>> it is i get it maybe we're overthinking things here, but we just feel that's what's coming. >> that's all right. to be guilty of that thank you so much for joining me appreciate it. >> thank you >> michael gapeman from barclay. don't miss 1:00 p.m. eastern time with rich clairda i'll join tyler and melissa for "power lunch." >> kelly, see you in just a moment welcome to "power lunch. i'm tyler mathisen with melissa lee and new at 2:00, tech getting wrecked. facebook shares slammed right now. regulators reportedly preparing to investigate whether the social media giant is hurting competition. and anti-trust anxiety, alphabet plunging, close to bear market levels now the justice department may be gearing up to investigate its subsidiary google. we'll tell you about the fallout ahead. apple also in the cross hairs.

a big event getting under way. we'll head there for the latest headlines and apple too may be facing some anti-trust scrutiny. "power lunch" starts right now >> and welcome to "power lunch" on this monday i'm melissa lee. this war on technology, the government is waging, is really, pressuring the nasdaq composite at this hour down by 1.4%. we're also seeing weakness in the s&p 500 down by just a quarter of a percent, also though 12 points off the session lows dow barely in the green coming off losses >> melissa, thanks we begin this hour with the big sell-off in tech the nasdaq falling into correction territory because of these moves. facebook, apple and google all down with session lows and stocks plunging on reports of possible government intervention, investigations, let's call it. services sector as well. dom chu is here with more. >> it seems so crazy

megacap technology, very much a focus. let's start with facebook because it is the biggest drop for facebook stocks since july of last year after "the wall street journal" and bloomberg both reported that the federal trade commission, ftc, will take point on any examinations at facebook according to people familiar, nothing definitive yet from the fdc. targeting the effect on digital competition and just in the last hour, as tyler and kelly and melissa mentioned, royceeuters reporting that the justice department gained the lead on oversight related. apple faced that, the latest development of divvying up tech territories in tech, media and retail "washington post" reported this past weekend that the ftc will take the lead on anything amazon related and now perhaps facebook as well while the justice department will leave anything related to google parent company alphabet, now apple.

the majority of what's known as the faang trade. some putting google, apple in that mix as well alongside google even netflix down despite no headlines regarding regulatory inquiry there. i mentioned the big stock dropper, facebook, off the worst levels of the day. it managed to bounce at 161 a share. that represents the long term trend line for the stock for 200 day moving average that, guys, will be a key level for watch. >> let's break this down with jason and a reporter at the "new york times." jason, start with you. these moves are extraordinary. what do you make of it >> sure, so a lot of headlines to digest. i first want to say that facebook seems more of an overreaction more of a trade, as you will, between government agencies but

let's back up a second so first, we heard of the doj basically oversight for google and basically kind of took over where the ftc was many years ago and reported the ftc investigation chose not to move ahead. presumably, all of that information then turned over and seen perhaps the trade was, okay, you get facebook, but there's another way to think about this when we had the apple news with the doj also saying they're going to look at apple what do apple and google have in common it's mobile. so perhaps, it's the mobile on one side analysis versus the consumer, amazon potentially and facebook on the ftc side and then i want to get into how historically these agencies have looked at kind of anti-trust and whatnot. historically, the droj looked at market dominance look at how big is your business and are you too big and kind of have you done something that makes them realize you're too

big? on our math, it would be a u.s. probe that google, by the most conservative, about 26% of advertising, but if you get much more broad and look at shopper marketing with what's called brand activations, everything marketers spend, they're 13% so kind of keep that number in mind on the ftc side, as the company injured the consumer, does their business practice hurt the consumer and kind of, that's kind of, i think, the way in our mind, it's looked at right now. >> we want to bring in andre barlow, former doj attorney. great to have you with us. when you look at how these agencies seem to be divvying up, so to speak, big tech, can we then think about what sorts of remedies each of these agencies might look to exact on these companies? >> well, you know, i think it's too early to tell in terms of remedies we're at the very early stages of the investigations by the ftc

