>> all right thank you. down today we started weak. we'll check back in. founder of the long-term stock poor u.s. and china data an exchange and ceo retail sales and industrial that does it for this exchange thank you for joining me production then a mid-morning pop into i'll go join tiler in a moment positive territory as the president said he would delay for "power lunch" which begins implementing auto tariffs in right now. europe for at least six months >> thank you we'll see you in a moment. welcome, everybody to "power than a report late in the day that the u.s. and china are lunch. new at 2:00 for a wednesday, negotiating specific dates for a trade, trade, trade, the delegation to revise the trade negotiation. president considering delaying maybe as early as next week. most of the market turned around tariffs on autos inbound from earlier on the president's europe but holding firm on comments we had a modest bounce in key china. and potentially finding a way to the finish line with mexico and intel and mierkcrosoft and appl. canada big issues we'll bring you the latest on communications services names all of them. plus stocks cheering today's internet related things, google, developments at least right now. facebook, netflix all turned but should investors worry about around however, industrials and the economic day that that is retailers all trade related. signaling a bit of a slowdown not really much of a bounce here here and abroad? at all this tells me that the market is all that plus the war on cancer. not going to necessarily jump up a massive amount of data hitting on every spin on trade after the bell we'll tell you the stocks you i think that friday decision to need to watch ahead of it as delay a deal was a real turning "power lunch" begins right now point for the markets. back to you. >> bob, thank you. one area that did see big

reaction was the auto makers especially the foreign manufacturers on news the u.s. >> let's get a check on the markets. will delay tariffs for six stocks are carving out nice gains and more than 350 point months at the most phil is covering this angle. >> when you look at the european swing for the dow. it was down 19 0 before those auto stocks, they're moving higher because the big fear auto tariff headlines dropped an among especially the german auto hour or two eeg aeg in the major makers is if they have to pay a averages close higher they would 25 % tariff on vehicles built in register their first back to back gains of the merry month of germany and then import over may. here, they would get whacked >> which has not been so merry >> no, indeed. hard >> tyler, thank you. as you saw the reporting, there let's begin in d.c. with new is the sense that the trump developments in the ongoing administration will delay a development over trade we are joined with the latest decision on european auto tariffs. with kayla >> reporter: there's a series of if that's the case, no decision may not happen or a decision may meetings today that could prove influential and where the debate not happen until the middle of november goes next. take a look at where we get our about an hour ago the top u.s. trade official went to go vehicles from in this country. discuss trade with the speaker i hear this from people who say of the house, nancy pelosi i see a lot of bmws and h conceivably to discuss the mercedes just 6 .7% of the vehicles sold result of ambassador lighthizer's meeting with canada's foreign minister. here come from europe. i'm told the ambassador was as for the auto makers, the big

expected to float a proposal three, well, they don't really that would potentially roll back ship as many over to europe as they used to steel and aluminum tariff and long ago there was more trade going that way or built in that country or in that region. so when you take a look at ford, chart a path forward on the u.s. the reason the stock is moving mexico trade agreement that's been in the works for higher is because there's more some time. earlier this morning the certainty when it comes to auto treasury secretary told congress trade and also with gm that the president had gm pulled out of europe. instructed himself and so this is not as though they lighthizer to find a fix, can turn around and say we're going to start shipping vehicles although he said that wouldn't over there because the trade necessarily be removing tariffs. talks resolved they made a decision to pull out listen of that market long ago. >> he didn't say we were lifting >> i was going to ask you about tariffs. i said we were trying to resolve that i would have thought if we were not imposing tariffs on european the tariff issues as part of an agreement with usmca imports that it would be bad for ford and gm, meaning the more -- that's something that we are >> no. >> but it was interesting their focussed on. shares rallied not a ton, but they definitely reversed on this >> could be a quota or higher >> well, and the reason it enforcement america schism wouldn't have an impact on them, we'll see whether canada and mexico agree to it a huge impact, the reason it has then it's auto tariffs some impact is because there's i'm told the white house plans certainty when it comes to trade talks. to enact a delay of this the reason it doesn't have a huge impact is because look at decision they could essentially buy up to what we bring in from europe six months' time to make this for the most part you're talking decision so long as negotiations about high end luxury sedans, with europe, japan, canada and and in a few cases some luxury

