of these, the older homes are cheaper homes. they need a ton of work. and if you look at, you know, a young household just starting out, they don't have the cash to do that gut renovation >> fascinating thanks for joining me. that does it for the exchange today. i'll go join tyler for "power lunch," which begins right now kelly, come on over. don't leave me alone we'll see you in a moment. i'm tyler mathisen new at 2:00, president trump targeting iran with what he calls hard-hitting sanctions the fallout straight ahead plus, stocks headed for their best june in decades could you keep riding this rally or is the time to get defensive? and tech investing, the state of the nba, golden state warriors andre igwauodala will join us in the studio he's got a new book out. you should get it. "power lunch" starts right now

stocks are struggling at this hour, as you see there. two out of three in the red. but not by very much the s&p and nasdaq just negative the dow giving up much of its gains. still on track for its best month since october 2015 check out beyond meat. every day, we like to check out beyond meat. the stock in the red there's a little pun for you the red beyond meat. for the fifth straight day down 17% over the past week. there you see it, down 16 and change kelly over to you. >> we begin in d.c. today, and president trump targeting iran with more sanctions. ameamon javers has the latest. >> that's right. the white house announced the sanctions which came officially from the treasury department, designating eight officials in the iranian military with these sanctions. the president in the oval office today called reporters in unexpectedly, announced the sanctions, and he was asked what his message is for iran's supreme leader here's what he said. >> my only message is he has the

potential to have a great country and quickly. very quickly and i think they should do that rather than going along this very destructive path. destructive for everybody. destructive for everybody. we can't let them have a nuclear weapon he said he doesn't want nuclear weapons. a great thing to say but a lot of things have been said over the years and it turns out to be not so but he said very openly and plainly for everyone to hear that he does not want to have nuclear weapons. so if that's the case, we can do something very quickly >> so kelly, the president there making a very similar pitch in terms of the iranian leadership that he made with the north korean leadership, approaching both rogue regimes pretty much the same way, which is an opportunity for their leadership and their nations to become wealthy and engaged with the global community if they follow along with what the president wants. if not, it's sanctions, pressure, and potential military threat for both regimes. so far, that hasn't worked in north korea. we'll see whether that same

playbook can work better in iran >> all right, thanks president trump this morning also calling out china and other countries around the globe to start protecting their own ships from iran. with us now to break this all down is nbc military analyst general barry mccaffrey. general, look, everyone's framing this as a u.s./iran dispute, but it wasn't even our ships they were targeting in the first place. >> look, it's a complex issue, as you understand. the iranians, to my surprise, are getting strangled by these economic sanctions and the people are blaming their leadership, not president trump. i think the other aspect of it is the u.s. has a legitimate right to try to prevent the iranians from getting a nuclear weapon it's sanctioned by the united nations. it's unlikely that either nation in their current trajectory is going to get the political objective they wish. nobody's interests are served by a war in the gulf. not the iranians, not the

saudis, the gulf coast states, the israelis it's going to be a disaster and an ugly little war i don't think it's going to happen either for that reason. at this point, it's public belligerence and no negotiation. not a good combination >> sure. so you're saying the iranians want those sanctions lifted. the u.s. wants what exactly? we have laid out those 12 or 13 demands earlier. some analysts say maybe now we're backing away from all of that, but you know, obviously, there's still a desire the president keeps reiterating, for them not to pursue a nuclear program. >> secretary pompeo's 12 demands did make sense the iranians are bad actors in the region they're heavily involved in terrorism in the shia arc through iraq, lebanon, and into the libyan desert, which is mostly a sunni muslim thing. they are without question continuing missile development they are a threat to the region. and if they get a nuclear

weapon, they're potentially a threat to central europe also. so we have national security aims that are legitimate the question is, did withdrawal from the accord and then the imposition of crushing sanctions, is that likely to achieve our goal now, i think one of the issues we have to take into account is the u.s. has massive military power. we can bring to bear we could devastate their industrial base. we could take out their navy and much of their air power. we can't eliminate their nuclear program. with u.s. air and naval power. we can't keep the persian gulf open to oil tankers with military power you would never get all the missile batteries, artillery, et cetera so we're really at loggerheads and it's time for the region to sit down and talk and try to sort this out. >> is the real message or mission, general, and good to see you again, regime change