into facebook and the department of justice into google but, you know, remedies will come later on. the first thing is they have to figure out, have the anti-trust laws been violated right? have facebook and google, have they done anything that would result in some sort of remedy? so i think it's really too early to tell if there will be any remedies but if there are going to be remedies, i would think they'd be more behavioral in nature and not structural. >> i guess what i was really getting at, andre, if we say that the ftc is going to spearhead the probes against facebook and possibly with amazon, can we say asking those companies to break up is off the table whereas the companies in the sights of the doj could face that ultimate remedy >> well, i wouldn't say that anything is off the table but i would say this

from past experience and, you know, we have the experience from microsoft when the department of justice brought that case to trial and actually won and had a chance to use that remedy, that structural type of remedy of breaking up microsoft, it chose not to do so. these are companies that have all grown pretty much organically. the other thing we have to factor in here is just, you have to balance the pro competitive and the anti-competitive effects and all of these companies are offering consumers great benefits so they have to move with caution. i expect these investigations to be thorough and they will think long and hard before they would go with a structural remedy. i would think we're going to have more behavioral type remedy >> ed, why is this happening now? >> the timing was pretty stellar on the parties, right in the

middle of apple's announcement i'm surprised. i'm stunned by the timing, frankly. all happening at once. it is something that both agencies have been signaling for a while, so in that way, maybe we shouldn't be surprised but not to be discounted i think this administration has made its sentiments clear about big tech generally, so i think, you know, it's sort of a long overdue kind of a thing. on the other hand, not saying advocating for tech but the position they tend to take when they look at this is, hey, look, you want to stifle us or break us up or exact remedies against us look at china. they're getting rush from the government they're getting all the support they can from the government and they're going to eat us if you try to clamp down on us. that's the argument you've been making if you look at what google has done, the search business is great but look at those profits to fund new things that you don't know what's going to come out of it. those are the things that could die if you start to look into their business and exacting these kind of remedies that you

won't have that kind of innovation but the investment if you look at this by. that's sort of the threat they seem to hold over this sort of regulatory >> there are folks on the democratic side no fans too. bipartisan >> bipartisan issues, for sure >> so it's not only emanating from president trump >> an argument to be made -- >> there's an argument to be made it does hurt consumers. only so many choices left, only so much you can interact with the friends and family whether it's facebook or things on amazon or use your phone for that matter if it's apple. so i think those are legitimate concerns everybody is motivated by some kind of politics so that has to be a factor in terms of how thenned up playing out what are their convictions, really, with what that looks at. >> when you look at the declines in these stocks, how do you walk through the losses we're seeing today with sort soft worst case scenario, calculations with the pain these companies will feel from any sort of pro or ftc? facebook, for instance, is off

by $470 billion in market cap today. they've already put aside 3 to $5 billion to settle claims whachlt accouand what accounts in this decline in your view? >> i think particularly taking alphabet coming off the last earnings, this stock got eaten up by a lack of disclosure, slow down the business. so saying it's cheap and wait it out and then you get this negative news headline, kind of academically, many people are more concerned, actually, with regulatory risks, google than facebook look, facebook was supposedly close to a settlement with the government, soy thi i think thi again, momentum and does the neighborhood not look as attractive as it's supposed to be and even company specific given the broad sell-off. >> you think alphabet or facebook is a buy on this? >> we think both apple and, sorry, both google and alphabet

and facebook are highly attractive here for long-term investors. >> all right thank you so much for joining us andre barlow, ed here will stay with us on apple. >> the worldwide developers conference under way that's apple's shares which were recently at session lows because of some of the regulatory announcements but they've had a bunch of major announcements josh lipton is live in san jose for us josh >> kelly, yeah, the news coming fast and furious at this software show here let me bring you up to speed on headlines here new upgrades to air pods remember, apple doesn't break out the units for those device but 20 million sold to date according to some analysts siri is now able to read incoming messages. working out while using that feature. for siri specifically updating the digital assistant too, should make it sound more natural. cook knows he has to compete hard here against amazon's