mexico are all ongoing that certainly would be seen as suvs a positive development for those generally speaking, the domestic auto makers are not going to be allies i'm told that these decisions competing in that market are being made even as the yes, lincoln competes and president is digging in his heels on china with this senior cadillac, but their sales are administration official telling small compared to bmw, mercedes, me the last round of tariffs he thinks is likely to go into when you look at audi, when you effect all right. kayla, thank you the major arches are rebounding look at that market there. that's why the impact is not right now from big losses that great and people who are in the market earlier today. friend, it's bee for a new mercedes are not in the market for a ford towaurus. >> where in that chart of europe, korea, japan, canada, where do cars that are made by european manufacturers or japanese manufacturers that are made in the u.s. fall? are they considered u.s. cars? >> no. they're japanese cars -- they're let's take a bmwx 5. for the most part the europeans, they manufacture suvs in the u.s. because that's the market for it

the u.s. suv market is in the u.s. you take an x 5, it's built in south carolina there's to tariff there. if the trade talks erupted and there was a 25% tariff, that would not impact the price of an x 5, at least not right away now, it would ultimately in terms of parts and components and things that come from europe and are put into the vehicle >> the toyota made in tennessee is a u.s. car. thank you, phil. appreciate it. fears about a global slowdown back in focus right now. weak economic data out here in the u.s. and in china steve liesman here to break it down >> data this morning that caused the market and then it came back with the tariff tweet. louzy day to both the u.s. and china with industrial production disappointing. too soon to say if the countries are sharing the same economic fates because of the trade war retail sales in the u.s. .2 versus the forecast of up .2

industrial production down half a percent. looking at flat on that. all this combines the q 1 tracking on 3 .1 unchanged q 2, 2.0 this was the meeting of seven different wall street tracking out there. it's coincidence china had similar results. retail 7.2 we were looking for 8 .6 industrial production 5.4. up 6.5%. maybe it's all just a coincidence. several think u.s. will bounce back in may. jobs and wages and confidence are doing well many economists think both sides are losers in a trade war. we'll have to wait and see if the numbers continue to run together or begin to run apart because of the trade >> thank you, steve. stocks are hitting session

highs right now. so what do investors do from here let's bring in jamie cox in d.c. talking to members of congress about trade. also with us is jeff carbon, co-founder and managing partner with corner stone wealth jamie, how do the data appear to you? is the global economy slowing based on the retail numbers we got or are you willing to go that far >> no, i don't think so, tyler if you look at the past three months retail sales are up 5% on the annual basis that doesn't sound like a slowdown to me what i think you saw in april was a lot of -- you see gasoline prices being a factor. in california when gas prices are over 4.80 that has an impact economic activity. there's some of that, and also sticker shock from people paying taxes in april there's a lot of people that had some extra gains and capital gains from mutual funds they had to pay taxes on plus some of the

salt deductions. peep got surprised that may have played into the problems to the retail sales for april. i think going forward, it's not anything to worry about. >> jedo you have any growth jitters? >> i see a slowing and the credit is tightening when you look at the big ticket items, auto sales, housing, we're seeing it's not stalling it's not stopping. but it is slowing. so we are starting to watch that a little bit more, continuing to watch the dollar as well as want to see what kind of moves we get from the fed i'd say the dynamite for the market is the trade and tariffs and we could see it every day right now. >> jamie, you said you've been on the hill in a bunch of meetings what's top of the mind there with everything we've been talking about on the trade front? is it trade or something else? >> i jusf a lunch with doug jones in alabama he's happy that the president is thinking about delaying tariff

europe obviously in alabama it's a big deal but he's -- it's funny the democrats have an interesting vantage point. they don't like china. they think they're a bad actor, but they don't have any solutions to proffer to fix it they have a secondary thing where they say we'll spend money. if we can't work with china, we'll come up with infrastructure bills to prop up the economy in the u.s that's their strategy. that's what i'm hearing more and more and interestingly enough, lots of bipartisanship. i am very surprised to see lots of tax policy particularly on the deduction for small businesses, there's bipartisan support to make that permanent there's also bipartisan support on some retirement security legislation that's been in the works for a couple years some things are getting done it's good news >> shocking. surprising >> jeff, let me ask you what you're doing in th you run for clients. whatuncertainties?

