higher >> jooim. >> jorn was talking about activision blizzard. all the stocks coming out of the funk created by to fortnite. ea reports in a few weeks and high frere there. >> did you see the call by sun truss, lows buy? interesting call, 138 from 110. >> up number. >> have a great weekend. >> happy birthday. >> all of you as well. enjoy the weekend. power starts now happy birthday, doc. i'm melissa lee. facebook face plan shares down about 3% right now the social media giant unkofrpg a security issue holding a briefing any moment from now details are straight heyde and tesla stock tang takings, the worst day in five years fl elon musk rolling the dice with the soek is tesla facing a life without elon the final trading day of the month andy decent september, nice rally will the bulls charge into the last quarter of the year we have the play book straight

ahead. power lunch starts now >> and welcome, everybody to power lunch i'm tyler mathisen glad you could join us stocks erasing earlier losing posting modest gains as you see, very modest, very modest the dow and s&p 500 higher for september. don't always see a that with the s&p racking up a sixth month of gains. but the nasdaq is down for the month. chip stocks moving big time. intel rallying following comments from the interim ceo and nvidia surging but amd has been a leader tanking pop goes the weasel over there. more on what is driving this group coming up. and a number of stocks hitting all-time highs right now edward life sciences, take 2 interactive and lowes among them courtney. >> thank you very much i'm courtney reagan here is what else is happening. after an evenings day brett

kavanaugh facing a senate committee vote about 30 minutes from now we head to wrkt in a moment. and good news for power lufrmers be the irs is allowing meal expenses to be 50% tax deductible this has been used by millions who take clients out for meals and slack is preparing to go public in 2019 the "wall street journal" says the offering could value the work chat software company at $7 billion. and would be one of the largest tech ipos since snap in 2017 back to you mels aire. >> thanks. we begin the hour of breaking us news factual basis facebook discovered a security issue ask affecting millions the stock turning reporter moments ago. julia boorstin joining us from los angeles with the latest. hi, julia. >> melissa, facebook saying on september 25th, the past tuesday, the engineering team discovered a security issue affecting almost 50 million accounts facebook saying the investigation is still in the

early stages about the latest security incident but they fixed the vulnerability and informed law enforcement. saying they have yet to determine whether the 50 million accounts were misused or any information was accessed facebook says that attackers exploited a vulnerability in facebook's code that impacted the view-as feature, that allows people to see how the profile appears to one else. this then allowed the attackers to steal the quiver lent of a digital key to use to take over people's accounts. facebook saying because of precautions they've taken around 90 people will have to log back in to facebook or any of the apps that use facebook log-in to save information melissa, you see shares down 3%. i'm sure we learn missouri more from facebook over the course of the day. >> theoretically, julia what could the hackers have done, what could she have accessed, done to people's profiles? >> well, my understanding, melissa, is that there is this idea of a digital key. something that keeps facebook

open on a computer that i use at home, a computer at work it means i wouldn't have to log in every time i use facebook it sounds like they exploited something around that to be able to log into facebook as other people now, we will learn more on the conference call that facebook is holding shortly. but the question then is could facebook do things -- or could the attackers do things once they had taken over people's accounts such as send messages or post things so what facebook says they don't know yet is whether people had accessed the accounts and not done anything, or were they'd actually exploited the 50 million accounts i think the key thing here is facebook is making it clear that as soon as they identified the vulnerability they shut things down and they are telling us about tp i mean, the fact it just happened on tuesday -- this is a very different situation than what happened with say cambridge analyst ka where it took years for that to come to light. >> i'm guessing there is no word or thought as to who is behind

the hack, who, what group, what country? >> we -- i haven't seen anything about that yet but in the past when facebook has disclosed attempted interference as they have a couple of times over the past several months they have identified the source. they said this seems to be tied to russia or most recently tied to iran. they have closed when they are aware of the source of it. but it seems like perhaps they are not aware of the source of the attacks just yet. >> all right, julia thank you. and of course we will await the briefing and by the way, we have a noted hacker joining us later on in the hour to discuss this whole situation. he was once on the fbi's most wanted list as a hacker. it will be interesting to get his take. >> to the other developing story this how hour. a vote on judge brett kavanaugh expected smorlt in the judiciary committee. we'll get to eamon javers in washington for the latest as the senators, eamon wrap up statements. >> that's right, tyler take a live look at the senate judiciary committee where they are concluding proceedings

we expect the vote in the committee any time in the next half hour or so. no real hard and fast deadline for that vote. but we'll be watching for it in the coming minutes meanwhile, we've been talking to a couple of senior administration officials here at the white house. they are cautiously optimistic about this vote here they feel like they have the momentum, they tell me but also realize that things could durn on a to dime at any moment this is not in the bag as far as the white house is concerned in terms of the nomination of brett kavanaugh for the supreme court. earlier today sarah huckabee sanders was on the north lawn driveway, told reporters what the president's reaction was to yesterday's emotional testimony by both kavanaugh and his accuseder. here is what she said. >> he felt like judge kavanaugh was -- his testimony was powerful, riveting and honest. certainly, i think all of america thought doctor ford's testimony was compelling and i

believe something likely happened to this woman but not at the hands of judge kavanaugh. >> interesting point there from sarah huckabee sanders saying she believes dr. ford that something happened to her but not at the hands of judge kavanaugh. so the white house not going after the accuser here who has suggested -- who said forthrightly yesterday that judge kavanaugh sexually assaulted her back in high school the white house taking sort of a hands off approach when it comes to attacking the accuser instead sympathizing with her at least publicly we'll see how that plays up on capitol hill in the next couple of minutes when we watch the committee vote and see where the senators come down on the issue as well. tyler. >> eamon thank you very much eamon javers in washington to the markets now stock shaking off the d.c. drama, wrapping up a strong september for the s&p, the best quarter in five years seema mody at the new york stock exchange. >> stocks turning around once european markets closed. although significant weak in

europe after italy unveiled a budget not going over well with the european union could set the stage for a showdown with brussels a downgrade by credit rating agencies has been more likely after the deficit hike back to u.s., materials, fjss tech are under pressure. nasdaq 100 is off by a .5% led lower by tesla, facebook as you can see down more than 3% and eby. but check out the quarterly performance of the sectors and you see that technology while it has faired well. health care has performed better on strack for the best quarter since 2013 double indigent gains. tyler back to you. >> seema thanks very much. dow and s&p 500 on track now to close out september on a positive note. the concern now is october and then at the end of october, the concern will be november and then it will be december what's the best strategy now and for the rest of the year in let's bring in karen pay, the

head of equity trust and andrew slimmen senior manager you point out, karen, that fundamental have really trumped trump, politics and a lot of stuff. >> yes. >> you point to the idea that earnings are continuing to grow and will next year one of the other fundamentals is rising interest rates. at what point could rates begin to trip equities >> sure, so we actually think that rates will not be an issue for the markets until it gets to a point maybe around 3.5%, is whatting statistically we have seen. >> for the 10-year bond. >> yeah, with the 10-year bond and the reason we think rates won't be an issue for equities is rates are driven by strong economic growth right now. we think the equity markets can weather higher rates given the strong kmkt back drop. >> so the earnings basically trump not only trump but trump rates at least for now

andrew slimmen, let me get your reaction to what karen said but also get to you tease out a point you make, which is that in the year after midterm elections the record of the stock market is 100% perfect. >> pretty amazing, huh, tyler. the story leading into the mid-terms the market gets anxious about political -- what's happening in washington and then i think what happens is regardless of the outcome, the market takes a deep breath and goes back to focusing on the fundamentals that karen talked about. and they're pretty good. now, i will tell you, though, look, it's not a question of -- of if. it's when the fed raises rates too much that it's bad for the stock market so i think for now it's pretty good but, you know, the old saying don't fight the fed. eventually rates are going to move up too much and that's going to be problematic for stock.

