trash. >> that's what she thinks of the show >> looking to the end. >> a waste company you've probably never heard of. 20 billion in market cap if we're talking about tariffs, if we're afraid of geo politics, this has the trading phenomenon and pricing power. >> good stuff. thank you so much. thanks to all of you for watching ""power lunch"" starts now. >> i'm melissa lee so much for scary september. stocks pushing higher with only two days left in the month and quarter. the catalyst that could keep this rally going straight ahead. home building stocks getting demolished lately down 25 to 50%. home sales falling, mortgage rates rising, what's ahead for the stocks in the american market all of that plus gw farmer shares look at them surge. the company getting major boost in the drug enforcement agency paving the way for gw to sell the cannabis derived drug in the united states. "power lunch" starts right now

good afternoon, everybody. welcome to "power lunch. i'm tyler mathis glad you could join us on this thursday a couple of days left in the third quarter and the s&p 500 is on track for its biggest quarterly gain since the fourth quarter of 2013. let's check out some of the big winners at this hour apple best day since mid september. i thought it was still mid september but it's not jpmorgan beginning coverage on that stock with an overweight rating cameco soaring double digits cyberark software spiking on a morgan stanley trade on the flip side, carnival down. geron tanking. j&j has ended the oncology drug partnership with that company and conagra down on an earnings mist. >> brett kavanaugh's accuser

christine blasey ford appearing before lawmakers about her sexual assault allegations they're in recess now. the supreme court nominee will testify after she's done more on this coming up and amazon opening a new store in new york city selling the most popular items we'll take you for a live tour just minutes from now. and a new report by ubs says hong kong has the biggest real estate bubble in the world and is at great risk of collapse san francisco came in ninth. new york ranked 16th melissa? >> court, stocks moving higher across the board let's get more on today's action from sema mody. >> one day and the markets are on track to snap a three day losing streak. the dow up 150 points. nike, walgreens, murk, pfizer on the health care side of things, up 1.2%.

take a look at airlines. a lot of talk about whether this sector can win investors back. there was a positive note from imperial capital that came out this morning on this sector. a number of disappointing results suggest that this earnings season may be challenging for the bigger consumer giants, the multi-nationals. phillip morris cut its 2018 forecast due to merging market currencies mccormick mentioning currency head winds conagra with an inflationary environment. i look at shares of carnival, its earnings beat. it issued weak guidance. unusual for carnival it comes as cruise operators face more competition. so far in 2018 carnival shares have been trailing its peers emerging markets, seven straight days of gains for the pdm. thanks to the weak eer dollar. the argentine peso is

re3w0u7bding the imf boosting the bailout to $57 billion. that reduces the risk of argentina defaulting in 2019 courtney, back to you. >> thank you very much, seema. appreciate it. september historically is not really a good month for stocks but the dow is rallying and it's up 2% this month with two trading days left. what catalysts will keep the rally going and what are the best ways to play the market now. value or is it still growth? joining us ernesto ramos and ben cates, chief investment officer at hpm partners. ben, i'll start with you normally we're a little scared in september but it has proven to be a different september this year do you think that this rally can continue and ifso what is the best way to play it? continue with those growth names or is it time to look at value >> we've gotten through september pretty well, courtney. you're right i think going into the rest of the year i think one of the concerns is what happens around

mid-term elections, but regarding politics and trade in particular, we keep having our clients focus back on the strong economic growth. we thought it was going to peak out in the first quarter, second quarter earnings and revenues exceeded we think that's going to continue on into 2019 with no recession in sight so maybe late '19, early '20 led by capital spending that kind of leads us to continue emphasis on the growth sectors. consumers are in very good shape with jobs, burgeoning wage growth overweight consumer discretionary. technology and the reconfiguration. a lot of the core back bone technology names benefit from increased capital spending and industrials in general we think will do well. we do like financials now because we think this will continue to shift upward and not invert until maybe late next year. >> ernesto, it seems like ben believes what the fed believes, that the economy is strong the consumer is strong

they went ahead and hiked interest rates for the third time this year do you think they're going to hike again in december do you think they should is the market strong enough to withstand it and is that what we need >> i think the fed will hike in december they have indicated that they're willing to go even beyond the neutral rates so i don't see any reason why they would not do what they've said and hike in december but more importantly, i think the economic growth of the united states like my companion stated, the other guest is very strong and therefore you want to be exposed to that cyclical strength of the economy and we favor value stocks because that's where the cyclicals are concentrated to take advantage of that strong growth in the u.s. economy it the growth part of the universe is more resilient to weaker economic growth but the value part of the stock market is more geared or more leveraged

to the economic growth, that's why we favor t. and companies such as financials are very geared to that, for example citigroup which trades at only 11 times and it is benefitting from the rise in interest rates. companies like that should do very well in this environment. >> ben, can we drill down on discretionary? it's sort of a broad swath of companies dominated in terms of the sector by amazon, but it's also got the retail which have done pretty well this year it has media stocks which have not done well and it has home builders which have not done well so where do you find the opportunity? >> one of the last ones you talked about, melissa, it's been real disappointing, right, with what's going on with housing that hasn't recovered to the extent it should but it seems to be more of a supply than a demand issue there seems to be enough pent up demand and so if we get to the point where you don't have a big spike up in interest rates, mortgage rates stay stable, consumers continue to do better

with wage and earnings and income growth, we think that's an area that's the most undervalued that can move. we do think with consumer spending being strong next year the retailers will do well >> ernesto, you in my notes point out that the difference in performance and valuation between growth and value stocks is by some measures almost as great as it has ever been. the last time you saw the performance difference this great for this long was during the tech bubble of 1999. that -- when you say something like that, that makes me worry are you suggesting that that gap is going to narrow because growth is going to come down, quote, collapse or because value is going to catch up >> well, it's going to -- it's going to -- it's going to come back and it's going to be either way or a combination of both, and that's why one of the reasons we believe value will outperform growth. the other big reason, the reason

that will precipitate this is eventually the valuation gap which right now growth is trading at 23 times forward earnings value's trading at only 15 times forward earnings that $8 difference in valuation is also as high as we've seen in the last 15 years. that's also going to be one of the catalysts to bring that gap down it's impossible to say which way it's going to go, but let's say it's a combination of both and that's why we believe at this point in the cycle you want to -- if you have a dollar to put to work, you'd rather put it in value over growth having said that, the stock market in the u.s. still looks attractive with only the valuation of overall being a little on the high side and making us worried, but the earnings growth overall for the market for '19 over '18 looks around 11% which is very strong. so with that kind of earning growth following the 31% that you're going to get '18 over

