jony has been in that role since 1996, and he's reeled off a tremendous amount of products, and a lot of those were, you know, the consequence or the output of an outgrowth of his collaboration with steve jobs. they almost had like a lenin/mccartney type relationship, and when you lose that, you still get hits, but you don't reel off 20 number ones like the beatles did. >> we'll leave it there. thank you so much for joining us tripp mickle from the "wall street journal." that does it for us. "power lunch" starts right now >> see you in a minute i'm melissa lee along with tyler mathisen the s&p 500 hitting a new record high, but a big pullback will the bulls keep charging the u.s. and china declare a trade truce, but the hard work begins now we'll tell you what's next >> and mortgage rates getting back to record lows, but the affordable crisis still shutting out homebuyers what they're doing to get around that, and it might surprise you. "power lunch" starts right now

and welcome, everyone, to "power lunch." i'm tyler mathisen glad you could join us on a summer monday. a new trading month, a new half, and record highs for the stock market, but we're off the session highs, as melissa just mentioned. the dow was up 290 points earlier. apple leading the dow, boeing, the biggest dragger. and chip stocks soaring on that trade truce. kelly. >> tyler, thanks the rally is losing steam. let's get to seema moda on the floor of the new york stock exchange with more on the action this hour. >> hey, the key question for the market is whether those talks between u.s. and chinese officials over the weekend and japan will actually lead to a trade deal what you're seeing is some of the optimism around the trade talks starting to fade we started the day higher by about 1% the intra day high for the s&p 500 was 2977 we're currently at 2957. still up about a half a percent on the names on the day. names that initially jumped

higher on g-20 trade talks have come off their highs as well take a look at caterpillar it's reversed its gains. negative on the day. deere, same story there. the other big story is earnings. second quarter earnings estimates have come down substantially from 3% in march to 0.2% here in july and morgan stanley says further downward revisions are ahead and that the second half of the year tends to be seasonally weaker time for earnings revisions. what's working today, energy, as oil prices are set to close up ahead of the opec decision financials, the second day of gains after a number of banks increased their dividends last week goldman sachs having its best day in two months. and another thing to watch out is the number of safe haven related trades gold, the japanese yen, the ten-year yield, even real estate kind of unwinding today. you can look at the real estate investment trust down about a

third of a percent >> thank you very much the s&p building on its best first half in more than 20 years. also coming off its best june in almost 65 years. should you keep riding this run? let's bring in mona bahajan, u.s. investment strategist, and paul hickey, co-founder of bespoke investment group welcome to both of you mona, bet he begin by asking you, do you think a lot of the good news on trade is now discounted in the market >> i do think what happened over the weekend is an incremental positive, only because the last tranche of tariffs was going to impact the consumer severely 25% on the $300 billion affected apparels, textiles, et cetera. the consumer has been the one area of the u.s. economy that has been pretty resilient. those tariffs coming off are an incremental positive that said, we're up 18% year to date we don't anticipate this return to annualize in the second half of the year.

we remain somewhat cautious given the uncertainty around global economy, even other parts of the u.s. economy, manufacturing, we see it come through in pmi data. the other supportive factor, though, the fed is still in play and has indicated easing >> it would be expecting a lot to see a second half, up 18%on top of a first half up 18% paul, let me turn to you with this question. and that is this, i read someone say earlier today that what happened over the weekend was kind of the minimum thing to get the maximum result that we have seen today in other words, it was a good outcome. >> right >> but it was kind of the least good outcome >> well, yeah. so i mean, coming into this last weekend, we were getting hints that this was going to be the type of outcome we were going to see, so we did rally we have rallied on that. so it's -- it's a little overstated coming into today, the rally we saw at the open it is an incremental positive,

as mona was saying i think what's really important about it is we have seen earnings warnings come in in june at the highest rate for the month of june since 2014 a third of those warnings, all tariffs on china they have been associated to so if we were going into earnings season and we were hearing escalation of trade tensions and companies still warning about china and tariffs, that would have been a big problem. the fact that we have that escalation to the sidelines now will make it more palatable to accept some of this weakness on china and say okay, maybe things are going to get better going forward. >> along the lines of tyler's question, it also allows the fed to potentially still cut rates in july. if it is true we're going to get data this week, get jobs, but also, a raft of earnings reports by the time the fed meets again, and we hear warning after warning because ultimately, because of the truce, nothing has really changed we could see the fed step in