alexa, google assistant, microsoft's cortana. voice technology so critical to everything from wearables to self-driving cars and remember, apple poaching some big including some google ai gurus who made the jump to cupertino interesting ipad os. for the ipad, not the focus for investors it used to be, smaller revenue line the last time apple reported, the revenue actually higher. the highest growth rate in six years thanks to that ipad pro. keep listening, bring you more headlines as they come >> joshua, thanks very much. dan ives and ed lee still with us dan, we were talking earlier about how apple is a by the rumor on the developers conference announcement with the fact and how much of this is relevant today with the shares down the way they are because of this regulatory scrutiny >> it's been a gut punch we've seen thus far. not just from china but with the regulatory probe, potentially.

and the thing now about developers, it's about streaming. services is going to be the key and thus far, disappointment with what we're hearing. you want more details out of the streaming service and dropping some of the tea leaves thus far, investors lack the details and all bad news and today's another gut punch. >> what about what ed said earlier? it's streaming itself, if you're looking at as a regulator, who knows if that's what they'll pursue but would you break it up along the lines of services with one business or anything like that >> made a great point. i just continue to focus the service and businesses in our opinion worth $400 billion the $450 billion we continue from a valuation perspective, we kind of view apple here on some of theparts but no doubt, it was viewed from a regulatory you have the lawsuit in the supreme court. that got passed, noise and now potentially apple in the area code they're looking at

this takes it to a real threat. >> qualcomm? >> no, the supreme court where they allowed the anti-trust. >> absolutely. >> which had the m word, the monopoly word, at the doj. i'm hearing from investors, even the last half hour, what could this mean in terms of its business model and is this a real threat? >> how can that business be valued as the services business, stand alone? the whole argument, the whole time is that this is a fly wheel and the two are interrelated and one helps the other? how can you just separate them and say, this is worth this much and this is worth this much? >> even one and two and play it together, in terms of the valuation of services, that value, $50 billion of revenue, some of the parts of what that value is no doubt if a doesn't have b. >> presumably, it's a very different business if it's not apple hardware >> if they ever separated services from hardware, it would be an all game sort of

this would be, i would use more of a dray coconian but now that potentially is on the table, adding another threat to apple that investors didn't see coming. >> i think that divorce of itunes moving it off with this new announcement sort of tells you also that the point of linking services, that much more important. the whole reason itunes existed at the outset was to have these demos but made it available on pcs. that actually never took off they're recognizing that it's hardware driven, specific, dependent and back to the services equation, beyond music, they haven't done much more. we'll look at the tv business. see how that's going to play we don't know if it's priced there's a chance it could be free and ties it much more closely to hardware. that's the lynch pin for them in terms of all the devices out there, that's the network and we're going to sort of as much as possible. >> what about china? >> i mean, right now, the biggest threat to apple is

china. some of the demands, 20% iphones. >> when you look at china. >> bought out of china when you look at the production side, could there potentially be not just retaliatory but can they kind of touch that and disruption that's why they've become the poster child of the trade wars in terms of apple. so right now, you've seen that as a major demand and supply, you had the doj, this kind of nightmare scenario continuing to get overshadowed by news happening on the other side of the world. >> you're saying maybe that's a good thing nothing to excite you anyhow. >> my opinion right now, you view it all leading to the major trifecta iphone later this year and in our opinion, streaming, even though right now, details are lacking, that's going to be key. we still think 100 million users, they could get over the next three years but that's the bull case. right now, it's been sort of a

prudent situation and the bears are winning. >> thanks. good to see you. appreciate it very much. coming up, more on today's tech takedown of the markets nasdaq down 1% and shares of boeing, biggest drag on the dow right now. what the company's ceo told cnbc about the 737 max jets "power lunch" will be right back aww.

you never know what life is going to throw at you. [ whimpering ] and from this point on. nothing is going to be the same. [ "all these things that i've done" by the killers ] no, no, no. this way buddy. no! liam's heads for comforts is in the 80th percetile. oh that's cool. it's a lot of head. it's like you're the dad and i'm the mom and we're in a relationship and this is our baby. [ laughing ] well... it's exactly like that! exactly!