>> well, when you look at we've had this frothy market, 4% since the highs. no not necessarily a bad thing it gives opportunity i'm kind of barbelling and we're barbelling our client's portfolios when i say that balancing growth with defensiveness on the growth side we continue to like technology like energy. consumer discretionary if i go deeper with those in the technology side we like the cloud. we like software we like payment companies. when i go into energy, exploration, production as well as refiners, if i flip to the other side of the barbell, kind of being a little more defensive for our clients with real estate, utilities and consumer staples. a little bit of health care in there. >> fantastic thank you very much. jeff and jamie, we appreciate your time. >> thank you >> thank you coming up it's been a rough run for retail down 20 % off the highs. the trade war has the potential to batter these stocks

we'll discuss that and hear what steve nn abaonnd lloyd blankfine are saying about tariffs coming up woman: my reputation was trashed online,

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for the fourth negative day in the last five. retail sales also unexpectedly fell last month and the trade tension is weighing on the sector is a bigger slowdown ahead matt boss is with us, the number one ranked retail analyst. and we have a cnbc contributor welcome to you both. matt, i'll begin with you. do you think your stocks have been overly hit at this point or not if the president's going to expand tariffs to the remaining 300 plus billion >> it was a topic on today's macy's conference call the reality is what's priced in i think is 1 through 3 the unknown is if we really ramp up to this additional 300 billion, i don't think that would be priced in to really any of my coverage, and more or less it would wipe out an entire year of earnings if that really were the case now, that said, the question is is that the reality and is that where we're really heading?

>> for sure. to follow that out macy's is down 23% this year i know you're neutral on them. you're saying that decline doesn't discount the spreading of tariffs >> no. i think the reality is macy's today sales were better than expected margins were about in line they're on pace for their fifth year of ebita dollar decline there's a spread between winners and losers and it's legacy retail versus convenience and value which is off price global stores and global brands the reality this year is we're seeing signs of the consumer in terms of a slight step down. but we're really seeing a bifurcation in terms of winner and losers within retail so far macy's is on the worse end along with the remainder of the department stores. >> january, the -- jan, the president is not blinking. that's not his manner to blink

ooks like he's getting ready to settle in for a good, long slog. what if that happens and address matt's point which is if the tariffs are extended to another $235 billion worth of goods, it could wipe out a year's earnings in retailers tell me the transmission mechanism that makes that happen >> matt and i are in agreement on this. we've actually talked about it but if this 325 gets hit, it applies across all the retailers i care about, it will wipe out year's of earnings because there is no ability to raise price people will try to raise price, but we have an oversupply worldwide of product and so there's a downward pressure there's a lot of ability to substitute they just won't be able to get the consumer to pay it so it's going to get pushed back through the supply chain some of that will get absorbed at the chinese factories like it did on the first 200 billion they don't want to lose the business but it will have to get absorbed

through the system >> they'll eat some of the cost? >> they'll have to, and then we'll eat it through the retail side and matt and i both believe if it really gets applied, we'll wipe out basically a year's worth of earnings in retail and we start over because we built the into the base. mitigation is what we need >> where do you hide, or if we're separating winners from losers, does this matter are the companies executing going to be able to do well no matter what the environment? >> well, they're going to do relatively better than they have for a long time. and diy will do well because they don't get hit as hard as the tariffs. there are people who will do better in general, this is applying pretty much across the board people who are not highly levered and maximum taxpayers survive and people who aren't those two things go broke because there's going to put an enormous amount of pressure in the system and we're seeing stores close. probably 12,000 this year already. probably 15 or 16 retail

bankruptci bankruptcies if that's true and this happens we could double those numbers. this is really a big deal. but the question is what you said are we going to blink? are they going to blink? i tell you we're not going to back down on the tariffs either china is going to start negotiating or this 325 in 60 days is going to see 25% and it's going to stay on until there's some movement. and that could be a very long ugly process in the meantime we'll all leave china as far as production goes. >> matt, a lot of retailers have left china already what are we down to these days in terms of the exposure >> the reality, at a 25% tariff on what we know so far, the average ebita dollar hit does not include pricing action or further moves out of china it would happen. without this additional 325, the reality is i think it would be about a low ting single digit type of hit to most of my

