and welcome to "power lunch. i'm melissa lee along with tyler mathisen and kelly evan. a make or break move for the rally. fed chair powell getting ready to get grilled on capitol hill and the california earthquakes causing a lot of damage, disruption, and uncertainty. we could see more than 30,000 aftershocks in the months ahead. we have the potential impact and fixing america's savings crisis the father of the 401(k) lays out his new plan "power lunch" starts right now >> indeed, "power lunch" does begin right now.

welcome, everybody, to the aforementioned "power lunch. i'm tyler mathisen all three major averages are on pace for a second consecutive day of declines. haven't seen that in a while the dow down triple digits at this hour. down 141 points. 175 points at its low earlier today. now, boeing and apple account for roughly half of those losses that you see right there the russell 2000 and dow transports have both been slipping back into correction territory. kelly. >> thanks. stocks are lower again today as apple drags down tech and the fed looms large. bob pisani has more at the new york stock exchange. >> hello, kelly. downgrades are dominating trading today. tech, including semi-conductors are down the leadership board pretty narrow energy is up on oil strength the rest of the leaders are largely defensive like real estate and consumer staples. retailers, though, doing well. under armour, nike, and gap helping consumer discretionary elsewhere, no big news on the

fed or trade today those are the two things that moved trading today, usually, but most of the talk today was dominated by morgan stanley downgrading global equities to underweight, saying earnings expectations are too high and there's a risk corporations may lower guidance in the second half of the year the key for the markets, jay powell's congressional testimony later in the week. the dilemma is the market wants a rate cut, but it's not clear there's an argent need for them. a lot of debate on what earnings wim look like beginning next week with jpmorgan back to you. >> bob, thanks as bob mentioned, the markets will be closely watching fed chair powell's testimony for any hints about what the fed will do later this month steve liesman is watching the will they/won't they scenario. >> yeah, in two days of testimony this week, jerome powell has a choice, to affirm the market's deeply seated belief in a rate cult or push back he faces the risk of a short market sell-off and more

criticism from the president who has raised the prospect of firing powell if he doesn't cut rates. one, trade is still a negative, despite the g-20 inflation remains below target, and global growth remains weak and that threatens to weaken the u.s. economy job cuts remain priced in. there you go, looking at the 50% or higher average for the rate in the fed funds there's one cut. i probably should round up to make it easier why do i go out to the 100th decimal? that's just me being me. >> i apologize to viewers. 2.4, down to 2.13. that's right or 2.2 whatever it is 1.9 would be september somewhere in there is the second cut with the debate about the third cut. but the strong jobs report friday complicated the decision. it's anything but text book monetary policy for the fed to cut rates at near record low aunemployment amid the longest

post market expansion. it's going to tell the market it's right >> earnings happen between now and the fed meeting. do you think that will play a role if companies come out in their conference calls and this is sort of a rewind to the fall of last year where we tenored this hiking cycle and powell was firmly convicted in where he was, and the markets dictated or massaged the direction in which powell and company went through their conference calls and the warnings we got over warnings season >> i would say earnings could affect the fed in the following way -- if earnings disappoint and the market falls, that's where you get a greater huen cry for more rate cuts i don't kneif that will have a big effect one thing i don't think you'll hear is companies complaining about high interest rates. it's weird that would be the fed's response to it though that said, one of the big concerns about the economy right now is capital spending.