. market lower at this hour. possible investigations are weighing on big tech bob pisani at the new york stock exchange with the action bob? >> hello, melissa. the market has come to believe that trade tensions between the u.s. and china plus new tariffs on mexico may be a more permanent part of the investment landscape this year so many firms are starting to cut their earnings estimates for this year and next here's a good example. bank of america, they did it this morning they cut their 2019 earnings estimate with the s&p 500 from $168 to $166 1.2% decline and 180 to 176. strategists see three big problems an upturn in earnings in the second half. not a downturn but those chances are now diminishing as bank of america just acknowledged this morning. second, the chances that these trade deals may never be settled as become very real. by that, i mean the tariffs may

remain a constant threat now for months and perhaps, for years. finally, there's a much tougher regulatory environment and we've seen seeing here today for big tech names like google, amazon and facebook, all of those down rather significantly today and of course, all three major issues for the markets kelly, back to you. >> bob, thanks big interview in the past hour on cnbc philip lebeau speaking with dennis muilenburg, the ceo of boeing joining us now for a recap phil >> some news came out of the interview when we talked to dennis muilenburg. where things stand with the 737 max right now. now, he tells us that, yes, they have completed the software fix for the mcas flight control system currently testing it in a simulator. whether or not they're going to be done this week, next week, remains to be seen but then plan to file for recertification when they'll perhaps get a better sense of how things move forward. they've had zero orders from the 737 max since it was grounded in

march. look at sharing of boeing, also should point out over the weekend, the faa said, look, we plan to have an airworthiness direction come out for the 737 wings, the max and the ng models here's dennis muilenburg talking about this latest piece of bad news for the 737 >> this particular issue around the tracks is a well understood one and will work our way through quickly but something we'll stay very coordinated with our customers. we know it's important and we want to minimize the disruption to our customers >> by the way, dennis mullilenbg could not give an estimate and you were in on the interview as well, also said, again, he believes he is the right person to lead boeing despite the fact a lot of people are saying, what went wrong over the last couple of months? >> as we all saw, repeated the same things and keeps saying we're putting safety first he did say they made some mistakes on the mcas and those

sensors in particular, but there wasn't a broader acknowledgment of a culture where there was a flawed culture, phil he kept it very specific, i thought, in terml terms of where thought there were issues. >> and i think in terms of that culture, that's one of the questions out there for investors for some time to come. sure, you may get the 737 max flying again and increase production from 42 to 52 but at some point, there will be people who sit there and say, has boeing made the changes that are necessary to ensure that this doesn't happen again dennis muilenburg said we're going through that process and make sure it doesn't happen again but it comes down to the belief in whether or not the culture had changed. >> yeah. phil, thanks very much philip lebeau. appreciate it. tech stocks takes a hit today. nasdaq down. one group is outperforming chip osocks are higher. boted by a $10 billion deal. we'll check the chips next on

"power lunch." ♪ lower calories. ♪ higher expectations. the light beer you've been waiting for has arrived. corona premier.