'17, it justifies a high multiple but there's a bit of a risk with valuations being slightly elevated. >> we thank you. >> thank you a news alert in the bond market right now seven-year notes, rick santelli is tracking it at the cme. what's demand like >> good thing i'm he in a generous note. i gave it a d. d for dog. this didn't go well. probably bad timing with the rate hike and many investors obviously waiting to go into secondary market instead so 31 billion seven year completing 106 billion in supply the yield at the dutch auction 3r 3.034. here's the problem, the high of the day was 3.03 in one issue market it was trading around 3.02 and a half so it tailed badly it doesn't end there

2.45 recovered since march of this year. 2.53 option average. indirects light at 62 but not much and directs, they were light at 12.8 ten auction average of 14. no metric even made it to rough averages of ten auctions therefore, we want to see how the market responds not only to higher rates but of course to supply in the rear-view mirror tyler, back to you. >> rick, thank you very much president trump conducted a long and wide ranging press conference in new york city addressing among many other topics the status of the nafta negotiations with canada. >> did you reject a one-on-one meeting with the canadian prime minister, justin trudeau >> yeah, i did. >> why >> because his tariffs are too high and i told him forget about it frankly, we're thinking about taxing cars coming in from canada that's the mother lode, the big one. we're very unhappy with the negotiations and the negotiating style of canada. we don't like their

representative very much. >> canada fires back saying they never requested a meeting with mr. trump so will the u.s. be able to strike a deal with canada on trade before the self-imposed october 1st deadline just a few days away? let's bring in nicolas burns, former u.s. ambassador to nato and an ambassador to harvard's school of government welcome back as always it seems extraordinarily complicated to me the idea that we would ratify a deal with mexico and then invite canada to accept it and come along and tag along. how would that possibly work >> it doesn't work for the canadians, and i think that's what you're seeing here. the canadians want a true negotiation among the three parties that have been together in nafta for 25 years. they don't want to have something imposed on them. the canadians have a democracy their prime minister, trudeau, can't back down publicly to the president's demands.

the president negotiates this way. we saw it in north korea in 2017 very tough public attitude, private conversations and then move towards a deal. i have to believe that's what we're going to see here because nafta, even if it's called something else, the president doesn't like that name, is too important to the american economy and to the north american economy, highly integrated. >> so the president has obviously personalized the discussion with respect to the canadian negotiator and clearly doesn't -- has had his very public disagreements with mr. trudeau as well. he comes back to the idea of putting tariffs on canadian built cars does that hurt canada or does it hurt the american-based companies, and i consider fiat chrysler for intents and purposes an american based company. does it hurt the american based companies almost as much as it hurts canada >> this is the longest trade relationship border in the world. we have an integrated supply chain especially in automobiles.

any tariff like that is bound to hurt american companies. i think the president would be better advised tactically to renegotiate nafta, call it something else, call it the trump north korean trade agreement, that's fine i think it would be fine for everybody i think the president is right about china, but he's not going to be as effective on his china trade complaints if he's still at war with canada, mexico and europe those countries, i think, would like to get behind him, at least quietly on china, but not if he's raising the stakes in this case with canada. >> the backdrop to all of this, ambassador, is china seems to be ready for the long haul, the long fight it has some of its prominent citizens like jack ma saying this could last for decades. how would this play out in your view if this trade war, the thinking behind trade wars is that they're not easily resolvable and that they could, in fact, be prolonged for decades? >> you know, it's interesting. i sense from governments around the world a lot of sympathy for

what the united states is doing with china governments that don't have the weight to go after the chinese i think are silently encouraged but the president has been very insistent with the chinese on their violations under the world trade guidelines it's all about tactics we need leverage on our side i think there are a lot of democratic countries around the world that would support us so that argues rationally, maybe it's after the mid-terms for the president putting aside the trade disputes with the europeans, with the canadians, mexicans, getting our house in order in the democratic world and then going after and arguing forcefully on the big issues that separate china from most of the other industrial countries. >> can i ask you about the president's sticking point when it comes to dairy and canada regards to nafta calling it out pretty strongly in that press conference yesterday is there room to negotiate there in your view since both sides seem to be holding that as a real stronghold?

>> it's become the symbol. it's just one issue. i think we have to remind ourselves -- i want the united states to succeed here as an american we have a surplus, the united states, in goods and services. it's not a big surplus, but we have it. we're not in the hole. if we take these negotiations out of the press conferences behind closed doors, i think the negotiators would get a lot more done. >> thank you as always we appreciate your perspective as always. >> thank you. supreme court nominee brett kavanaugh in the hot seat at the senate hearings this afternoon up next, the latest from washington and a major change from the dea, drug enforcement agency sending marijuana stocks higher. what it could mean for those companies and fotrtiasr eang ph went drugs derived from cannabis that's all coming up on power lun. -- "power lunch." clubs. now you can, with shipsticks.com! no more lugging your clubs through the airport or

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very, very riveting morning from d.c. ylan >> tyler, we are heading into the time stretch they're waiting for her thinking and timing of bringing this to lawmakers and her use of a polygraph. >> were you audio and video recorded when you were taking that test? >> okay. so i remember being hooked up to a machine like being placed on to my body and being asked a lot of questions and crying a lot. that's my primary memory of that test. >> reporter: so far ford has delivered a very emotional testimony. her voice has broken as she recounted the night that she

says that brett kavanaugh attacked her her story has been very raw and very personal. >> what is the strongest memory you have, strongest memory of the incident, something that you cannot forget? take whatever time you need. >> indelible in the hippo campus is the laughter, the uproarious laughter between the two and their having fun at my expense >> reporter: we are expecting ford to testify for another 45 to 60 minutes. brett kavanaugh will get his turn to defend himself later this afternoon of course, he has denied not only ford's accusation but also three other allegations of sexual assault or misconduct in his prepared remarks he said such grow tetesque will dissuade competent and good people from

all political persuasions from serving our country. he has acknowledged he did drink beers in high school and sometimes he drank too many but he's calling these allegations la-minute smears back over to you. >> ylan, one question. i believe i have not seen any republican senator ask a question of the witness. i've seen democrat senators ask questions but the republican, gop side seems to have deferred all of its questioning so far to the prosecutor who was brought in from maricopa county in arizona. am i right >> that's right. the republican senators wanted to avoid the optics of 11 men because the republicans on the committee are men grilling a potential victim of a sex crime. so they thought the optics would look bad so they brought in this outside prosecutor, however, it's been very difficult for her to sort of get a rhythm in her questioning because of the way the hearing is set up. five minutes for republicans, then five minutes for democrats.

so her questioning line has frequently been interrupted and now some people are wondering if that was a mistake to make that call. >> ylan mui following the hearings in washington today. busy day for jeff bezos. first amazon opening a new retail store but, wait, there's still more we're going to take you inside th sreatto first how's that for a tease stay with us