and the strange thing about that is they're concerned about spending capital, much more closely linked to the trade war than it is anything else outs there, certainly more than it is any suggestion that rates are too high in the market >> that seems to be the way the fed is going to react to all of it, too. the worse the trade situation is, the more they might. >> that's a smart comment and one that's hard to put into place, but the fed has to take what's going on across the street at the white house and in congress as a given. it doesn't have a choice it doesn't have a say. and one of the things that will be just for sport, for a guy that's had to listen to every comment of every fed chair over 20 years is watch fed chairman jay powell dance around the question of are the tariffs good, are the tariffs bad? to him, they're just there, and he has to deal with it >> all right, steve, thank you very much. while investors keep a sharp focus on the fed this week, specifically the chair and what he says, you can add three new bricks to wall street's wall of

worry. margen stanley getting bearish on global stocks, downgrading them to underweight, saying despite the fact o policy, they haven't enacted easier funds, and blackrock's economic outlook has worsened for the second half. let's brin in brian with bmo capital markets, and brent schuette, chief investment strategist with wealth management company welcome. brian, you take each of these three points we began with morgan stanley, investors leaving active funds, and blackrock becoming more negative, and you pluck them off and shoot them dead right on the spot why are they insignificant worries to you >> of course, i do, tyler. good afternoon, everyone let's call a spade a spade blackrock is a fixed income shop of course, they're negative. with respect to active management, we have known that

active managers have had a hard time performing. they got in this rally very late they have been underperforming in the majority of portfolio managers have less than ten years experience, and they have been more busy the last five or ten years managing redemptions versus managing portfolios and more succinctly, they're more busy managing their careers. so lastly on the morgan stanley side, we don't like to comment on other firms' opinions, but let's face it, this is a firm that has been negative for a year they were right for a quarter. they have been wrong for nine. we like to think a little more fu fundame fundamental, more longer term. we think it's preposterous the market thinks we're going to get a 50 basis point cut, that we thought we were going to get a 50 basis point cut people are still negative. they're the most negative i have seen and i'm not trying to grandstand here, i think investors are more negative than

they were in 2008-2009 longer term, we think stocks are higher at year end >> brent, why don't you take apart what brian has just laid out there. sort of disarticulating or disassembling the earlier points, and also react to what he just said, which is if i heard him right, that investors as a group are more negative now than at any time since 2008-2009. really >> sure. i actually agree with brian on many points. i think the first and third brick of worries are related i guess one, if you think there's going to be a recession, to us, the only way that happens is if the fed tightens too much. right now, it doesn't appear anything economically from a fundamental standpoint is in ecses, and markets in the economy over a lunger period of time are connected at the hip. while morgan stanley may get a correction in the near term, they'll be wrong in the long term, towards the end of the

year, maybe next year. we still think there's a higher probability markets move higher, and right now, i think active managers have a chance to perform outperformance just because of the popularity of passive management and the fact people are buying assets in one fell swoop and doing it in a reactioner manner. i think people have the ability to look longer term and focus on fundamentals have an opportunity to add value in the future, and the weak hands have been forced out. >> brian, point taken regarding morgan stanley's track record, but i want to delve into a point morgan stanley was making, which is markets are being too sanguine when it comes to what low bond yields indicate around the world, and that's what we're seeing right now, more than 25% of sovereign bonds around the world are negative yielding. why shouldn't the markets care about that are you worried at all that we're facing inverting yield curve here in the united states and bond yields are terrible around the world >> well, i would say this. if the fed cuts, the yield curve is going to steepen. that's number one.

number two, in terms of around the world, we have seen a massive underperformance of other assets around the world relative to the u.s. and for one thing, europe is the next japan we actually have still pretty decent growth here and one of the things that mr. liesman said is just, again, not on, not correct. we have had the longest post-recovery post-world war ii, but it's been the slowest, most boring recovery in the history of recoveries. we have yet to get frothy. typically, recessions happen when we see some sort of frothy growth we haven't seen that yet the markets overall remain excessively defensive, so that's why we think investors in general are going to rotate back to the u.s., quite frankly, because of the stability, especially relative to the rest of the world lastly, we have now reared an entire generation of investors that only buy stocks because interest rates go down that's where morgan stanley is right in terms of investors giving the bond market way too much credit, but this notion of only buying stocks because