welcome back to "power lunch. i'm michael santoli at the new york stock exchange. semis. cypress soaring after it agreed

to be bought out is there more to life in the space? gina sanchez, your "trading nation" team ari, one day's bounce doesn't change a trend but how does today's action fit in with the longer term behavior, the patterns in the semis? >> i could tell you this that the philadelphia semiconductor index has come to an important level at 1280 this was the index's january breakout level oftentimes, former resistance becomes support. to the index's oversold into support indicates that it's too late to sell and i think there are some select opportunities out there. i think on the flip side, seasonally, june is a month where semiconductors typically underperform so our view is that from a trading basis, you'll continue to see some very jumpy volatile

trading here before you get aggressively long, i would say. mixed evidence still in summary. >> all right and gina, i suppose that part of the evaluation here is just how much of whatever china impact is going to be already priced in and then just the condition of the semiconductor cycle. where do you come down >> if you listen to the semiconductors in each company, they're basically calling for a bounce in the second half. so i think in the short-term, some of that may start to play out. the china story still kind of is, the fact is that china doesn't have enough semiconductor manufacturing capacity to replace u.s. semiconductors so with only 30% of the demand met within china, they're still going to have to buy u.s. semiconductor stocks they're going to move to displace that. but for the medium term, these semiconductor stocks have a demand in china that cannot be met. >> all right, maybe still some comparative advantage there. we'll see if that continues,

gina, ari, thank you very much for more "trading nation," head to our web site or follow us on twitter at @tradingnation. back to you. >> thank you, mike, very much. ahead on "power lunch," recession fears, trade war risks and earnings pain. which one has it right stocks or bonds? plus, we're going to reveal the mystery chart. up more than 100% over the last year there it is. mystery chart. and the mortgage rates tumbling. what that means for the housing market all this and more when "power lunch" returns after this. >> and now, the latest from tradingnation.cnbc.com and a word from our sponsor. >> a double top is a chart pattern that suggests an uptrend might be ending and ready to reverse. sometimes called an m-formation because of the way it looks on a chart, the double top consists of two well defined peaks at approximately the same price traders often view a break of the lowest low as a bearish

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hello, everyone. i'm sue herera here's your cnbc news update at this hour.

president trump toured westminster abbey this morning he and the first lady paid their respects at the grave of the unknown british soldier who's buried there part of his state visit to the uk. a man was sentenced to 19 years in prison after throwing a young boy off the balcony at the mall of america. 24-year-old emanuel aranda in court after pleading guilty to first degree attempted murder. passengers on airlines fright got a scare this morning when their plane had to make an emergency landing at charlott charlottesville airport. it had taken dozens of people to ronald reagan airport in washington no details on the nature of the emergency. hiv patients may be living longer but they are also dealing with more heart issues that's according to a new scientific statement from the american heart association 75% of hiv patients are over 45 and are facing health challenges at earlier stages. including heart attack, heart

failure and strokes. you are up to date this hour back to you. >> sue, thank you. sue herera 90 minutes ago until the closing bell rings here. no surprise, the nasdaq feeling the most pressure because of these fdc and doj investigations into big tech. nasdaq down and dow with a slight gain but s&p 500 weighed by information technology at this hour and communication services down by a quarter of a percent. ty >> melissa, look at oil which is closing for the day and dominic chu at the commodity desk. >> acceleration of losses into the close. west texas intermediate. $52.97 brent futures a hair above $61 the price action likely represents at least an acceleration but it was a pause earlier today in what some traders call oversold conditions or price drops that move far quickly before historical statistical norms. saudi arabia's energy minister cited by arab news saying the

country will do what's needed to maintain market stability to june and the event of the global economic slowdown. china trade policy between the u.s. and mexico, prices for wti lost by around 20% since the recent high in april, down 30% since the october 2018 highs ty, back to you. >> thank you very much major averages on a big losing streak lately, but they are still up nicely for the year however, yields on the 10 year treasury note falling hitting their lowest level since september of 2011. how much has fears about the trade war and a possible recession priced into this market and which is right, stocks or bonds? let's talk about that with michelle, senior wealth adviser with capital management. good to have you with us >> thank you. >> what are bonds telling you? >> i mean, bonds are definitely telling you that they're nervous with the 10 year treasury being at 2%. however, i thicnkthat's a good

