close in the 280s. don't think we're going to get it today, but it's going to be real down to the wire. dollar index having a solid day as well as you see on the two-day chart. did give up a little bit of ground today here's something fascinating that year-to-date chart you're looking at, if you take the month of august out, we're at the highest point where it would be all year. contessa, back to you. >> rick santelli, thank you for the update there >> let's talk a little casino

stocks we'll do it ahead on "poush lunch. ♪ that's confident. but it's not kayak confident. kayak searches hundreds of travel and airline sites to find the best flights for us. so i'm more than confident. kayak. search one and done.

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gambling revenue is soaring 17% in august, the largest growth this year and it marks 25 straight months of rising revenue, but individual casino stocks haven't been doing so well lately. mgm, melco, las vegas and wynn down big over the past three months. the casino stocks gone bust or is a turn around coming? joining us now is harry. good to see you today. >> happy to be here. >> let's talk about what's happening in macau. what's driving the growth and what are the expectations for it to continue through to the end of the year? >> you think that the growth has been driven primarily by v.i.p. or higher end gambling in macau for the past several months, but i think that that baton is being shifted to a different hand where its going to match growth

revenue. the mass growth revenue are probably poised to grow about 15% over the next six to 12 months. v.i.p. revenues, which have been the primary driver of growth more likely in the high single digits. >> one of the things that happens in macau is that these gamblers come in and they go to a casino with their junket and they get special chips to use and gamble there and its been a big driver of the revenue but you're saying and we've heard it on these earnings call, harry, we heard the ceos say that mass market is really seeing a big hiccup here. what's pushing that change in trend? >> you think on the v.i.p. side -- and this is really bizarre, the -- the casino operators have to be careful about a growth rate that is too strong because then that invites more scrutiny from mainland china, whereas on the mass side that's the piece of the puzzle

that mainland china really is okay with and so there's probably been an increased focus on mass revenue growth. >> are you concerned, harry, about demand as we enter -- i don't want to say the depths of the trade war, but things look like they're going to get worse before they get better on the trade front. are you factoring that in in terms of the impact that could have on demand whether it be mainstream gambling orv.i.p. gambling throw on top of that a stock market that's down considerably in china, is that putting pressure on v.i.p. demand, for instance >> it really isn't. i think that if you think about it, for example, a softer chinese currency could, in fact, be a catalyst for increased demand as more customers want to use currency leakage to coin a phrase if they're worried about the direction of the chinese

currency. so and the other thing about the trade war, i don't think that the trade war really has a heck of a lot of negative impact on your mass customer. i think in the long run the bigger issue with the trade war is the ownership structure of the u.s. operators since they own over 70% of the equity in these businesses. >> and the concessions are coming due in the next couple years and if the chinese government chooses to flex a muscle with the united states through the dolling out or the continuance of these concessions that -- i don't know about you, harry, but when i'm talking to the players in this field, nobody wants to get in and stir that pot at all. >> its a tough -- its a tough one as a practical matter. what happens is that there will probably be a modest -- a request for a modest sell down

from the low 70% down to some where in and around 50% and the other element of a successful concession renegotiation is probably going to be incremental investment in noncasino amenities and so they probably won't generate a heck of a lot of incremental returns but it protects the concession. >> harry curtis, great to see you. i wish you were here on set with us today, but nice to see you in the little box there. thanks. if amazon has a trillion dollars market cap how many of those belong to jeff bezos nike's bold new colin kaepernick ad, is it a brilliant move or blunder? will it backfire all that and more coming up in the second hour of power.