coverage that's more than able to be absorbed it's really this additional tranche that creates the uncertainty. and like you said, there are winners and losers in my space, it's defensive growth i think you want to be positioned with disruption beneficiaries. to me that's the off pricers that's the dollar and discounters and the flip side is the global brands where as you think about the e-commerce versus brick and mortar, they're the ones over the last five years have repositioned themselves well if you think about the nikes, lulus of the world, i think they're in a better place than most of legacy brick and mortar retail. >> thank you both. appreciate it. >> thanks. take a look at this mystery chart. love these the stock has nearly doubled this year. nearly doubled in one day it looks like this. the best performer in the s&p 500. what is it and we'll get you ready for the data dump that's coming ahead of a big cancer

conference we'll tell you which stocks would pop and why. stay with us

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year, that's coty. the cosmetic maker leading the s&p 500 with a 95% surj in 2019. also the most shorted stock with 50% of the float traded short. we have people joining us. mark newton, yes, it's up huge almost doubled this year off a low base it was more than cut in half in 2018 where does that leave the stock by your lights >> near term the stock is still bullish. that really comes down to two main reasons one is we've seen heavy insider buying lately by the two piers, pier the ceo and also the cfo. the second is the short interest is heavy we've seen over 145 million shares short right now almost 50% of the float. so technically the stock has started to act well breaking out on heavy volume. almost three or four times average of late. i see the stock going to 14 1/2

to 15 near term. it's a heavy short base. it's potentially 13 to 17% in the near term. when you look at the weekly chart, you do see head winds near 15. the stock came down from a high of over 30 back in 2015, i believe, right near the fourth of july holiday. it's down over 60% it's up 90% this year but still coming down off a big and long decline in the stock and if anything, that makes it attractive right now to consider buying for those that are traders. for investors, it needs to clear 15 before we're out of the woods. >> all right mark temper, i guess an unloved stock, still a contrarian idea on the long stock. relatively steady business where do you come down >> yeah. i mean, i agree. this thing is rebounding after just getting pummelled in the second half of last year when they announced their plan to buy p&g's beauty business. it's 13% off the highs from last year

and just quite frankly it's underperformed the market since then this year is about the hope trade. they have a new korea in place he has -- ceo in place they're strategy in my opinion is flawed. so with their acquisition from p p&g, they doubled down on mass consumer but consumer buying trends have changed. consumers now want experience. they want prestige they want boutique, not cover girl their debt levels are sky high they're at 5.8 times net to end a. companies with debt get smoked when the economy slows ulta is a better company, no debt and gives you exposure to whatever brands are in favor at that time. >> coty had takeover interest years ago before they made the acquisition of their own we'll see how it plays out thank you very much. and for more trading nation, head to our website or follow us on twitter

kelly, back to you >> thank you ahead on "power lunch," the trade war with china, can we get a deal steve bannon weighed in. we'll debate it. plus a disrupter 50 list is out. we'll here from one company reinventing your fridge. and the staggering and rising costs of supplying americans with safe and available water. all this when "power lunch" returns. and now the latest from trading nation and a word from our sponsor. >> if you're an active trader sitting on the sideline can be difficult. it's important to resist the temptation to overtrade. you may want to consider less or reducing the size of your trades, and when things really get crazy, sometimes the best l.ade to make is no trade at al i'm joannepayne.

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hello, everyone. here's your cnbc news update senate judiciary chairman lindsey graham speaking out about rising tensions between the u.s. and iran. he says he supports the state department's decision to pull out nonemergency personnel from

iraq but he would like to learn more >> i think there are a lot of people in my views that are going to support standing up to iran but we need to understand what we're doing so i would urge the administration to come down here and brief members of congress about the threat as they see it coming from iran >> following days of heavy rain parts of houston are still under water. this after the nearby brazos river spilled out over its banks and forecasters are calling for more rain this weekend and a sticky situation on an indiana interstate after a hauling honey overturned a semi lost control and flipped on its side. at least four of the eight containers of honey spilled on to the highway luckily the driver was not injured. people are a buzz about that incident that's the news update back to you. >> i was going to ask how you