>> well -- >> how could it be any other thing, really? >> i don't think it's realistic to think that the u.s., through external leverage, can get regime change. that's nonsense. the iranian people at some point are going to overthrow these people that have them in a theological dictatorship one of our problems, it seems to me, it was pointed out on air most of the day. we have lacked a national security rational process. we have government by tweet. we have government by impulsive measures the president, you know, threatening military action and not taking it because he said we might kill 150 people. a lot of that was nonsense we could have gone after ten iranian fighter planes on the tarmac at 2:00 in the morning. so a lot of this isn'thanging together, and our allies are not with us. and the iranians are desperate to break out of the box. so they're going to start their

nuclear program up again they're going to poke at us at a low enough level, they hope, to not incur a military strike. and they're going to try to get the chinese and russians and europeans to defy u.s. economic sanctions and bail them out. this is not going in the right direction. >> general, thanks appreciate it very much. general barry mccaffrey. stocks have lost much of their steam this hour. let's get to bob pisani on the floor of the new york stock exchange who can explain it all to us. >> the important thing here is the markets hit new highs last week most traders are essentially expecting a flatter week just take a look at what we can see right now. we have new highs essentially on the market at the lows for the day, down a little bit, but the important thing is advancing declining lies, still new highs. more advancing stocks than declining stocks every day as long as that happens, that's a critical indicator, unlikely for the market to see significant corrections. new ighs, we're seeing modest advances, not a lot. the important thing is the list

is still dominated by defensive names. you see colgate, coca-cola, pepsi, procter & gamble. utility names. finally, you noted beyond meat, but look at some of these big ipos today pager duty, revolve, zoom video, all down 7% or 8%. pinterest and crowdstrike are down 4%. not quite a trend, but something that bears watching. guys, back to you. >> bob, thank you very much. the dow edging toward record highs. on track for its beth month since october of 2015. its best june since the late 1930s. even i remember those. should you keep riding this run? joining us is sylvia joblonsky, and david katz, at matrix asset advisers silvia, let me start with you, is the big story this week what happens at the g-20? is that the thing the market is going to hold its breath about

>> i think the market is pretty happy about what jerome powell said the other day as well i think there are a few factors. one is we have a very active fed rate cuts coming our way. they would like to sustain the economic expansion, at least support it that's what helped the market in the near term. and the g-20 thing is hope is still on the table china is one third of the world's gdp. the u.s. has 40% or more exposure to china. we need to sell components there. they need to function without injected liquidity a deal is beneficial to both sides. if we got one, it probably could lead to a rally here >> david, if the g-20 ends in something less than comity, not comedy, comity is that going to be the banana peel that could cause the market to slip? >> we don't need an agreement. we have to agree to push the ball down the road, and i think the market will look at that positively if there is a disagreement if we're going to immediately increase the tariffs and the

language gets more inflammatory, we do think the market would be prone to a pullback. the market had a great fo four-month period when it looked like talks were going well and there would be some agreement. when the talks fell off, when president trump started to talk about increasing the tariffs and talking about what a great thing tariffs were, you had the worst may that you had in a very long time, gave back a lot of the gains. the market is definitely going to react to those, to tariffs, and how we are with china. if there's good news, we think the market can continue to do well bad news, we think the market sells off. it's very difficult to handicap what's actually going to happen. >> what about bund yields. fixed income in general, that yields are too low what signals do you read there >> i think a lot of what's been happening in this market is consumers have been on the fence in terms of whether or not they should stay in the market and fled to cash instruments, to fixed income products and defensive names. not a surprise that defenses are doing well today because the market rallied for a couple

days g-20 is still uncertain. maybe take a little off the table until we know there's an equity rally going forward, some of the flows will continue to those names, but the yield isn't there. you're still better off looking at the equity market >> you can't go to yield anymore. >> so many countries, and not just germany slovakia, slovenia >> maybe a great time to consider buying that house but that's about it. >> david, the other big story for the market is president trump, who took aim at the fed again. saying it's behaving like a, quote, stubborn child, in refusing to cut interest rates the president tweeting, the fed doesn't know what it is doing. and that the dow would be thousands of points higher and the gdp would be in the 4s and 5s as they say in college, discuss. >> well, we think the fed knows contactually what they're doing. we think the president unfortunately is acting like the child in this particular case. if you go back to candidate trump in 2015, he was actually saying rates were too low.

