but getting the money smartly. >> good360 vertical integration, especially in a time of need after florence, as well. this kind of thinking and doing, very timely. we appreciate you coming in. thank you. that wraps up "halftime. "power lunch" begins right now i'm melissa lee. the bulls charging ahead unphased but there is a big move in the market happening now that may become a head wind china won't use its currency in a war and the trade wars tough on trade image and that's in question now. we'll check in with one trade expert who has been traveling around china speaking with officials, business people and workers. you have to hear what is being said on the ground pod stocks are on fire soaring again up between 60 and 600% in just the past month. what is fueling them are they too hot to handle right now we'll speak with one of the ceos of these red hot

names. "power lunch" starts right now and we are going to light it up on "power lunch." don't be a don't be as they used to say i'm tyler mathisen stocks in rally some and then some the dow and s&p posting very timely gains the dow up for the sixth time in seven days highest level since january. s&p and the nasdaq under a little pressure, as you see there. down 21, almost 22 points. amazon the reason for that the stock responsible for more than ten points off that nasdaq 100. goldman sachs leading the dow that the bank is near a deal to spin off its simon app and shares of wayfair and amazon is testing a shopping site that shows products based on likes. i am about to sneeze, courtney reagan. >> i'll take it away from you, tyler. thanks for watching "power lunch. straight to what is fueling the

rally at this hour from the floor of the new york stock exchange hi, bertha >> we are watching the s&p here and within five points of an all-time closing high. financials, materials and industrials are leading the charge seems counterintuitive you have this rhetoric on trade that has been escalating all month. but investors seem convinced both sides want a solution and a deal here. now, one of the reasons that we've seen the industrials do so well and now they have led the blue chips they are the stand up this month and the stand up for the quarter, as well, led by caterpillar up 10% the best performer and boeing is up 8%, united technology to its new historic high today of 7% for the month. that's leading the s&p 500 industrial sector up for a sixth straight month and been on fire even as the rhetoric has risen and maybe the best performing

sector for september within the s&p. and the second best after health care for the quarter take a look how they have taken over from tech this month. as the lead along with the defense telecom sector with the rich dividend deal after the telecom started the year down five months in a row starting next week, you're going to see a big shift in that telecon sector going to become the communication sector and be a lot more fang like as it is going to get additions such as facebook, alphabet, netflix, twitter, mixed today, but all of them are down for the month. walt disney also coming in, as well, as you added some media. meantime, shares of chinese media and internet stocks bouncing today after having a really rough time. jd.com coming off an all-time low and alibaba snapping a three-year streak with listing

here on the ny investors brushing aside tariff fears yields on the benchmark ten-year treasury hitting 3.08. the highest level since may. at what point will this be a headwind for the markets and what will it take to rattle the bulls right now? joining us is joe senior investment strategist and portfolio manager. lama lamar, i'll start with you one day it scares us and other times we're able to completely brush it off is the market moving higher today on something other than trade or moving higher because now at least we have some more details on where this trade war is going >> i think more the latter i think right now, you know, every time there's a new semi-negative headline in trade everybody gets spooked we get a chance to invest and

investors realize this is a noise and not something to really be worried about. >> speaking of being spooked everyone got very nervous. equities sold off. not happening today, we're above 3% and the dow is higher by more than 200 points. what do you make of that >> well, i think, you know, the longer the tenure moving higher eliminates some of the fear. certainly it's a possible, especially as the fed continues to raise interest rates. but i think there are a few opposing forces here look, the risk of this trade war dragging out even further than it already has is very real. i think we need to recognize that but there are also a lot of strong fundamentals. fiscal stimulus and also global central bankers recognizing the risk of this trade war and i think they are prepared to act >>i joe, you know, you like consumer discretionary and if

trade war is still the big unknown, why do you like these sectors that basically could have the soft retaliatory measures and impose on them and disruption to the supply chain, for instance >> i think the disruptions to the supply chain are a real risk and something we need to continue to monitor and really understand how it is going to affect each company individually but as you think about those sectors whether it's discretionary or technology and the common theme here is a healthy consumer backdrop in the united states. despite all of these issues we have been dealing with over the course of the year and all of these risks, it really hasn't had a negative impact, at least not yet on business sentiment. it hasn't negatively impacted spending on the business side or on the consumer side the consumer has been holding up and household networth continuing to hit record highs it is really recognizing that bright spot in the global economy and wanting to capitalize on it >> lamar, in terms of today's session we are seeing outsize

performance by the banks some will say finally. do you agree with this move higher and like what you see here with the financials or is this a one-day wonder? >> i don't think, you know, we don't think of the financials broadly. we look very specific. so, right now we're focused on some insurance companies progressive, for example one that we're excited about but we don't, we don't really look at it as just a big, broad group and what we expect we're more laser focused >> lamar, beyond the progressive call out others not like insurance but some other plays if you don't like the groups, but going after specific names >> one is weight watchers which i'm guessing you're familiar with most people are familiar with the name but, you know, there we think what is interesting the new ceo is focused on ways to find younger customers and keep people on the network longer

paid customers have grown over nine months and we think that can get to a year. a massive impact on the potential profitability there. like i said, rather than looking at the big groups and what is going on with china trade, we're looking at the very specific names and that's one we're excited about. >> weight watchers 30% over the last three months. thank you very much, appreciate you both being here with us. all right. >> moving on here. to the battle over trade china says it won't use its currency as a weapon and in canada prime minister trudeau under pressure to get a trade deal done. >> hi, melissa the president might be in north carolina and south carolina today doing hurricane damage and recovery work. but the work goes on here in washington from his administration dealing with these two fronts on trade. first on canada. the top negotiator for the canadians just left the u.s. trade representative's office a short time ago briefing reporters quickly on what it is they have accomplished so far today.

here's what she had to say >> there's now more work for our officials to do. they have set those tasks and they'll be doing that work and meet again later this afternoon. >> so, no real specifics on what was discussed today or what we might expect for the rest of the afternoon. but clearly negotiations go on as we're gettinganadians are un pressure to get under a deal and get into this nafta 2.0 with the united states and with mexico. meanwhile, on china, we're getting the statement now from chinese officials who say they're not devaluing their currency here's the statement from a chinese official saying the recent fluctuations and the exchange rate have been seen by some as an intentional measure on the part of china this is simply not true. instead of engaging in devaluation we will stick to reform rate. pushing back on an accusation

from president trump on that this comes as a lot of people in washington are focused on the question of what happens after the tariff battle? once both countries go to 100% tariffs on all goods imported and exported and vice versa, if that happens, how else does this trade war get waged? what are the other weapons one of them potentially would be currency the other potentially u.s. treasuries there are a lot of other ways that this trade battle could express itself and the chinese for now saying they're not going to take action in the currency market. >> when you say treasuries china would sell u.s. treasuries or stop buying? >> yeah. that's one of the question you could argue that would hurt the chinese as much as it would help them get leverage over the united states. the united states running massive deficits and selling treasuries to finance what is going to be a trillion dollar a year deficit at some point the chinese have a lot of buying power over that. that could be a leverage for negotiating power for the chinese. we'll see where it goes. but the united states said they don't expect necessarily the

chinese to do anything beyond these tariffs. >> thank you very much investors may have shrugged off trade tensions so far, mostly, but the clash between the two top economies is hurting companies on both sides of the pacific. our next guest traveling around china speaking with officials, business people and workers. director of ucla's north american integration and development center he joins us on the cnbc newsline professor hinojosa, what did you find when you toured china the trade war that broken out between the two countries. >> perplexed on how to read the signals from this president and how to respond because there seems to be a willingness, definite willingness to sit down and deal with concrete issues. but in this environment of increased tension and bullying