clean it up. maybe that's how >> maybe who knows? that, i wouldn't no, but may bee. >> got it. >> about 90 minutes until the closing bell let's get a check on the markets. the dow is up 169 points two-thirds of a percent. the s&p 500 up.8%. the nasdaq is up 101 point gain. trump, trade and the battle with china over global dominance. steve bannon and new york times columnist tom friedman facing off earlier today. bannon saying don't expect the president to blink on the trade war. >> there is no chance donald trump backs down from this i think he's looking at the good of people on a global basis. and i don't see him backing down i think he's going to set the framework for the 2020 election. this is as important as it gets but i agree with you i think we need the leaders and to take the heat down and they need to get behind closed doors and start a process that's going

to take a long time. >> bannon goes onto say well street needs to cut off capital to shy chooi -- china and the u.s. is in the driver's seat >> we have all the cards donald trump is showing leadership it would be easy to sign a deal with cheer leaders on wall street say this is terrific, have a stock market go up for a moment he's looking at the long-term. >> meanwhile "the new york times" thomas friedman says china made a critical error in its strategy >> i happen to believe china's misreading of trump and america on this issue is actually one of the biggest intelligence failures of the chinese government ever. and it was an avoidable failure. >> and former goldman sachs ceo lloyd blankfein tweeting tariffs might be an effective

negotiating tool china relies more on trade and loses more as in a labor strike. it may resolve where compromise needs to happen. and saying as to who bears the tariff's cost, u.s. buyers may eventually switch their purchases to domestic and pay more than now. chinese companies lose the revenues part of the process to assert pressure to level the playing field. >> is blankfein right? is tariffs a good negotiating tool and is bannon right, is the u.s. holding the key cards joining us jeffrey wright and james petakukis. jeff, let me begin with you. do you think what we're seeing in the emergence of a kind of trump doctrine that's not just affecting china but really the global sort of trading

infrastructure >> it's possible although i remain skeptical i think that trump will stay on board with this approach for as long as it's likely to take. the problem with what bannon said about the u.s. holding the cards is that it's only true as long as trump remains engaged with that approach, and as we know from other issues he has a tendency to change tactics as the situation on the ground changes. so i think the biggest question is whether trump is being to stay on board with this for as long as it's going to take to change beijing's calculations. >> the situation on the ground by which you mean what the electoral situation? the stock market situation or what? >> sure. all those things the stock market downturn that will probably come if he imposes an extra $300 billion in tariffs. the political implications of the impact on agricultural communities. the imply kags for the economy if we have a broader slowdown in the real economy all these things are possible

outcomes here. i'm not sure trump is prepared to push through them for as long as it would take to succeed here >> but jim, on one hand this is a controversial policy, but there are people like loyd blankfein who we heard from who see it as possibly a fruitful path to go down. and there are people on both sides of politics who actually agree that standing up to china is the thing to do there's remarkable bipartisan support for at least part of this >> no, i think that's for sure i think that's often missed here you have people on the left and the right who think there is something that has gone wrong with the u.s. relationship with china that sees china having veered off this path to becoming south korea or becoming japan, but becoming more totalitarian, moving its economy away from markets. so i think something had to

change steve bannon, he's viewing this purely i think through a 1980s cold war lens. i'm not sure that's appropriate. i don't think for if you want to fight a cold war with china the way we did against the soviet union, when we fought the soviet union in the cold war, question had allies we had a great interest in human rights ban season not interested in human rights and we had a president with a deep long-term commitment to the twilight struggle will donald trump stick with this plan when we're not 3% unemployment, 3% growth and 3% wages? maybe we're 2% growth, 5% unemployment, and wages are flat >> jimmy, that's what i wanted to ask now that this issue is so front and center as it should be for the american public, that everybody agrees even the president's critics that he's doing the right thing, have we boxed ourselves into a corner? how do we come up with a deal