janet yellen was artificially depressing them and artificially inflating the stock market the economy is actually in better shape today than it was back then. so if you look at what he said back then, that would argue that rates are actually fine or ultimately could drift higher. we think the fed is doing fine what's clear about the fed's meeting last week is they will be lowering rates. whether it's next month or the month after that, they're going to be dovish we don't expect them to change that dovish policy for six to 12 months and we think that's what the economy needs. the fed can't lower rates enough if we enter a trade war with china. if we get out of that trade war with china, we think rates are great and the economy and then ultimately the stock market can go higher. >> sylvia, your thoughts on the fed and where the rates are headed or where they should be >> i think it depends on what happens in the next earnings season it depends on what happens with g-20 if we get a good deal out of the g-20, and earnings still look stable as they did last quarter, maybe the fed would be less likely to cut as many times as

the market expects if we have no deal and no hope of growth in gdp and economic expansion and the consumer sees definable differences because of the china tariffs, meaning goods are more expensive, companies have to move out of china, i would expect rate cuts would have to essentially keep our market up. >> thanks very much. >> thank you >> and david, thanks to you as well >> meantime, coming up, how much is your data worth to tech companies like facebook and google a new bill in the senate aims to make them tell you the latest push to regulate big tech and an nba star, andre iguodala of the golden state warriors, will join us in studio to talk about his new book, two of his teammates suffered devastating injuries right as they were set to cash in as free agents in the middle of the finals his take on that the state of the game. and his investment strategies. because he doea t tt.s loofha coming right up. carvana is six years old this year

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welcome back a new bill regulating tech and social media companies is introduced in the senate today one key component is these companies would have to put a value on these users' data >> this bill comes from democratic senator mark warner and republican josh hawley it aims to put a price tag on your privacy companies would have to calculate the value of all of the data they collect and disclose it to users it would apply to companies with more than 100 million active

users and the sec would create a formula for calculating the value. companies would also have to file a report every year, including contracts with third parties that collect data and allow users to delete their information. in a tweet, senator warner said the goal is to show the public that these social platforms aren't really free you're paying with your data but tech companies are pushing back one think tank, the information technology and innovation foundation, argue that the premise of this bill is all wrong. unlike with money, you don't have less data after you share it with a tech company, and often, the more data you share, the better your service. the group said the tech sector guys shouldn't be singled out. that's unfair. back over to you >> all right, thank you very much >> so how will companies value this data, and what impact would this have on the values of facebook and alphabet. joining us now on the cnbc news line is jason helfstein.

help us through this how would you value the data in the first place? and what could it mean to the famous stocks that we talk about here every day, facebook, alphabet, linked in, and more? >> sure, so we think there's more noise than anything, but i guess you could take the amount of advertising revenue these companies generate, divide by effectively the amount of people, and then wait toward the amount of time but then that would imply everyone is equally valuable then you say certain people, they believe you live a certain lifestyle, you're more valuable than somebody else you live somewhere else. it just feels like you're opening up a bag of worms. in particular, one of the ways, for example, it was criticized and they make it too easy for companies offering certain financial products like housing loans and what not to target certain consumers and facebook took that feature away so this just in general seems like a bad idea.

if you want to put privacy regulations in place, you could do that, but this doesn't seem like it would solve much if people are worried about privacy. >> what would the compliance -- we think about the financial business and the numbers of people in the large banks and the billions of dollars that they spend to stay in compliance with various regulations what would the compliance costs be here. seems like they would be huge. >> it's something, again, if something was to happen, i think they would be very high level, and companies might submit here's on average how much, you know, the value is worth you can do numbers now you just take the u.s. ad market of $70 billion or $120 billion, and you could divide that up and tv is $70 billion, you could say well, this amount of people watch tv, so does that mean every tv household is worth x? i wouldn't think it would go beyond that.