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well come back to "power lunch. amazon opened a new store in new york city at 10:00 a.m we have a live store inside. let's take a tour of this four star store our intrepid cameraman is going to walk while i talk this is the only store that really truly sells merchandise beyond books and amazon devices. both of those cat goor regories here, too. these are the products most added to wish lists by shoppers. just to the left of this area are gift ideas by category there's going to be about 1800 products inside the store at all times, either rated four stars or higher, hence the name of the store. they're going to be top sellers, they're trending or they're ne items. beyond the books and electronics and gifts, there are home goods including amazon's own basics brand. that's what this table is right here displayed for the first time in a physical space

these are amazon manufactured and branded goods. while it's very much a physical store as you can see, the price tags are digital and the prices actually will change the ratings will change, too, on the tags just as they do online. now the pricing will show that some products are actually cheaper if you're a prime member and jane says that that's part of attracting new members. part of the idea for this whole concept. now i asked amazon's vice president of physical retail, cameron james, why the company needs a physical store >> one of the things we've heard from customers is that they want to be able to test drive devices before they buy them you can come in here and with our echo products you can talk to an echo show, see how it can automatically open and close a door lock, turn on a light customers can come in here and experience the products in real life. >> imagine that, experiencing products in real life in physical form. most retailers do believe shoppers do want both. this amazon 4 star store is much

more physical than a digital experience i will say. it's not a humanless checkout like the 4 amazon go stores. if you want delivery, you have to order it the old-fashioned line you can see that's the checkout right there. andy, did a great job right there. thank you so much for following along. appreciate it. check out the yield on the benchmark ten-year yield treasury mortgage rates which track the ten year are now heading to 5% so what impact is that having on home sales we will have the latest numbers when perun ctiesow lchonnu alerts -- wouldn't you like one from the market

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hello, everyone. i'm sue herera here's your cnbc news update for this hour. the white house says president trump spoke with the deputy attorney general rod rosenstein and they plan to talk next week about rosenstein's future. they postponed their meeting today so as not to interfere with the kavanaugh hearing secretary of state mike pompeo says the world stands at the dawn of a new day in relations with north korea in a speech to the u.n. security

council he says president trump's diplomatic break through with kim jong-un has led to a point where resolution could be soon reached >> time and time again over the past quarter century the united nations has made it clear, the world cannot accept a nuclear arms armed north korea that's not just the united states position, that is the world's position past diplomatic attempts to halt north korea's nuclear ballistic attempts were unsuccessful we're at the dawn of a new day. a jeweler in dubai is selling those beauties they are billed as the world's most expensive pair of shoes they are diamond studded high heels that carry a price tag of $17 million. the pumps are made of golden leather decorated with more than 100 carats of flawless diamonds. don't wear them in the rain. that's the news update at this hour.

>> those are beautiful shoes >> i know they are >> i don't know. in new york city there are those grates and the heels get stuck diamonds might fall off. >> you lose a diamond. >> too much trouble for me. >> i'll take on that trouble any day. i'll try them on give them to me. >> i hope my wife was watching. >> i hope she wasn't. >> thank you very much, sue. appreciate it. let's get a quick check on the markets, the dow jones industrial's higher by 137 points that's good for half a percent dom, what do you have for us that's moving right now? >> all right, court, we're watching showers of callaway golf hit their highest level in 17 years analysts at jpmorgan have under the price target signing other reasons the tiger woods effect even though he's sponsored and uses not callaway golf gear. growth in top golf entertainment will help that macro picture publicly traded acushnet, in a

programming note, i've got to do it be sure to catch coverage of the u.s. versus europe the ryder cup. live tournament coverage tomorrow at 2:00 a.m. eastern time and through the rest of the weekend, guys. back over to you. >> you'll be up watching i know. >> i will be watching. >> a little early. >> i will be, guys you've got it. the fed raising rates once again. mortgage rates keep climbing higher and today we have the latest read on home sales. diana olick joins us from washington hi, diana. >> hi, melissa the signed contracts to buy existing homes fell 1.8% down 2.3% year over year that was the fourth monthly decline in the last five months and the slowest sales pace since january. sales have been hampered all year by a severe shortage of listings supplies did rise slightly in

august but not so much at the entry level where most of the demand is. a recent survey from the realtors showed a record number of sellers saying they believe now is a good time to sell we'll see if that translates into more listings this fall a huge sales decline in the west down 5.9% in the month and 11.3% compared with august of 2017 prices are highest in the west and are still higher than a year ago but the gains are shrinking. prices usually lag sales pending home sales were down everywhere else except slightly up year over year in the south if you missed all of these numbers they are up now on cnbc.com back to you. >> di, thank you very much the fed's rate hike plan a major factor impacting the housing economy. the decision not sitting terribly well with the president. >> unfortunately they just raised interest rates a little bit because we are doing so well i'm not happy about that because i know it is going to be a question i am not happy about that. i'd rather pay down debtor do other things, create more jobs

so worried about the fact that they seem to like raising interest rates we can do other things with the money and -- but they raised them and they're raising them because we're doing so well. >> there you have it let's take a closer look at rises rates and the effect on the economy with steven stanley. meghan mcgrath, senior home building analyst steven, let me begin with you. president's probably right, they're raising interest rates because the economy is performing well and doesn't need to have the, quote, accommodative monetary stance that has been the language for a long time. we had quite a debate yesterday about what the meaning of the removal of those words, accommodative -- actually meant. one of our guests said that the, quote, danger here is that people read that as suggesting that the fed is close to its

target, which is a, quote, neutral rate do you think that the fed is close to its neutral rate? and do you agree that there isn't a danger in assuming that? >> well, i was a little worried about that myself, but i think that powell did a good job in the press conference of being very clear about what they were doing. the fed forecast for policy, they tell us exactly where they think neutral is and right now the median is 3% so we're still a fair way away from that and what powell said, which i thought was kind of interesting, it wouldn't have been my logic, but his point was let's take the language out now when everyone understands that we're well shy of neutral rather than waiting until we're close, taking it out. >> so if we get to that neutral point of 3% or thereabouts or go above it as i believe some of the forecasts are, get up to 3.4%, well, if you take the fed funds rate at 3.4% and you look at the ten year, add another

point to that, okay? so that's 4.4, that sends your mortgage rates up close to 6, it sends home equity lines up as well, it sends the prime up, it sends credit card rates up it means that corporations that would like to refinance debt are going to have to do so at higher interest rates carving into their profit margins. >> yeah, absolutely. >> i got it right? >> that's what we're supposed to be doing here. >> dang. >> the economy is very strong. if the fed doesn't normalize rates, maybe take them a little above normal, then the economy is in danger of overheating. >> is that the biggest risk as we try to get to neutral and normalize when we came from a place that was very abnormal to be fair? >> the modern economy is not as inflation prone as years ago i don't think the big risk would be the 1970s style inflation that we saw. rather, as powell himself has noted in the last two cycles, the cycle has ended with some