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an amazing amazon. the company hitting a trillion dollars for the first time ever. would it rally on from here or turn the other way we'll have more on their incredible run and whether it may be about to hit a peak september is usually the worst month of the year for stock market investors but is it still full steam ahead for the rally not right down. down 39 points for the dow. we got a new big bold call out on the street and nike's controversial move to make colin kaepernick one of the faces of a new ad campaign. it is stirring a lot of debate, some outraged. smart move or blunder? we'll talk about that and more when "power lunch" continues right now. and welcome to "power lunch," the major averages low on the first day of trading day which is historically the worst month for the year for stocks.

the dow was down almost 160 points earlier in the session now down by just 29. s&p 500 down by almost seven and the nasdaq down about 29. utilities and financials are today's best performing sectors. meantime, telecom materials -- >> hello. we begin this hour with breaking news on facebook. sue herera joins us with more details. hi, sue. >> hi. here's what we know. as you know twitter and facebook are going to be on capitol hill testifying before the senate intelligence committee tomorrow. last hour we brought you jack dorsey's comments and that was actually his testimony, his written testimony. now we have sheryl sandberg's overarching themes, not her actual testimony, but the themes she'll be addressing in terms of accountability. she says they are investing for the long-term. they were too slow to act before. a lot of this we have actually heard before. they say they take this

seriously. they are working to find and shut down fake news accounts as the source of many of the interference they've seen on facebook. they are going to increase transparency on advertising. in addition to that, they say that they are going to deincentivize the monetary aspect of posting fake news and in addition to that they're going to work more closely with law enforcement, increased collaboration with other technology companies, create new partnerships with outside organizations that are experts on these challenges. those are the themes that she is going to address. i think most of the interesting part will come from the q&a after that. we have seen several of these overarching themes from her before but once again that is what she plans to discuss on capitol hill tomorrow. guys, back to you. >> all right. thank you for giving us a look into what to expect there. let's get back to the markets now and amazon hitting a trillion dollars in market cap.

bob pisani and mike san tolli at the market exchange. how does amazon's trip to $1 trillion differ from apples >> both were very relentless, both -- once they were in sight they got there in a relatively hurry. i do think there's a difference behind what got them to 1 trillion. company going to spend down $200 billion in cash, giving it all to investors. it really was about the dollars and cents that already have been built up in the call for amazon its all about the size of the opportunity. every time they grow in a new market it seems like it only enlarges their possible value. >> reporter: valuation doesn't make any sense. everybody's complained this year that the whole -- half of the s&p 500 advanced to bank stocks plus microsoft, that's true. when a half a dozen stocks actually make up a very large part of the move. that is not that unusual. i'll tell you what is unusual. just the size of the companies

now. when you have $2 trillion companies, one's advanced 74%, the other's advanced 34%. that's pretty remarkable. what worries me is not that you've got a few companies with the advancement, that happens, you have an incredible concentration. you did this on friday. look at the qqq. amazon, apple, alphabet and facebook are just shy of 50%, that bothers me more than saying six stocks are most of the nasdaq. >> its totally significant, absolutely. and its odd on a day like today, those two stocks being up when in general its a sloppier take, it almost insulates the rest of the market for a while but that could go in reverse as well. i guess -- $30 trillion stock market roughly >> reporter: that's right. total value is about $30 trillion. just bear in mind, not that a few stocks are outperforming. that happens every year. its the size of these stocks and how much they're not occupying

some of these major indices. >> does it give you comfort that each stock is moving idiosyncratically that passive investing is dominating? facebook is down sharply and moving on that downgrade on the same day we have amazon hitting a trillion dollars for the first time, you know, there's differentiation among these stories? >> reporter: that is stock ticking. >> exactly. that's the point. >> reporter: i agree with you. if everything was up half a percent every day across the board across all of tech or the nasdaq 100 that would seem a little bit odder, much more mechanical than it is right now. there's differentiation, but still concentration, so its a newance story. >> thanks. so what is the -- what's next for the trillion dollars giant. let's bring in our guests. michael, most of the streets bullish on amazon.

what would be the thing that you say, this might not work for the company? >> i'm bullish on amazon as well, have been for quite some time and the source of that bullishness, the foundation is really just the fact that amazon's doing such a great job at growing in its core market. there's a lot of penetration left for amazon to go after in that core market and then they're doing a great job of developing new markets like aws and i think they'll be more new markets to come. so long-term, you know, i just see a long road map for growth here. i do think the one area that, you know, could potentially dislocate the stock in the short-term, although i'm not predicting this but its the biggest risk factor in our mind is the potential for a price squirmish in aws to cause a dislocation in that business. that hasn't happened in the recent past and that business has been performing very nicely. >> people will point to slowing