we don't really spend a lot of time on this, honestly we have an update this morning for our clients, we think actually usage trends or users are very strong on facebook and the next quarter is going to show stable to improving users and time spent is stable and advertisers are largely ignoring all of the headlines going on, and actually facebook is set up for a very good quarter. where we are focused on regulation is california bill, ccpa, which goes into effect january of next year and facebook is working towards comply ps iance on that we talk about that with our clients. this idea of coming up with a high level metric doesn't really mean anything. and you would literally be almost violating privacy if you went to the depth that it was actually meaningful. >> exactly, you have a $225 price target on facebook it's at $193 just before we let you go, josh hawley is also behind this idea that maybe we should have another look at section 230 of

the cba, which would seem like a much bigger threat to these companies' business models and not just these anyone operating on the internet do you take that talk seriously? >> i mean, look, we haven't gone down that road we have largely focused on first party versus third party the extent you choose to use a service, they ask you for information. you say here's my name, my email, my phone number you're opting into all of that whatever data they collect on you is fair game, and you can stop using it. really where we think consumers arguably don't like it is where, you know, the data leaves that platform so you fill out a warranty card and then your information is sold to multiple parties, and you can say, well, i had no idea or i wouldn't have filled that out. that's where i think consumers actually want greater clarity. how their data is being used not necessarily what it's worth. >> all right jason, thanks very much. we appreciate it shares of fedex are falling ahead of its earnings report

tomorrow we'll talk more about what's going on there and deliver the street's trade on that stock ahead. plus, disney's toy story 4 delivered at the box office. it wasn't quite what analysts were hoping for, but we'll talk about what that means for disney coming up on "power lunch. what do you look for when you trade? i want free access to research. yep, td ameritrade's got that. free access to every platform. yeah, that too. i don't want any trade minimums. yeah, i totally agree, they don't have any of those. i want to know what i'm paying upfront. yes, absolutely. do you just say yes to everything? hm. well i say no to kale. mm. yeah, they say if you blanch it it's better, but that seems like a lot of work. no hidden fees. no platform fees. no trade minimums. and yes, it's all at one low price. td ameritrade. ♪

welcome back to "power lunch. i'm mike santoli fedex stock down ahead of its earnings after the bell tomorrow stock flat this year that's its smallest annual move ever to this point also, sharply off its september high, down nearly 40% from that peak harry and john are your trading nation time today. take us through how you'retrans the fact they have been relative underperformers and how fedex fits into some of that >> there's not a call to be made here for fedex we're actually overweight the industrial sector. we really like the sector as a whole, more so the capital good side transports have been more a market performer, how we see it. there's pockets. i would stick with the rails

rather than fedex. here's what you have to know about fedex. trying to stabilize at $151. there's support here, that's a december low, but here's the thing. look at the 200-day moving average. it's still slopes definitively lower. that's indicative of a lower trend. it suggests strength should be sold rather than weakness bought stock also making a new relative low versus the market. so instead of fedex i would put you in a sector spider that tracks industrials >> john, clearly, stock has struggled. still under some pressure, but it screens out looking about as cheap relative to expected earnings as it has in two decades or so. does that matter to you here >> two points on fedex one, if you're involved in a stock or not, it's a must listen to earnings call they give so much visibility and guidance on where the health of the global economy is. the past two earnings calls, they cited the u.s. as doing okay but international is slowing and they have been right

the whole way. you have to listen to the call just to gauge where the economy is going in terms of playing the stock, it depends on your time horizon. longer term, you're off 38% from your highs the barriers to entry are so hard to penetrate on fed ex, and at the current evaluation, it's a no-brainer i think if you get a sell off tomorrow, you look to add to it or buy >> all right yeah, no easy situation. china targeting the company, yet reports of cutting prices to get more e-commerce volume thank you very much. for more trading nation, head to our website or follow us on twitter. kelly, back over to you. >> ahead on "power lunch," toy story 4 is going to infinity and beyond not quite, at the box office some analysts were a little underwhelmed plus, a power player, golden state warriors star andre iguodala will join us live in the studio, and a jackpot deal eldorado resorts buying caesars.

all this when "power lunch" returns. >> now, the latest from tradingnation.com cnbc.com and a word from our sponsor. >> there's a classic investment thesis called the dow theory it says the transportation stocks can either confirm or deny a broader market trend. but it's important to remember that transports can be sensitive to changes in oil prices and other market influences. so don't rely exclusively on this theory when making an investment decision. i'm randy frerk,edic and schwab is the better place for traders. who says our bank isn't tech enough?