sort of financial market problem and financial conditions today are as easy as they've been in 25 years so even though the fed's been tightening, financial conditions are still very easy which is why i think the fed is continuing to lean into that. >> if the economy is not as inflation prone, does it mean it's not as inflation proof in that perhaps consumers, corporations are not as well-equipped to handle what would be a relative spike in inflation and not the traditional spikes in inflation that we saw long ago >> well, because people expect inflation to stay low there's an inertia that keeps it low, but if the genie ever does escape the bottle, you have problems. i mean, you go back to that episode in the '60s and '70s inflation was very low the fed was very low it's going to wind higher so that's a risk but i don't think that's a near term i think it would take a long period of two easy policies to get there. >> all right i want to bring meghan into the conversation meghan, when we take a look at

the economy, it's really strong. the consumer is really strong. interest rates are relatively low. why are the home building stocks down 19% this year >> because of interest rates it's not about what's happening right now, it's what people fear are going to happen next year, six months from now. historically speaking it's a very strong correlation between higher rates and it's very rare that mortgage rates go up, let's say hier than 55, 40 basis points year over year. new home sales don't decelerate. that is the number one correlation between home builder valuations and new home sales growth so if you see a deceleration in new home sales we tend to see a decelerations in valuations. so it's all about the fear of what's going to happen next year we did see a slowdown this summer in home sales and starts. >> and prices. the weight of growth in prices. >> yes, the weight of growth in prices and we did just see in the existing home sales that inventory go up as diana spoke about. we're getting near an

equilibrium point in the inventory which means that prices are more likely to stabilize going forward. we've had inflation in terms of input costs. so there's a lot coming against the home builders here. >> speaking of input costs, diana olick did a story earlier this week about the price of construction materials going up when the new tariffs come into play especially at 25% beginning in january what does that mean for either new home sales, renovations, the housing market in general? >> we cover billing products companies as well. every single company we cover is putting price increases into the market they seem to be sticking who's taking the price increases? the builder or consumer? it means prices are going higher and the trick is going to be can home builders push that through to the consumer. it is harder and harder. >> for the home builders and for their shares, is this in your view a prolonged troughing period >> we would be pretty cautious

giving it now given that mortgage rates may continue to go up a little bit there are as there are big downturns, there are individual opportunities. stoo stocks that may be under valued. we like lennar. >> why lennar? >> so recently they talked about what they drauld called dramati changes to their balance sheet they didn't give a lot of detail if we look at another company that's doing something similar, tim horton, so a big balance change could we think narrow that gap in lennar's favor you have to look at things like that, individual company catalysts. >> on top of those you have -- in total you only have four buys in your coverage universe. >> we have a few more. we have some recent new buys in new stocks but in toll -- in home builders we like toll, lennar in building products we like

stanley, black and deck car, beacon roofing we think all of those have some interesting individual catalysts. >> steven stanley, black & decker, good for having you with us. gwha prma soaring on high hopes. we'll talk to the company's ceo coming up next on pow j"power ." geico has over 75 years of great savings and service. interesting individual u todd. it's not just easy.

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shares of gw farm pharma mo higher first let's get more on today's news from our own meg tirrell. >> that's right. the drug enforcement administration has rescheduled the first drug derived from the cannabis plant it doesn't apply to all marijuana. it's a specific decision about the recent medicine epidialex. marijuana is a schedule one substance. that's the strictest category. the drugs have no currently

acceptable use heroin and lsd are also in that category epidialex doesn't contain all of that, just the cbd it's not associated with the highs of thc this puts epidialex in segment 5. >> a lot of drug companies presumably are watching this closely for what this could mean for their potential drugs. >> yeah, it was a question would this be a broader application for all cbd, could it affect marijuana. this is pretty narrow. >> with us is justin glover. great to see you again >> thank you for having me back on the show. you know, a lot of analysts are saying this is the best possible outcome for you and they're anticipating a u.s. launch of the drug in six weeks. it seems like you've geared up in terms of hiring all the people you need, regional sales managers, et cetera. the account managers to do this. what's your anticipation as to

when the drug will launch? >> with the fda having approved the medication at the end of june and us anticipating this 90 daytime frame from the dea, we've been using this intervening period to build and scale our sales and commercial organization we are ready to go sales force is already deployed and can now look forward to actively promoting this medication. >> what's your anticipation in terms of this? you must have an anticipation. analysts out there, the consensus $115 million in revenues for 2019. >> right well, i won't give you a sales forecast on this show, but what i will say is, you know, we are well aware that there's an acute need for this need childhood epilepsy patients have been waiting and anticipating the launch of this we're honored to be bringing this much-needed treatment

option to patients at this time. >> your stock is moving quite a bit higher on this news. the stock of another company is moving higher, that of tilray. a company working in medical cannabis that stock has been on a tear recently as they got dea approval to import marijuana into the united states do you think you should be lumped together. you've made it clear that you've gone the fda route there seems to be some overlap about your stocks? >> well, i think in tw we do have a unique approach to cannabanoid research we believe that therapeutics should be appropriately studied and manufactured to fda standards and available on prescription that is what gw does that's the only thing gw does. we see our business distinct from tilray and other companies

that are seeking to be active in the broader cannabis space that's a different business. it's not one that we're involved with, but what i would say is this is yet another validation that if you apply the rigors of science and law to khancannabis research, that the regulatory authorities, namely the fda and the dea, will act and respond to the needs of patients and make these kinds of medications available. this is a hugely important step for not just this medication but for the prospects of cannabanoid medicines that go through the fda process. >> you've told jim cramer that pharma companies should be investing in pot companies as a hedge. do you see them as competition do you think other pharmaceutical companies should be looking into this >> i wouldn't dare to suggest what other pharmaceutical companies would do i would think where there are new areas of science which can

provide breakthroughs in treatment, we as a pharmaceutical company and any pharmaceutical company would be wise to look at that we believe we're unique in this space and i'm proud to be leading the effort for remain that way. >> in terms of other uses for cannabinoid-based drugs on track for a data readout, how do you view that drug now that epidiolex used for this epilepsy has been scheduled in terms of how that is approved and how fast you can get that on to the market. >> well, with epidiolex, what that means is for future uses of epidiolex, they don't need to be

reschedule sod the scheduling today applies to epidiolex and any indications approved it doesn't apply to fuch cature cannabinoid medicines because subject to fda approval the dea would need to assess each of those medications on their own merit but today sets an excellent precedent for the process and the way in which dea will go about that assessment. >> justin, we'll have to leave it there thanks so much great to see you justin gover new reports about what facebook is doing with your data, what they're sharing, whom they're sharing it with plus, markets climbing that proverbial wall of worry today, but earnings season is just around the corner, about 10 days away we'll look at the roadblocks ahead coming up on "power lunch.