at least in the united states. >> but i just want to point out one more time, in the last 18 mid-terms, you say after they've taken place the market rallied the next 12 months post 12 months every time. >> by how much. >> there are rally as and rallies. >> what does that mean. >> it's about mid-teens, 15, 16% on average so it's pretty powerful. and i think it has to do with the fact that the -- the market gets back to what drives stocks which is fundamentals. >> what happens, though, karen if this trade war continues to escalate, prices rise, inflations rises wab what do you do do with the portfolio then. >> we recognize that's a potential risk for markets and client portfolios. but at this point we don't think that the concerns are trade and tariffs is enough to really derail the economy there is still a lot of fiscal stimulus that we should be benefit from and we think that this is not a

situation, where, trade becomes overpowering, and the strong fundamentals but we think right now in terms of market strength it's not a bad idea to take some profits to lock in some of the gains. as we head into elections there could be a little bit of jiter around the market. so it's not a bad idea for clients and for investors to really start to pay attention to the amount of risks in the portfolio. >> back to you, andrew, with a final question you look like a pretty conservative guy i know you are measured but not afraid to take bets. and one of your bets right now is chinese internet stocks explain why you are such a wild hair on this. >> well, i mean, look, what's the saying, you buy when there is blood in the street when the grown light flashes buy stocks are high and right now these stocks are down a lot. but what i find interesting is the pvoc is actually easing at a

time when we raise rates the differential between the performance of the u.s. internet stocks and the chinese is 50% year to date these stocks are down on average 30%. and yet they have good growth rates, very high r.o.e.s i don't know iftoday or next week is a good opportunity but looking out a few years i think this is the opportunity you have to take advantage of. emerging -- emerging markets reflect a lot of bad news about tariffs. >> all right andrew slimmen of morgan stanley. we thank you and karen pay, welcome and thanks ftrust. >> sundar from google. >> elon mu. >> pachai has been in a private session with congressman steve scalise.

the majority whip. the meeting scheduled to last about a half hour. unclear if it's wrapped up yet but pachi has been on an offenser all day long. the meeting was convened by mccarthy pach ichlt ai cancel a trip to asia to come to washington and speak with lawmakers >> thank you leader mccarthy for organizes this and thank you for taking the time to all of you i appreciate getting a chance to be here. hear your concerns look forward to what we do better and have a productive discussion. thank you. >> now after the meeting mccarthy put out this statement, saying we have not had enough transparency and that has led to an erosion of trust and perhaps worse harm to consumers. mccarthy said the conversation with pachai will continue because he is scheduled to testify before the house judiciary committee sometime this fall after the mid-terms.

the chairman of the committee said the meeting this morning was productive and that an official invitation is on its way back to you. >> elon thank you. elon musk sued by the serk sending the stock lower today. musk mixing a settlement at the last month what does it mean for the stock? arolrs the company and shehde be worried about a future without musk? >> announcer: this cnbc program is sponsored by payden and regel. offered paid investment solutions. 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.

sharply today as the s.e.c. is suing elon musk over his now infamous funding secured fweet tweet. phil lebeau joining with us developments a busy couple of days for you. >> it's been a busy couple of days this is the worst day for tesla shareholders in at least five years. and part of the reason this stock is down so much today is because of reporting earlier done by our david faber. and there have been others talking about the fact that elon musk decided to reject a potential settlement with the s.e.c. and those terms would have included requiring musk neither to admit nor deny culpability, the main sticking point according david faber faber, would have barred musk as chairman for two years but remain as ceo. musk and tesla pay a fine and would have required tesla to add two new independent directors. after being charged elon musk

issued a statement saying the unjustified action by the s.e.c. leaves me saddensed and disappointed i've always acted in truth and integrity and integrity is an important value inmy life and the fact will show i never compromise this in any which. former s.e.c. attorneys say if this goes to trial expect it to drag on several months. >> phil, stick around. we want to bring in guggenheim analyst with his fake. you're a bull on the stock and a buy rating and a price target of $430 what's the path to $430 at this point? does that path not -- does it not matter if elon musk is at the company if he is ceo, chairman, if he is completely removed? in terms of getting to 430. >> obviously that's the key question everyone is asking. so he owns a quarter of the company. i don't think he is going anywhere from that regard. and i can't see how he wouldn't

be involved. i would hope that he would be able to settle, pay a fine and stay at the helm of the company. i mean, clearly tesla is synonymous with him. he is critical not just from marketing but absolutely from an engineering standpoint and the visionary driving the company. but it's the numbers that get me to a $430 price target i mean, i expect as model 3 finally now ramps in high volume the numbers will start looking better i think this company flips from you know big losses and cash burn to profits and cash generation over the next several quarters and you know that's a huge turn. and we are just getting there now. >> i understand that you say the numbers get you to 430 and you're a fd analyst and you got a model and you have to stick with it. at the same time isn't there embedded in the stock a elon musk premium that customers buy the cars because of ee month plusk, that elon musk is the greatest evangelicalist they have under the roof.

and if he is diminished in some way then something is taken from the tesla story. >> you're right. he is critical to the company. but i don't see him going away, to your point. i mean, i can't see how he is not staying involved i would hope and expect the most likely outcome is he is still running the place. but, i don't see him going near. >> the price target is $430. let me ask a similar question to what melissa asked how can it get there if there is a cloud over the company in the form of an ongoing s.e.c. prosecution, really, of the chairman >> right so i'm expecting the numbers to, you know, get to -- you know, profitability next year and good profitability in 2020. i don't see how by 2020 in isn't all in the rear view miles an hour zblier phil, what do you think about the demand for tesla vehicles after this? if you are a tesla purist, does

that make elon musk cooler to you or do you have some worries about what happens if you buy a car and in the future and how the company could service the car. >> i do not think that tesla fans or those owning a tesla or ordered one and waiting. i think they look at this and say, nice, elon, stick going to the government don't put up with the government, elon his fans love this in reality, however, the investors are the ones who are the biggest concern for tesla. because they have that elon musk proposal yum built inpremium ine stock. let's say the stock tanks. and today it's trading in a relative range to where it's been if it starts to tank that's a concern for the company. but at the rage are range where it's at right now, i don't think this is enough to spook the tesla management perhaps to the point where they go to elon and say you got to settle it and get it taeb taken care zbloof rob of

guggenheim and our own phil lebeau. >> we want to listen to mark zuckerberg on a conference call about discovering the security issue earlier this week. >> we are in touch with law enforcement to help identify the attackers. what we don't know yet know who is behind the attack, we are working to understandmore details about what happened and who is responsible and we will update you with with more details when we have them. the reality here is we face constant attacks from people who want to take over accounts or steal information. and i'm glad we identified this one, fixed the vulnerability and secured the accounts that may be at risk. but we need to do more to prevent this from happening in the first place and as part of our focus to be proactive about taking responsibility for the safety of our community we are going to keep investing very heavily in security going forward. so that's the sum -- >> and we will continue to monitor this call bringing you more headlines as they krs shares close to session lows down by 3.25%. >> meantime, the s&p 500

avoiding a september swoon comfortably on track now to finish with the best quarter in five years up next we look closer at one sector that has been a laggard and that would be real estate, down durng the past two years as the markets have rallied so powerfully w there opportunity now w there opportunity now weill find out next.or built to? etfs are only part of a portfolio. so make it easy to explain. give me a quality fund that helps me get clients closer to their goals. 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. dr