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i'm contessa brewer. here's your cnbc news update at the white house, president trump announced new sanctions on iran, signing an executive order targeting the country's supreme leader and his associates. the president also issued this warning. >> america is a peace loving nation we do not seek conflict with iran or any other country i look forward to the day when sanctions can be finally lifted and iran can become a peaceful prosperous and productive nation >> more cases of the measles have been reported the latest cdc data shows there's now 1,077 confirmed cases in 28icates.

that's an increase of 38 cases from the previous week nearly 900 were in new york state. >> 19 dogs battling it out this weekend to compete in the world's ugliest dog contest. clearly, they didn't know that because they wouldn't do so with vim and vigor. the winner, scamp the tramp, a former stray with a messy mane i'll say scamp took home a trophy and a $1500 award and also made her -- scamp is a her debut on the "today" show this morning. that's the cnbc news update. wait a minute. scamp the champ, i'm thinking. >> i always think these dogs are adorable >> what kind of beer goggles are you wearing, woman >> i'm just telling you, if you told me it won the cutest dog contest, i would also believe it >> okay. >> okay, maybe that's just me. thanks >> i like how the tongue sort of dribbled out of its mouth. >> so attractive >> contessa, thanks.

>> the oil market closing for the day. let's go to leslie picker at the commodity desk hi, leslie >> we're seeing a late day rally in wti crude up about 0.8%. settling around $58. ice present down about half a percent or so, settling around $65. you can see a pretty significant rebound rally in that gas. up more than 5% today. largely, the oil markets appear to be shrugging off the u.s./iran tensions president trump announcing today he plans to impose major new sanctions on iran. that follows the attacks on oil tankers near the strait of hormuz, a popular transit area for oil shipments. iran denied any role in the tanker attacks last week, these tensions caused brent to gain 5% in wti to surge 10%, but at least for today, their appears to be a somewhat muted reaction in the oil markets. >> thanks very much. meantime, disney shares are under some pressure. toy story 4 raked in $118

million in the u.s. box office this weekend the best debut yet for the franchise, but it was still a little below analyst expectations let's bring in jessica, the senior media and entertainment analyst at bank of america merrill lynch, out with a new note today on this as well you think disney still has plenty of upside, is that right? >> we do we think there's at least 20% upside in the stock, driven by, of course, films while this film "toy story 4" may have underperformed initial expectations, it's still the best debut of all of the four films in the franchise >> you know, not sort of this tells you anything about disney fundamentally, but any time i see people so positive, and i don't just mean the analysts, but the general public so positive on a company, you wonder, what are we all missing. the same way people were so negative on disney for the last four years, now errand agrees this is the place to be. what are possible stumbling blocks what has to go right to justify that kind of price you're talking about.

>> totally agree it's a little disconcerting that everybody loves it, but there really is a lot to like at the moment the theme parks are on fire. given the two lands, the one that just opened in california, the star wars related lands, and in florida, opening in late august this is a really big deal. i mean, pricing has gone up a lot. they're doing -- they're trying to control attendance through pricing so they had a lot of pricing power in the parks and there's been incredible visitation of course, there will be a new hotel, and then their ip, their movies, have been phenomenal and really the big event that everybody is waiting for is the launch of disney plus in november and i think there's a lot of optimism given their content, given the push they're putting behind it. and i mean, even let's take "toy story 4. there will be character

offshoots and original content on disney plus there's a lot going on >> what, if anything, jessica, is the worry spot for disney is it bob iger's eventual departure. i can't think of anything else can you? >> yes, there are two things you hit the nail on the head with the first who is the successor this is an amazing company with incredible management, incredible quality, incredible brands and assets. who's going to take over will bob iger leave. will he stay for another term. we'll see. we just don't know, and that, of course, is a turn longer term. and then what happens with china. are there any ramifications at all. given the ownership of the chinese in the disney park, it's hard to see a negative impact. chinese consumer, of course, is important. but the chinese on twn the bulkf that park so they should be in