>> what we have seen historically on fed easing cycles, when the fed eases and we are not in a recession, the market outcome is pretty positive when the fed eases and we're headed into recession, market outcome is negative. we saw that in '07, we saw that in '01 what we're seeing now is the u.s. economy still no indication of we're entering a recession here the tariffs are off the table. that's another positive. we'll see how the jobs report comes out. we'll see how earnings reports come out but if the fed is able to orchestrate what we call the soft landing, we could actually see, like we said, we don't expect 18%, but we could get another 5% upside from here. it could be interesting second half of the year, but we still are cautious we don't expect major rallies ahead of any fed easing cycle. >> you put out your second half newsletter and a list of pros and cons the pros outweighing the cons by a vast majority. one was the disconnect between the fed and market where do you stand roigd now in terms of what that is some it

looks like the fed is looking for a july cut and maybe more. >> normally market predictions of the short term are pretty accurate regarding the fed, but when you look out further, they lose their accuracy. the fed isn't very accurate with predicting the economy, and the economy isn't accurate at predicting the fed by this point in july, they will probably cut rates at least 25 bips, which should get this yield curve uninverted the longer it's inverted, the more of a problem it becomes as the yield curve has been written off as not as important, but it's not necessarily it's signaling a weak economy, but when it gets to inverted level, it's less likely - >> final quick question, are the odds greater than 50% or less than 50% that the market will be higher at the end of the year. greater or less? >> i go with greater >> greater than 50%. >> i say you're going to 67% greater chance we're higher.

>> two out of three chance there you go mona and paul, thanks. a breaking news story we have been watching closely at this hour. protesters clashing with police in hong kong at the annual july 1st march when marks the hand over of the city to china from britain. protesters storming government headquarters following weeks of democratstrations over a controversial bill that would allow extradition to mainland china. joining us from hong kong is bill neely bill >> yeah, melissa, i don't need to tell you this is one of the world's global financial hubs, home to, you know, 13,000 companies, 1300 companies of which this is their asia hub and they have witnessed mayhem here today right in the heart of the city about a couple hours ago, riot police moved in behind clouds of tear gas to break up thousands of protesters who had taken over

the political heart of this city they have done it by storming the main government building here they did it with steel rods and with improvised battering rams it took them hours they smashed glass and eventually they got in to the main legislative building here so hong kong's house of representatives. or congress. and then they went up to the main debating chamber and quite simply trashed it. they broke the computers they scrolled graffiti on the walls. they covered the signs, covered up the signs of chinese rule and they put up posters that said, for example, we are not rioters. you are the tyrants. they are protesting against a number of things principally, an extradition law proposed by beijing but also proposed by the chief executive of hong kong, carrie lam, which

means anyone in this country could be extradited by china not just locals, but for example, employees, ceos of foreign banks. they don't want that to happen the bill was withdrawn, but in fact, hong kong's chief executive has not decided to scrap it the protesters are furious about that and they want to see her resign. she did make an extraordinary public confession earlier this morning saying i didn't listen to the people enough i have learned my lesson, but the protesters really weren't listening to her so they went into this government building. we haven't seen that before in hong kong's recent history and just one other thing, this isn't just a hong kong political crisis this is a real challenge to president xi in beijing. it is the biggest popular challenge to him in his seven

years of rule. the big question now is, okay, this situation has been cleared. the protesters are out of that building and off the streets but what happens next? will there be a backlash from beijing? melissa. >> bill, thank you bill neely in hong kong for us and coming up, after the big meeting between presidents trump and xi this past weekend, the u.s. and china have agreed to go back to work on a trade deal so will anything be accomplished or will we be right back where we were last week in just a few months' time plus, ever find searching for something to watch on netflix or another streaming service so exhausting that you just give up if so, you're not alone. but you should just stick with "power lunch," folks we'll be right back.