revenue growth but the margins are staying higher. if the margins are staying higher mainly because of aws and the insulation that it gives to the margin story, why do you think there hasn't been that price skirmish this is a commodity product on which the competitors want a piece of this too. >> aws market cloud services has really settled into a three player market for the most part, its amazon, microsoft and google and there are other players as well but those are the big three and what we've seen for the last couple of years is those three players have been, you know, fairly comfortable with their market positions. i think if there were going to be a challenger that was priced disruptive in the sector it would be google because they're in third place and they have been talking about this as a place where they like to invest going forward and aws is definitely helping overall corporate margins for amazon, but the other real bright spot is the domestic e-commerce margins are also doing a lot

better than they have been and more predictable and more steadily rising as well. >> ed, in the last hour we had a couple of guests on talking about this very same topic and melissa asked about the risk to amazon from regulation and they both seemed concerned about it. are you? >> no, i'm not as concerned about it. a lot of the rhetoric that we've been hearing around that is a little bit overblown, also amazon is -- they're in multiple markets. they're dominating e-commerce, yes, but a big part of the growth is really coming from things like advertising. they've got a $2 billion quarter advertising business when last year it was less than a billion. so they've doubled that in a year's time and its something they weren't even looking at before. there is sort of a dominance in one area of growth in other areas. aws is another key aspect that was discussed earlier. with aws despite this monopoly

with this marketplace, every new start-up they're all trying to get into the cloud as much as possible. every time these businesses want to expand or grow or pop up out of nowhere, its new business for these guys. the market itself is also growing, so i don't know how you define dominance when the market is growing as well, so just looking at the map i think its hard to make a regulatory concern argument, though, you never know especially with this administration. >> thank you. amazon and other big companies like it have a huge impact on employment and that was a huge topic at the jackson hole fed meeting this year. steve liesman joins us with more on that. >> one of the premises was that big companies are getting bigger and there's an impact on the jobs market. does it feel like it, because i can show you statistically that is true? take a look at what we did. look at the top ten companies by market cap in the s&p and took a percentage of the whole s&p and

now we're at 24%, more interestingly, we're coming at a time where it was declining for a lot of years there and, tyler, when were we last up near this area here -- >> 1998. >> that kind of concentration. you can do the same thing folks if you look at a percentage of the total economy. we're now roundabout -- the market cap would be all s&p 500 companies is about 120% of gdp. that's another way to look at the expression on contessa's face. she's absolutely floored by that. so why does that matter economically it matters because the concern is that there are fewer and fewer companies -- and it may explain why wages have not kept pace with this tight job market. there's a concept we've talked about. its not new for all of our viewers, its called monopsony. it's a situation where there's only one buyer. that's different from monopoly where there's only one seller.

monopsony always existed in labor markets but the force that counter balanced monopsony power have eroded in recent decades -- >> unions? >> you want to go on >> no. i'm just guessing. >> there's other. >> tell me the other. >> minimum wage hasn't really risen or kept place with inflation. also issues like noncompete agreements, more and more proliferating, even down the franchise level. you can go even further and talk about outright collusion in some industries, krueger and other companies talk about the hospital business, so all of this idea of greater power and bigger companies would tend to can be one factor in depressing wages according to many economist that's are looking at this issue. >> its dominance of a single player or two. >> and if you think about it -- >> in the labor market.

>> in this case the monopsony buying power is buying labor. >> right. >> steve, thanks. sue herera now, more breaking news this time on google. >> that's right. google will be on capitol hill, although they will not be testifying but kent walker the senior vice president of global affairs and the chief legal officer has submitted some written testimony and the themes are very familiar to what we've been telling you between facebook and also twitter. he says -- and this is a statement he gave to cnbc. google passes along this statement, over the past 18 months we've met with dozens of committee members and briefed major congressional committees numerous times on our work to prevent foreign interference in u.s. elections. our senior vice president of global affairs and chief legal officer, who reports directly to our ceo, will be in washington on september 5th. he will deliver the written testimony but and brief members of congress on the work and answer any questions that they

may have. basically they have put in place several things of verification program, inad disclosures so if you click on an ad there is a disclosure there, a transparency report for election ads and a number of other things, so basically they are a little bit on the defensive going into these senate intelligence committee hearings but that is what google intends to submit to the committee tomorrow, back to you. >> thank you very much. stocks have started the first day of trading of september in the red and this month is historically the weakest one for the major averages and credit swiss making one of the first predictions for 2019 forecasting double digit returns in 2019 and more than 15% upside from here. let's bring in tony roth, chief investment officer with wilmington trust and tom spring fell springfellow president and chief investment with froth. tony, you agree that the market can run 15% more from here.