decent condition yes, there are concerns, of course the economy is always a concern. we seem to be fairly healthy right now, and i can say that the advertising market is wrapping up and it was extremely robust so that's another positive sign. >> you know what strikes me is we haven't said the four letters yet, espn. a couple years ago, this discussion would have been entirely about that. for a while, and maybe it still is something like 40% of the operating income is it just that they have deemphasized the risk of espn or done something to fundamentally changed the monetization going forward? >> part of it is, and you're 100% right, but part of it is that all of the other pieces of the company are growing rapidly. whether it's consumer products or film or their other networks, but of course, espn has been a big focus because it's such an important part of the company. but their plan b is espn plus.

if consumers really do cut the cord, which they're doing slowly, not rapidly, but if they do, then there is a streaming option over time to take its place. so they have kind of covered their bases. right now, espn is still like a huge cash machine. >> all right and that's how you get 20% upside jessica, thanks very much. >> kelly, who has he always does, tracks the action for us from the cme hi, rick >> hi, tyler i'm going to go fast because something important happened this morning at 10:30 eastern and it affected all markets. we saw a weak june read on dallas manufacturing what we saw was minus 12.1, the worst in three years new orders increase, production increase see the way the charts, whether it's 10s, bunds, or dollar indication, around 10:30 eastern, they made the lows of the ession when you look through the respondents and some of the comments, what i found was really fascinating it said this political gridlock

is hurting american business interests and tariffs andfear of increasing tariffs are not good it is time we get fair trade and we need everybody working together for the good of the country. in other words, respondents that gave us that weak headline number aren't looking at the negotiations between china and the u.s. they're looking at the politics behind it. they seem committed for a good purpose. i think that really goes a long way to say why investors in many companies are having issues but they're not really complaining because they agree with the ultimate purpose kelly, back to you >> rick, thank you rick santelli. up next, nba star andre iguodala will be live here in studio lots of basketball to talk about, the nba finals, free agency, the draft. and his huge portfolio of investments, including hitting it big on one recent ipo, as he makes his way over that's coming up right after this on "power lunch." my experience with usaa

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you probably know our next guest for his skills on the basketball court, but andre iguodala of the golden state warriors is much more than a three-time nba champ

>> thee times. >> making a name for himself in the business world, investing in more than 40 companies, including zoom my favorite shoes, allbirds, and caspar you can now add author to his resume his book, first book out tomorrow, called "the sixth man" hits shelves and we're happy to have andre back on his first book tour. >> yes >> appearance. but you have been here before. >> been here before. i like when you said first book. >> of many >> so much i would like to talk to you about you don't pull many punches in the book you talk about race, you talk about the league, you talk about ownership and so forth i want to talk about investing you have gotten into it in a serious way. >> yes >> in reading your book, you are a highly competitive guy you're competitive with your brother, competitive because you always felt like you had something to prove is competitiveness an asset or a detriment as an investor >> well, that's a very good question one of my favorite shows is

billions and you see that the competitiveness is taking people out of their human state and they - >> that's what i was interested in sometimes i think competitiveness will lead you to think, i'm going to prove that market wrong >> yes, but it can be used to your advantage if you do it the right way. you have reverence for your profession or your job you try to use it as a way to help everyone involved and at the end of the day, for me, it's thirst of knowledge i'm really competitive with how much knowledge i can gain on a day-to-day basis if there's someone who knows more than me, i'm not going to be competitive with him, but i would like to put them in my circle to learn as much from them as possible >> one of our producers had a very interesting question. it was this -- were you always interested in investing? particularly in the kinds of tech companies that you have seemed to lean toward, or did coming to play for the golden state warriors, by silicon