stocks well off session highs. a number of big stock winners from the u.s./china cease-fire, especially the chip makers, but the hard work of the trade talks now begin. kayla tausche is in washington with more on what's ahead for both sides >> the most anticipated truce in osaka created a long to-do list for washington and beijing, including revisiting unfinished business from may that killed negotiations back then president trump said the u.s. will sign china a list of

products to buy. china's deal announcement left this part off, but president trump said it will happen immediately. second, wilbur ross says licenses will be granted to u.s. businesses to sell parts to huawei as soon as this week. and third, negotiators will schedule teleconference and in person talks to pick up where they left off in may treasury secretary steven mnuchin has said there's 10% of the deal left, but the part china backtracked on, the legal enforcement, underpins the entirety of this deal, and it is a make or break part of it and the u.s. will need to get china back on that track finally, the administration needs to sell lawmakers in both parties on what was brokered in japan. several republican senators have come out against the huawei reprieve senator marco rubio even suggested there would be enough support to veto the president on legislation reversing that part of the deal. congress is out on recess this week, but you can bet, kelly, as soon as lawmakers are back, they're going to have a lot to say. >> yeah, kayla, thanks

president trump and china's president xi jinping agreeing to the trade truce, but are we any closer to getting thetinal deal done let's ask erin, vice president of the u.s./china council, and they represent about 200 american companies doing business with china. erin, so what's the advice to them full steam ahead >> well, you know, our advice to negotiators on both sides is with 10% of the work left to be done, find your way forward. what we know of the outstanding issues are ones where it seems like there is a middle ground to be found if both sides are interested in finding a deal the key right now is to figure out if that's indeed where both sides are. >> right, but you know, again, i kind of go back to the business community in this, which you can sympathize with them here, china was the biggest market, the biggest investment destination for so many years. it comes to a screeching halt. at least in terms of the relationship, but mane not in reality. are they expected to still pour investment dollars and resources into this market or not?

>> well, it really depends on where your customer base is. what we hear from companies is that if your ultimate customer base was in the united states, you might be pulling out some of your investment from china to get away from the cross border trades and if your customer base is in china, you might be moving some production out of the united states. we actually hear from more companies, though, that are looking at doubling down on their investments in china because so many of them are doing business in that market to access chinese customers >> yeah, doing business in china in order to access the chinese market so do they also think that's a way around any further escalation of these issues because they're not worried about tariffs if they're saying we're not importing that material, necessarily? >> well, the overall relationship between the united states and china will still be relevant because if things were to go poorly in these negotiations, american companies may become a target of consumer boycotts or other efforts of that nature. the bottom line is right now, because of the uncertainty in the relationship, many american companies are viewed as

unreliable suppliers so right now, getting to a resolution of these issues will shore up confidence that american companies will still be able to deliver regardless of whether they're doing that through a cross border transaction or from within china. >> why did the president, i'm sure he would not use these words, why did the president back down on huawei? >> you know, i thing that this is an issue that is a priority for the chinese. if there are violations from huawei that result in actions that need to be taken against them, that needs to happen, but there was no denying there was a lot of disruption happening in supply chains because of the speed with which the administration took this action. our ideal goal is to keep national security and commercial issues separate, but in this case, really what needs to happen is to bring some predictability back to that situation as well. >> did the council read it as a good sign or did your businesses say, you know what, maybe it's not so bad when apple announced it was going to move mac book production to china. that seems like, you know, tim

cook often has a line straight to the white house and they decide to make this very, very big decision in the midst of a china trade war >> when it comes down to it, our companies would prefer the government stay out of how they make their business decisions but they have to make those decisions based on all the available information to them. so right now, i would say our companies feel like it's good the two sides are talking. it's certainly better than having them not talking, and it's certainly better than having the threat of an additional $300 billion of tariffs out there. right now, we're looking for more answers what's the timeline for these negotiations how serious are both sides to coming to a resolution what happens if they can't reach an agreement on these issues that $300 billion list of tariffs is still looming out there. it's just put on hold for the moment >> it would be fascinating if that turns out to be a canary in the coal mine, that mac book pro. interesting timing thanks very much >> coming up, the trading nation

is about to take a bite out of apple. the stock is up 27% this year. will leadership shift. health care is the worst performing sector, up 7% so far. we'll see if a second-half turnaround is in the cards for them hi walter. join us for a walk? i'd love to, but my legs and feet are so tired and achy. walter, you need revitive ! it's the circulation booster! it really got me moving. i use my revitive every day! to relieve my aching legs and feet. it's so easy.... drug free....