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new reports about what facebook is doing with your data, maybe including your phone number, julia boorstin in l.a. with the details. >> when people enter their phone number for two factor authenticati authentication, they don't realize that facebook can cross reference info not just with what information users put into their profile but also information people provide for security purposes and data collected from friends' contact books or shadow contact information as it's called facebook responding, quote, we use the information people provide to a offer a better more personalized experience on facebook, including ads, we are clear about how we use the information we collect, including the contact information that people upload or add to their own accounts you can manage and delete the contact information you've uploaded at any time now, facebook encourages two

factor authentication to secure accounts and providing a phone number is the easiest way to set that up but users can use a separate app such as google authentication to generate log-in codes with facebook under fire for data privacy after the cambridge analytica scandal, it highlights how the information is used. happy birthday to google it's been a public company for 14 years, risen more than 2000% in that time what lies ahead for the company? plus, brett kavanaugh's accuser appearing before lawmakers on capitol hill about her sexual assault allegations. the supreme court nominee will testify once she's done. a very big sonecd hour of "power lunch" is straight ahead e on th, nothing is predictable. that's why you have to be ready for anything. the same goes for your data. an apc micro data center solution orchestrated

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. good afternoon, everybody. i'm tyler meathisen. google celebrating its 20th birthday it can drink next year around lot of scrutiny from congress, employees and users. so what is ahead for company not over the next year or two but the next two decades i pl plus, dairy, wheat, nuts,

ice cream. what is fuelling the alarming surge of food allergies? and slam dunk, the basketball legend kareem abdul-jabbar is in the house. his take on the state of the game, sports gambling and the collection of wonderful memorabilia he's putting up for auction for a charity for kids "power lunch" starts right now. welcome. i'm courtney reagan. stocks moving high we are the s&p up first time in five days communications, utilities, technolo technology materials the only sector that's lower. a good name for fang names facebook and amazon leading the games. amazon up for its further straight day bed bath & beyond getting crushed. that company posting a surprise fall in same store sales and

airlines falling on a bullish note from imperial capital. >> the sun seems to be shining on wall street but investors are keeping a close eye on what could be on the horizon. >> as we talk about the looming clouds on the horizon, there's no doubt the market is on record highs. we put a few more bricks to tell you what traders are looking at in terms of whether the market will continue the rally. we have underperforming banks, no surprise there. financials have not been a leadership part of this whole rally so we'll see if that continues to be a theme we see develop as we head towards the end of the year. also a slowdown in housing you talked about it last hour but this idea that home construction and materials related stocks are underperforming the market and the elephant in the room, trade

and tariffs, the uncertainty whether or not corporate ceos will offer that guidance going forward. to that point, the folks at cnbc.com spoke to fact set to look at whether or not corporations are offering more guidance it turns out that corporations and their ceos are not offering as much guidance as they have been about 98 s&p 500 companies have issued forward guidance. that's below the near to medium term average it's the lowest level in three and a half years so as that uncertainty takes hold, even ceos are not offering to put their forecast out there we'll see if that trend continues a few weeks away from earnings season. >> thanks, dom, wah, wah kevin man is president and ceo of hinnian and walsh asset management kevin, i'll start with you

dome ran through a bunch of risks. are we going higher from here. there's risks and uncertainty bus i think they create opportuniti opportunities. financials should perform well as rates continue to rise and as the economy continues to improve. the trade and tariff situation has been holding back stock prices and if you get any form of resolution with respect to those u.s. and china trade negotiations, you can see a emerging market stocks lifted, develop market stocks lifted including the u.s. and more importantly europe. >> what do you any are these risks worthwhile to consider or are things so strong in the economy that we can overcome it. >> sure, look. there are always risks in the global economy but some of it is priced into the market despite the markets being at an all time high. if you look, earnings per share for the s&p 500 is going to be up over 20% this year and the market is up half that so there is a little bit of a

risk premium built into the market and to that earlier segment about the wall of worry, look, at fed rated kaufman funds we spend a lot of time talking to companies and i was with the manager of a global industrial company and they said it's the strongest macro environment they've ever seen. the ceo of boeing is saying he's got visibility for ten years i was meeting with the management of trex composite decking. they have a secular them, a move away from wood decks to composite decks and they're killing it. >> isn't that why the market is at record highs? >> fair point, melissa if the market was up more than earnings if you look at these companies, they're generating 25% to 50% earnings growth so there's solid

upsides. >> >> we talked at the opening of the show about amazon striking higher and higher is this a smart investment or valuations too rich? >> i think technology will be in an area of leadership but small cap technologies, specifically those technologies focused on revolution their technologies. robotics, cyber security and e-commerce related technologies and we can't loose past bio technology opportunities so technology will stay a leadership role but it won't just be the fang teches. >> do you have specific names? >> we do like amazon but some of the areas that you can look to, irobot, we spoke about that, there's a few areas in the cyber security space we like. >> i noticed all three of the

stock picks have a nuanced connection to them why are you attracted to them? >> something that isn't getting enough press is that china has become very real in their effort to curb and control pollution so the stoxz we're looking at have form lake growth over the next few years to generate higher earnings and cash flow for example this company graph tech, the ticker is eaf, china is making a huge push to more environmentally friendly steel making, going from blast furnaces to electric arc furnaces this has created graph tech's ability to earn almost 70% profit margin which is something i have not seen often. we think they can generate their market cap in free cash flow over the next four or five years so this company is excite nothing matter what the federal reserve is doing and no matter what gdp is. this is form lake locked in

growth. >> thank you, gentlemen. hopeful folks on the set. >> here's what's coming up on "power lunch." not your imagination allergies, especially small children, are getting more common around dangerous. we'll tell you why and what you can do about it straight ahead and google turns 20. we'll look at the rise of the search giant and the risk it faces in its future. and small business owners weighing in on what they need to keep optimism high and business 'lta tg along. wel lko one of them ahead on "power lunch. clients, etfs n 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.

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dr. christine blasey ford testifying before the senate judiciary committee committee right know ylan mui is live with the latest. >> the testimony is close to wrapping up. it has been a long and sometimes gruelling morning and afternoon for dr. ford it began at 10:00 a.m. and she even seemed ready to burst into tears at some point. particularly during a moment when senator cory booker, a democrat, talked about the impact her story has had on men and women across the country

senator orrin hatch said she was a good witness senator chuck grassley, the chairman of the committee, said he didn't want to make hasty comments about the proceedings so far, he wanted to sleep on it before making any judgments and senator lindsey graham said he remained skeptical of her story but that, quote, something happened to that woman now in this final hour or so of questioning democrats have tried to focus on the fact that this is not a criminal proceeding but a job interview for supreme court nominee. >> i'll ask you plainly dr. ford, is there a political motivation for you coming forward with your account of the assault by brett kavanaugh. >> no. and i'd like that reiterate that, again, i was trying to get the information to you while there was still a list of other what looked like equally qualified candidates.