and then saying that any retaliation will be now met with the maximum retaliation, it's a very difficult environment y thi, think for them to understand, how do we get to the end game? that has not been made clear by the u.s. that they only want a maximum of everything they want. which probably would not have worked under these circumstances. >> do you believe that the administration has not been clear about what it wants? it feels like it's been pretty clear to me with respect to intellectual property protections and joint venture requirements and the like, as well as opening markets to more u.s. products and lowering trade barriers where's the confusion? >> out of washington, as well as out of china is that there are a

number and that there could be, obviously, some specific negotiations that could be in each one of those areas. said they're open to each and anyone one of these areas to go through a strategy of dealing with them. i think the problem is this pressure goes on is more to reflect domestic concerns rather than actually dealing with how to get to an agreement and to the extent that the issue becomes how quickly are you going to accelerate tariffs on the entire trade volume. the noise is just deafening to not concentrate on actually reaching >> there seems to be an underlying belief in the administration that china won't

retailiation using disruptions to the supply chain and perhaps, well, they said already today they won't devalue but perhaps stepping away from the next treasury option, et cetera what are you hearing on the ground do you think those sort of measures are off the table as the administration thinks? >> i think within china, just like the united states, and definitely they're not winning right now in china they're thinking that that actually just further plays into donald trump's hand by celebrating more so, i don't think they're going to move at this time and even though, you know, the reality of it is, they have a lot more ability to absorb than the united states and part of this going on here. trying to figure out what is the actual economic objective versus

the political objectives and trying to get signals from this environment of strong conflict and the type of agreement that was reached in nafta and increments and changes in some areas and get an agreement there. >> all right professor, thank you very much for your perspective today we appreciate it >> thank you well, speaking of the impact of trades, sue herera has a news alert on alibaba >> here's what's happening at this hour the chinese official press agency interviewed jack ma of alibaba and apparently things are cooling quite a bit between the u.s. and china jet ma, as you might recall, promised to create a million jobs in the u.s. he's walking that back that was made during the transition here is his statement. he was asked by the news agency

if you, is the promise basically still going to be billed that you will create a millgen job is here was his statement the promise was made on the premise of friendly u.s./china partne partn partnership. that promise cannot be fulfilled. trade between the two countries and the world still needs improvement, but trade is not a weapon and should not be used to start wars it should be the driver for peace. now, during the transition, the white house transition back in january of 2017, mr. ma emet wih the new lelected president, president trump, and president trump came down to the lobby and made a statement here is what he said >> we had a great meeting and a great, great entrepreneur. one of the best in the world and

he loves this country and he loves china. >> well, apparently, that relationship, as you've mentioned, courtney, has soured a bit. so, jack ma is walking back that promise of creating a million jobs >> very interesting, sue very powerful figure appreciate it. well, straight ahead medical cannabis producer growing like a weed the stock up over 1200% since its ipo. what is fueling the booming sector and what's next we'll ask the ceo and his stock is up 60% in the past month. stay tuned

tilray on track for its best day ever 45% at this hour now, more than 640% in the past one month and whopping 1200% since its ipo. tilroy ceo about whether the company needs to raise money >> you got $5 billion. isn't this the time to strike and raise capital which, by the way, nothing wrong if you said, yes, obviously, we need more capital. >> we, obviously, need more capital. which we said in our perspective. the intent is to build a global company. we're in 12 countries today on five continents and it's very

clear that we'll add additional countries in the coming years so that requires us to increase our capacity substantially as we introduce products such as these and medical products around the world. >> pharma companies have to start thinking about partnering with cannabis companies against the booming marijuana industry. tilray isn't the only hot pot stock that is on fire. don is tracking all of them. >> we have been tracking them for quite some time now over the course of the past few weeks and months if you take a look at some of the other stocks out there i'll take you through some of these particular ones because they're the big ones out there first of all the alternative harvest the ticker mj, marijuana. about a $600 million to $700 million that attracts many of the big ones many of the big publicly traded

cannabis stocks with u.s. shares traded here or receipts. some of the component stocks the biggest weightings of this index fund or if you want to call it index funds are aurora and some of those names represent some of the biggest weightings in this particular etf and those stocks have been hugely higher. but, remember some of the fundamental factors at play and marijuana may have a bright future, however, price movements of this kind, guys are not typically fundamentally driven many stocks are trading like tilray, remember, since its ipoa low-float ipo and not a lot of shares available and does add to the pricing dynamic, melissa watch some of the hedging activity and that's the reason why, guys, they move the way it does. joining us now is brian, a ceo of green organic dutchman a medical marijuana company and

shares up more than 60% in the past month brian, great to have you with us >> thank you for having me >> on a day, week, month, in a few months where this industry has been skyrocketing. you are a consumer products guy by trade, i think. you're from procter & gamble and ceo of a winery. your company right now is licensed specifically to cultivate medical marijuana. so, where do you see the growth here is it in consumer products >> for sure. i mean, the focus right now or to date has been around cultivation and expanding capacity, but this is a branded consumer business. i had 25 years of practor and gamble and wine industry from there. this is following a similar route. you think about the beer and wine companies and they don't produce their own hops and grapes and it is much more in the manufacturing and innovation and bringing new products that consumers love and trust to the market this will be a consumer package goods business that's what we're focused on

building an organic brand which is a sizable part of the market. the whole foods of cannabis. >> meaning green, organic cannabis. >> yes >> the point to that point is a very long path and right now seems like it is cost per gram and lowering that and everybody is in this search and this effort to lower the cost per gram so, where are your costs right now? have they been coming down and will you need to raise capital >> we're currently building our two facilities one in hamilton, 150,000 square feet and valley field 1.1 million. our facilities are coming online later this year and into next year in stages which when we start growing and selling into the medical market in january and expanding as we go through 2019 across medical and province by province and by the end of the year fully national in canada despite that, revenue outside of canada in advance of that. we just purchased a company in poland which is industrial hemp

based and selling in 13 countries in europe. we'll have our revenue outside of canada. >> brian, sorry to interrupt you. short on time and i got to get the answer to these questions. what is your cost per gram what has been the trajectory of your costs will you need to raise money >> we're not actually selling today. so, with our production up and running we'll be below a dollar per gram in canada and less than half of that in our jamaica business already in terms of raising money, funded for our domestic plan in canada and part of our international expansion. our goal is to be the largest organic brand globally >> so, when you become the largest brand organically, what percentage of your business will be dedicated to and focused on the medicinal product and what percent will be focused on the recreational product question two can i take the medicinal product and not get high >> yeah.

enthe in the medicinal market you have products and in terms of canada where you have a recreational market it will be less than 10% of on ongoing production a bit higher to start off with as you look globally in europe, it's really only medicinal but you have products that are not regulated or legal in most countries. you can sell them in vitamin stores and health food stores and not just pharmacies. that's where we're starting. we're going to get our products out there and then build the sales and distribution and then recreational will follow at some point later. presumably all eyes are on canada to see how canada developments and recreational market grows a huge disrupter from beverage alcohol to fapharmaceuticals an other beverages. discussion of some of the beverage players looking at the space. for sure -- >> with respect to coca-cola

>> yes yes, indeed. a lot of rumors out there. >> does all this mean, brian, that your stock is double for the year that's where your stock is it doubled since the beginning of this year >> we're just getting started. if you compare to some of the other stocks out there, we're undervalued. our capacity is doubled -- >> even though you doubled your stock price you're still undervalued right now. >> versus the other companies in the sector, yes. versus if you look at who is being disrupted. if you look at the market caps of the three biggest beverage companies, the three big pharma companies and epilepsy and cancer drugs those are the top three and you take the top five cannabis companies and it's under $40 billion. double where was a week ago. there's huge room for growth longer term. it will take time. everyone is comparing evaluations to dotcom.