well the markets have had a big rally the past two years you probably know that

s&p 500 gains 34%. but the real estate sector has not participated in those gains. down 2%. diana olick fakes a closer look at the reits, nice to have you in the house. >> the s&p real estate sector made up of reits the real estate investment trusts, high yield because they have to pay out profits in divides. investors love them in the low interest rate viefrmt when desperate for yield but not when rates are rising which with he know they are now. now if we go back a year and compare, the s&p is up over 16%. the real estate sector barely over 1%. not as bad as consumer staple, communications and there are some stocks in the sector though that are stars and interesting dynamic playing out would you believe in realtime. look at pro logic. this is a huge warehouse reit. not brick and mortar but it has seen huge growth in two years thanks to the amazon affect. all the goods need to be shipped

faster and need to be warehouses to hold it it's moving toward another technical ceiling that could reset the trading raenl. look at brick and mortar retail. simon property group is a mall reit everyone is a says realtime brick and mortar is dead but they are doing well why well, they weren't several years ago when the mall reits got the death knell and everyone pulled out. but in the last two years they've been a compelling value argument because they were beaten up so badly. you could make the argument that it's the pure value of the real estate these malls are close to urban a suburban cores and could eventually be bought by a warehouse reit like pro lodgis eexaminers as it's expected to take over the world, right guys. >> they could have a new live but a different life in ecommerce. thanks a major vote on the nomination of brett kavanaugh expected to take place moments from now will the committee send his nomination to the senate floor or will it get shot down

we go live to d.c. for the drama. next on power lunch. en. 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...

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.

with pg&e in the sierras. and i'm an arborist since the onset of the drought, more than 129 million trees have died in california. pg&e prunes and removes over a million trees every year to ensure that hazardous trees can't impact power lines. and since the onset of the drought we've doubled our efforts. i grew up in the forests out in this area and honestly it's heartbreaking to see all these trees dying. what guides me is ensuring that the public is going to be safer and that these forests can be sustained and enjoyed by the community in the future. hello, everyone i'm sue her aire here is the cnbc news update house minority leader nancy

pelosi calling out republicans for the way they handled chris tee blasey ford testimony. showing how the republicans want to stop the momentum for sexual assault victims to come forward. >> it's bigger than politics or elections. it's about america and who we are and it's about women coming forward. there are women coming out there including my taurt who think what the president is trying to do is break the me too movement. >> north carolina governor roy cooper touring the hurricane flooding zone in his state he took to the streets of wilmington where he stopped and spoke with small business owners and residents. for the second straight year new york yang ooh aaron judge has the top selling jersey he beat out jose atuvay part of the houston astros world series championship last year wearing jersey number 99 you are up to date that's the news dwrupt. back to you melissa. >> sue let's get a check on the

markets. stock posting mod evidence gains to close out september as well as the third quarter you see the dow up by 65 points a quarter% on the upside snpd higher by 4 nasdaq higher by 8 s&p 500 higher for september racking up a sixth straight month of gains the nasdaq is down for the month. two story stocks of the day we are tracking facebook is down on in news that it uncovered a security issue affecting 50 million accounts. that stock is down by 3% and tesla shares look at that plunge, 12.5 petros having the worst day in five years. the s.e.c. suing elon musk for fraud over his going private tweet. tyler. >> melissa, the senate judiciary committee expected to vote any minute now on the nomination of brett kavanaugh. ylan muy is on capitol hill waiting for the vote. >> that vote was supposed to begin about three minutes ago now but there are still several empty chairs in the committee

room you can see some senators have been huddling together in small groups whisper being to each other, talking on the cell phone because the margin of error for republicans is so small. there are two republican senators who remain decided lisa murkowski and susan collins of maine and two exactic senators undecided weighing whether to cross the aisle and vote for brett kavanaugh. the senators are heidi heitkamp and joe man shun there is also speculation that perhaps jeff flake who it had come out in support perhaps his vote is not solid. so a lot of back room dealing here, a lot of conversations going on, tyler and no vote just yet. the words of senator john kennedy may be the best to describe this so far he says that this whole process has become of an interglaktic freak show. >> ylan, thank you

representative ylan muy keeps us posted. >> well for more on kavanaugh and what to expect let's bring in ben white cnbc contributor and at politic could and our reporter from axios. >> i will start with you ben maybe we don't know what jeff flag is going to do. what do you think happens if brett kavanaugh is confirmed and what does it really mean for politics as we look for the mid-terms? >> yeah, it will be a significant moment in american politics either way, really on this confirmation if brett kavanaugh is confirmed it's important to remember what happened in 1992 991 we had the confirmation of clarence thomas and the year of the woman in 1992. senator dianne feinstein is in congress in part because of that and the heavy reaction of women voters to that confirmation of clarence thomas. you could see the same thing happen in 2018 women voters already moving away from trump and the republican party in key house raises.

i think that would accelerate if kavanaugh is confirmed also motivate republican voters to some extent but i think it would be beneficial to democrats, particularly in suburban districts. you would sigh huge numbers of women turning out to vote in reaction to what they think is a really unfortunate confirmation of brett kavanaugh. >> katlyn i'm sure you've been busy over the last several days weeks months as well what does your reporting suggest and what do you think it means particularly as we talk about what happened with female voters and the mid-terms elections. >> this is a collision between two very significant trends of the current era. we have extreme partisanship and growing anger with the other side from both sides we are in a world where democrats and republicans, the animosity couldn't be higher also in the middle of a cultural upheaval with the me too movement women are talking about abuses spanning decades and justice for that

and with the confirmation of brett kavanaugh, the fight we see the two things come to a head where most republicans want to confirm him. they know it's crucial with the base he gets confirmed they win this fight and then most democrats, they think they need to defeat this nomination. but then the question what about people who aren't partisan or just -- eash women who don't like the way this has been handled. what do they do? all right. ben, let me turn back to you and ask one of my famous compound questions. question one is what are you hearing if anything about a wavering vote from jeff flake who said last night he was voting in favor of the nomination, and number two, is to turn -- to post mid-terms, let's assume the democrats take the house i'm saying i think they will but a lot do let's assume they do does anything get done in two yeergs. >> let's start with flake, obviously the delay in this vote in the judiciary committee is in part a result of his apparently

wavering i don't have inside information what he is ultimately going to do but it does seem he is deep in conversations. part of that if you saw the video i'm sure you played played the video of him being confronted in senate by women angry about about his stigs to vote in favor of the denomination talking about their experiences with sexual assault and harassment he looked spooked by that. i think that probably gave him paws it's a very dangerous place to be for him so i think he is considering his vote at this point in terms of the next congress, i think you are right to hint that democrats will take the house. it's certainly moving that direction. this will push it further in that direction all indications are they take it, very different story in the senate railroad hard to do that. i would be surprised if you have divided government in washington in 2018 that there is a whole lot getting done democrats are not going to want to give president trump big wins on infrastructure or any kind of other stimulus i think you are looking at grid lock for two years. >> katlyn, what if judge

kavanaugh gets confirmed to the supreme court and now that he has all of this as sort of part of his reputation, does that at all change the way that he makes his decisions? will he try to show that he is not so right and hey, look i can be a little left too to try to maybe please democrats that aren't so pleased right now? >> you know i can't predict how judge kavanaugh would rule from the bench. but there is the new question of is he a fair, kpargs judge his scathing comments about democrats yesterday did -- i think they rang some alarm bells among people who -- who want an impartial jurist on the supreme court. and then other people, especially republicans say this is a man who is saying his entire reputation has been damaged. he is reacting it's human it's expected. you know, so while -- while i can't tell you how he will rule or whether it would cause him to try to billion out his decision i can tell that you i think that there will be extreme