interest rates go down is not fundamental. it's more momentum, and it's really a reflection of what's happened in the last ten years >> i didn't hear steve saying anything about us being frothy >> no, to just say the market needs to recess, kelly, because this is the longest recovery in post-world war ii history, that's not a reason for the market to recess >> right i don't think he was saying that, but i hear that refrain. you're right, all the time >> yeah, i guess so. >> let me turn one back to brent. i see in my notes that you are sort of neutral on u.s. equities and if you have an overweight, it's for international why? >> because that's been ground zero for federal reserve fears and tariff fears, both of which we think are in the process of going away for example, the federal reserve, we do think, cuts rates because they are market driven and the federal reserve, that $13 trillion worth of negative debt you mentioned, we think

central banks around the world can contemplate a recession ending in banking based society where there's negative yielding interest rates can you contemplate a recession happening in the u.s. where the federal reserve has yet to meet their 2% target? what does that mean for their future credibility we think monetary policy will be incredibly easy. that's the environment we live in going forward investors need to think about that, and that favors assets outside of the u.s they're cheap, looking for a catalyst that's a u.s./chinese trade truce in the coming month and we move forward with that outperforming because investors have flown out of those into the safety of the u.s. >> you don't think that's all priced in, brent that could be the catalyst, the agreement on the u.s./china front. it feels like people have already kind of priced that in maybe not fully, but you know, to some extent >> i think to some extent the market is now waking up to the president and his reliance and belief that the economy and markets are more important than any great trade deal but i don't think it's fully priced in by any means

there's still room to go if we get the trade deal, there will be a further rally. you saw the market rally last week with news of a truce. we think that will continue in the future when the trade deal does get done, which we think has to happen before the elections because he needs the market and the economy to get re-ele re-elected, and i think he realizes that. >> brian and brent, the killer bs, we thank you >> thank you now to ylan mui who joins us from washington. >> the cbo just released its analysis of a democratic proposal that would raise the minimum wage to $15 an hour over the next six years the cbo found that the proposal would boost wages for 17 million people who were making less than $15 an hour. about 10 million people who were making more than $15 an hour would also potentially see their wages increase as well, but the tradeoff would be about 1.3 million jobs lost, according to the median estimate from the cbo. now, this proposal has divided

the democratic party $15 an hour for the minimum wage has the support from democratic leadership like nancy pelosi and steny hoyer, but some moderates in the party worried that $15 an hour is too high this puts meat on the bones. gives them data to parse over. we'll see if this comes to the house floor for a vote >> especially after this thanks to another developing story rocking the financial word deutsche bank beginning the first of about 18,000 job cuts under a new restructuring plan the ceo calling it a reinvention of the struggling german banking giant. layoffs took place in asia earlier today, and job cuts will continue until 2022, the bulk of the losses are expected in europe and also parts of the u.s. as part of the plan, deutsche will close its global equities sales business and scale back. they say a so-called bad bank will be created to wind down unwanted assets. the shares tumbling about 5%,

almost 60% today they have rallied recently after being sold off to all-time lows. >> i don't know what number restructuring plan this is, but even the cfo of deutsche bank said at this point, there still significant challenges to break even by 2020 >> they have been struggling for so long. longer than anybody. they haven't been able to fix it >> compare that to the u.s. banks. we went through an extremely severe crisis, but ow clean-up feels like a distant memory. this is ten years on >> coming up, more on deutsche bank is now the perfect time to buy the stock? plus, two major earthquakes in a week in california why is it happening, could it happen again, and how bad could it get we have a seismologist to plain it all >> and the open championship kicking off in ireland next week david feherty iser he to talk about tiger woods' chance and much more. "power lunch" will be right back or built to last? etfs are only part of a portfolio. so make it easy to explain.