and its electrical muscle stimulation really improves the circulation in my legs. i'm back walking this guy everywhere. check it out online. revitive ... fda cleared... clinically tested. only revitive relieves aches and pains, increases oxygen rich blood, and strengthens leg muscles. we've gotta do this. don't suffer any longer! order revitive medic with a 60 day money back guarantee. with free shipping and free returns. someone got revitive. order now and we'll send you our most popular treatment boosting accessories. a $50 value absolutely free! go to revitive.com or call... get moving today!

welcome back to "power lunch. i'm mike santoli at the new york stock exchange check out shares of apple moving nicely higher to lead the dow after the u.s. and china put additional tariffs on the back burner to continue trade negotiations is it safe to jump into this trade sensitive stock here matt and chad are your trading nation team today. so, matt, apple's got a decent little head of steam right here, but where does it sit now? right above the $200 level, obviously still a good deal below last year's highs. >> well, it's at a key technical juncture right now, at least on an intermediate term basis this huge rally it's seen this year, especially the most recent one, 16% in one month, has taken it up, right up the upper line of what's called a symmetrical triangle pattern

so if it can break above that, it will be bullish for the stock. however, the more important level is the early may highs, right around $212. you break above that, not only will you get a break of the triangle pattern but a nice high or low, higher sequence, which should give the stock another leg higher but when you're at key technical junctures, it can fail right now, testing the top end of that range, that looks good but we need that move to a higher level before we can say that the thing is going to have a lot more momentum going forward. >> all right, chad, on a technical level, seems like a bit of suspense in the stock what about more fundamentally, if it's something you choose to own for a while. apple, we talked about it as a trade sensitive stock, but it could be categorized as a high quality balance sheet, major consumer products player, or however you want to characterize it >> although we're optimistic on

the u.s. market in the short run, we would be somewhat concerned about growth stocks, large cap technology names, and in particular, one like this with a pe multiple for 2019 of 17 times, and revenues and earnings at a modestly contracting, and a forward looking earnings growth and revenue growth that doesn't seem all that appealing, this one would be one which we would be neutral or underweight overall, trade concerns are a major headwind for this company as well as global growth concerns so that's the reality with this company. this company also had a lot of cash at one point, and very little debt. currently on its balance sheet, although it's cash and debt neutral, that cash has been eaten up by stock buybacks that have given a disillusionary effect of earnings growth. we would like to see organic earnings groethd, organic revenue growth, and this is one that doesn't show the earmarks of that.

>> whether the market is willing to give apple the benefit of the doubt until it does restart growth is a major question, that's for sure. matt and chad, thank you very much for more trading nation, head to our website or follow us on twitter. melissa, back to you >> thank you ahead on "power lunch," health care struggling but biotech is up double digits. plus, housing's affordable crisis how some home buyers are getting around it. and nba free agency has started. the big winners and losers so far. all this when "power lunch" returns. and now the latest from tradingnation.cnbc.com and a word from our sponsor. >> overbought and oversold indicators are generally used differently depending on whether the stock is range bound or trending look to buy a range-bound market when an oscillator such as the rsi falls into oversold territory and then moves back above it look to sell a range-bound market when the oscillator rises

into overbought territory and then drops below it. i'm lee, and schwab is the better place for traders

your brain is an amazing thing. but as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. healthier brain. better life.