controversy over all of his decisions especially if a democrat is president in 2020. >> got it. thank you very much. ben white and katlyn owens we still don't know the outcome but appreciate you trying to look at it from both sides for it appreciate it. >> thank you. >> to the bond market. rick santelli tracking the action at the cme. what are you seeing? >> you see the markets with interest rates get higher moving into the fed meeting and even with delivering on the rate increase, it's sliding back out look a the at the two-day of 30s only maturity unchanged on the day. not in the rest of the ma turts have big drops but down a basis points or two. we lost ground after we hit the high close of the year at 311. if you continue to think about the globe right now and the italians and the french and how they have deficits, one week of italian 10-year certainly shows you the movement and they aren't on the highest yields of the day hovering around 3.14

or there abouts certain markets futures hope open look at the one week of dollar index this is interesting. because the dollar index has given up a good chunk of gains today. but as you see on that charge it's closing up a solid solid two thirds of a sent maybe 3/4s of a sent when the numbers are in melissa lei back two. >> rick thank you. >> zuckerberg is not going to like this. ffb uncovering a major security issue affecting millions of accounts and a hacker says he is going to delete zuckerberg's facebook account on sunday and live stream the event how vulnerable thofnext guest used to be one e fiv's most wanted. you need to hear what he says. 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? ♪ 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.

fischer saying it has discovered a security issue that allowed hackers to access information that could have let them take over around 50 million accounts the company said it's just begun

the investigation, has not determined if any information was misused. it doesn't know who orchestrated the hack or where the persons are base joining us is kevin mitt nick. ceo of mitt nick security consulting he is a white hack hacker providing security to companies, formally on the fbi's most wanted list. you know a thing or two about this stuff >> just a little thank you melissa. >> when you heard about this security breefrp what was your initial instinct as to who might be behind it, what might be stolen >> well i'm not sure who is behind it because it could be anyone in the world. however, facebook is millions of millions of lines of computer code so the chances that somebody could find a security flaw in the code is not surprising it happens all the time. i believe that facebook has patched the vulnerability. >> yes. >> that's not to say that some other smart attacker could figure out a new way to do the

same thing. >> in the days and the hours after a security flaw like this is announced after it is patched, what does the hacking community. >> what's the reaction of the hacking community in terms of trying to go in and exploit other potential flaws? hey i saw that hacker he got into the view-as function and hacked that. what does that inspire other hackers to do. >> well, they might be interested in taking a look to see if there are other flaws they could exploit i believe facebook has what they call a bug bounty. that means they allow third parties to try to hack their site and find vulnerabilities and report it. and if facebook is happy with what the hacker found, they'll pay them a reward money. another thing facebook obviously should do is have the internal teams assess the code -- the code that the website has developed and make sure they limit the amount of vulnerabilities that might be obviously in the facebook

website. but they should have a third party company actually test their site to make sure that it's not -- that a hacking group can't easily by pass the security. >> what interests me, kevin, in the reports of hacking of vast numbers of individual's accounts, 50, 60 million here, 120 million with the -- in the case of the credit bureaus, whatever the heck it is, do we have a good sense about how many of the people whose information has been hacked are actually in some future way wounded, injured, hurt by the fact that their data may have been compromised? in other words, do they lose money? what happens >> well, ordinarily, the bad guys might sell their -- sell the daft like from equifax, for example on the dark web and eventually the individuals will be defrauded

i don't know if there is a particular statistic of how many for example equifax members were actually defrauded because of the compromise but i can tell you one thing, there is a website called we leak info.com. and on the website they have hundreds of databases of leaked passwords that were publicized on the dark web for example and what people could do is search their username and email account and actually identify whether their information was leaked that's important because people tend to reuse passwords. so what hackers do. >> what is it. >> we leak info.com. >> melissa slr on it. >> i believe you can do -- right and what you can see is if your password was leaked in some sort of database breach and what the problem is is people tend to reuse passwords so they have a pattern that they always use that it's easy for

the hacker to figure out. >> for sure. >> it's really important to use a password manager, for example, but also to check we leak info.com and there is others out there of course to see if your information is out there for the bad guy. there is another site called, have i been poned? they could google have i been pwenedp that tries to public whether the passwords have been disclosed in a data breech. >> what if you're a company advertising with them. you are linked to the facebook for financial gain you hope you sit back and wait? is there you should do to make sure you are protected in the facebook world. >> there is nothing you can really do. what this vulnerability allowed an attacker to do was basically do a account takeover. what that means is basically where the bad guys could high

jack a users facebook account. i don't think the advertisers have to be really concerned. fortunately, facebook has identified the vulnerability and patched it so it no longer. but that's not to say that there is other vulnerabilities coming up in facebook because of the code. >> i want to ask you about the two websites we mentioned we leak info and i've been pwnd. >> yeah. >> do you have any relationship financial or otherwise with either of those website. >> no not at all. >> okay. >> i use them because i run a security testing company where companies hire us to try to break in and find the vulnerabilities that exist in facebook to fix them as part of our security assessments we look to see if any of the clients any of their users have inadvertently leaked passwords we can advise the clients make sure the users are not using the same password. we use it -- yeah.

>> a company like facebook. >> yeah, melissa. >> the company is so in the cross hairs on data practices. when the news crossed like this the stock dropped. and a lot of other companies once a hack is announced the stock these days being employed by short sellers in the market >> i actually thought about that i was surprised they dropped 3.5% that could be a strategy profit or currently based hacker to attack a big brand, negative publicity and stock drops. definitely -- >> leave it to melissa to think -- >> teaming up with you, melissa. >> all right kevin, thank you securities consulting. the ryder cup kicking off today in europe. we'll bring you the latest scores coming up next on "power lunch. that's the beat of global markets,

the rhythm of the world. but to us, it's the pace of tomorrow. with ingenuity, technologies, and markets expertise we create the possible. and when you do that, you don't chase the pace of tomorrow. you set it. nasdaq. rewrite tomorrow. the riskiest job. the consequences underwater can escalate quickly. the next thing i know, she swam off with the camera. it's like, hey, thats mine! i want to keep doing what i love. that's the retirement plan. with my annuity i know there's a guarantee. annuities can provide protected income for life. learn more at retireyourrisk.org annuities can provide protected income for life. ron! soh really? going on at schwab. thank you clients?

well jd power did just rank them highest in investor satisfaction with full service brokerage firms...again. and online equity trades are only $4.95... i mean you can't have low cost and be full service. it's impossible. it's like having your cake and eating it too. ask your broker if they offer award-winning full service and low costs. how am i going to explain this? if you don't like their answer, ask again at schwab. schwab, a modern approach to wealth management.