thing for stocks because with a lot of stocks given a dividend of 4%, you're rewarded by sitting in the stock market then the 10 year treasury and i think right now, particularly with this sell-off, the market is a buy. >> it makes stocks look relatively more attractive the what you're saying. >> correct. >> but what do the falling bond yields tell you about the health of the economy and if the economy is slowing, that's not good news for stocks. >> well, i don't think the economy slowing is that bad for stocks i think what would be really bad for stocks is if the economy went into recession and saw a negative growth. a slow economy, gdp growth between 2% and 4%, stocks usually do pretty well what i think is a positive of the 10 year being is low, which there aren't many positives but like giving another boost to businesses people who are going to buy more homes because the mortgage rates are lower. so i think that, in effect, is positive and ultimately will help the stock market.

>> when you put this all in with some of the other signs that investors may point to that are concerning, the potential looming tariffs on both china, chinese imports as well as mexican, you've got copper at 2 year lows. sort of an amalgam, contracting over the last couple of months when you put it together, it seems to point to a worrying backdrop for stocks overall. i get your point but how do you walk through, you know, stocks looking attractive because the low bond yields telling you something that may even be more ominous for stocks >> we've been here before. 2015 and then at the lows of 2018, so this isn't a new story. so i would say particularly, if you're a long-term investor, you need to be taking advantageand there's a lot of buying opportunity out there and for example, today, yes, tech selling off, values doing okay but foreign markets are up so i think a lot of opportunities are out there, not just in the u.s. >> i like your point that more than two-thirds of people shopping at ulta own more than

two curling irons. there's always, as jim kramer said, there's a bull market somewhere and find this one. where do you find specifically a bull market in the stock market? >> i love the beauty sector. and beauty tends to actually do well even in a recession if you're looking for a recession-proof industry, beauty is it. and then also, particular with ulta, it's been interesting how they've captured not only the millennial market, which we talk about the millennials ad nauseam. i'm tired of talking about them, but also the gen z market is a massive market i think their purchasing power is $44 billion and they're pretty young, right? and only going to get more and more purchasing power and ulta is ripe to take vac of that. >> is a known story. one of the best performers so on a day like today when you're looking at tech and saying, those were the secular growth stories, can we count on them or not? would you look there as well >> i think there's better

opportunity and talking about tech, i like to encourage my investors because, i'm investing for the long-term to take advantage of the sell-off like this however, instead of just picking names, maybe pick the broader index. for example, the vanguard growth so not only the tech companies, but you also get like visa and master guard and they've had explosive growth year-to-date. you can take advantage, maybe they're having a little bit of a poor month but you can capitalize on the future growth. so i think there's a lot of opportunities that people are noticing. >> michel, thank you, good to have you here. >> thank you. to the bond market now, rick santelli is tracking the action at the cme rick >> hi, melissa lee down 7 and 10 year note yields 3.5 in tens. it's all about a strained steepening on the wide curve and obviously, inversions on the short end. april 1st of 2016 starts the 10 year hovering at the lowest levels you see on the spikes in september of 2017. but maybe more important is just the breadth and quickness of the

sell-off tens, minus twos of hovering at 24 steep close here since thanksgiving of last year. and finally, 10s minus boons a lot of talk and minus 20 basis points lowest yields ever in the history. but you see that huge drop this time, we can't blame europe or global weakness this is our own created trade issues coming home to roost, affecting rates and the dollar index giving up ground as well dlarn d dollar index, lowest since mid april. back to you. >> mr. santelli, thank you on the tasting menu, americans living alone and drinking less those two things not necessarily related. upset in the world of boxing and talk to the ceo of the company behind this mystery chart up 109% doubled your money this year stay with us to find out

rebekkah: opioids has taken everything and everyone i've ever loved away from me. everything. i blew my ankle out and i got prescribed pain pills by my doctor. if making my detox public is gonna help somebody i'm all for it. i just wish i would've had a warning.