there's no revenue there is no revenue today but all in the black market and canada alone, about $6.5 million growing to $8 billion. the market is there, just moving to legalization. >> thankprise your time, appreciate it. >> thanks very much. president trump surveys the damage from hurricane florence and residents along the carolina coastlines begin the long road to rebuilding after the storm. we'll take you live to north carolina next. i'm ken jacobus, i'm the owner of good start packaging. we distribute environmentally-friendly packaging for restaurants. and we've grown substantially. so i switched to the spark cash card from capital one. i earn unlimited 2% cash back on everything i buy. and last year, i earned $36,000 in cash back. that's right, $36,000. which i used to offer health insurance to my employees. my unlimited 2% cash back is more than just a perk, it's our healthcare. can i say it? what's in your wallet?

need a change of scenery? the kayak price forecast tool tells you whether to wait or book your flight now. so you can be confident you're getting the best price. giddyup! kayak. search one and done. now sofi has no fees on personal loans. that's right no fees on loans to remodel your bathroom. ♪ no fees on loans to consolidate your credit card debt. see no fees just feels good. ♪ boo yeah. if you've got the drive, you can do a lot with no fees on personal loans. boo yeah.

adults are just kids with much, much better toys. [ giggling ] introducing the 2018 c-class sedan, coupe and cabriolet. the thrills keep getting better. lease the c300 sedan for $399 a month at your local mercedes-benz dealer. mercedes-benz. the best or nothing. now you can, with shipsticks.com! no more lugging your clubs through the airport or 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, guaranteed, for as low as $39.99. shipsticks.com saves you time and money. make it simple. make it ship sticks.

president trump is on the ground, as you see there in north carolina surveying the damage from hurricane florence been speaking with first responders about ongoing recovery efforts in the region and seema is in one of the hardest hit areas by that storm. hey, seema. >> the hurricane has passed but efforts are under way. duke says 200,000 power residents are dealing with power outages across the region and many including duke are here trying to get power up and running as soon as possible. we have a gentleman here from duke energy. talk to us more about when power will be restored across the region >> we're looking at still a few more days for some places that are inaccessible

the hard to reach. the last of the stranded that we have >> the biggest challenges you're facing right now, chris? >> access and heat it is getting hot out. our guys have to take breaks doesn't keep away from what their mission is which is recovering the power >> high water not helping. thank you for your time. guys, big effort under way here but the recovery will take some time >> thank you very much, appreciate it. head over to the bond market and rick santelli that ten-year holding above 3% on that yield, rick. >> it absolutely is. if we start theearlier maturities two year and now five year coming back from 2008, we'll call it ten years. that ten year you mentioned, opened it up to may and the high yield and if we take that out, we'll be shooting all the way back to the summer of 2011 do keep in mind 50 basis points increase and 25 on the way and

ten year up 66 basis points for the year 30 is only 48. melissa, back to you >> rick, thanks. would you let your insurance company track your wearable device in order for you to get a better rate? how it works and how she plans tohae e cef fe insurance.

what do you mean it's not working out, craig? i just introduced you to my parents. psst! craig and sheila broke up. what, really? craig and shelia broke up!? no, craig!? what happened? i don't know. is she okay? ♪ craig and sheila broke up! craig and sheila!? ♪ as long as office gossip travels fast, you can count on geico saving folks money. craig and sheila broke up! what!? fifteen minutes could save you fifteen percent or more on car insurance. at fidelity, our online u.s. equity trades are just $4.95. so no matter what you trade, or where you trade, you'll only pay $4.95. fidelity. open an account today.

you'll only pay $4.95. ♪ south l.a. is very medically underserved. when the old hospital closed people in the community lived with untreated health problems for years. so, with the county's help we built a new hospital from the ground up and having citi as an early investor worked as a signal to others to invest. with citi's help we built a wonderful maternity ward and we were able to purchase an mri machine. we've made it possible for the people who live here to lead healthier lives and that's invaluable. ♪

hello, everyone. i'm sue herera canadian foreign affairs minister is in washington engaging in nafta negotiations with u.s. trade representative freeland says the talks have been constructive and will resume a bit later today authorities in wisconsin responding to a shooting at an office building in the madison suburb of middleton. the dispatch center said the shots were fired this morning. hospital officials say that four people were shot and none of

those injuries are fatal. one of the people convicted of kidnapping elizabeth smart has been released from prison 15 years after being in custody that was a condition of her release. smart was a teenager when she was kidnapped back in 2002 and the world bank says global poverty has fallen to a record low rate of 10% as of 2015 the latest year that that data is available the bank says the number of people in extreme poverty. those living on less than $1.96 per day fell to 736 million. still a lot of people, unfortunately. that's the news update this hour i'll send it back to you. >> thank you. the big business of life insurance getting a major shakeup. john hancock will offer policies to monitor a person's data on smartphones and hitting diet and

exercise targets customers save up to 15% on annual premiums and gift cards at retailers like amazon and walmart. you must share purersonal information in order to get the premium benefits more from john hancock ceo mary an harrison. >> great to be here, thank you >> smart balance and watches can only do so much when it comes to a lot of things they don't track like food, et cetera you have to rely on the person to be honest, right? >> absolutely. yes, we're really excited today thatwe're really reinventing the insurance model with our program that is really about bringing technology-based program and marrying that with an insurance product >> do i have to have a smartwatch to take part in this program? in other words, something that will track my caloric output or how much exercise i do or how

many steps a day i take? >> you don't have to have a smart watch, actually. a number of ways to earn rewards throughout this program. whether that is getting a regular checkup or eating healthy or reading news releases that we have in terms of how to eat nutritionally and be smart about it >> how would you ever know if i was eating healthily are you relying on my honesty? >> more so around physical activity and getting tips from us we provide tipss to tell people how to live a healthier life. >> what do you do with that data as an insurance company you're looking at inputs to come up with a way that you charge and payout claims. what do you do with all of this data >> one thing as an insurance company we have been in the business for 150 years and we get a lot of very sensitive data medical data, financial data on a regular basis. from a data perspective we are

very careful with what we do the best part of this program is that you can choose how much data you want to share with us really, we're very clear in terms of how you use your data and you make the choice of what you want to share and what you don't want to share. you don't want to share things like your body mass index, you don't have to. that's how the program works it's really up to you as the individual. >> if i don't share my body mass index do you assume it is in a place it shouldn't be and does that change how my policy will work out >> not necessarily when you're sharing your physical activity, that is the best way to get the most rewards out of the program and that's where you can get discounts as it relates to your life insurance policy but many other ways, as i say, going to the doctor and getting a regular check up will get you rewards. reading the newsletters will get you rewards. a number of different ways going to your gym and justieven checking in with the gym will get you rewards.

>> what does it look like in five to ten years? skew more towards very healthy people >> i don't think it will skew more to the healthy people because the program really works well for all people. those people that are fighting, for example, diabetes. we have a customer in california that was diagnosed with diabetes and joined this program specifically to help him get more steps his goal was to get 15,000 steps a day and the program encourages him and helps him and provides education around what he should be eating in terms of trying to maintain his debeiabetes and get under control. it is not just for healthy people, it is for everyone >> the credits i accrue, not just lower my premium, but shopping carts at amazon i'm familiar with this program it's a south african company that dropped it, correct >> that is correct >> it has been around.

what has the uptake been and have the companies that have used it or adopted it yours included, again, this is all new to you, what has the response rate been? >> well by telling us -- actually, very encouraging vitality has a number of statistics from their worldwide customer base that they have on average, consumers are living 13 to 21 years longer as a result of this vitality program that they utilize. they're also seeing hospitalization costs down about 30% compared to the average population vitality has seen a lot of great benefit from it. in our programs specifically over the last few years as we are getting this under way, we are finding that our customer base is taking two times more steps than the average american is and they've also received over 3 million dollars in rewards the best part of the program, though, is the engagement. >> as we run out of time here, forgive me for interrupting. i wonder whether the fact that these people live, how old is

the program? like how long have they been doing this three, four years? >> vitality itself has been doing it for many years. >> they have some traction where they can say people are living 13 to 22 years longer. is it possible that those people who live longer and take more steps have self-selected to join this program because they are already healthier? >> well, they do see a very broad mix. people who are trying to figure out ways to be healthier at the same time. >> mariane, thank you. speaking of tracking your health, that is one of the marquise features of one of the incarnation of the apple watch wouldn't be a day without an apple watch or iphone story. a review of the w nedevice coming up on "power lunch.