why are you that confident >> let's do the math, tyler. thanks for having me tonight. the math is simple. this year we've rated down about 1.5 multiple points from the beginning of the year and on top of that consider that consensus earnings 2019 over 2018 are about another 10%. so if we just get back to the earnings multiple that we started the beginning of the year at and we get the 10% consensus earning growth we'll be at the exact same multiple when we get that 15% growth in the equity market as we started the year. given the underlying fundamental situation, very strong manufacturing, goldly lock situation from an inflation standpoint, if we don't get the tail risk from a political standpoint, there's no reason to think we can't actually do much better than that or maybe not much better but meaningfully better over the next 18 months. >> tom, i don't know where you stand on how much higher the market can go from here but my sense is that its likely that corporate profits may be peaking for this cycle, maybe, i don't

know, but if they do and stock prices continue to move up, that's all very nice -- well and good but that means the valuations will get stretched. >> i can't argue with that. the premise -- >> thank god, you can't. finally. finally, i get one right. >> i think you got two right in the last 15 minutes. the conversation about earnings growth, its a true statement. positive quarter over quarter year over year earnings growth. it continues probably through this quarter but i do think probably we're at that peaking point. its going to be hard to really tell into 2019 whether we're going to get 20 plus percent earnings growth. i doubt it. the right number is in the teens. even that, you know, look back three or four, five years from now that is positive earnings growth and its an environment where investors that are still

in the market are pretty optimistic, consumers are optimistic. the job market is getting tight. the only thing that's really absent, i think, is that fear of what's happening on the political side and the trade side. what is that going to do to the markets? i find that missing right now and it may be just because we're overly optimistic and maybe the data's giving us good reason for it. >> so tony, you point out that you are concerned about the midterm elections and to pick up on the political point that tom just made, i don't know whether trade figures into whatever worries you have, but certainly the possibility that the president may not be able to push through more of his and the gop agenda has you concerned >> that's right, tyler. let's take a step back for a moment and think about what's happened in the last two years. we've had an unprecedented historic amount, in terms of both tax reform and in terms of budget deficits on top of that

we've had significant regulatory relief on the part of the federal government. when you pull all that together and consider this midterm election, this midterm election is probably the most significant midterm we've had in the post war era and specifically the senate is really the litmus test on whether or not the populus in america is going to continue to support the policies of this administration. its a referendum, frankly, on the economic led approached governing that this president is taken. its very much a binary situation. if the republicans are able to hang on to the senate, they've got a very narrow majority right now but there's never been a post-election period where the incumbent party had to defend less seats than the republicans have to defend now and our base case is for the republicans to hold on to the senate. you get a rally in the market that's a 2.0 rally if you think back to when trump was elected originally and that's pretty powerful. i agree with tom that we could easily get low double digits on

earnings. i think we've passed the peak earnings growth period because by necessity we had that big tax impact which was a one time impact but if we continue to have low double digit earnings growth and we continue to see the economy grow with inflation -- >> got to leave it there. appreciate your being here. up next, former sharing fred hossen on the president's war on drug prices why he says the president has a point. plus sales triggering a big downgrade on facebook today. and nike signing one of sports' most polarizing figure op a new ad campaign. pele destroying nike product in protest but will nike win the long game? put your data to work on the cloud that drives business. the ibm cloud. the cloud for smarter business.