i'm sue herera here's your cnbc news update at

this hour. north korea's state media releasing a video of kim jong-un meeting with president trump at the korean border village over the weekend. the men strode toward one another from opposite sides of the joint security area and then shook hands. israeli prime minister netanyahu says iran's move to break limits on its stockpile of low enriched uranium is a significant step toward making a nuclear weapon he called by european countries to stand by their commitments to impose sanctions against iran if it violates the nuclear agreement. >> high temperatures and summer winds are contributing to fires in spain and germany firefighters are hoping to get a wildfire under control while in northern germany, hundreds of people had to evacuate their homes due to a rapidly growing wildfire and a bizarre hail storm struck quat lahara, mexico, on sunday, trapping vehicles in a mountain of hail more than three feet deep. the city located north of mexico

city, had been experiencing summer temperatures of about 88 degrees in recent days you can't fool mother nature that's the news update this hour back to you. >> sue, thank you. 90 minutes until the closing bell rings on wall street. let's get a check on the markets. well off the trade truce high earlier in the session the dow is up by 18 1/2 points s&p 500, this is worth noting, we had been at a record high we're about 25 points off now, but up by 11 points so far on the session. the nasdaq is up by seven tenths of aper isn't, powered by semi-conductor stocks. >> the oil market is closing for the day. ruhel. >> oil is selling off into the close. u.s. crude had been around $60 a barrel it's slightly off that right now. early in the session for the first time since late may, this was on headlines from opec that key members and russia are set to extend production cuts and then optimism over the u.s./china trade truce, but again, that rally is short lived. not quite $60, about $59.20 per

barrel up, but it had been back and forth the last hour. now up about .7% that selloff comes on lingering concerns about an oversupply of oil and softening demand, which bases on today's close, seems to be top of mind for investors >> thank you it has been a wild first half of the year the major average up 15% to 20%, but health care has been underperforming. the worst performing sector, in fact there is one group in the sector that is up double digits in the group, and that's biotech. joining us is ronny great to have you with us what do you think drove biotech higher in the first half of the year >> a combination of new data, plus a couple takeouts, with sell jen being taken out, and you have enough for it to work >> do you expect m&a to continue in the second half and do we have a calendar of important

data points to propel us higher? >> yeah, there will be an ongoing takeouts two takeouts first, the takeouts of the new innovative industry, things like array, which are new technologies, companies barely have any profits if at all but a great potential for growth, and the second is the consolidations we have seen with celgene or allergan, and those are big chunks i don't bow if they'll happen to the second half, but the next two or three years, we'll hull out the midcaps and end up with a u-shaped industry, which is appropriate. m&a will continueon a gradual basis. i don't think we'll be triggered that much by timing beyond the usual stuff we have in the second half. so the big meeting in december is typically a big trigger for folks as data comes out from the congress in the fall a whole wave of congresses coming in september and october. you'll see a little bit of that. >> health care is a huge area. lots of different subsectors

within the sector. is one a sweet spot for you? >> so, this midcaps biotech is an interesting one a huge wave of investment coming in from the vc side, which keeps on propelling midcompanies forward. >> companies like -- what falls into that category >> the gene therapy companies, some of the cancer names there's a new wave now of companies more in the neurology company trying to begin to come up sage or people mention very often, those will be typical the big bet or the big binary bet looks to be the insurers because if you heard the democratic debate, there is a possibility for them to go into zero territory, and a potential folks will actually use them to implement some of the changes being discussed. >> in terms of the splits, what seems important is they are -- the rumored takeout targets, but also a lot of vc money is

pouring into this area that propels the evaluations higher even if they're not takeout targets. >> the timelines to bring a drug to market, the number of patients you need to do that, has compressed significantly in the last five years if you thought of the past, it will take ten years and cost a billion years, no, you can bring a cancer drug out with a couple hundred patients out and maybe two or three years from the time you started trials as opposed to five to ten. all of that, if you think of the time value, makes a vv company go, look, my returns on investment is much more nearer term that's the big driver here >> real quickly, you mentioned look at some of the cheaper names in terms of multiples here because we saw several of them have gotten taken out recently >> that's right. my favorite number is gilead, trading at sie6.5 times. they cleaned house, head of r&d,

the cfo, are all leaving the company. there will be a new management team they have a lot of money on their hands. the ceo had done quite well, and 6 1/2 times so if the market pulls back, that market will hit less than others >> a lot of money to make a mistake with, though >> that's right. >> you can always make a boneyard in the backyard and burn that money. the bet is you will not do that. >> good to see you thank you. sgroo coming up, americans are incurring trillions of dollars of debt to pay for college is it worth it we will ask. >> and all that debt is making it harder for young people to buy their first home up next, we'll hear from a company trying to help, but it comes with a cost. we'll explain. -driverless cars... -all ground personnel...