welcome back it's time for the tasting menu first item today is more americans living alone

nearly 36 million people live alone now. that's 28% of u.s. households according to census. that compares to just 13% of households in 1980 more than doubled. and the "wall street journal" points out the consumer products companies have to change the way they packet and market as a result bad news for costco, i didn't start shopping because i had to because it's right when you're shopping in the city, you just grab on the go. one guy said i don't need a whole thing of toilet paper, 40 locals i need one or two. >> a gross of paper towels. >> it doesn't go bad and much cheaper to buy it in bulk. ketchup, on the other hand, you don't need a gallon of, as a single person. >> better margins, pricing win win sort of. >> in booze news, fewer people are drinking alcohol to a new report, worldwide alcohol consumption fell 1.6% in 2018 and data shows consumption in gin and whiskey and beer and wine volumes fell.

>> it's your culprit, cannabis >> absolutely. illinois to legalize recreational marijuana i don't think there's a coincidence. definitely >> look at constellation brands. it saw the writing on the wall cannabis >> move to boxing now. i know you guys are really following this one. >> really closely. >> big upset in boxing this weekend. the underdog andy ruiz jr., not to be confused with andy ruiz sr. beat anthony joshua to become the new heavyweight champion ruiz also knocked out the supposed smart money in vegas. 90% of the money wagered was bet on joshua, william hill saying someone bet $100,000 21 to odds favorite $5,000 profit. you risk 100 grand to maybe make

five >> did anyone do that? >> why would you do that >> someone did reportedly. >> he would beat ruiz which clearly, he did not. >> you get the 100back though? >> yes, the 100 back. >> otherwise that's a really bad bet. >> all right shares of amgen higher on positive news for its drug to treat lung cancer coming out of the big cancer conference in chicago. that news benefitting therapeutics with a similar threat our own meg tirrell at the american society of clinical oncology with the co-founder and ceo of garden health meg? >> reporter: melissa, thank you so much. >> thank you, meg. >> we were talking about drug companies but we're talking cancer detection the long-term goal is any healthy person walks into the doctor's office for annual physical, gets a blood test and potentially detect cancer when it's easily treatable. how close are we to that goal? >> we started the company about

six or seven years ago and our approach to getting there was really starting with late stage patients, understanding what stage three or four cancer looks like in the blood and then developing that technology or refining it and helping cancer survivors. 15 million of them in the u.s. worried their cancer may come back using the learnings from that technology to get the early detection and exciting news, we've almost made the late stage liquid bipartisopsies, standard care for late stage patients and we've now launched in december of last year where it's being used in research studies with pharma companies for the early stage cancer patients and the data we're getting from that so tremendous and so encouraged by it we're actually launching a 10,000 patient study in colorectal cancer for average risk screening not that far away from seeing the promise becoming a reality of a blood test for early

detection. >> why did you choose that cancer type in particular? >> a number of reasons we've taken an approach, for late stage patients, we started with lung cancer where there was the most clinical utility. there was the most information we could provide to physicians to give patients much better options in terms of what their physicians should select and in april of this year, we're able to expand our medicare coverage from lung cancer to all solid tumors we've taken this strategy much like pharma takes with their drugs, if you think about american, they started and broadened it out when we look at colorectal cancer, a number of reasons i think where we decided to go down that path to performance of the technology in terms of the clinical specificity and sensitivity and their issues with existing approach in terms

of compliance and coal nlonosco and two out of three complete those tests whchlt we looked at the regulatory and reimbursement and clinical evidence and coal llorectal an indication to pull the trigger on and go forward. >> tell me you're going to start clinical trials and more than 10,000 patients for this trial, starting in the second half of 2019 how should investors think about the opportunity for this colorectal cancer screening test the total address of the market seems logically bigger than screening devices or tests for cancer patients who have some sort of cancer already, but how should we think about the profits for these tests versus others >> let me walk you through the three market verticals we're in. the leader in the advanced stage cancer market today.