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>> great to be here. >> this notion that the u.s. basically subsidizes drugs for the rest of the world, he has a point, that's happening? >> he did say that the europeans are not going to buy many american autos even if the tariffs goes to zero because they're used to buying their own cars, but when it comes to american drugs, yes, they want american drugs because there's no other country that can produce innovation of the type that america produces. the only problem is that they're restricting access and availability of our drugs in their countries and this is an issue that the u.s. trade representative has taken up but needs to really accelerate especially on the wealthy countries of western europe and east asia. -- >> between u.s. and canada. >> there's already an issue between the u.s. and canada on this subject. the canadians have hardly any innovation industry and they are choosing to follow a totally different system. they are accessing american innovation, but to do it in a

different way. they just squeeze the prices to a level where the american innovators don't get their fair share and the same is true in western europe -- >> they squeeze the prices of american innovators because they are able to negotiate those prices and negotiate hard, the public health system there. >> the public health is a government ability to do it. its not a free market system. its a government monopoly buying system. if you have -- >> is that what you see in a lot of the selected european countries that you just referenced >> surprisingly, all the other countries are free market countries when it comes to other sectors. when it comes to pharmaceuticals they're buying monopolies and if you are a buying monopoly, the innovator is not going to get their fair share. >> so would tariffs on drugs change that? >> i think tariffs is a way to do it. there may be other ways the ustr can enforce some of these things like intellectual property

protection, like access to innovation through systems that are more transparent. sometimes you can hold off on a drug coming in by saying, well, you haven't done this or that. you can do lots of things if you're competently managed system. that's the real issue. if we're opening our market up here to everybody, why aren't they opening their market up to the one industry where the u.s. is very good at, which is the drug innovation industry. so that's an issue. i'm very glad that this president has taken it up. previous presidents have not done a very good job in this area. >> some of the u.s. might say one solution would be the u.s. government to negotiate with drug companies just as the rest of the world does to bring our drug prices lower, would that be a major threat to the r & d of pharma >> this is obviously something that comes up usually close to an election season and would be a very bad idea, especially with bubbling signs now being so good with cell therapies and gene

therapies that actually get the disease at the source. this would be a terrible time to turn us backward 30 years, 40 years and really hurt innovation. because if you create a buying monopoly here, who's going to do the 13, 14 year journey to do r & d to come up with something when you don't have a sense of free pricing on the other end. >> talk about the morality of putting a tariff on a life saving drug? >> i think that would be an issue. it would be an issue. i think it is very good thing that this administration has not prioritized putting tariffs on life saving drugs. they've gone after other consumer items. i would be opposed to doing that. i think that is -- something about that that is really concerning, really is. i think one should have access and affordability as opposed to restrictions on life savings drugs. >> you're a ceo, but most of your ads are all full of disclaimers any way.

98% disclaimer and 2% ad. what's your thoughts of nike using colin kaepernick of one of the featured faces of their new just do it theme, good move? >> i would've stood for the national anthem. i don't think its worth getting into that kind of a situation in sports, but that's my opinion. i personally think that its a very risky move. what's happening here is the ability to get a few loyalists who are intently happy with what's happened here who might actually get to the brand and buy it and then have a whole bunch of other people who are not happy with the decision, who are not going to go buy your brand and long-term it might create poor brand value because now you're associating your brand with a controversial -- >> with a political stance that makes a lot of people very angry. >> if you go back to -- the united colors of benenton, they

used to have very controversial ads every few years, hiv, immigrants, smugglers, all kinds of things, blood, murderers. they're very controversial ads. its a fading brand in the u.s. because it doesn't build brand power in the long-term. its really a good idea to do it the right way and not get involved with these kinds of controversies. >> fred hassan, thanks. shares of facebook are down following a downgrade ahead of the company's testimony on capitol hill tomorrow. is it a good opportunity now to buy or should you just wait and see what the hearings bring? trade nation is next. we've been helping you prepare and invest for retirement since day one. why would we leave now? because i'm retired now. so? we're voya. we stay with you to and through retirement... with solutions to help provide income throughout. so you'll still be here to help me make smart choices? well, with your finances that is.