oh, and there's the closing bell. (sighs) i hate missing out missing out after hours. not anymore, td ameritrade lets you trade select securities 24 hours a day, five days a week. that's amazing. it's a pretty big deal. so i can trade all night long? ♪ ♪ all night long... is that lionel richie? let's reopen the market. mr. richie, would you ring the 24/5 bell? sure can, jim. ♪ trade 24/5, with td ameritrade. ♪ the time has arrived reviews

for the apple watch series 4 are out. the watch won't hit stores until the end of the week but the first review is saying it is a solid improvement on previous models, but is it worth the price? joining us now to share his thoughts is dan editor and chief. would you buy it that big an improvement over the existing one >> i just got this review about two hours ago. so, but, i already got it. i already preordered it. and, yeah, so far i have been playing with it for a couple hours. >> in two hours you can conclude -- >> the screen is much bigger. >> i could have told you that. >> this has become a very powerful wrist computer that does a lot of stuff. having a bigger screen that in a case that is basically the same size is really nice to have. >> you try to answer the phone yet? is the sound better? >> i haven't on this one should we do it right now? maybe not the best use of viewer time

i do do that sometimes fun answering the phone with your nose while you're carrying groceries. >> it's very hard to hear. but this is supposed to be an improvement on the series 4. >> that's what they say. i haven't tried it yet the speaker is supposed to be louder and a little tough. >> what does it cost >> two models. the one that has gps starts at $399 the one with cellular has $499 little more expensive if you get the bigger one they call it the 44 millimeter size >> you can get a series 3 for 2 $9 on sale right now what would you day to the average person do they need the bells and whistles for that much more? >> one of the most interesting updates is really the health they're adding an ecg test >> you're a healthy guy, though, dan. do you need to have an ecg on your wrist do you need that >> is it good to be checking it all the time probably not i'm super fascinated by this idea i think health and medicine is

an area where technology will have a profound change over the next several years and i love being an early adopter i think it is really neat that it is there. >> for people who want it, a good addition, i think we we talked about it the other day. so, bottom line here, would you buy it >> again, i already bought it and i have been wearing an apple watch every day since they launched the first one. >> you love it >> after not wearing a watch for ten years, the previous watch i had worn was a casio calculator watch. it is actually really convenient to know what time it is without taking your phone out. >> you can do that with traditional watches, too >> what is old is new. >> very nice very nice. >> well, so, that sounds like a pretty positive first reaction in two hours you like what you see. >> it's not perfect. you know, therey're still reall

trying to push battery life. the screen is not on all the time that's why it's hard for me to show you what it looks like. >> assume downward dog pose. >> this one tracks yoga exercises. again, not perfect, but, to me, really interesting technology and maybe where things are going. >> all right, dan, thank you appreciate it. >> thanks. well, tesla is on the road to recovery after fell off yesterday. we'll bring you all the latest on tesla and the criminal probe by theeptm darent of justice stay with "power lunch." so when we roll out the nation's first 5g network, it'll be because we were the first to install millions of miles of fiber optics. and we'll be the first to upgrade the towers and put up the small cells that will power the smart cities of the future. when i started at verizon, i knew i was joining a team

that was pushing the industry forward. now, with the launch of the only 5g ultra wideband network, we're doing it again. this time, changing the way we learn, work and live. and i'll always be proud that we're not just building america's first 5g network. we're doing it right. whai tell clients, etfs can follow an index, but which ones target your goals? it's not about quantity. it's about quality. no trendy stuff. i want etfs backed by research. is it built for the long-term? my reputation depends on it. flexshares etfs are designed and managed around investor objectives. so you can advise with confidence. before investing, consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully.

this is moving day with the best in-home wifi experience and millions of wifi hotspots to help you stay connected. and this is moving day with reliable service appointments in a two-hour window so you're up and running in no time.

show me decorating shows. this is staying connected with xfinity to make moving... simple. easy. awesome. stay connected while you move with the best wifi experience and two-hour appointment windows. click, call or visit a store today. time for the power rundown okay, phil, we've got a lot of things to go through let's start with the report on the best and worst airports in america. i might be able to come up with this without any research on my own. >> you fly in and out of chicago, you know how many people really love o'hare. this is from j.d. power. they say the airport satisfaction is at an all time high here's the top airports. they put them in categories. the mega sized, biggest airport, the best is las vegas. large airport would be john wayne in orange county in

southern california. medium sized would be buffalo in new york what's interesting here is i think this is the third or fourth year in a row when j.d. power has surveyed travelers that the airport satisfaction continues to move higher i would disagree with that in certain areas and certain airports guys, it's fun to look at this list and always at the bottom tend to be the large, large airports new york, chicago, la, people always want to complain about those guys. >> they're large we have worse weather here than in las vegas i imagine snowstorms aren't a problem there. >> or in orange county. >> next topic, united overhauling their boarding process. what's going on here >> the process of actually when they're boarding the planes for united, and i was just on a united flight last night, it's still front to back. more priority customers go first. instead of allowing five lanes to line up at the gate, which was always a zoo, they have now streamlined it

they said we're going to put in group one, group two once those groups board, we'll have three and four line up. the whole idea is that there's less congestion at the gate. frankly, that's a good idea. whether or not this has improved and people like it more, it's early to say i've noticed it. they go with one and two groups as opposed as hey all five line up. >> i don't know if you can get the people that aren't going to be boarding to stay standing. >> they stand at the gate. that's human nature. >> they're going to try it. >> i get in there and i go are you really a three i want to see that ticket that shows me you're a three. >> okay, we've got to save time for tesla. the stock rebounding today at least, a lot of drama over the past few hours, past few weeks, past few months, what's going on >> you have the doj looking into tesla. the degree of this investigation, the intensity of it, that remains to be seen. we do know according to "the new york times" that goldman sachs

as well as silver lake, they have been subpoenaed by the doj looking for information regarding elon musk's tweet when he said on august 7th, he's considering taking the company private. funding secured. we are startingto see notes from various analysts who are trying to assess what's the potential risk here when it comes to tesla it's anybody's guess at this point. a lot of analysts who are, you know, consulting former doj or s.e.c. executives or officials and at this point, it's conjecture more than anything. these are ongoing investigations. >> yet, i would imagine a lot of analysts are actually sticking by whatever price targets they have, whatever ratings they have even though this is a complete unknown. >> right and the reason they you're seeing a little bit of support there in that $285 to $290 range is that in a week and a half we get the third down delivery

numbers. increasingly you're hearing positive comments about tesla being able to come close, if not hit the targets they've set. that's why you see a little bit more support or enthusiasm if you will for those tesla shares. >> seems to hold $280 pretty well phil, thanks >> you bet. straight ahead, a new forecast saying consumers could spend over a trillion dollars this holiday season. our next guest says retail could still have room to run we'll tell you why he's full of holidachr.y ee stick with us here on power lunch. oh good, you're awake! finally. you're still here? come on, denise. we're voya! we stay with you to and through retirement... with solutions to help provide income throughout. i get that voya is with me through retirement, i'm just surprised it means in my kitchen. oh. so, that means no breakfast? i said there might be breakfast. i was really looking forward to breakfast. i know... voya. helping you to and through retirement. if you're waiting patiently for a liver transplant,

it could cost you your life. it's time to get out of line with upmc. at upmc, living-donor transplants put you first. so you don't die waiting. upmc does more living-donor liver transplants than any other center in the nation. find out more and get out of line today.