>> golf's ryder cup getting under way, good start for the americans, not a good finish dom? >> the u.s. is now losing 5-3 after the first day's festivi

festivitifestivit festivities concluded. it started out pretty well with u.s. winning three of the first four matches of the day. the only match that was lost and ironically it was one of the ones that people thought it was going to be won by the u.s if you look at the matchups from this morning some of the ones we focus on and most of it is on tiger woods with tiger woods being paired with patrick reid were the only loss for the american so far the americans won the american session and the afternoon session was a completely different story. that's why you have that 3-5 score. remember, tyler, it will take 14 points total, so the u.s. needs 11 more points to keep the ryder cup and europe needs 9 1/2 points to win from the u.s back over to you >> nice lead at the start. let's get analysis on ryder cup so far and what we expect this weekend justin leonard now covering it

for nbc sports welcome. what happened today. and can the u.s. come back >> well, the europeans pulled a huge reversal this afternoon americans, like you said, got off to a great start 3-1 is as much as you can for and i don't think anybody, i mean, buba watson hasn't been playing that well. phil mickelson struggled the last couple weeks. very narrow fairways very thick rough but put him out there and not only did they lose, but they lost handily and so did the two other u.s. teams dustin johnson, ricky fowler and the jordan spieth and justin thomas it's eight points. eight matches.

total. there is a total of 28 but the europeans certainly have a lot of momentum tonight in going into tomorrow's four-ball matchup. >> take us inside the fascination that we have with the ryder cup and compare what it's like to putt for a ryder cup win as opposed to putting for a win at the buick open? why is it so much -- why is it so much more pressure packed >> well, it's such a process just to be on the team so, you're part of a very elite group of players and then you're playing for each other, which is something as golfers, they're just not used to and you start playing for your peers, guys that you played with each week. you played for a captain who, you know, for all intents and purposes, you respect.

and you bond with these guys and then when you put that american or, you know, the european team flag on and it's just, it's an incredible atmosphere >> totally different atmosphere. >> i read all week about there is eight rookies here playing and everybody, every time, what have you done to prepare look, i have the questions, but nobody has an answer there is no way to prepare for this >> preparation is overrated, that's my motto. justin, we just saw a picture of you winning putt in 1999 pretty shirt you had on there. justin leonard, thank you very much >> thank you you got it >> continues on nbc. coverage starts at 3:00 a.m. tomorrow plus, the lastte, here's a left turn for you. the latest on brett kavanaugh, the latest on "power lunch." need a change of scenery?

kayak compares hundreds of travel and airline sites so you can be confident you're getting the right flight at the best price. cheers! kayak. search one and done. you might or joints.hing for your heart... but do you take something for your brain. with an ingredient originally discovered in jellyfish, prevagen has been shown in clinical trials

to improve short-term memory. prevagen. healthier brain. better life. (nicki palmer) being a verizon engineer is about doing things right. and there's no shortcut to the right way. 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.

welcome to the second hour of "power lunch. i'm melissa lee. the nomination of brett kavanaugh to the supreme court moving through congress, the voting has just been completed joining us from capitol hill with the very latest >> advanced the nomination of

brett kavanaugh to the supreme court with an important caveat senator jeff flake, a key swing vote here is calling for a one week delay in a floor vote before the full senate in order to give time for a limited fbi investigation into the allegations against brett kavanaugh. here's what he said. >> i think it would be proper to delay the floor vote for up to and not more than up to one week in order to let the fbi continue to do an investigation limited in time and scope to the current allegations that are there >> now, flake has been the subject of intense lobbying on the hill both by democratic senators and from protesters who have gathered here on capitol hill and over at the supreme court. he has been confronted by women who say they are victims of sexual abuse daring him to look

away he has been very intensely lobbied here and that is why, even though earlier in the day, he said he would support kavanaugh's nomination, he is now sort of waffling on that and calling for this sort of compromise here. also important to note that he's not the only senator who is somewhat on the fence here there are four other undecided senators two republicans and two democrats whose votes will also be important here, guys. this is definitely coming down to the wire. back over to you >> couple questions here the judiciary committee that just voted it out with flake's vote as a yea does not control when the vote comes to the floor. >> we saw senators delay this vote by half an hour or so as negotiations were under way. still trying to find out if there is a deal to hold up this vote one would assume that he has that assurance in order to give his support to moving this

forward. republicans wanted to get this done by tuesday. >> who controls or commissions the fbi investigation. as i understand it, that is not the senate that has to be the executive branch, the white house. >> i think that's unclear, as well several senators were arguing that the committee has the power to at least request one. so, we'll see how this process works out, again, coming together here at the last minute as both democrats and some moderate republicans try to find a way to deal with it sd. >> thank you so much. from washington to wall street, the bulls were in charge with the third quarter with market seeing very strong gains.

seema mody has the latest from the floor. >> seeing strongest quarterly gains in five years and an improving economy is the key reason as to why investors continue to bet on stocks. best performing advanced microdevices and united and eli lily and the biggest losers twitter, wynn resorts and facebook is down over 15%. if we look at international markets. japan did stage a rebound in the third quarter thanks to a weaker yen and ongoing trade fears wayed way weighed and continues to outperform overseas market back to you. with a good quarter under our belt, what can we expect for the next quarter and the quarter after that time to start buying the losers and trimming some of the winning positions. let's bring in ron who is managing director and partner with rdm financial group

sean and cnbc contributor ron insana where we started with -- >> whether or not the floor vote would be delayed a confirmation of judge kavanaugh that the trump agenda goes forward even when you broaden this out and whether or not the judge would support a more deregulatory environment and i think those are at least background positives for the stock market obviously, volume was contrained yesterday by everybody's fascination with what was going on in d.c. i'm not sure how material it is for the market going forward economic growth and corporate profits that will start to be reported shortly will be very important for this particular run. >> let's go to the other ron we have with us what do you think about going into this new quarter here do you think you should take a look at some of the winners and

seema mody went through some of them a loser like twitter or wynn resorts. do you think it's time to take a risk and buy low and take some profits off the table? >> so, well, we're financial advisors most of our clients have made it and our job is pretty much not to screw it up so, trading, so, trading is something that is a tax issue to it and we prefer to look at the fundamentals, look at companies, look at the future and we think we're in a jetson economy and everything internet and chips and i think amd looks like it has seen its better days and over the long term i don't think there is a chip company out there and we're now looking for a trade for a buy. i think the chips are fine no, we're not selling the ones we like because we're looking

long term and we like what we see and both the technology, o biotech and industrials, as well we like what we're seeing. >> the trends that we're seeing now, you believe, will continue moving forward sean, you know, trade, of course, is a really big topic of conversation for some time now we don't have any resolutions. the tariffs look as if they're going to what we saw in september and the further increase in january. so, what does that mean as you look at u.s. companies that have production in china that are subject to tariffs what do you do going forward >> it certainly has put some pressure on and talking about the chipmakers we're along technology in a u.s. large value fund and we don't any of the fang stocks we own miron and what's interesting about those is that they're the core of technology the hard tech versus soft tech like twitter who had an awful quarter.

rising interest rates or tariffs because the four horsemen of the internet driverless cars, artificial intelligence and streaming, video and e-commerce and all those things rely on a network and infrastructure that continues to build out what the trade negotiations, war, whatever you want to talk about it has put some of these things under pressure, put micron under pressure here recently to the point where they might be undervalued, although hard for me to argue that a stock like micron technology which we do own which trades at a single digit p/e and generates a huge amount of cash flow which we love could, in fact, be undervalue >> looking at micron -- >> ron, forgive me for interrupting and sean and ron, we have to go to some breaking new

ne news eamon javers. >> delay the kavanaugh floor vote and an fbi investigation. the president is now in with the chilean president and the reporters are in the room with him. he has said on kavanaugh that he is deferring to the republican senators on this issue, on this decision that they're making in realtime right now whatever they think is necessary in terms of a delay in the kavanaugh floor vote so, it looks like the white house is going to aqueous to this deal and give them the room to conduct the fbi investigation or get the results of an fbi investigation over the next period of time, possibly a week. that pushes back kavanaugh floor vote but does seem to indicate that he might get out of committee possibly today we'll see how all this happens a very fluid situation and the white house giving its signal and the president himself giving his signal that he'll support

this deal. >> let me go back to senator flake who is departing the senate after the end of his term now. is it clear that he would be a no-vote unless there is an fbi investigation? >> well, that's the power that he brings, that's the big stick that he carries. he's speaking softly here. but his threat would be that he would be a no vote i listened to the bulk of what he just said and did not hear him say that but it's implicit, right you saw when flake came back into the judiciary committee he spoke to the grassley and as of political privage i'll allow him to speak out of order because he's the deciding vote he has a lot of power as the guy right in the middle of all of this making the deal and grassley even recognized him out of all the other senators and very rare for senators to go out of senorty order you know flake is the guy who

has the sway to make this deal >> very interesting. amon javers, keep us posted if you hear anything else. i guess we'll leave our earlier segment, i was going to ask ron insana another question, but i guess he'll come back. >> i live about a block away just call him. to the other ron and sean, we thank you, as well. here's what's coming up, sec sues elon musk and the fallout means he never runs another public company how strong is the case we'll talk about that. as trade tensions ramp up, the surprising moves china is taking to take the sting out of profits. health care stocks got their strength back this quarter will the rally last and how do iu playt? talk about all these topics and more when "power lunch" returns.