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2 dogs and jake over here? that would be great. that would be great. that okay with you, jake? get a portfolio that works for you now and as your needs change from td ameritrade investment management. time now for trading nation. let's take a look at facebook sinking nearly 3% after moffett downgraded the stock. a slow down in revenue growth and mounting political pressure on the social network. this comes ahead of the coo sheryl sandberg's testimony tomorrow on capitol hill.

its down more facebook than 20% from its high this year. what levels should investors be paying attention to? >> well, this level right in here, the 170, 171 level is a key, key technical level. so how it trades after we come out of these testimonies is going to be very, very important. as you mentioned, tyler, stock fell 20% after the reported their earnings then it bounced 7% and people are saying its great. it was less than a one-third retracement of the selloff and it has rolled back over and is now retesting those reaction lows. if you follow that with a lower low its very negative. also we have -- whenever a stock falls 20% that usually means there's forced selling involved, margin calls and such and that usually washes out the stock and gives it a nice bottom for a long time. the fact that we're already testing that level is very concern to go me. i don't want to get ahead of myself. if the stock could hold here we're okay but any break of the

170, 171 level is a problem. >> gina, what is your thought on facebook it seems to this observer that they've done an awful lot of apologizing lately and that's not generally a good sign for a public facing company like this. >> no, its not. i think the point of the toxic brew that they were talking about really was the point that earnings will slow and they're already expected to slow and to some degree that's priced in. obviously facebook multiple has been falling since a lot of this controversy but that coupled with the question around deregulation, the question can facebook police itself and if you look at some of the most outspoken first on the hill like the oregon senator, he's been very clear that he's going to continue to go after facebook and anybody who is not going to police -- self-police well and i think that the midterms will be

an interesting referendum on that as well. >> all right. thanks very much, folks. we appreciate it. for more trading nation, head to our website or follow us on twitter at trading nation. coming up, nike teaming up with colin kaepernick and feeling the backlash from people destroying their nike gear as a result but with the controversial move payoff in the end? more on that next. and now the latest from trading nation dot cnbc dotcom. >> they're especially important in volatile markets. using limit orders will ensure you don't pay too much for the stocks you buy or get too little for the ones you sell. markets ndo te tgap up and down more frequently during volatile markets and limiting orders are one of the best ways to avoid unhappy surprises.

hello, everybody. i'm sue herera.

here's your cnbc news update at this hour. an upcoming book says president trump's chief-of-staff privately called him an idiot. in addition presidential aides reportedly plucked sensitive documents off his desk and thought he was often unaware of foreign policy basics. arizona republican governor doug doocy announcing the former senator john kyl will fill john mccain's senate seat. kyl is currently shepherding brett kavanaugh's supreme court nomination through the senate. >> i am grateful for governor doocy's confidence in me and honored to accept this appointment. we're all saddened by the circumstances that require the appointment and appreciate that there is only one john mccain. >> an egyptian man was arrested outside the u.s. embassy in cairo after chemicals in his backpack caught fire.

it was a botched arming attack. there was no injuries. you're up to date. ty, back to you. >> thank you very much. nike shares falling on the fallout from a new ad campaign featuring former san francisco 49ers quarterback colin kaepernick. there you see him down about 3% and you can see the adhere. it says, believe in something, even if it means sacrificing everything. nike's choice to include kaepernick who was a nike representative sparking some backlash and causing critics to burn nike clothing in protest. you may recall that kaepernick is involved in an ongoing legal dispute with the nfl which is one of nike's biggest partners. they supply uniforms and other things to them so when nike's controversial move help it or hurt it? let's bring in mike jackson, principal of 2050 marketing and a cnbc contributor. mike, what do you think? is this a smart move by nike a risky move, one that is likely to end up more positive than

negative or exactly the opposite >> when i saw the tweet from colin yesterday i immediately thought about the fact that this just do it campaign is 30 years old and that equity that they've built up over time and their timing is just impeccable. they've always been about storytelling and obviously i don't want to say that the scent is not real. people are very passionate. i don't think its going to be overwhelming for the nike brand. >> so you think that the controversy that they're courting here, because that's the only way to put it, is not only survivable but that it will short-lived because colin kaepernick, whether you agree with his right to protest or how he did it or other things he's done or said, he is radioactive in lots of ways. >> nike being a global brand and

colin's ultimately going to be one of the most recognized modern day era civil rights activists and the whole notion that they looked at this from a business perspective, meaning that they're brand has always been rooted as it relates to authenticity and being part of culture, its not just about selling shoes for them or apparel, the positioning of their brand is very, very strong. i think its going to be short-lived as it relates to the huge outpouring of people that are against nike at the moment but if you look at their audience and the people that revere nike as a brand around the world, it makes a very strong statement. >> i have to guess that phil knight was consulted on this, is that your supposition? >> obviously the agency up in portland they've been working with nike for a very long time, mr. knight brought them in, works very closely with them.