♪ introducing the all-new corolla hatchback. toyota. let's go places.

good afternoon, everybody. here is what is on the menu for hour number two. from retail to marijuana to video games, these three areas of the market have been very hot this year. news today suggests that rally may continue we'll break down the pocketbook, the pot and the gaming trade you want to stay around for that, man. war on cancer. the company that's matching patients to treatments and clinical trials with an app. we'll talk to the ceo about how they're doing it and how it is helping patients may the force be with you. space force that is. the person in charge of creating the president's new department of defense branch, the space force, will join us live

what it will look like, how it will run and how much it will cost power lunch tells it all, right now. ♪ ♪ and welcome to power lunch, i'm melissa lee. the nasdaq is in the red by .25%. the dow is jumping more than 200 points thanks to goldman sachs and boeing financials materials, industrials leading the charge citigroup, j.p. morgan and goldman sachs are all leading. treasuries are on all move as well the two year yield hitting a ten year high. it's at 2.807% the ten year note is at its highest level since late may the credit card names, those are of note. they're hitting all time highs mastercard, visa, as well as american express we begin the second hour of power lunch with three big investment themes. pot, playing, and your pock

pocketbook so the pot stock is soaring. turray up 1186%. now from pot to playing. the gaming stocks. activision up 19% this year. finally, from playing to your pocketbook, the s&p retail sector up 37% in 2018. new numbers on the holiday season today could keep the rally going. that's where we'll begin right now. let's bring in john kernen who says we have yet to reach retail euphoria a growth of 3.1% on the high end, growth of 5.6% at least as of today that's the high number. we had a really strong holiday season last year, what makes you think the euphoria isn't over yet going into this year's holiday season >> yeah, hi, thanks.

we don't think it's over from an investor standpoint. i think sentiment is measured at this point you're seeing some stocks near all time highs like nike, lulu lemon, tjx, burrilington. we don't think sentiment and valuations are extended to a point that there's euphoria there. we think the holiday season is going to be strong the retail weekly sales numbers are better than any number we've seen in the last decade. physical traffic in stores is positive right now it's the first time we've seen that in a long time. a lot of these products and brands are in a good cycle right now. they've found a balance between online and physical traffic. >> are they finding the balance in profitability is it getting less expensive to run your online e-commerce business as it grows

>> for some they're certainly scaling. i think the economics on digital for -- you look at lulu lemon, their operating platform is several thousand basis points is than it is in their physical stores same with nike i think as these platforms scale, the margins will get better that's part of the narrative that's going on right now. >> what are your top picks going into the holiday season? the number of those stocks hitting all time highs is it time for new leadership within retail? >> what's working in retail is growth right now our top picks are lulu lemon, adidas, tjx and burlington we think all those stocks will make anew all time highs they'll report their third quarter numbers in november. i think the outlook is very bright in 2019. >> when you hear about the

popularity and good reviews for the apple watch and the new apple phones and the average selling prices are certainly higher this year than last year, does that make you concerned at all that consumers with illl be spending more on apple products than other retail goods? >> that was a concern when the original iphone x came out at a close to $1,000 price point. i'm not that concerned about it. apple is a luxury brand at this point. they command super high price points ultimately i think the stocks we just mentioned are pretty well positioned we're seeing pricing power there as well. >> as you look over the mountain to 2019, what do you forecast for retail for that year how do you think, if at all, that the prospect of tariffs on chinese imported goods like

apparel, maybe electronics, is going to ripple through the system >> sure. tariffs, we don't like the sound of tariffs it could raise the cost for consumers. i think brands and retailers will try to pass as much of that on as possible what we like about the sector right now is that inventory levels are being planned at a better rate than they have in the past that's why you're seeing average selling prices increase, retailers have to chase goods. the margin outlook for retail, despite the fact that the tariffs could get pushed through is quite positive. and i think ultimately, you know, the consumer is in a good spot right now it's difficult to predict retail on a quarter to quarter basis. ultimately i think the consumers are in a good spot i think 2019 will be another good year for retail we've found a much better balance between physical and digital traffic. >> i know nike is in your coverage they've been in the headlines a lot with their latest ad

featuring colin kaepernick there's a 61% rise in sold out items. is this something other brands should do, take a stand? is it worth the risk >> certainly i think consumers want to know what you stand for beyond just your core product. what you stand for socially. nike knows their core consumer very well. nike knows who is paying full price for their product, those sneaker heads. you know i think it's not for every company, but nike's never been one to shy away from controversy and take a stand on something. i think you'll see more companies try to do it because the consumer wants to know where you stand. >> got it. thank you so much, john. appreciate you being here. i'm sure we'll tap back into you as we get closer and closer to christmas. next up, weed. as we've mentioned, pot stocks are on fire. some are saying with big moves,

valuations may be getting stretched others are comparing it to the dot com bust joining us now is tim seymour. he owns several marijuana related stocks he sits on advisory boards as well great to have you with us. thank you for joining us. >> exciting day. >> it is you're a valuation guy at what point do you say too rich when you say like tilray, it's up 100% and it's only wednesday. >> look, let's face it, they trades in the nasdaq cgc trades on the new york kronos these stocks are significantly higher tilr tilray has more funded capacity and is a very real player in the space as well. you don't fault them for this. it's a global company. some of the other guys are, too.

look at valuations the sector trades at about 35 times 2020 not terribly cheap but on a funded capacity if you want to look at it on a revenue basis, look at which companies are there. what i would point to is those companies that have big market caps don't mean they have a robust balance sheet some of these folks may have to raise capital. investors need to be very aware of which companies need to go out there. let's face it, in some cases if you're on that board, if you're the leader of that company, it makes sense to raise capital at these valuations that's your currency i think they'll do that. >> should investors place a higher valuation on u.s. listed cannabis stocks? the thinking that u.s. institutional investors may be precluded in investing in canadian stocks? >> today, the move in the big three u.s. names i mentioned, even gw pharma, who have proven

efficacy and fda approval, those are the ones that are outperforming. should u.s. stocks trade at a premium? the u.s. market is significantly bigger than canada it's a global story that all these companies are talking about. again, the companies that trade in new york right now are going to have a premium. those companies that are running around talking to big institutional investors for the first time understand that this is a consumer products play. there's very experiences an analysts who are looking at this as a cpg story that's what's going on here. i've seen this in emerging markets. this is what happens when you see industry sectors, new asset classes that have been challenged by liquidity are getting the attention of big global investors it's an exciting time for the industry i think you need to be very careful. >> thanks. see you tonight on fast. >> see you later. now from pot to playing

video games. fortnite viewership on twitch is seeing a sharply monthly decline in august. there you see it, down to 129 million hours streamed for that month. is the fortnite frenzy over? what does it mean for the video game stocks heading into the holiday season let's bring in evan ingram has fortnite peaked? >> you know, there's lots of different industry numbers, epic is a private company so we don't know for certain what we do know is engagement for the game has been extraordinarily high there has been a competitive impact to many stocks we do cover. when we take a step back and look at the engagement metrics you highlighted, it's remaining to be a very, very large and impactful game month over month, we're seeing some declines. i would say that that's a

welcome sign for publishers into what is a very busy holiday season. >> i know it's not exactly the same thing, but when the pokemon craze was going on, it seems like it was all we could talk about. fortnite has been popular with kids, teens, and folks even beyond that. is this a normal cycle to have this craze, this frenzy and then have it back down? if it's normal, is it a bad thing? can it still be making money for the video game makers there? >> there is always somewhat of a life cycle to games. i think this one has more staying power to pokemon go. you know, kids had to go back to school at some point hopefully they're doing their homework and playing a little bit less games at the end of the day, fortnite remains a very big and impactful game i think it will for the foreseeable future i'm sure epic games has a lot of new ideas for the game in store come this holiday as well. i would expect over time for them to continue to innovate. >> among the public companies