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. ♪

take a check on the markets, dow up by 28 points and s&p higher by just under a point and the nasdaq is lower by 6 we're also watching tesla shares hit fresh session lows and 267 is the level there. let's go to the white house where the president spoke moments ago during his meeting with the president of chile. >> i'm going to let the senate handle that.

they'll make decisions and do a good job and very professional i'm just hearing a little bit about it because i've been with the president of chile talking about some very important subjects but i'm sure it will all be very good i ges the vote was a positive vote, but there seems to be a delay. i'll learn more about it as the day goes on. i just heard about it. >> and i thought that brett's testimony, likewise, was really something that i haven't seen before it was incredible. it was an incredible moment in the history of our country but, certainly, she was a very credible witness she was very good in many

respects i don't know if this will continue onward or we'll get a vote but, again, i'm here so i'm not out there watching because i can't be and out of great respect, although maybe we'll go watch together we'll watch together but i think it will work out very well for the country. i just want it to work out well for the country. if that happens, i'm happy >> have you thought at all about the replacement of judge kavanaugh? >> not even a little bit not even a little bit. >> what is your message? >> i have no message they have to do what they think is right no message whatsoever. they have to do what they think is right they have to be comfortable with themselves and i'm sure that is what they are. i'm going to rely on all of the people, including senator grassley who is doing a very good job that will be a decision that they're going to make and they suspect they'll be making some decision soon whether to take a

vote or to do whatever else they want to do i will be totally reliant on what senator grassley and the group decides to do. we're going to talk about venezuela. i was waiting for that question. we will be discussing venezuela among many other things. a lot of interesting things going on in that part of the world. but chile is really something special. if you look at what they have done and how far they have come and you look at how well run the country is so, i just want to say it's an honor to be with you a great honor. thank you very much. thank you very much, everybody thank you. >> thank you >> whatever they think is necessary. >> thank you >> thanks, guys, let's go. >> we'll see what happens and i know he wants to meet with us. we'll see what happens venezuela is a mess and it's got to be cleaned up and people have to be taken care of. thank you very much. >> thank you

>> check in with eamon javers who just heard what we heard from the president of the united states i think i was struck there by a posture in the president that we sometimes don't see. and that was a president who is saying, i'm willing to go along with whatever basically the direction of the senate thinks is necessary presuming, including an fbi investigation of a week's time or there abouts into the allegations against mr. kavanaugh and saying, as well, with respect to lease two wavering senators on the gop side that they have to do what they feel is right for them. >> tyler, i have to agree with them th he said i'll be totally reliant on what senator grassley and the group decides to do. the president here almost

entirely hands off in terms of the senate process here. a lot of presidents are frustrated by the senate over the years and have been over the years. but they don't often say that. they don't often say i'll be totally reliant on what the senate decides to do here the president is saying and i think the reason is because he understands that the fate of the kavanaugh nomination is now in the hands of a number of senate republican moderates president does not have a lot of sway with those people, particularly a senator like jeff flake is an outspoken critic of president trump over the pash two years or so. so the president doesn't have a lot of muscle here he can use. by showing deference to the senate process, he might still be able to get the result that he's looking for. >> thank you very much, eamon javers following this situation from the white house eamon, thank you. we continue to watch shares of tesla just about a dime off the session lows as a turmoil from the sec charges continues

what is next for the cpaomny we'll debate that. much more ahead on "power lunch.

♪ ♪ our new, hot, fresh breakfast will get you the readiest. (buzzer sound) holiday inn express. be the readiest. 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. tesla the stock on pace for its worst day in five years. the sec charges elon musk with

fraud and looking to bar him from serving as director of a publicly traded company. making false and misleading statements about taking tesla private. he believes the sec actions are unjustified. our own andrew sorkin and hired steven best who was mark cuban's lead defense counsel against charges of insider trading involving mr. cuban. let's get inside now from thomas gorman who served at the sec for many years and henry, ceo and editor in chief and founder of business insider gentlemen, welcome henry, let me begin with you because famously, you had your own run ins with the sec so you know the discomfort that being the subject of an sec investigation can bring. was elon musk correct in walking away from a settlement

>> i don't know if he's correct. i have to say he read the sec complaint and it is very persuasive elon musk says other evidence that would make it not, if there is, okay want to keep an open mind to that i am just mystified. not a mark cuban situation elon musk is the ceo of what was a $50 billion super high profile public company you want to get this behind you as quickly as possible for the company's sake, not just your own personal would not have required him to step down as ceo it sounds good i don't understand why the board hasn't insisted that this be put behind the company and the shareholders >> our reporting, henry, is the deal is on the table apparently would have required mr. musk to step aside for a period, potentially, of two years. >> chairman, though.

>> not of ceo. but he could stay as ceo, which is still very important. he has operational control and it sounds like what he wants is 100% vindication and i certainly understand that. but, again, the case the sec has made is quite strong >> how much trouble is musk in >> having your name on the other side of the case caption from the sec is always a lot of trouble and mr. musk certainly has a problem here that doesn't mean this is the end of the road and this is the beginning of the road and whether or not the sec can prevail in this case is anybody's guess at this point. when you look at that point, you give about 20 plus pages of facts about this and facts about that and facts about the other thing. most of them are not really relevant to the issue. what is key here the twitter feed less than ten words and everybody looks at the funding secure part and those last two

words, you have to look at the preface to that. the preface is i'm thinking about this i'm thinking about this tells you the deal is not done they haven't made a decision it tells you that things aren't going forward yet. it tells you exactly what the rest of the facts around the sec's complaint say. they're looking at it and they did look at it and they didn't go forward with it so, modify funding secure and those words and you have the sec's case they could well lose this case >> thomas, i'm going to steal a page from tyler's playbook and that is probably ask you a question that has many layers to it here it goes for one, tesla back in 2013 actually filed an ak with the sec saying that elon musk's twitter account would be used to release materially impertinent information on behalf of the company. so, by doing that, doesn't that also put the company in

jeopardy, particularly when the sec is citing conversations that the head of investor relations is having with various analysts on wall street or inquiring about the funding secured and the head of hr says, yes, there is a firm offer. >> no, i don't think that changes anything what putting that in their ak did was allow the company to use the twitter feed but the twitter feed is not the issue. what the sec is really claiming in simple terms is elon musk lied when he said funding's secured. but nobody is disputing the fact that he talked to the saudi wealth fund and that they have the money and that he was comfortable and he could get them to provide it, if when he got done thinking about the deal he wanted to go forward. this is a man with a track record he has a track record raising money all the time for this company. it fits right in with what he said i think what he said is more