i think its something that they've been planning for some time and as you know, one of the most brilliant things about marketing and nike is timing and for them to recognize that they've got this swoosh on all of these nfl jersey with opening night coming up on thursday, to insert them into the middle of the conversation but to lead the conversation around colin kaepernick and his activism its something that they definitely planned and mr. knight was definitely consulted. >> does your calculus indicate that this will payoff for nike, not just will it backfire, your answer's no, but will it actually payoff? what was this whole gamble for because if the whole -- if we only know that it hasn't backfired, we are not sure whether or not its going to payoff, that doesn't seem like a good risk to take on behalf of shareholders >> i think ultimately its going to payoff. i just don't believe that a

campaign that would literally -- with colin being part of a campaign is going to have an overall negative impact on the brand. i've seen a bunch of the tweets coming from outside of the u.s. and the tone around the world is quite different than the tone of what you see generally, again, i'm not minimizing it by saying they're not passionate about what they believe in, i just don't think its going to have a negative impact and i think its going to galvanize a lot of individuals that are passionate supporters of the nike brand because they deserve to be in the conversation. >> to melissa's point, this company is publicly held, it has a if i deutschry responsibility to return value so how does it ad campaign considering the risk become a vehicle for returning value? >> brand equity is value and continue to go submit who you are and what you stand for as well as how you speak from a brand voice, that generates significant equity, if you will. so i think that the fact that

you've got so many people talking about the evolution of this just do it campaign, they haven't really launched a campaign. i think its going to be a pretty all encompassing and long-term brand equity is what they're after with this campaign and the just do it tagline. >> is this campaign more powerful by only highlighting colin kaepernick would it have been equally powerful if they highlighted a player who actually stood for the anthem and said something, believe in something bigger than yourself >>, you know, again, i tend to think that its become about the anthem, but i think colin's activism is well-known within the people that understand around the world that it was his right to protest, he chose to do it on a stage called the nfl that's much bigger than life, sometimes, but i don't think long-term -- again, its going to really hurt his overall positioning as it relates to being a young, very powerful

civil rights activist who stood for something he believed in and he's continuing to support that cause. >> mike, we'll have to leave it there. great conversation. thank you. >> thank you. big techs getting ready for a heated showdown. facebook sheryl sandberg and twitter ceo jack dorsey are face being lawmakers torr. moow is regulation coming for big tech it sounds ominous, doesn't it. we'll discuss next.

the digital divide is splitting this country. we have parents who are trying to get their kids off of too much social media and computers, and then we have parents who would only hope their children have access. middle school is a really key transition point, right. the stakes start changing. students begin to really start thinking about their futures. what i like about verizon's approach is that it's not limited to just giving kids new tools, it's really about empowering educators to teach in different ways, and exposing kids to more active forms of learning. giving technology is not a total solution. teaching technology, now that is.

its a doubleheader tomorrow on capitol hill, both the house and senate holding hearings on how social media companies handle foreign interference and ask questions on alleged censorship, facebook coo sheryl sandberg and jack dorsey both will testify but no one from google is scheduled to take a chair. dorsey will tell congress that twitter does not use political ideology to make any decision,

according to his written testimony. let's bring in tony rahm who's the technology writer at "the washington post." what's the -- what's on the table here what's the calculus, tony, that these tech companies have to face when they're going to face lawmakers about the potential for regulation >> on the table right now is regulation that tech companies don't want and a public thrashing that companies like google in particular really don't want and these are two hearings on two separate issues. the morning hearing with those sandberg and dorsey will focus on foreign interference in elections and what exactly these companies are doing to stop russia and others from spreading disinformation on social media in the afternoon its just dorsey and he's there to deal with republicans who allege that social media sites are biased against conservatives. lawmakers have composed a lot of things. they've talked about opening companies up to more -- this is the exact sort of thing silicon