that actually achieves these goals when it sounds like the chinese really have no reason to agree to any kind of real reform >> well, listen, i think chinese view this as an existential crisis saying that both sides think we should get tough in some way in china is not the same thing as saying that both sides think the tariffs are a good idea. that's not the case. but i think politicians on both sides need to be frank with the american people. that this is not going to be a pain-free endeavor this is going to be a long-term struggle whether it's to tariffs or going after chinese companies. there will be economic pain, and just not just farmers. there's been very little talk about that and we're not going to subsidize everybody who gets hurt. >> jeff j let me turn back if i'm summarizing your point o view correctly, you're hesitant to embrace the idea fully that

the president will not blink and will have the resolve to stick with the course that he is on with respect to china. but i'd like to pivot and get you to address what mr. blankfein said that's the possibility that through the use of these penalties on chinese industry, that american companies will source materials and product elsewhere, that's one. and that some of that -- of the manufacturing that had gone offshore will return to the united states. do you think that's probable >> the first part makes good sense. i think if the tariffs remain in place six months or a year, not just american companies but multinationals of all stripes will move some production out of china. the second part i don't think follows that that production will come back to the u.s. maybe some negligible portion, but the studies economists have done so far on the year or so of tariffs we've had so far show

most of the production has shifted to malaysia, mexico, vietnam, other low wage countries. now, if you view the situation like bannon does, that it's a civilization struggle between the u.s. and china, then having that production in malaysia is better than china. i doubt it's coming back to the u.s. >> is the next step if it moves to those places, this is the trade war shift from china to those countries? >> thank you very much we appreciate it to the bond market yields moving lower. mr. santelli tracks the action at the cme >> hi, tyler indeed, they have moved lower. about three or four basis points lower on all maturities on the curve. the interesting issue is normally the equity markets especially on days they reverse kind of pull up interest rates today it's not really having that effect. and we are sitting on very

important levels basically the low yields of the year on the long end and if we concentrate on the long end, look at the spread between 30-year bonds and ten-year notes back to november of 2017. because with a difference of 44 basis points, it's getting close to challenging that. the reason i think that's important, because the long end of the curve is about ready to take a fall. and i think it will be very important should that occur. flattening is not a good thing with regard to fed watchers. they don't want to see the curve flattening more. we all know that three months has now a yield higher than tens high yield barclays well behaved. this is a february 18th dollar index. only three quarters of a percent away from the highest level. it continues to trade firm kelly, back to you >> rick, thanks. disrupter 50 list is out and

the company changing the face of refrigerations is going to join us next. they have their eyes on drones, mattresses and more. we're excited to speak with the ceo as we head out we have a nice rally on wall street right now. the nasdaq 100 hitting sessions highs. led my alphabet, microsoft and facebook alphabet up more than 4% plants capture co2. what if other kinds of plants captured it too? if these industrial plants had technology that captured carbon like trees we could help lower emissions. carbon capture is important technology - and experts agree.

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welcome back the 7th annual disrupter list has been unveiled. number 17 on the list is phononics, a semi conductor company reinventing the refrigerator the ceo tony joins us now. what does that have to do with this huge drone in front of us >> this is a variety of applications that require innovative solutions not currently being met by

compressor based incumbents. l.e.d. is an example >> hang on a second. you're -- are you cooling the semi conductors? >> no. the semi conductor is the cooling revolution the principles we use c when you power our chip, you don't get data or light. you get a cooling effect >> how does the chip create cool >> you drive heat from one side to the other the magnitude of that temperature gradient coupled with the on the of per area drives a cooling effect to the unit you want to be cold >> if the existing refrigerations are heavy, they contribute to -- >> this would allow you to do cooling in a lot of different ways >> different applications. the reference design built around the chip coupled with the chip that brings it to life gives us tremendous flexibility

as to where we apply our coin. flexibility you can't get with a compressor >> where does the heat go? >> the heat is rejected into the ambient surrounding. we use the entire surface of the shell. there's no one hot point >> this is plugged in right now? >> this is a great example >> do you mind if i test it out? >> test it out we want you to sample and taste it >> we know the big coolers when you're in a convenience store with the heat coming out the back >> you captured out. our partners had a demanding challenge. they want it at the point of sale when they placed a compressor the waste heat and compressor drive things to the back of the store. ice cream at the point of sale and that approach from a reference design to the components that bring it to life now enables cold chain, consumer

products and air-conditioning. >> can you -- i want to talk about the drone. can you scale this beyond the size of something the size of a microwave or even this drone? something the size of an industrial refrigerator or truck? >> that's the modular nature of the chip >> who are some of your current corporate partners and who would be on the horizon? >> if unilever is a partnership we have in commercial and industrial refrigeration planes, trains, automobiles or drones the weak link is how to deliver any perishable good at the appropriate temperature. with precision hawk, we've provided a compact solution that runs off battery that you now he an effect i've. >> so you're cooling the drone or the box >> the drone is the true vehicle. we're cooling its payload.