>> so, henry, right now, obviously, you can tell investors aren't so happy with the developments today with the stock price down here. down sharply double digits here. what does this mean for tesla's ability to raise capital they're going to need it pretty soon, don't they >> they need capital immediately. so certainly complicates it, if nothing else i have to say watching very closely the day that the tweet came out, everyone was immediately struck by the funding secured and immediately wanted more information on it and as you just pointed out, the company actually verified, no, we wouldn't have said it if we didn't mean it so, the funding is secured issue. i think the market certainly came to the wrong impression put it that way. because as it became clear over the next few days, what the situation actually was the stock went down. so, i think this really complicated it for tesla going forward and makes it harder. again, my big question is where is the board usually in a situation like this

the board of directors will say, look, settle it. you're not admitting guilt it's a reasonable thing. you can step down for chairman for two years and no, never mind for someone like you in the company. my big question is, where is the board? >> i agree with that point, henry. tom, in terms of what the sec has to prove, throughout the complaint it said reckless is the standard reckless or is the standard proving that elon musk knowingly lied. they are two different things. knowingly lied seems to me that would be a higher bar than saying he was reckless in the tweets >> that's correct. reckless is a form of intentional conduct and what the sec has to prove here at a minimum is reckless conduct. but the real point here is what is happening to that tweet and what is happening to mr. musk is they're dropping his statement into a template or a standard corporate deal and saying, you don't have letters of intent

you don't have lawyers and you don't have investment bankers, et cetera. all the checklist of things you do with these transactions you don't have to have that. that's not what he was doing he was using the twitter feed and he put out an idea and that's all he did was put out an idea that template really doesn't work here. now, if you are talking to mr. musk, you might say this isn't the way to do this if you're coming with our compliance people, we can show you how to do it and you won't have this problem. that would be fine that's the problem here is the context and a lot of context is getting imposed on this, but doesn't fit. >> all right, thomas, fascinating conversation thomas and henry of "business insider. this is a story that is going to give us many stories to talk about. thank you, guys. >> thank you facebook announcing in the last hour that it discovered a security issue that impacted around 50 million accounts dom has the latest on this

>> a serious security flaw and one that facebook, the fix is put in so no more security concerns for the time being, however, facebook founder and ceo mark zuckerberg told the media on conference call not too long ago that he does view this as very serious. here is what he had to say we do not have that sound, they fixed the vulnerability but a serious issue they're looking into here is the sound, again this is what mark zuckerberg said >> glad that we found it and that we're able to fix the vulnerability and secure the accounts, but it definitely is an issue that this happened in the first place. and underscores the attacks that our community and our service and the need to keep investing

heavily in security. >> shares did record negatively initially and then carried through the afternoon session. they're off the session lows we'll bring you more as we know more, courtney >> facebook still investigating. now, over to sue herera with your cnbc headlines at this hour we begin with washington where the senate judiciary committee has advanced the nomination of supreme court nominee brett kavanaugh to the full senate. along party lines with one recommendation by republican senator jeff flake >> i think it would be proper to delay the floor vote for up to but not more than one week in order to let the fbi continue to do an investigation, limited in time and scope to the current allegations that are there >> president trump moments ago responding to the move saying he will let the senate decide what

they do want to do saying christine blasey ford is a very fine woman and a very credible witness. he added that he is not considering replacements for kavanaugh even a little bit. overseas, denmark closing access to its capital to try to apprehend what police call serious criminals. police closed all bridges that connect denmark to sweden and all ferry crossings were halted, as well. you're up to date. lots of moving parts today, melissa. i'll send it back to you >> sue, thanks. trade tensions ramping up and businesses in both countries are learning to adapt. we'll talk to one ceo who just returned from china about what he saw on the ground and the surprising moves being made to avoid the new tariffs. stay with us on "power lunch." aflac!? no-good break. gooood break. i'm so sorry we can't make your barbecue. i'm just sick about it. aflac!? different kind of sick. if i can't work after surgery,

how am i gonna pay my rent? all these bills? aflac! oh, aflac! and they pay you cash in just one day. see how aflac helps cover everyday expenses at aflac.com.

president trump's 10% stair tariff kicked in this week on top of the $50 billion that went into effect in august bringing the total to $250 billion. joining me now is nathan who just came back from visiting factories. >> thanks for having me. >> what surprised me is that you found companies are reading ways

to get around the tariffs whether it be pulling forward orders or doctoring invoices can you tell us more about that? >> definitely. what we see in china is a lot of people scrambling. supply chain out of china very fast in the countries like vietnam, india or the philippines or they're using under the table methods to try to avoid these tariffs by that i mean, for example, transshipments and what is illegal when a company changes the actual country of origin on their products so, let's say they shift and change their products and import to america that means they aren't actually paying that tariff because the country of origin on those products now is in china >> your company specifically helps u.s. companies connect with manufacturers in china. what is all this uncertainty done to your business? >> really what it means is diversifying a supply chain. right now the demand for

companies to produce outside of china is sky high. we're diversifying and working with factories in india and vietnam and the philippines and really enabling these companies to diversify their supply chain. >> what have you heard, if anything, about chinese officials making it more to clear things through customs >> not only making it harder to clear products through customs but the chinese government increasing tariffs on government that are sold from america into china. also depreciating their currency and it is almost at an all-time low for the year and trying to help some of the american companies purchasing >> hope you keep us posted on what is going on. craft breweries growing in recent years and the president's

recent actions on tariffs could lead to problems down the road here to discuss the tariffs and craft brewery, brad, thank you so much for being here i guess your business is probably impacted by both the section 232 and the 301 tariffs in the form of the aluminum or the cans and potentially the equipment you need to brew your beer what is happening to your business with the tariffs? >> yeah, that's correct. we're actually getting ready to place another order on cans here very soon. just empty beer cans and we were informed that prices are probably going to be going up from our supplier by about 5%. that equates to probably a couple pennies per can but when we're ordering a truck load of about 200,000 cans that adds couple extra thousand thedollaro the shipment that is an expense that we can't

pass on anywhere we have to eat the entire cost because we're trying to maintain a competitive price point in the wholesale market for our product. so, a few pennies added on on our end could equate to an extra dollar or two per six pack that the end consumer would see >> you're going to have to eat that cost, even though craft beer is a popular industry right now. worth $76 billion in the last year you don't think that you could charge more? isn't everyone dealing with the same thing you are can't you raise your prices together >> i mean, that's the potential that we could do but there are so many other competitors out there that already sell their beer for significantly lower costs than we're able to we're a very small business here we're producing probably between 1,000 and 1,500 barrels a beer a year right now which sounds big but when you talk to anheuser-busch or coors

producing hundreds of thousands if not millions of barrels of beer we can't meet the economy of scale on this size >> if your cost is going up in this one area of your business, what does it mean to other areas of your business potential investments down the road do those get scrapped altogether >> well, we're actually in the middle of planning a pretty hefty expansion here these tanks you see behind me, we need more of them and i've been talking with a couple of equipment suppliers and some of them say that their price will increase, but i've been actually talking with one of my business partners on another project who actually owns an equipment supply company and he's saying that so far he's been able to not have to raise his prices and that there's several other companies out there that are raising the prices just to increase their profits and trying to push purchasers into some quicker deals.