>> brett kavanaugh will be providing his testimony once ford is done guys the chairman of the committee said he will get as much time as needed to make his statement and to answer questions from the senators. back to you. >> have republicans -- we asked the last hour. have republicans is have specken but have they done any questioning so far or is it on the shoulders of the prosecutor, the sex crimes prosecutor from arizona? >> they have not they have turned over all of their questioning to the outside prosecutor the original intention had been to avoid the strange optic of 11 men grilling her but now you have perhaps an equally strange optic of 11 senators sitting silently and watching the proceedings. >> how close are we to wrapping it up. >> we still need to hear from senator kennedy and perhaps one

more as well this should be wrapped up in a few more minutes. >> and how much of a break will there be before her testimony and that of judge kavanaugh? >> unclear but we do know judge kavanaugh has arrived on capitol hill and is waiting to tell his side of the story. >> any indication the president has been listening it seemed to allude to the fact that he was going to be listening closely and hasn't decided anything. >> we know that president trump has delayed a critical important meeting with rod rosenstein until later in deference to the hearing. we also know donald trump jr. has tweeted out something from the proceedings questioning some of dr. ford's fears of flying and the gaffes that the prosecutor was trying to get to her n her story and how she bought ford to lawmakers. >> ylan mui as the witness is still in the chair there here to

help us understand today's proceedings and what impact it may have on judge calkavanaugh' chances here is carrie severino. she clerked for justice clarence thomas i wonder what your impressions are of dr. ford's testimony. i know you were quoted on msnbc saying kavanaugh is the subject of a democratic smear campaign do you still feel that way in light of what you've seen and heard today? >> yes dr. ford is giving compelling testimony. the story she describes is awful but the evidence seems clearer and clearer that judge kavanaugh didn't have anything to do it. we continue to have zero evidence of her story. everyone she claims was there

says brett kavanaugh was not at that party her friend leyland says i didn't even know kavanaugh and we're seeing fas lating and shifting testimony as well suggesting her memory over this 36 years may not be as good as people think so i think at the end of the day it's very clear to me that the ed points to judge kavanaugh in his clear denial that he has anything to do with it. >> it looks hick her testimony is wrapping up she's getting out of the seat right now. when you say the weight of the evidence leans towards judge kavanaugh, how do you account for the fact that her recollections of the names of the two young teenagers who were allegedly in the room is very, very clear and why hasn't and should the judiciary committee

subpoena the other man who was supposedly in the room, mark judge. >> her memory has been spotty. she says she's quite certain of that but there's a lot of things including who else was there that she's given different stories to different outlets and on different occasions, including her testimony today. there's thing she is still doesn't know, where it was, how she got there and back, where she was that day, et cetera. i think the judiciary committee has also done an extensive amount of interviews themselves. they tried to reach out and interview the people she named they tried to interview her and one other interesting thing that comes out, she's been poorly served by both the democrats in the senate judiciary committee and her lawyers. they did establish in her testimony the democrats were the only ones who had her letter and therefore were the ones who leaked it against her wishes to the press. that's a real travesty and on

several occasions it appeared her lawyers had not consulted with her so she said she would have liked to have done the testimony in california and was disappointed it couldn't happen that way but it was widely reported that senator grassley offered to send people anywhere and her lawyers rejected that out of hand. she said today i would have been happy to go to talk to the judiciary committee staffers her lawyers rejected that as well that's concerning that there seems to be a disconnect between her own interest and what her lawyers have been doing in this process. >> just to play devil's advocate what if you're not right what if, in fact, judge kavanaugh was there and did play a part in some of this >> well, i think, again, that is not what the evidence shows at all. obviously what she alleged here is very serious and if it were true that judge kavanaugh were involved should be taken seriously. but the evidence doesn't point to that. we have one decades-old allegation that despite

recurrent attempts to corroborate it we have not been able to corroborate it, none of the eyewitnesses she claims think it happened as she describes. they say brett kavanaugh wasn't there. that kind of uncorroborated and in many cases discredited account we cannot smear a man's reputation who is one of the most respected and accomplished jurists in this country on such a thin record. >> carrie severino, we thank you for your time and appreciate your insight. food allergies are on the rise and that's a big problem for parents and kids we'll bring you the numbers and one what drug companies are doing to help you fight back stay with "power lunch."

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♪ boo yeah. if you've got the drive, you can do a lot with no fees on personal loans. boo yeah. you hear about nut-free schools and think "they didn't have this when i was a kid," you're right me me me meg tirrell is joining us with more. >> it's not just in our heads that they are on the rise and drug companies are stepping in to work on the problem >> reporter: for 13-year-old will brodie, a bite of the wrong

food could be fatal. >> my peanut allergy is the worse allergy i have it's anaphylactic which means if i eat a peanut i could die and i have to take my epipen and go to the hospital. >> reporter: will is one of an increasing number of kids with dangerous allergies. according to cdc, food allergy rose 70% from 1997 to 2016 in kids younger than 18 allergic reactions are causing more hospital visits, too, an increase of more than four-fold in a decade. peanuts are the worst culprit. >> peanut allergies specifically affects approximately 1.5% to 4.5% of children >> reporter: drug companies are responding and two new treatments for peanut allergy may reach the market from bio tech companies aimmune and dvb technologies, both introduce small amounts of peanut protein to patients over time with the goal of building up tolerance will brody is in a clinical trial called ar-101. >> at first we almost didn't do it because it was like eating

the thing that i was avoiding at all costs for my whole life. >> reporter: everyday he mixes a powder made of peanut protein into food. over time the dose increases. >> they start you on a low dose and that was one one hundredth of a peanut. by the end, this past august, when they did their last food challenge he was able to complete the entire challenge which was over 4,000 milligrams, something like 13 peanuts. >> reporter: it doesn't come without side effects like upset stomach and it's not a cure. >> you have to be careful but just that peace of mind of knowing that, like, if i accidentally ate something that i shouldn't have, nothing would happen. >> food allergies are so prevalent and peanut allergies in particular so severe analysts say this could be big business it's estimated that if aimmune gets approved they could draw $1.3 billion in 2025. >> we want to get more on what is triggering the spike in food

allergies. let's bring in a pediatric doctor in manhattan. why is it that every other kid has an allergy and when i was growing up we never had a problem. >> it's very common and there are a lot of factors that may be going into it. environmentally we're becoming too industrialized and too clean of a society all the processed foods, even just living in a city doesn't expose us to good bacteria that prevent allergies so not only are they going up, they're getting more severe. so we're too clean >> we're too clean and eating processed feed, it's important, our gut is filled with micro biome so we're killing off that good bacteria that would protect us from developing these allergies. >> glad to hear that according to that thinking, do these allergies develop when your baby is young your baby is living this very clean industrialized life? is not exposed to the bacteria

so you could preempt that if you started feeding your baby different things from an earlier stage? >> that's very true. in the first four years of life the immune system is growing and developing and some studies say as early as in utero when mom is pregnant could make an impact. >> so let me ask you this. if you looked at 100,000 kids in the united states and you looked at 100, 000 kids in a part of the world where the kids are in dirt floor homes and the sanitation is not the same, do they have less allergies than we do >> yes, absolutely and current recommendations are to use less of the sanitary wipe and disinfectant nrc reason. not only an increase in allergies and asthma but other inflammatory diseases. >> what would you recommend for a woman that is pregnant would you say eat peanuts? >> i'm eating a lot of peanuts >> i hope you'll say yes. >> there's no need to restrict yourself there is an old school of thought you should avoid certain foods in pregnancy now it's encouraged.