that you follow, which do you think has the next potential fortnite >> yeah, so among the companies we cover, probably the best bet along those lines would be blizzard so they're going to release call of duty black ops 4 in october there's a lot of hype for their version of battle royale there was an uptick in streaming hours last week. you saw ninja enjoying the game as well. i think investor sentiment that activision can take back some of that engagement they lost is right. >> speaking of the holiday season, playstation is going to release a classic version like we've seen nintendo do over the last several seasons, it comes preloaded with games what does that mean for the video game makers? >> probably not a lot for the companies we cover

i'm sure that it will be some nice business for sony it's a nice blast of nostalgia for myself and many people that were playing the playstation 1 i'm sure it will sell very well. in terms of driving our expectations for the holidays, i don't expect that's a big needle mover. >> do you play any of these games? if so, which one has come closest to hookingio you >> i'm a life long game. >> reporter: my son wants your job, man, i'm telling you. >> have him call me. we need help >> he's 12 >> yeah, perfect no, we'll sign him up. my game of choice over the years has been overwatch that's a blizzard game. >> overwatch. >> yeah. yeah there's a lot of e-sports. >> melissa is nodding here knowingly. >> we've had the commissioner of

the overwatch game on fast money. >> we've got to leave it there i'll have max reach out to you thanks a lot. >> maybe he can intern. >> great idea. the dow is rallying 200 points, bank of america is saying the bull market is debt they cite raising interest rates and too much debt, are they right are is there room to run let's bring in the chief economist with asset mark. what do you think? is the bull market over? >> not a chance. i think merrill is wrong you can find companies that are generating sufficient free cash flow that make stocks a compelling opportunity valuations are compelling.

sentiment is not too robust. bulls and bears are about equal in their numbers and then, last, we're only about 130% above the prior peak of october 2007 so 11 years from the prior peak, we're not much above it. i think the bull market still has strong legs left in it certainly not at the same pace, but in an environment where stocks are the preferred asset class in individual names like broadcom, or curate, which is the parent for qvc they all represent on a microbasis opportunities to be a buyer. >> jason, what do you think? there are risks to come. we don't know how all of this trade war is going to settle out for the market the fed is expected to continue raising rates. i don't know i think economic growth looks pretty good despite everything that we may be worried about what do you think? more room to run here or should we be a little cautious going forward into the rest of the year

>> more room to run. you make a great point you know, i haven't read the notes to be fair but we would say that there's plenty of room to run. there's room for different strategies, whether you're looking to be aggressive or a little more defensive with the tactical strategy. but to me, you could name ten reasons off the top of your head to invest in the market, but you only need three. it's economic growth, it's profitability, which is growing, and it's low volatility. which is typically been associated with higher than average returns. importantly, what it means is if you get the timing a little bit wrong, the danger of significant losses is lower. you know, i'll sum it up and say it doesn't get much better than this fr this. >> that's why a lot of people are worried. the markets by all of the sort of standard measures haven't really had a blowout year. the nasdaq is up 15%, the s&p, maybe about half that. the dow, maybe a little less

some are close to their all time highs, but none have broken through in recent months there's an awful lot of consensus that this can go on and on and on and the market can keep simmering, boiling and don't worry about it >> our clients range from main street to multigenerational wealthy families they all seem to have a concern. it may be a little bit different whether it's focused on trade or interest rates or other issues there is not a kind of euphoria. you haven't seen the fear of missing out and greed you normally see that marks the beginning of the end of a bull market everybody is concerned look at the asset allocations across the board, by and large, they're defensive. even though we're just now starting to get a reasonable level of interest rate. >> that seems to me in part what jason is just describing it seems to derive from the fact that american investors have

been here before. >> they have, tyler, when they paid near perfection valuations for stocks that don't exist today. i think there's more trouble in a bond market, frankly in many respects than there is in the stock market institutional money that i manage or institutional committees i get to sit on may expect that stocks can return 6%, but they'll find an active manager that will generate 7% or better rates of return where else are you going to get that it's more tempered, but it's still a case where you'll get mid to high single digit returns over the next two or three years. that says there's more to go. >> thanks. appreciate your answering my challenges there all right. coming up, he is called mr. fix it he was put in charge by the president to help build a space force. patrick shanahan will join us

live next. plus, there's one weapon that china will not use to retaliate against the president's new tariffs. we'll tell you what that is straight ahead. and the fight against cancer what if you had thousands of doctors at your fingertips to find a treatment that's right for you? there's an app for that. e o t cthceofheompany behind it joins us next. this isn't just any moving day.

this is moving day with the best in-home wifi experience and millions of wifi hotspots to help you stay connected. and this is moving day with reliable service appointments in a two-hour window so you're up and running in no time. show me decorating shows. this is staying connected with xfinity to make moving... simple. easy. awesome. stay connected while you move with the best wifi experience and two-hour appointment windows. click, call or visit a store today.

♪ ♪ the air force association conference has a special keynote speaker this year. that would be jeff bezos, who is expected to take the stage later this afternoon also there is department of defense deputy secretary patrick shanahan who was tasked by the president to build a space force. morgan brennan joins us now with more hi, morgan. >> reporter: that's right we'll be bringing you those jeff bezos headlines as we get them later on in the meantime, at this conference, it's the air space and cyber conference joining us now exclusively is the deputy secretary of defense, patrick shanahan to talk about the space force and talk about military readiness and so much more deputy secretary, thanks for joining us. >> hi, morgan, how are you >> reporter: doing great,

thanks i know you just delivered a speech a short while ago for maybe some of the folks who aren't as familiar with you, your direct boss is defense secretary jim mattis retired decorated marine general, known as the warrior monk you spent 30 years at boeing you earned yourself the nickname mr. fix it how are you bringing that corporate experience, that private sector experience to the pentagon and the way it's doing business right now >> sure. absolutely the great relationship with secretary mattis, think of him as mr. up and out managing the relationship with the president, his counterparts in all the international countries and then overseeing military operations i'm responsible for the budget so within the pentagon, it's about $700 billion my role is really the chief operating officer. i make sure that ships, planes, tanks run on time.

just to give you a sense of the scale, we procure over $300 billion of goods and services a year. >> reporter: that definitely puts it into focus now in terms of running that budget, i know there's a big focus on rebuilding and fortifying the military right now, but doing it with a cost consciousness. how are you looking to reform the pentagon how are your efforts to do that different than some of the ones we've seen in the past >> i'd say the single biggest factor in terms of our ability to achieve success is we have a stable budget and a strategy and that allows me to hold people accountable for results as you might expect, someone who comes for a corporate background is more focused on what i would consider outcome and results than how we're driving expenditures so we're very mindful of how we're spending the taxpayers'

dollars. so the constant question we have at the pentagon is what did we get for that >> and deputy secretary, i want to get your thoughts you made a comment that jumped out at me in terms of your speech adversaries are increasingly leveraging computers instead of fighter jets how is the defense department approaching this topic >> well, i think, you know, in my remarks what i emphasized is there are two new war fighting domains. space. and cyberspace when we think about cyberspace, the lines are really becoming blurred between what is what we might call competition and combat so when is interference more than competition

that's where we're spending our time and making sure that we can protect our institutions, protect our secrets. there are countries that today are stealing our intellectual property our job is to stop that. >> and before we let you go, deputy secretary, i have to ask you about space force. it's been a big topic at that conference this week we spoke to the air force secretary heather wilson earlier today. they put out a proposal, potentially $13 billion over the next five years. how do you get everybody that's impacted by this on board, including lawmakers? since all of this will have to go through congress >> yeah, no i think the part of getting everyone on board will be simpler than most people think. i think a big part of that is helping people understand what is the space force and where we're driving the space force is, it is imperative

that we protect our economy. our economy runs on space. so it's all about how do we protect our space assets, and then deter our adversaries who wish to do us home with that focus i'm confident we'll get the alignment of the white house and the congress and the resources we need to protect america. >> well, deputy secretary shanahan, we appreciate you joining us today from the air force association's conference thank you so much. the deputy defense secretary, patrick shanahan, thank you. >> thank you thanks very much to you. coming up, the xlx is seeing its best gains in two months si is it time to bet on the banks again? that's coming up next.