...or trips to mars. $4.95. delivery drones or the latest phones. $4.95. no matter what you trade, at fidelity it's just $4.95 per online u.s. equity trade.

lunch," everybody. mortgage rates are going lower again, but many americans still can't get their foot in the door when it comes to affording a home, and they're turning to nontraditional methods to get on the property ladder. unison helps home buyers with their down payments. in exchange, the company gets a share of the gains if the value of the home goes up when the buyer sells. so far, unison has invested $3.25 billion under these kind of deals in 30 states with citi ventures and the royal bank of canada as some of its co-investors joining us is thomas, ceo of unison welcome. good to have you with us >> thank you very much >> what can you tell us about the kind of returns you have received so far on these investments that you have made or is it just too early to tell? >> it is definitely too early to tell the relationship between unison

and the homeowners is very much that of a partnership where we stay together for the duration of the time you live in the home or whenever you choose to buy us out as a partner it is a partnership where we win or lose together and it's a long-term partnership where it's a very patient partnership at the same time where the duration is really - >> how long are you making these arrangements, and we'll get into the details. how long have you been making these arrangements where you'll put up say 15% of the 20% down payment? how long have you been doing it? >> for approximately three years. >> under three years so really, you probably don't have many sales yet on which to determine. so what are you modeling then as a potential return >> real estate asset class is a very steady long-term asset class that has a very different characteristic when you

aggregate thousands of homes whereas if you look at the risk to the homeowner, it's very interesting in the research we have done, the risk of a individual home is just as volatile as the stock market so therefore, the basic premise we're making is it might not be a good idea to have 80% of your net worth tied up in one stock called your home >> so explain to the viewer how the system works and you have kind of a sliding scale of the profit cut, the cut of net profits that you take when the home buyer exits the home. >> yeah, really the easiest way to think about this is that you need to divide the home away from the property that you're buying the home is the emotional place where you have your life, your family, and your experiences then there's the property, which is the financial asset and what we're saying is you should buy the home you want or can afford, but with the financial package where you buy as much as you can, then you

have a partner for the part of the home that you otherwise might not have been able to afford or feel comfortable owning and for that part that you get to the n joy the whole house but only invest in as much as you feel comfortable investing in. for that part that you didn't buy, that's where unison's return comes from. yet you get to enjoy the entire home for the duration. >> i understand that i'm not sure you understood my question >> sorry >> if you put down 15% of the down payment money, what is the net profit split at the exit point for you? >> all right, let's take a quick example and hopefully this answers your question. let's say many of these cities around the country, sometimes a starter home is as much as a million dollars. and for that, a $200,000 down payment is required. in that case, the home buyer puts down $50,000, and unison puts down $150,000 and then we share 50/50 in the

future change in value of the house until the time you decide to sell the house or maybe four years later after you buy the house, you decide you get a big bonus and you decide to buy us out and own the whole house. that might be a better balance with the economy at that time. >> how deeply, thomas, do you investigate the person's credit worthiness, because i imagine if they default, you get nothing back at the end of it, and also, the home itself and the home's location are there certain zip codes, for instance, where you wouldn't go into this arrangement in >> this is principally, when we do the research, it's principally on the property. meaning is this a property that we feel we would partner with a homeowner in investing in, but we're building a nationwide portfolio, so it's really not an exercise of selecting properties but unselecting properties we cannot price with high confidence for example, a 20-bedroom

chateau in a neighborhood of two bed-room houses, we can't price it, so we don't do that. we unselect rather than select >> where do you sit in the event that mathison sells the house at a loss, which based on my record in real estate is not that far fetched an idea, what happens if i lose money, that million dollar house, i sell it for $900,000, where do you sit in sort of the credit structure there? do you get paid back first >> that's a very good question no, we don't we share in the gains and we share in the losses. so in the case you mentioned, where the house declined from $1 million to $900,000, since we share 50% of the gain, we share 50% of the loss. in the example you gave, it's a $100,000 loss. we also take $50,000 loss, and the homeowner takes $50,000 loss it is a true partnership, as i mentioned. where the homeowner is in charge