valley, where i'm sure some of the ownership group has made their money in technology shares, is that what led you to some of the companies and investments you made the proximity? >> it was all before you hear a lot about free agency in basketball and players going from this team to that team and how does loyalty play in an athlete staying with his team versus a team trading a player and a player having the ability to play in a market he wants to play in. before i got to the golden state warriors, i was always interested in business and how the business world worked from a young age as a kid my background and environment, you didn't see too many african-americans have their own business it was never taught to us to run your own business. when you get to the nba, there's a lot of work done to emphasize guys learning how to handle their finances and handle their wealth to last the rest of their careers. none of us, we had no previous teachings of that. they don't have a tax class in high school. >> they should >> they should >> so for me, it was learning to

make the most of my time i didn't know how long i would be in the nba. ia don't know if you'll be there for two years or 15 years. i have been blessed and fortunate to be there 15 years early on, i told myself, ask as many questions as possible early on, i wanted to learn as much as possible about finances. from there, it's how does investing work i was able to start my own e-trade account. it led to small investments, and i found i had success in tech companies. you know, i'm learning about publicly traded companies because that's the e-trade account. then you learn who is coming up next, which companies are going to come to the public market next and then the light bulb goes off, there's a private market, and then there's many series of rounds of investing in those markets and then you have seed rounds you have start-up rounds that led me to being a free agent and a perfect opportunity where it was a great basketball team

and then, you know, right after the recession, and the markets, the private markets and the investment worlds were coming right back up. it was kind of the perfect marriage at the right time >> in looking at some of your -- i don't know if you looked at the market today zoom and pager duty, you're involved in these companies. you have a business partner for a lot of these you're on the board of jumia, which some call the amazon of africa what's it going to look like in five or ten years time >> i hope it's ten times larger than it is now i was very conservative early on in how much money i invested in the companies because i didn't want to take too much risk because i'm learning, but my portfolio has done really well you look at zook and pagerduty >> great ipos >> like one and two on their growth since they ipo'd, in the entire markets you look across uber and lyft have gotten a little bit of riff as far as they haven't done as well as people expected.

but a lot of tech companies are doing really well. and they're pretty much holding the market up and keeping it on the up and up. >> you know, you talk a lot in the book about really how hard it is to do what you do. the wear and tear on your body, the work you have to put in in the gym. you were a fanatic workout guy weight guy, weight lifter and so forth. i think -- i'm not going to speak for all nba fans, but i'm going to speak for myself. i was saddened that you guys in the finals were not able to play with your best team. because you lost two critical players in the middle of it, to really devastating injuries, as they come through it i want to read something do we have that quote from page 132 of the book. you're literally trading your body for cash, not just for yourself, but cash going to the pockets of other already wealthy, mostly all-white male owners you really have to wonder if it's worth it. but then in the same passage,

later on in that passage, you say, and i underlined it here, but the thing was, those difficult moments, those dark nights and painful days, i didn't think i was doing them in exchange for money i still don't. i was doing them in exchange for playing a sport that i loved truly and deeply loved do you do it for love or money >> i play basketball because i actually love it i put myself in a position to, i don't have to play anymore >> oh, that feels so good for me, too. i don't have to either it's great >> and it's interesting. a lot of players who have a consciousness about themselves, who have a good sense of balance, good sense of self, they really don't enjoy the money as much. they're not as flashy. they don't buy, you know -- >> 11 cars >> expensive things. they live simpler lives. they enjoy nice things but their lives are simpler. so you know, my day to day cost

or month to month cost is well below -- i live well below my means. i don't need the money, i don't enjoy the money as much as people think we do but i do enjoy the interactions, the relationships, the impact that i can have on a a teammates 19, 20 years old is far more worth, you know, the salary that comes in you know, it's like generational wealth in terms of knowledge and what he can give to his kids and the generation after that. >> one basketball question should the season be much shorter? do you feel like the owners are pilot exploiting you guys by forcing the length of the season you've been in the lucky position to be in so many playoffs where the wear and tear adds up. what about making it shorter so many guys are taking 20% off the season already >> it's 20% less of the season, 20% less in your paycheck. i'm sure a lot of guys prefer a