>> you can get me dairy queen delivered to -- >> i can get you dairy queen or organs for the medical space >> i've been holding on to this. it's so cold >> taking on the environmental challenge of our time in air conditioning with partners in singapore. there is that scalablity that you referenced with the design and manufacturability of the component. >> very cool thank you. shake your hand, it's still cold >> yes it is another disruptor interview coming up. stick around for jenn hyman of rent the runway. kelly and i are going for a ride on the drone. crumbling infrastructure contessa brewer looks at how it's affecting the drinking water we use contessa >> tyler, coast to coast, a quarter million water main

breaks every year. much of the nation's water infrastructure is nearly a century old. coming up on "power lunch" who is making big investments in repairing the water infrastructure and where they are coming up with the money that's ahead ♪ feel that? 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. weveryone, looknk isn'tat your phones. the design thinking, the digital engineering, security, blockchain, and we will be first to market!

yes. when we do we launch? unfortunately, in 2 or 3, hours. why the delay? cognizant is helping banks use digital technologies at scale to advance speed to market.

welcome back america's dams, levees and drinking water getting a "d" grade from the society of civil engineers. they could need trillions of dollars of investment over the next 25 years. contessa brewer is looking at how those challenges may be met. >> so the area i'm standing in, a water treatment facility in new jersey, was inundated in hurricane irene in 2011. american water, which is the nation's largest publicly traded water utility, invested $37 million and now has protection from a 500-year flood. >> frankly, it's very challenging to make sure that we can get through those climate issues, through those natural disasters and make sure we can sustain service to our customers and make sure we're meeting all those requirements

>> so american water spending $8.5 billion over five years on capital improvements like building reservoirs to capture excess water in storms like this one in maryland distributed then during droughts. new york city has committed $20 billion over ten years one project alone, $1.5 billion to replace part of a leaking delaware aqueduct. that's the world's longest tunnel they're grappling with aging infrastructure, growing chemical contamination, the availability of water and experts say it will take a trillion dollars for drinking water alone how do you pay for that? americans have to be willing to pay rates that reflect the true cost of infrastructure guys >> thank you, contessa expect some big moves in biotech after the bell today we'll tell you why and which stocks to watch, next. plus, a big interview on cnbc friday facebook's c.o.o. sheryl sandberg 'vnohed wee t arfrom her in a long time. we'll be back in two

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has arrived. thwho hold themselveshe to a higher standard. they are called "cfa charterholders." demand the best. demand a cfa charterholder. cfa institute. call it a biotech bonanza. an avalanche of data set to drop after the bell we're here looking at the stocks that could be big movers hey, meg >> we're girearing up for the largest meeting of cancer research tonight a glimpse at some of the newest advances in cancer treatment when 5,000 sets of data are released all at the same time at 5:00 p.m.

that can also mean major stock swings for the drug companies working on these medicines, and there are three stocks they're watching amgen and mirati therapeutics and iovance. they are working on competing drugs with an important drug inn cancers. nobody has yet succeeded investors will be watching amgen's data which could have an impact and there's a drug for cervical cancer that investors will be watching jeffrey's analyst estimates the stock could decline by 10% or jump by 20% based on the results we see tonight >> so cool meg, thanks. our next big health care summit takes place next week healthy returns may 21 i'll be there. all those folks you see there will be there. a lineup of guests that will do it. >> "closing bell" starts right now.

wall street is laser focused on trade >> china has been running an economic war against the industrial democracies for now 20 years there's no chance donald trump backs down from this >> we've learned from sources the white house later this week plans to exercise a delay in a decision on auto tariffs >> we're trying to resolve the tariff issues as part of an agreement with usmca and that's something that we are focused on >> anything can happen in the fi