of when they buy it and when they want to exit, then we share according to the percentage we agreed to up front >> as you mentioned before, you have been doing this for about three years. things have changed in three years, clearly especially with the tax code when it comes to some of the high tax states. i wonder if your modeling has changed how uview those outcomes for the investments you have made in states like new jersey, new york, and connecticut? >> we certainly do model it, but keep in mind, home ownership, the typical american homeowner stays in the house between eight and ten years. these are very long-term partnerships so we really view these tax code changes, for example, as being more near term influences on the market, but longer term, we believe that the market as a whole is in very good shape. so we don't think it has a major impact of course, most impacts the more expensive properties because that's where the mortgage reduction has a big impact >> thomas, thank you very much

and we'll check back with you in a couple years thanks again >> thank you our tasting menu is next today's specials, markets trading on auto pilot. jeff bezos' dirc avoe,nd streaming overload "power lunch" is back in two everyone, look at 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. - when i see obstacles, i create opportunities. (soft music) - when i see adversity, i find a way. - when i hear never, i say now. - [announcer] southern new hampshire university is education made to fit your goals

with over 200 degree programs, flexible class schedules, and some of the lowest online tuition rates in the nation. (cheering) - so when i face barriers, i can break through. - [announcer] breakthrough at snhu.edu. what do you look for 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. here's a taste of some of the stories we're watching for you today. cars aren't the only vehicles becoming more autonomous as much as 80% of the stock market is driven by automated buyers and sellers, according to jpmorgan research 60% of these automated transactions are passive funds and etfs 20% are quad funds based on trend following models i'm not sure if this is surprising, but the numbers are staggering. >> the numbers are surprising. which says what is it then, 20%, the active investors represent just 20% that's where the movement is, i guess. >> exactly. >> they're causing it. >> and the prices. amazon ceo jeff bezos divorce settlement is set to become official this week and mackenzie will receive a 4% stake in amazon as a result, worth $38 billion these days she's pledged in may to give away at least half of her fortune to charity >> this is i think one of the

biggest wealth transfers ever because of divorce. >> she gets something like 4% of the company? is that what it is 4% of the company? >> yeah. >> my son's name is mackenzie. maybe she'll share, just on that basis alone. despite the explosion in streaming, it might be harder than ever to find something to watch. nielsen says the average viewer takes seven minutes to pick a show or movie. 21% give up trying to figure out what to watch because there is so much to choose from. >> and very poor interface we talked about this, with the netflix, i'm not a big user of it, but when you want to find something and typing it in and trying to scroll through, it is not very good. >> i would have blamed the person who is watching for this, for either being indecisive or too lazy to actually spend a little more time to do some research but also, the content, maybe the content is bad maybe the choices are terrible. >> you got to get voice recognition to a point where you can just say show me blah, like we have shameless plug for our

owners comcast, like on the xfinity device, you can talk to it and it gives you the right answer, 98% of the time. >> if i did not have that tomorrow, i think -- being as anti-voice and all the eavesdropping is, i would take that in a heart beat >> good. let's turn to a question a lot of people asking themselves lately, is a college degree worth all of the debt it often takes to earn one? kate rogers joins us with the results of a cnbc acorns investing you spending -- that's a big mouthful, kate, right there. >> that's why we had you say it. >> give it to the old guy. >> kate. thank y . >> thank you for having me survey monkey, our invest in you survey finds while a majority of people, some 58% say college is worth the money, it is not worth taking on too much debt. there is a fairly even slope between those who say college is worth the money, even if it means you have to borrow heavily and those who say it isn't worth the cost at just about one fifth of respondents if you look at those who have a college degree, they were more