there are certain foods you have to avoid for other health reasons but otherwise you shouldn't restrict any of the major allergens? in israel they have these bomba snacks and people say that's why israel has a lower rate of peanut allergies i want to sku ask you about flu also the cdc out with new numbers saying 80,000 deaths last flu season 900,000 optimizations, these are record numbers and kids passed away at a higher number than we've seen and we saw vaccination rates among kids go down what can you tell us what about you're expecting >> since last year so so severe we're expecting this year to be as severe, hopefully not worse and we strongly still encourage everybody to get your flu shot even if people don't get it because it may not be as effective. but it's the only thing that can protect you. especially a vulnerable population like children. >> i got mine. >> i got mine, too. >> flu shot?

i got mine >> doctor, thank you. >> pass the peanuts. >> and junk food. >> thank you very much google busting out the balloons for its 20th birthday we'll tell you about the tech giant's incredible success and its challenges in the future "power lunch" in two don't forget that the past can speak to the future. ♪ ♪ i'm going to be your substitute teacher. don't assume the substitute teacher has nothing to offer...

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. markets moving higher. the dow jones industrial average higher by 119 points, most s&p 500 sectors in the green utilities, communication services and tech leading the way. materials still the only laggard. apple leading the dow and nasdaq 100. stock rallying after j.p. morgan initiated the stock with an outperform rating. now over to sue herera with a news update. here's what's happening at this hour. iran's president says the u.s. is facing, quote, historic political isolation after president trump's appearances this week at the united nations. hassan rouhani telling reporters that trump achieved the opposite of what he hoped for

anti-india protests and clashes erupting in kashmir after indian troops killed a young man during a raid early today. the man worked as a shepherd and was attending to his sheep when troops fired at him. police have yet to make a statement on the killing and russians lining up days in advance to be among the first to buy the latest apple iphone which is go on sale tomorrow some securing a spot in hopes of selling those places in line for thousands of dollars back here at home, a first for female firefighters in new york city. it's the fdny's first ever all female staffed engine company. the unit was part of the departments resources assigned to the u.n. general assembly congratulations to them. that's the news update this hour back to you. >> thanks, sue, appreciate it. congratulations, indeed. the oil market closing for day. let's get over to jackie deangelis at the cnbc commodity desk. >> oil prices green again today.

brent over 81. wti around 72. we haven't seen these highs since july that's because july is the peak of the season. the support we're seeing now, continued iran sanctions uncertainty, notice that the spread between brent and wti widened. just about $10 it shows the premium being paid for brent crude. that's in tighter supply at the moment stock market strength today positive for oil demand as well, guys. >> jackie, thank you jackie deangelis google turning 20 and celebrating with a signature doodle the tech theme behemoth went public two years later in 2004 since then the stock soared more than 2000% google has more than one billion users but these days google finds itself under pressure from all sides. regulators, politicians and their enemployees. what can investors expect? let's bring in the senior research analyst at raymond james. good to have you with us.

>> some might look at the first 20 years of google now it's going to be harder in terms of regulation. is that the correct assessment and what does that mean in terms of how you look at the next 20 years in revenue growth and profit growth. >> the first to 20-years is about the core search business as well as youtube i think going forward clearly the search is still the core asset of google along with youtube but it's about the new initiatives, you have hardware, you have cloud as well as kind of other bet which is includes self-driving cars and the software they make so that will be more the feature going forward. clearly i think search will get more competitive not from core search players which they have a pretty healthy market share but from other players like amazon for commerce and in the travel space, more vertical search and so that will be a question for google, visual search as well. so that will be more of the challenge going forward is on that side. >> give us an idea of what it

could cost to have increased privacy regulations. what was interesting about the testimony that was given by tech giants in capitol hill earlier this week was that amazon submitted testimony and said that enforcing gdp is causing it to divert significant resources, both human resources and monetary resources to other things and away from innovation. do we have a handle on how much google spent and what that could mean if a gdpr like privacy regulation were enforced here? i think we've lost aaron we have a slight microphone problem with aaron we'll try to work that out in the meantime, we look at some of these shares meantime, much more "power lunch" straight ahead. obvious.

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pro-basketball legend kareem abdul-jabbar about to make sports collectors happy. he's teaming up with golden auctions he'll be selling his most famous pieces of memorabilia -- rings, jerseys, awards and more with

some items valued at around $500,000 joining us to talk about the auction and more kareem abbuell jabb -- kareem abdul-jabbar. we're delighted to have you here in my reading beforehand, there are a lot of athletes who hit financial hard times and they sell their memorabilia to recoup some of their investment losses. not that you haven't had investment losses, but this is coming from a different point of view for you. >> it is i have a foundation that we work with kids in the l.a. unified school district and we send them camp so they can learn about stem subjects -- science, technology, engineering and math so a good portion of the proceeds of this auction will go to fund my foundation and allow the kids to keep learning. >> and you said something that was poignant to me and that is that these are things, and they give me pleasure but what gives me more pleasure is seeing the

smile on a kids' face whose life i have changed as a result of one of the donations. >> absolutely. i'm not in the museum business this stuff would take up at least half of the room in my house. so by selling it, i'm doing myself a favor and really -- >> where is the auction? how do you play? if i want to bid on some of the items how do i play if i want to play >> on the table you have at least a couple million dollars with these new items the auction, you can preview it now at goldenauctions.com. it runs october 1 through october 22. >> online auction? >> online auction. you can register and get a catalog mailed to you but some of the key items, it's goldin. that's the actual basketball kareem used to break wilt chamberlain's scoring record

it would not shock me if that basketball went for $500,000 or more this is a lakers jersey from the '86/'87 season our staffer photo matched it to several games during the season which meant it literally -- besides these items are coming from kareem, we looked at videos. >> this is literally game worn you hear a lot about game worn stuff that somebody may have touched. >> this is pretty much half the season we have his 1969 ucla championship ring. we have his 1971 milwaukee bucks championship ring. we have his 1982 lakers championship the ring cans go anywhere between 250 to 500,000 and we have his iconic goggles. why did you wear the goggles