bigger paycheck. at the end of the day what i'm trying to wake my guys up to, my peers, it's a business first what we've been taught our whole lives you're playing the for this big trophy and you have to sacrifice for the trophy in the grand scheme it's the bottom line. adam silver is doing a really good job make sure we're one of the most forward thinking leagues in all of sports he's look into our mental health at the end of the day having the right balance. understanding it's a business and you have to network and the league will use your likeness to make more money for the league in turn which we get 50% of. we want the potato grow but not asked to yoeks pilexploit it >> injuries plagued everybody at the end there. >> i'm a basketball purist and i don't think you can change the schedule because historically it's been 82 games

michael jordan is the template for me he's the greatest basketball player of all time he's the yardstick >> so, a couple of things come to mind. real quickly here. you're involved with the nba players association. >> yes >> there's a labor agreement that expires in a few years. is the revenue equitable are players being treated fairly >> i believe so. there are things that could be altered to help us and there's always going to be push and pull back from both sides. like i said, in terms of -- i feel like our league is always ahead of the curve >> the most progressive? >> yes adam silver is a player's commissioner, if that's a term i can text him after a game about an issue i had during the game and he would text me right back we stay ahead of controversies

pretty well. whenever there's an altercation, we had an altercation in one of our games. >> the ownership >> they nipped it in the bud today they spoke about changing the language of nba owner, do we call them an owner equity investor proprietor thinking about changing the name of that. >> because of the sensitivity. >> what's your team going to look like? >> michele rockets is doing a great job too. she's the first woman to lead a union. she does a great job >> what will your team going to look like next year? >> we'll be good we're flying under the radar because we have some devastating injuries we have the top training staff in sports. to have klay back in february or march. but for him it's good to get away from the game >> you want to tell us whether

they will resign >> i think they both will be back with the golden state warriors regardless of any of that, if they do decide to leave, they are my brothers, i'll keep in touch with them as much as possible i wish the best for them >> a question from this knicks fans >> no comment. >> all right i got a couple more questions. you did the best lockdown defensive job ever on lebron james. basically -- >> i did okay. >> who is tougher to defend, lebron or kawhi leonard >> kawhi still played amazing but lebron is probably one of the tougher guys i had to defend lebron is able to make all his teammates take them to another level in terms of their play he enhances all of his teammates like no other player i've ever

seen >> that's what people say about you. you're a pass first, score second guy >> lebron can do that with 30 points overall, kobe bryant is the hardest to guard >> that's fascinating. i assume you saw on draft night where zion williams teared up. did that make you think about your mom >> yes >> because your mom -- >> my mom -- >> your mom is a formidable person >> she's six feet tall and she's tough. >> you talk about banging somebody >> yes she banged my brother a few times when he got out of line my mother was a very strong woman. she is the foundation of who i am in terms of having the proper views on walking out of the house and being intelligent, being able to speak the part and knowing my environment >> went to work in the winter in

springfield with no coat so you and your brother could have warm clothes. >> yes, linda was tough. >> good luck next year you're back for another year >> yeah. >> then you'll run the team. a change in the tax law having a big impact on real estate prices. i'll just stay here and talk to andre and don't miss "made in vietnam. carl quintanilla live in hanoi tomorrow on cnbc

a change in tax laws hurting prices in new york city. home prices falling the first time deutsche bank says prices for home started slowing but prices started falling in 2018 right after the so-called salt changes with limited state and local tax reductions those caps costing new yorkers $14 billion last year. housing experts expected real estate prices would fall about 10% over two years so far they down 5%. manhattan real estate sales declining for six straight quarters tomorrow they will hold a hearing in congress about whether these tax changes are affecting police, teachers and first responders in the communities. a lot of impact so far >> interesting in theory they are losing those tax breaks >> that's right. it's just starting

exactly. >> very interesting. thank you so much. i just want to mention as we watch the markets, we have turned negative, some commentary out there. fully preparing for it's failure and escalating trade war when it comes to the g-20 meeting. we'll see if the dow can hold on >> thanks for watching "power lunch" >> closing bell starts now >> indeed does i'm david faber. >> i'm sara eisen. let's get the headlines on the foed >> reporter: dallas fed president writing that he believes a balanced approach to rates is appropriate he says the down side risks and uncertainty have increased and it's too early to judge whether those uncertainties persist.