valley doesn't want. they don't want washington telling it what it should do or not do when it comes to moderating its platforms. facebook could face the toughest go of them all even though its not even there. >> apparently google is saying we offer somebody, we talked to the senate committee, they said this person would be acceptable to us but it looks now like they want the head honcho there, why wouldn't google want to take that opportunity and put their top name in that chair to answer some tough questions >> yeah. they offer ken walker who's their senior vice president of global affairs and committee leaders said no and it was democrats and republicans together that felt that walker wasn't enough. now google's perspective is that ken walker has worked on this stuff most closely. he's the one real smart to figuring out what russia is doing and what google is doing to gat russia but committee leaders say its got to be larry page or sin dar pichai and

that's it. they typically don't want to bring page up to -- >> do you think there will be a subpoena >> you know what, no. i spoke with the chairman burr last week and asked him that question and him that question. he wants google to show up on its own accord with the ceo. they could subpoena for page they've chosen in this case not to >> tony, thanks for sharing what you know with us from "the washington post. appreciate that. >> thanks. coming up, amazon's valuation hitting a trillion dollars for the first time ever and the world's richest man getting even richer. how much jeff bazos is worth now. that's next on "power lunch. you always pay your insurance on time.

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and accessoriesphones for your mobile phone. like this device to increase volume on your cell phone. - ( phone ringing ) - get details on this state program call or visit welcome back to "power lunch. amazon hits a trillion dollars in market cap. and with that jeff bazos hit another mile stein as well he's much richer it's really hard to imagine what that does to his wealth. >> it is hard to put this into perspective because we've just never had wealth anywhere near

this scale bazos' networth is now close to $70 billion. his net gain this year of $68 billion would alone make him the third richest american now starting january 1st his net worth has increased by $275 million a day for $11 million per hour he first became the richest man in the world in july he blown past bill gates for bazos to become the first trillionaire amazon's stock would need to be -- in anvertue

in march he said, quote, i'm in the process of converting my amazon lottery winnings into a much lower price of admission so we can go explore the solar system >> how philanthropic is he what do we know about that. >> no, and not much. he's not signed a living pledge. and he's only given 20 million away his goal since he was a kid is to use his fortune to go into space and solve that problem >> thank you checplses xtk ea ine

all right, so we're taking a look at nike where shares have dropped today following their choosing to put colin kaepernick on as one of the faces of this new campaign, to stand up for what you believe in. and facing a lot of backlash today. there you can see it's down almost 3% on the day and the real question about whether there's return on this investment, whether the risk will carry with it a much greater potential for reward in terms of branding and strategy and we've had some really interesting conversations about this today, what goes into that.

i'm always curious when they have brandsiing experts at the table, the people the say long-term here's what we want to accomplish with this ad. >> the notion that people, there will be some people that boycott, and that has to factor into this whole thing. but we've been talking about whether or not this campaign will it backfire, will it backfire, will it backfire, or will it be a gain? >> nike has also fashioned itself -- fancied itself as a bit of a renegade, bit of a rebel company. they took on shoe makers early on i'm sure phil mike was involved in this conversation i'm not sure, but i'd be very surprised if he isn't. i think only time will tell where kaepernick fits in history as a crusader, an activist or something less than that

it's a very big to me business risk because it's such an inflammatory area. >> so sources close to the situation -- >> i was going to talk about be benzos there, but you're going to talk about my birthday. >> thank you for spending it with us. >> i am happy to say i am one year away from medicare. thanks for watching "power lunch. "closing bell" starts now. it's time for "closing bell." amazon hitting a $1 trillion market cap will that drive markets creating a september to remember? i'm seema mody at cnbc headquarters tropical storm gordon set to make landfall in the gulf coast. we'll go straight to mississippi to look at the impact on the region and big oil new details just coming out on what facebook and twitter will say tomorrow on capitol