about 700,000 metastatic patients it's a $15 billion opportunity and in early detection, there's at least 35 million who are high risk of developing cancerasympt0 million who potentially could be screened for early stage colorectal cancer in terms of annual screening guidelines. and you look at that, that's much more than an $18 billion total addressable market geometrically larger opportunities for us as we go earlier in terms of the disease continuum. >> i think we have to leave it there but thank you so much for being here big market and a big important thing to be working on >> thank you so much, meg. >> all right, guys, back over to you. >> meg, thanks so much still to come on "power lunch," are tariffs and threats of tariffs going to have a big impact on where and how people travel we're watching those stocks closely. also the fang names selling off sharply today. cey le and facebook potentiall fa investigations by the federal government

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welcome back to "power lunch. how are tariffs and the threat of them playing out in the economy? seema mody is speaking to hotel and travel ceos in new york about that very issue.

seema? >> kelly, you hosted a great panel this morning from my conversations with travel executives at the nyu hospitality conference it's clear that tariffs are a challenge but it's not stopping the hotel developers from trying to win over the chinese consumer in fact, it's incentivizing them to double down on their expansion strategy inside china to get their brand in front of this very important consumer >> if you look across all of our hotels in china, 60 properties in china now which we will double over the next couple of years, so you're right, we're really significantly expanding into china, the vast majority of our guest base is chinese travelers. so we've shifted from probably a 50-50 mix of international travelers and chinese travelers. >> the travel industry is also dealing with a labor shortage. executives say that tariffs with mexico, tighter immigration is going to make it even harder to find good talent

>> we need immigrants. they are the backbone of what we do in the lodging industry and oftentimes it is the first opportunity for these men and women to have a job which leads them to become part of the fiber of our country >> tighter immigration also means the hotel and travel executives have to be more creative on how they approach hiring, looking at recruiting plans and also training programs to ensure that they get the talent they need to run their hotels across the u.s. guys, back to you. >> seema, thank you. seema mody interest rates falling even lower today. what it could mean for home yendelrsne, xt with all that usaa offers

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the yield on the 10-year note falling even further today getting below 2.1% and that will likely bring mortgage rates down too. diana olick looks at that angle. hi, di >> hi, ty. even more so, mortgage rates have already come down more than a quarter percentage point in just the past two weeks. that may not sound like a lot but it can make a big difference for homeowners and home buyers alike. the average rate on the 30-year fixed is now solidly in the 3% range. around 3.9%. but it was up over 5% last fall and in the mid 4s through much of last -- much of the all-important spring housing market there are now about 5.9 million borrowers who could drop their rates by at least 75 basis

points through a refinance that is an increase of 2 million in just the past month according to black knight, a mortgage software analytics company now, that is the largest population eligible candidates in nearly three years and represents an aggregate $1.6 billion in potential monthly savings per borrower about $271 per month that's a fair amount for home buyers any savings on that monthly payment is crucial given today's high prices. also lower rates help more buyers not only just afford the loan but qualify for the loan. back to you guys >> thank you, di tony soprano, as we stick with real estate, tony soprano's house -- check please time is for sale. the current owners -- it's in north caldwell, new jersey, folks. they're asking $3.4 million. this according to the "new york times. the fictional mob boss's mansion is in north callwell 5600-square-foot footprint and

1 1/2-acre lot real estate sites like trulia and zillow estimate the house to be about 1.5 million i believe the owners of that house initially got $5,000 a day for ten days of filming. $50,000. then when the show became a hit, $25,000 a day. >> not too shabby. >> thank you for watching "power." >> "closing bell" right now. welcome to "the closing bell." i'm wilfred frost here at the stock exchange tech stocks getting slammed today as facebook and google face the threat of regulation. it's hitting the broader software and cloud space as well sales force down 5%. everything you need to know coming up. i'm sara eisen we'll start with what's driving the action tech stocks falling on regulatory fears fed president bullard says a rit caught may be warranted soon and concerns over additional tariffs still lingering.