>> well, for your sake, i hope things get worked out at some point for you in your business still able to expand even if these tariffs go into play happy national drink beer day, that's today >> cheers. >> i wish i could cheers you back, but maybe after the show thanks for being with us, brad appreciate it. last year's flu season was one of the deadliest on record and this year doctors spreading the word about the importance of flu vaccine. getting some help from a ten-timefl n pro bowler joe thomas straight ahead on "power lunch.i , 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. that everything sticks to stefon diggs's hands?ieve it. no, i can't believe how easy it was to save hundreds of dollars on my car insurance with geico. cool, huh? yeah. he plays football, huh? yeah. believe it. geico could save you fifteen percent

or more on car insurance.

the cdc releasing shocking numbers on the flu more than 80,000 people died between 2017 and '18 in the u.s. and the rate of vaccination in children has declined about 2% our next guest used to play professional football and now tackling a new issue flu shots. joining us now is joe thomas former offensive lineman for the cleveland browns thank you for joining us we have a picture of you getting your flu shot. that must have really hurt >> taken right before the tears started. i'm glad they showed this one. >> you're going to have a little booboo here. you're able to recover >> i made it just in time for

the show >> are people not getting the flu shot because they hear it it doesn't work or because they are afraid that the mythology, the urban legend is that the flu vaccine can lead to other conditions >> yeah. a lot of myths out there that just aren't true but the bottom line with the flu shot is it's safe and effective. after getting the flu shot it's going to be a milder version and return to whatever you're doing a lot iquicker. >> why is this your cause? i'm working with a sponsor by the iand i have a 2-week-old daughter who can't get vaccinated because she's under 6 months and it's important to protect her and get the people around her vaccinated so she's not one of the statistics. that's a lot of people to die from what is easily a preventable disease. >> you played for the cleveland browns, had a nice career and is

the streak broken? i have to ask. as the girl from ohio whose brother is a gigantic fan. did we do it >> joe thomas retires and cleveland wins a game. >> got rid of the dead weight and now they can start winning i'm okay with that i love baker and i love the drek direction of the team and i'm so excited for what is to come. they have a roster loaded with young talent. >> and a very good defense i was speaking to a friend who is an nfl coach and said the cleveland team is probably the most improved team this year >> no doubt. their defense right now, they're taking the ball away and getting turnovers and getting the ball back to their offense and they're flying all over the field tackling that's a tough defense to be >> let's talk about safety issues in football and injuries, most especially head injuries. would you let your son play? >> absolutely. >> and if so, at what age? >> i haven't thought about that yet because my son is 2 years old. but i'm definitely going to let

him play if he's interested. i'm not going to push him into anything but especially the direction that the game is going, they're producing a more safe game that is easy for everybody to be able to play they're much more vigilant with concussions and head injuries. and, overall, i think it's definitely a game that i would let my son play. how do you watch football? because so many different ways to watch football these days maybe that is one reason why the nfl has seen somewhat of a ratings decline. you can watch on various social media platforms. >> i'm old school, i like to sit on my couch and have a bag of popcorn and sit there and watch the games on tv. but if i'm on the road, it's nice being able to pull up your phone and be able to catch up and being part of the nfl analyst, i have to watch all the games. honey, don't bother me on sunday, i have to do my job, i'm working. i have to go watch these games all tv shows have kind of declined in viewership, but the nfl has declined at a slower

rate maybe so, i still think that people love football and they're still watching it and tuning in. >> a lot of attention with nike and the add featuring colin kaepernick you played in the league when he played in the league and the anthem protests were beginning what are your thoughts on the ad and colin kaepernick and the whole movement surrounding him >> the ad, people thought it was going to be controversial. but really the people that the ad was selling to were mostly the people that liked it and they are the people normally buying nike sneakers a lot of the people from a demographic standpoint are older people who aren't buying sneakers they are preaching to the choir and got more credit than they should have speaking about nike. but it was a very effective ad. >> how does your body feel >> i feel a lot better now than i did last year. i lost about 50 pounds after i retired. losing that weight has really made a big difference. i was dealing with a lot of a h arthritis and a lot of aches and

pains from 11 years in the nfl and i'm doing a lot better now >> hopefully you won't get the flu either >> i'll be rolling pretty good and pretty healthy this fall and pretty healthy this fall >> the 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 he & 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... hi, kids! i'm carl and i'm a broker. do you offer $4.95 online equity trades? great question. see, for a full service brokerage like ours, that's tough to do. schwab does it. next question. do you offer a satisfaction guarantee? a what now? a satisfaction guarantee. like schwab does. man: (scoffing) what are you teaching these kids? ask your broker if they offer award-winning full service and low costs, backed by a satisfaction guarantee. if you don't like their answer, ask again at schwab.

if you don't like their answer, and i am a certified arborist for pg&e.ughes i oversee the patrolling of trees near power lines and roots near pipes and underground infrastructure. at pg&e wherever we work, we work hard to protect the environment. getting the job done safely, so we can keep the lights on for everybody. because i live here i have a deeper connection to the community. and i want to see the community grow and thrive. every year we work with cities and schools to plant trees in our communities. so the environment is there for my kids and future generations. together, we're building a better california.

>> back back welcome back to power lunch. they say they support jeff flake's call far one week delay in the vote on kavanaugh's nomination to the supreme court. they would like a limited fbi investigation to take place during that time both of those senators have been undecided how they would vote on kavanaugh. i just spoke to mcconnell's office they are unsure of when the scheduling announcement would come now they say they support a one week delay in brett kavanaugh's vote to the supreme court. back to you guys >> thank you health care sector wrapping

up it is up 14% is how do you play it? we have a health care portfolio provider great to have you with us. >> thank you >> as you go into the new quarter we sited how well health care has done overall. are you rebalancing the sub sectors, biotech etcetera? >> no. the fundamentals are still in place maybe not the same magnitude we saw this quarter. but we have good earning visibility, good growth rates. the evaluations haven't gotten so far away that we are worried about risk so i think it's more of a steady as she goes for us >> what are a couple of your top picks? >> well, we take a bit of a barbell approach we are larger companies like

united health and we balance that with some names you flow, health care is one of the places you're seeing growth in a growth challenged world so this quarter it was hard not to make money in health care it would seem like at least the fundamentals indicate at least the near term that it will continue >> you have a number of private investments. t tilray is one. i was going to ask you about that when the commissioner says there's a vaping epidemic what does it do to a company like , juul

>> i'm not an expert on this i would say from public health perspective we think he is doing an excellent job and they will come to some resolution on this. >> why is tilray on the medical sideov of medical marijuana? >> it is debatable first of all it's not really legal here in the u.s. anyway but it is in the interest of recreational where a company like has an fda approved product. if you're fda approved it's the consumer guides. the health angle is once it's legal in the u.s. we expect there will be more controlled trials on the substance and see if it actually works any where >> thank you >> tnkha you.

stick around for power lunch. check please is coming up next let's begin. yes or no? do you want the same tools and seamless experience across web and tablet? do you want $4.95 commissions for stocks, $0.50 options contracts? $1.50 futures contracts? what about a dedicated service team of trading specialists? did you say yes? good, then it's time for power e*trade. the platform, price and service that gives you the edge you need. looks like we have a couple seconds left. let's do some card twirling twirling cards e*trade. the original place to invest online.

"have you lost weight?" of course i have- ever since i started renting from national.

because national lets me lose the wait at the counter... ...and choose any car in the aisle. and i don't wait when i return, thanks to drop & go. at national, i can lose the wait...and keep it off. looking good, patrick. i know. (vo) go national. go like a pro.

>> sit time for our check please marvin goes first and his coo decided to leave jc penny and follow him to lowe's >> the third quarter numbers look at this 7% for the nasdaq making the third quarter great again. >> closing bell is up next. good friday afternoon for you. >> worst pace since november 2013 sues elon musk about taking the company private. it reveals musk backed out of a settlement at the last minute. comments, why