>> i kept getting scratched in my eye and i got a scratched cornea and that's very dangerous. and after i started wae eed weag them, every 20 or 30 games i'd hear somebody's nails click on the lens >> that's awesome. >> what's your favorite? >> it's too hard to tell because you have my college career and then my career with the bucks and my career with the lakers. >> let me ask you. there's a guy moving to l.a. you've heard of him. just as you did. >> he's got a beard, i think. >> he's got a beard. what advice do you have for lebron about moving to the lakers and los angeles >> i don't think lebron is going to have any problems he's interested in being involved in the film business. he's already done a number of things that he's produced that have been commendable so i think he's going to fit right in i just tell him bring some

sunglasses and get a good car that's fuel efficient. >> kareem, what do you think of the colin kaepernick ads that nike put out that's gotten a lot of attention. >> i would like to give nike all the kudos i possibly can for stepping up to the plate and supporting colin colin is not unpatriotic colin is complaining about the fact that black americans are treated differently in our criminal justice system and he peacefully brought in to the attention of people who went to football games and he's taken too much criticism for it. i have a lot of respect for colin. he sacrificed a lot to make a point and i'm thankful and proud of nike for doing what they did because corporate america, they have a voice and i'm glad to see this corporation using it the way they did. >> you know, kareem, you and i grew up -- i'm old enough to count myself as a contemporary i will never forget the game

between lauch and houston that you and el vvin plays played. >> a couple games. >> i'll never forget the first one. we came of age at a time of social protest. >> yes. >> and i wonder whether you think the message of colin kaepernick's protest has been subsumed, overwhelmed by the noi noise. because it is an important message in there. >> colin's message is very important and people are trying to change the subject by attacking. they're trying to say he's not patriotic and it's attack against the flag and he's unpatriotic. colin is very patriotic. he's trying to make the united states live up to its ideals enumerated in our constitution and i think we should kmebd colin. i think he will be like muhammad ali in earning people's respect when they finally think about what he was talking about and

make some decisions based on facts. >> if colin kaepernick doesn't play another game, is there a collectible aspect to his career still later on >> as soon as the nike ad came out we had a colin kaepernick game-used jersey set for october. as soon as it came out i told my staff we have to get this photograph described the auction ended two weeks ago, it sold for double the price when we sold him in 2013. >> i want to put you on the spot, kareem who was your favorite teammate to play with the best player you played with and who was the toughest player you played against >> that's three questions. >> that is three questions. >> well, i'm known for my compound questions. >> it's hard to say who your favorite player was because are you talking about someone who was your friend or someone who helps you so much on the court

i was fortunate enough to play with great guys who were friends and helped my career if it wasn't for oscar robertson and magic johnson and people like that i wouldn't be sitting in this chair so i appreciate -- >> who gave you the most trouble as a competitor. >> i'd say guys who could shoot the ball well from the top of the key. so if i had to guard bob mcadoo, he could fill it up. i didn't play my best defense out there when i guarded him so that was a challenge because i was away from the hoop but i did okay with everybody else. >> we're glad you could be with us today and thank you for coming and sharing your memorabilia. again, it's goldinauctions.com and it runs from -- >> october 1 through october 27 and a preview is live right now. >> campskyhook.org and that will help me with my foundation.

>> see you guys, thank you for being here. >> appreciate it ahead we have a big win, jeff bezos space adventure blue origin lots more "power lunch" coming up why are you so good at this? had a coach in high school. really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer free access to coaches and a full education curriculum- just to help you improve your skills. boom! mad skills. education to take your trading to the next level. only with td ameritrade. ♪ 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.

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welcome back to "power lunch. jeff bezos space company blue origin getting a contract to provide rocket engines kind of a big day for mr. bezos. i was at his store downtown today. >> this is jeff bezos' other company. it's -- we've got news today about that that other company the "wall street journal" reporting that jeff bezos' blue origin has won a contract to sell engines to united launch alliance, this is the boeing-lockheed martin rocket company that does most of the military's rockets they ha this is currently under development. ula declining to comment due to this being a competitive procurement and blue origin hasn't responded to requests for comment but cnbc can confirm via a source familiar the

negotiations that an announcement is expected any time today on this official confirmation. as for the engine itself, as blue origin ceo bob smith told me, the be-4 took seven years to develop, it wa it will also power blue origins own orbital called the new glenn. a perspective deal right now, this would mark a big milestone establishing one of the first significant revenue streams for what has been an 18-year-old start up >> it still starts as a start up >> i would say it has. they have had products under development. >> do we have new idea how much you spent on this start up

>> last week at the event he said he would be putting about a billion towards developing this they are working on right now. so billions. >> yeah. >> wow >> very interesting. >> he's got it >> he definitely has it. >> thanks. appreciate it. just over an hour ago all session highs the dow was up more than 170 points with one day and change left in the third quarter. >> we have month end quarter end sort of shuffling around >> yeah. chasing the performance into the year end

what did we say they were going to sell them off now you look at the market where were we on the floor trade up to 2930 now right back around. what is going on with financials in your view >> i feel like they are unviable at this point. everyone is looking for rt so of a value on this. i don't know how you would be a buyer of financials. >> in terms of -- we listened very intently of him, blew out the show >> yeah. >> he did make interesting comments about trade rejecting a

meeting saying he might call president today. don't know if that'shappened >> i think they are not trading down as much anymore it has been for tensions it has been able to muster up a rally. i think people are pushing trades, buying the market and going about their business i think that's it? a nutshell >> what do you think is the biggest risk to the market and the economy right now? >> well, the thing that's on the horizon is obviously recession if you invert this you know a number of times that you get 18 months after that inverted i

think the missteps of the fed, i think they are all intertwined if you remember green span did what >> he tightened right after the yield curve inverted into an inverted yield curve that is what created a lot of woes that we have all had to deal with. if the market does that again i think that the market participants pay atngs atention. >> and we had the decision yesterday 12 of 16, do you expect another great rise in december do you think we should get it and do you think we will get it? >> nonvoting members, we had them saying we had spectacular fundamentals doesn't mean we should screech forward with rate rises. i think we are okay to sit on our hands a little bit

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the accuser of dr. ford finished and people gathering

now awaiting judge kavanaugh to offer rebuttal to the charges that were aired this morning let's switch back to korean was one of my favorite players of all time he had had some financial set backs that he has written about and talked abiliout. he is perfectly fine now financially but simply to help charities that will help kids. >> that's right. >> runningthe auction.

>> it is very fascinating. this is a retailer i had a hard time finding its way out i thought the segment we had with him was interesting

you know, expose your kids to stuff and they might not develop as many allergies. i don't have allergies, do you >> not to food >> thanks to mom and dad for letting me eat junk food >> closing bell right now. facebook for enabling add versaillesers to target with shadow contact information, what it means for consumers and investors coming up brett kavanaugh and his accuser testifying on capitol hill today. >> it is