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southern california still dealing with the aftermath of two back-to-back earthquakes over the holiday weekend the first registering a 6.4 mag teed and the second, 7.1 some estimating the state could see as many as 30,000 aftershocks in the months to come california is the world's fifth largest economy with a population around 39 million what are the chances of another

earthquake, major one, hitting and what impact could it have on the state? joining us is david wall, the seismologist with the united states geologist survey. so great to have you with us thank you for joining us >> thank you for having me on. >> reading the most recent bulletin from usgs, the good news to the earthquakes if there is good news is the damage is limited, correct >> yeah, i think the good news is because the earthquake happened in a fairly rural area, so even though there's very strong shaking, there wasn't that much to damage. the town of ridgecrest got significantly shaken and significant damage >> what we're trying to figure out now in terms of the tremors, the extent of the tremors, the strength of the tremors is how far out could this be, and could these aftershocks hit areas that could potentially suffer more damage >> yeah, well, we expect at least dozens more earthquakes.

maybe a 50% chance of a magnitude 5 or larger. magnitude 3 earthquakes will be felt but not damaging. chances are the aftershocks that come from this earthquake will be limited to the area in the fairly remote of the mojave desert and won't contribute to significantly more damage. if a larger earthquake happens and happens towards a more populated area, we expect significantly more damage. >> where is the greatest risk, if you can quantify it is it in california? is it in alaska? is it up the coast in washington state? where is the greatest risk for a really big earthquake? or is that just kind of a naive question to ask? >> that's a great question the risk is actually the chances of a large earthquake happening in an area that's populated that's also vulnerable california and alaska both have enormous earthquakes, but the population of alaska is much, much lower the risk, the greatest risk in the country really is in southern california and some

degree northern california where you have the san andreas fault and other faults, a large population, very large population, and then the potential for damage goes way up >> david, there's a long history of different kinds of earthquake event to draw on what does this experience remind you most of right now? >> well, you know, california is a big state. you can put a large earthquake into an area and get relatively low impacts because the population density in some areas is so low. what we're really concerned about is something further west and further north or south, in los angeles or san francisco where you would certainly up the ante in terms of losses. the losses from this are kind of expected given the low population, but we know that earthquakes are going to find population centers down the road >> when the first earthquake hit, i read a seismologist being quoted in a newspaper saying that we're due for one because one typically happens every five and ten years and this was the

largest in 20 years. where else are we quote/unquote due for one in your view >> well, we have what we call is a hazard map of the united states, and the west coast of california is along the san andreas fault where we have two plates moving next to each other. that's one of the biggest concerns that goes up to the pacific northwest and becomes a bigger fault that can cause problems for oregon, washington, and alaska but we have faults really throughout the united states it's just that the rates of earthquakes in california is much higher than it is in the rest of the country. >> all right david, thanks so much for phoning in we appreciate your time. >> absolutely. deutsche bank has lost 75% of its value over the past five years. are the company's latest moves a step in the right direction? or too little too late plus, what is the magic number you need for retirement we'll tell you what some people think that number is, and tell you why some people are having a hard time getting there, when "power lunch" ntuecoins.

welcome back to "power lunch. i'm mike santoli at the new york stock exchange deutsche bank tumbling after announcing 18,000 job cuts over

the next three years the company calling this restructuring the most fundamental transformation in decades. is there light at the end of the tunnel for deutsche and the rest of the european banks. we have your trading nation team today. so boris, in absolute terms, this really radical shrinkage by deutsche bank is certainly a negative in terms of where its business has been, but what does it mean for perhaps yoeuropean banks taking capacity out of the industry here, and no real systemic issues that seem to have popped up >> that's the one positive thing on the european side no systemic issues and the quality of the book now is a lot better than in the global financial crisis having said this, it's a very different business when you have negative rates and a slowing economy. i can't imagine that the european banks are really going to be good in shape. it's not a sector i want to invest in. the one i would make an exception for is ubs it's an interesting look at a