at&t provides edge-to-edge intelligence, covering virtually every part of your healthcare business. so that if she has a heart problem

& the staff needs to know, they will & they'll drop everything can you take a look at her vitals? & share the data with other specialists yeah, i'm looking at them now. & they'll drop everything hey. & take care of this baby yeah, that procedure seems right. & that one too. at&t provides edge to edge intelligence. it can do so much for your business, the list goes on and on. that's the power of &. & when your patient's tests come back... welcome back to power lunch. it's time for trading nation the big banks rallying hard today. the ten year yield jumps to its highest level since may. citigroup, j.p. morgan, morgan stanley, goldman sachs with big

moves, 3%, 3.5% basically all day. we're going to talk about this move and what might come next. this sector has been asleep all year a lot of people loved it coming in what do the fundamentals tell you about this potential breakout >> we still love the sector. people have forgotten about it, as you mentioned let's take the macro reasons first. tax reform has barely started to take effect. there is more of a favorable regulatory environment for these companies. but more so fundamentally, priced to earnings ratios are low. they're making more money. they'll continue to make money but the main reason we really like this sector, we believe we're in the middle of a technological revolution and the banking and technology sector are more aligned than ever so they're just going to continue to make money alongside technology we're along the space for the foreseeable future.

>> all right so maybe they're not going to be disrupted as much as some people think by technology. stacy, what are the options market telling you about the positioning in these stocks? >> it's relevant to highlight that the ten year treasury is above 3% two days in a row that spread is widening instead of nearing which is reversing a trend we've seen for the last several sessions that has investors throwing around terms like net interest margins. to your question about what are markets suggesting, we do think it's a bit too early to overcome some of the most quarter commentary we would use today's opportunity to profit. >> all right well, maybe the stocks for the short term might be tethered to those bond yields. we'll see how both those things play out

thank you very much, stacy and michael head to our website or follow us on twitte twitter @tradingnation now to sue herrera. thank you so much. here's what's happening at this hour, everyone here's the latest on the shooting at a commercial building in a suburb of madison, wisconsin. a city official says four people have been shot, but none fatally during a shooting at wts paradigm software company this morning. several people are in serious condition. one is in critical condition the city administrator says the suspected shooter was also injured. davis says police have lifted a lockdown and a hospital spokesman say they are being treated. a westside high school student in jacksonville, florida is suffering from severe injuries after he was shot in the chest on his way to a school bus stop the injured student boarded the bus and was driven to a local fire station his father said he is suffering from a collapsed lung, but is expected to survive. there is no word on any

suspects. retailers are poised for a strong holiday season according to a new report. projected sales growth of 5.6% and just in time for the holidays, amazon is reportedly planning to release at least eight new alexa powered devices, including a microwave oven, an in car gadget and high end stereo equipment they're expected to be available before the end of the year isn't that timing interesting? that's the news update this hour, back to you. thank you very much. coming up, the trade war between the u.s. and china heats up. but china says there's one thing it won't do to retaliate we'll tell you what it is next

let's take a look at where the market stand right now the dow, the nasdaq and the s&p are sitting higher for the dow we have pulled back at least from the highs of the day. we're higher by 181 points we have been high by more than 200 or so. industrials among the top performing sectors today general electric is among the names pushing the sector higher. take a look at the spr industrials etf. this is ticker xli that's on pace for its seventh straight day of gains. higher by about .10%. the trade war between the u.s. and china is heating up chinese officials are addressing the matter overnight >> reporter: we learned that there is one weapon that china says it will not use to retaliate against the new tariffs, and that is its currency overnight they announced recent fluxerati

fluctuations were intentional >> translator: it is essential we uphold the principles of multilateralism and free trade. >> reporter: president trump's tariffs aren't sitting well on capitol hill lawmakers from both sides are criticizing the mark a congresswoman said she's concerned about the effects on farmers and manufacturers. senator dianne feinstein says the tariffs are hurting those that trump said he'd protect one senator even lamented recently he feels like a helpless bystander back over to you. >> thank you very much. so is china going to be forced to make a deal with the u.s. on trade? let's bring in the head of the china team at all bright stonebridge group. she's a former senior director for china affairs at the office

of the u.s. trade representative under president george w. bush welcome. we appreciate you being with us today. what little i know about china and the chinese leadership suggests to me that china doesn't like to be pushed around or bullied they are proud they want to be treated as equals so my question is, is imposing tariffs the right way to get what you want, whatever it is we want >> well, thanks, tyler it's great to be here. i think to answer your question, there are many here in washington as well as on the ground in china who are saying that this tactic is actually very wrong headed. and we're all trying to solve for china's increasing unfair trade practices. there's little dispute about the evidence that china has been closing its market rather than opening it further to foreign

investors. however, the question that many of us have is when the trump administration is searching to solve and cure this disease, is the medicine they're using more harmful than the disease itself. >> i don't mean to speak for the trump administration, it can do that for itself, and quite ababably i might say, it may say these issues have been festering for a long, long, long time and nothing, no alternative approach seems to have gotten any desirable result out of the chinese. what tool is left other than tariffs? >> i think many gree with what you're characterizing as the trump administration's views, that the chinese behavior has been bad for a prolonged period of time and that it's time to be tougher with china to stand up to these unfair trade practices because they're harming our economy and the global economy

however, back to the tactics that we're using here, unilaterally pressing china in a public way to make wholesale changes to its economy, one it's not very realistic, and two, unfortunately, it's having the effect of backing china into a corner and for fear of looking weak, refusing to make any concessions at all instead of that, the business community, the european business community joining in with the american business community, is calling for the chinese to take concrete action to open up its markets to demonstrate that china does want to promote globalization and positive trade practices. al to date we're not seeing china willing to make a move in that direction. >> what happens if that's where we are if china feels backed into a corner, what happened here does this just further escalate and only get worse for both

sides? >> i hate to admit that i am pessimistm th pessimistic that this trade war is not going to be dealt with quickly. on the u.s. side, i think many in the trump administration feel that the goal may be disengagement with china in order to bring supply chains back home and shield our economy from china's unfair trade practices. while also maybe trying to slow china's rise in beijing. i think there are those who feel that china doesn't want to exceed to any concessions that the u.s. is forcing it to make but, again, the way that the trump administration is really pushing so hard is giving some policymakers in beijing little room you have to recall that as much as the chinese are saying we're going to retaliate whenever the united states takes unilateral

actions, the chinese are not ruling out talks the chinese are saying we still have to talk about this in order to find a way forward. the business community supports that. >> on that note, we have to leave it amy, thank you very much for being with us. >> thank you. we've got a news alert on the dallas mavericks sue herrera has the details. >> thank you this is the result of an independent probe into the mavericks team after a sports illustrated article came out alleging basically a very hostile work atmosphere, it was a seven month investigation into sexerual harassment and inappropriate workplace conduct. as a result of this, mark cuban is agreeing to contribute $10 million to organizations committed to supporting women's leadership and development in sports and combatting domestic violence but here's what this report

found. the investigation revealed improper workplace conduct towards 15 female employees by the mavericks' former president and ceo, including inappropriate comments, touching, forcible kissing, improper workplace conduct by ticket sales employee chris hyde, and two acts of domestic violence perpetrated by the former mavs.com reporter earl sneed, incleuding against team employee. increase the number of women on the staff, including leadership positions. enhancing the formal reporting process for victims. and implementing regular anonymous employee surveys to evaluate the workplace culture and expand and improve the mavericks' human resources department so mark cuban is responding to that he is going to donate $10 million to organizes that promote female leadership. back to you guys. >> all right

thanks sue herrera with an update on the mavericks. coming up, the app that matches cancer patients to treatments the co-founder and ceo of the company who developed it will join us ne xt benjamin franklin captured lightning in a bottle. over 260 years later as the nation's leader in energy storage we're ensuring americans have the energy they need, whenever they need it nextera energy.