like through say college is worth it, even if it means taking on debt at 28%, only 10% of those who have a college degree said it is not worth the money. this might be because only 60% of undergrads actually earn a degree in six years and 40% complete a four-year program in just four years. that's according to the national center for education statistics. debt, of course, matters even more if you don't wind up getting that degree after all. more broadly, our survey finds one third of americans say they cut their monthly spending in the past year, while 45% say they kept spending just about the same and one fifth say they increased their monthly spending >> what you said, only 10%, despite the crazy completion figures and debt figures, only 10% say it is not worth the money. that's actually pretty high customer satisfaction. >> i know, but the rate of people who are not graduating in four or six years, that is really staggering and collectively 44 million borrowers owe $1.5 trillion worth of student debt. the average four year degree

program i believe -- average borrower in 2017 was under $30,000 of debt. that's a massive amount of money, especially if you don't wind up getting a degree. >> seems like it would be well worth the money to find out why people aren't completing their degrees. it is a waste of money not getting the maximum return from that investment. >> and those -- the debt levels of course matter depending on your income and what's worth it to you, i think as tyler mentioned in the intro, it takes some time, figure out if it is worth it, if you can take the money out. it is a small investment if you see a career path there, that's not for everyone >> kate, thanks. kate rogers. in a few hours of free agency, nba teams handed out billions of dollars and made some big bold moves. we have got all the names and numbers right after th is is where people first gathered to form the stock exchangeee, which brought people together to invest in all the things that move us forward. every day, invesco combines ideas with technology,

data with inspiration, investors with solutions. because the possibilities of life and investing are greater when we come together. ♪ ♪

there are roadside attractions. and then there's our world-famous on-road attraction. the 2019 glc. lease the glc 300 suv for just $459 a month at your local mercedes-benz dealer. mercedes-benz. the best or nothing.

that was andre iguodala on "power lunch" last week correctly predicting the knicks would be left at the altar by the big free agents. eric chimney is here to make sense of all of the spending. >> that's right. if you look at what happened, about six hours, you got $3.2 billion in spending by nba teams. these are basically guaranteed contracts. there are players that most fans have never heard of getting numbers like 170, $180 million

you're talking about jamaal murray, tobias harris, chris middleton, second tier players getting almost $200 million. with all the movement around the league, like you mentioned, kyrie irving, kevin durant, they're leaving teams to come meet up in brooklyn, in the city of new york. that shifts the power of the league's dynamics back here to the east coast, back in its main number one city. but what is interesting, remember, the new owner of the brooklyn nets, joe sayi, there is talk about what can the players do in terms of doing business with alibaba, expanding their market into china, how will that help their brands. of course, if you're nike athletes like kyrie and kevin, what does that mean for your expansion internationally. look at msg stock, msgn stock. those are down today because a lot of people expected that they would rise a lot of people doing the stock draft thought that those stocks were going to go up because they were going to get these players and they didn't.

think about barclays, the other winner, they're a winner jpmorgan chase, they're sponsoring for hundreds of millions of dollars the new warriors stadium in san francisco. all of a sudden, you're not getting kevin durant to be part of that stadium when it opens in the fall back to you guys >> our friend andre iguodala moved teams last night, to memphis from the golden state warriors after they signed a guard, deangelo russell from the nets to a big contract and that kind of blocked their -- ate up a lot of their cap space, we're told we don't know if he'll stay in memphis or not. >> exactly there is some talk that maybe he'll do a buyout and show up in los angeles with lebron james. you can have l.a. and new york, the two power teams in the league, that's good for business probably better than having some of these midtier markets leading the standings. >> thank you very much a huge heat wave, check please on that note, huge heat wave over in europe fascinating story in the wall street journal today saying that

the germans just don't like air conditioning they don't have public buildings air conditioned, a lot of offices are not air conditioned. they think air conditioning is for wimps. >> they haven't had 100 degree temps. >> now rethinking that >> they don't have it in the museums? >> no. >> thanks for watching "power. >> "closing bell" right now. >> welcome to the "closing bell." i'm morgan brennan in for sara eisen on the floor of the new york stock exchange in front of the caterpillar post this stock was up 3% on the china trade talk hopes you can see, we have given up the gains here this is a pattern playing out in the broader market we're going to break down today's move and do so as the s&p tries to hang on for a record close >> and i'm scott wapner in for wilfred frost. the china trade truce sending the s&p 500 to new highs bu