♪ i don't care where we go ♪ and i don't care what we do ♪ just take me with you there are roadside attractions. and then there's our world-famous on-road attraction. the 2019 glc. lease the glc300 for just $469 a month at your local mercedes-benz dealer. mercedes-benz. the best or nothing. 'saved money on motorcycle insurance with geico. goin' up the country. later, gary' i have a motorcycle! wonderful. ♪ ♪ i'm goin' up the country, baby don't you wanna go? ♪ ♪ i'm goin' up the country, baby don't you wanna go? ♪ geico motorcycle, great rates for great rides. 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. i'm not really a, i thought wall street guy.ns. what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade

the dow is up 181 points about 30 points off the session highs. it's being led by financials you see goldman sachs at the top of the heap. the drags on today's session, microsoft, it's lower by 1.5%. coming up, fighting cancer with the help of a new app. hi, i'm joan lunden with a place for mom, the nation's largest senior-living referral service. for the past five years, i've spoken with hundreds of families and visited senior-care communities around the country. and i've got to tell you, today's senior-living communities are better than ever. these days, there are amazing amenities, like movie theaters, exercise rooms and swimming pools, public cafes, bars, and bistros, even pet-care services.

and nobody understands your options like the advisers at a place for mom. these are local, expert advisers that will partner with you to find the perfect place and determine the right level of care, whether that's just a helping hand or full-time memory care. best of all, it's a free service. there is never any cost to you. senior living has never been better, and there's never been an easier way to get great advice. call today. a place for mom -- you know your family, we know senior living. together we'll make the right choice.

there's a new app to help the fight -- the fight against cancer it helps patients connect with treatment centers in both the u.s. and china to help them find the best care for their particular case. let's bring in the founder and ceo of driver, also a board certified oncologist doctor, thanks so much for havi joining us. >> thanks for having me. >> how does this app help? >> today when patients get diagnosed with cancer a lightning bolt hits, they doering they possibly can to access the best treatment. they find the best hospital that they can get access to and the best doctor in that hospital, and they walk into that appointment and bring their record, bring their biopsy, and they get treatment options, an they walk out of that appointment and every single patient all over the united states, all over the world is asking one thing did i get the best treatment did i get standard of care did i get access to the most

advanced therapies and the answer is typically no the data is overwhelming most patients in the united states do not get standard of care, and many patients don't get access to these advanced therapies, so the way the app works is the following you go to our website driver.xyz you sign up and download the app and through the app we get the information to get your records and tissue we process your record and your tissue, and then we show you one, what is your standard of care and what are those advanced therapies at our partner network? our flagship partner is the national cans institute. mayo clinic is a partner and cleveland clinic is a partner and stanford is a partner. you see all of the options and we bring you in an oncologist for you to understand and you get to pick one of those treatments for further evaluation and we fast track you into one of our partners. >> do you have oncologists on staff looking at my submission of records that comes i presume from my physician, right, and they are looking at it, and they

are analyzing what kind of cell structure there is, what the stage is, what the size of the tumor is, where it is and all of that, and then they communicate back to me >> we built the software platform we're downstream of downloading the app and asking for your records and tissue which we process the records through a software system and the tissue through our own molecular labonte. we then filter the patient for those treatments we then hire an oncologist who has a full-time job somewhere else, but we're just hiring them for this patient to sanity check all of our recommendations and then do explain to the patient. >> so the recommendations are drived from some sort of -- are derived from some sort of algorithmic method >> intelligence, but there is a right answer there's something called the ncc algorithm. there are guidelines based in different associations and

societies. there often is the right answer, and we've developed the software to be able to show the patient the right answer with the doctor to explain it. >> this is expensive this is $3,000 plus $20 a month if you're a patient. >> yeah. >> why is the patient paying this why isn't the doctor i'm already very confused if i just got this life-threatening diagnosis. >> yeah. >> why am i in charge of finding all this information >> yeah. that's a super good point. so the patient does pay now. if you can't afford the $3,000, we have a partnership with gofundme where a gofundme page can be launched to cover that cost, but ultimately we believe that you need to have access to hyperdrive before you need it. so if you have had cancer in the past, you can sign up for driver now. it's $20 a month if your cancer recurs after six months of time you get access to hyper drive at no additional cost we're also building products for insurance companies and other employers to be able to get access to hyperdrive on the order of dollars a month. >> literally have ten seconds,

but our a tech company, a regular for-profit tech company, right? do you have patents on the intellectual property that drive the app? >> we have a big ip portfolio with patents penneding >> doctor, thanks so much for joining us. >> thank you very much. >> driver is the app. by the way, we wanted to draw your attention to shares of tilray halted to the volatility on the downside. the stock is now up 70%. we'll keep an eye on the stock for you. >> and "check, please" is next n. dealing with millions of customers a year, like this one. no, i'm pretty sure i didn't order a squirrel playing a guitar. that's why you work with watson. it works with your systems to resolve calls faster and improve customer satisfaction. i detected fraud and helped reassign a new credit card. honey, they're overnighting us a new card. woooo!!! woooo!!! for ai that works with tools you already use, choose watson.

hello! the best ai for the job. hello! at ally, we're doing digital financial services right. but if that's not enough, we have more than 8000 allys looking out for one thing: you. call in the next ten minutes... and if that's not enough, we'll look after your every dollar. put down the phone. and if that's not enough, we'll look after your every cent. grab your wallet. (beeping sound) (computer voice) access denied. and if that's still not enough to help you save... oh the new one! we'll bring out the dogs. mush! (dogs barking) the old one's just fine! we'll do anything, seriously anything, to help our customers. thanks. ally. do it right.

at&t provides edge-to-edge intelligence, covering virtually every part of your business. so this won't happen. because you've made sure this sensor and this machine are integrated. atta, boy. & yes, some people assign genders to machines. & with edge-to-edge intelligence, you'll know your customers love this color, & don't love this one. never getting grape again. & you can adjust in near real time. & if someone tries to breach your firewall in london & you start to panic... don't. you've got allies on the outside, & security algorithms on the inside. & if it's jammed up here, & it's hot in here. & you know both those things, you can do this. & your flowers won't wilt. at&t provides edge to edge intelligence. it can do so much for your business, the list goes on and on. that's the power of &. & when her patient's blood pressure drops,

she can share the information with... >> time for "check, please." amazon is testing a new shopping site called scout that works like a pandora if you like or dislike and that's how it makes the product recommendations on things you may not be sure of, furniture, women's shoes, patio furniture, specifically lighting pretty cool stuff. know amazon is pretty good at this kind of stuff. >> interesting in the recent segment president promise of phone apps and so forth. >> yes. >> i'm a born skeptic. that's what we're paid to be, but the shocking number was that only something like 2% of patients get the standard of care upped those circumstances which is really, whoa, you think you're getting it if you go to a good doctor in your town and go to a good hospital in your town. >> and you think you live in the united states and you'll get standard of care. >> not necessarily >> but what's interesting, too,

he made it clear character the doctor made it clear that it's a tech company that it has a portfolio of ip and i thought that was interest, too. it's tech that's driving this. >> very interesting stuff. >> all right thank you for watching "power lunch." >> "closing bell" will be begin in about six seconds if not before that. we'll see you tomorrow >> it's time for "closing bell." i'm wilfred frost at the new york stock exchange. hot stocks flying high once again but we've got at cannabis investor who says they are due for a correction he'll explain why. >> i'm seema mody inny in person, north carolina president trump touring the devastation accused by hurricane florence as crews and residents begin the massive cleanup and recovery effort. the latest on the ground coming up. >> i'm aditi roy in san francisco. just weeks after cross the $1 trillion mark, amazon has hit another milestone, and it all has to do with its advertising business the news that could leave facebook