5.7% dividend yield makes it very attractive. plus you add one interesting thing. the dollar goes stronger against the swiss franc. that's going to help the stock if i'm going to invest in europe, it's probably as ubs as a brand name >> an area obviously, all of these banks thrk stocks have taking a tremendous beating. a lot of folks saying it looks like they might get washed out and have true value. how would you play it? >> what's most notable looking at the chart of the european stocks bank industry is the industry has come into a test of decade-long support dating back to 2009. now, this is the level that stirred turnarounds in the industry in both 2012 and then again in 2016. i would say that just how deeply oversold interest rates have become offer that dry powder as well however, i would still stick with the higher quality u.s. banks like jpmorgan that score

higher in our momentum work. if european banks do get that turnaround, i think jpmorgan breaks through 119 resistance which would be a big breakout if the turnaround doesn't play out, i see less downside risk as well much better risk/reward to stay in the u.s. in that group. >> all right relative winners should stay that way if conditions in general improve, i suppose thank you very much. more trading nation, head to our website or follow us on twitter @tradingnation back over to you >> thanks. >> ahead on "power lunch," tackling america's savings crisis the father of the 401(k) lays out his new plan plus, elizabeth warren's wealth tax sparking a major battle. >> and the 148th open championship tees off next week. nbc golf analyst david feherty joins us and he's bringing claret claret jug with him. stay with us and now, the latest from

tradingnation.cnbc.com and a word from our sponsor. >> there's a classic investment thesis called the dow theory it says that 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. don't rely exclusively on this theory when making ainstntn veme decision i'm randy frederick, and schwab is the better place for traders.

welcome back, everybody. i'm sue herera here's your cnbc news update at this hour. wealthy financier jeffrey up steen has been brought to federal court to face sex trafficking charges. he pleaded not guilty to the charges but he will remain in jail until a bail hearing on thursday >> democratic senator dick durbin blasting the trump administration for trying to put the citizen smp question on next year's question, claiming it will cause an undercount and less money for states. >> it is impossible to describe where we are, how this disarray will play out, but i'll tell you what's obvious after four different failed attempts, we now know why the real reason for putting the

citizenship question on the census to discourage hispanic americans from answering the questionnaire. >> experts begin restoring one of the most famous paintings in the world. rembrandt's the night watch is considering a masterpiece for its use of lights and shadow the restoration is expected to take about a year. it will cost almost $3.5 million. and it will be done in place, they're not going to take it down for the restoration, which i find fascinating that's the news update back to you. >> thank you >> about 90 minutes to go until the closing bell on wall street. the dow and s&p 500 fairly steady it's the nasdaq we're watching closely, down by.9%, weighed down by the rosenblatt downgrade. >> the oil market is closing for the day. let's check in with courtney reagan >> good afternoon. oil prices selling off late in the trading session, closing

close to the flat line the market had received some support from concerns over iran's nuclear program after the nation threatened again to step up its uranium enrichment in defiance of u.s. sanctions pressures remain over lingering worries over global growth and the trade war continues to drag on, and growth in u.s. production will outpace that of global demand through 2020, limiting the effects of opec's supply cuts. >> thank you very much now to america's savings crisis many people still don't have access to 401(k) plans a lot of small businesses simply don't offer them our next guest has a plan to change that. he has a new op-ed out, all part of cnbc's partnership with acorns here to discuss is ted, considered the father of the 401(k), and in recent years is on a mission to help small businesses pick and implement the best types of plans. there's now movement afoot in this country oregon, many other states are

rolling out their plans. are they getting it right? >> the oregon plan is really very well designed and it's the one generally serving as a model for it, but, you know, probably one of the issues with it, however, is it's limited. it only has one model, and the expenses are still somewhat higher than what they need to be in fact, quite a bit higher than they need to be. >> they should fix that. are there other states who you think have the banner plan that should be adopted everywhere >> from what i see, they're all following the same model and what it is is limited to a pay roll deduction, you know, roth ira program, and there are a lot of other alternatives. >> some of these businesses are quite small, the ones that are now going to offer 401(k) plans. some have 10, 15 employees i think the first reaction is small businesses, can they afford the administrative costs involved with this everything involved with offering this sort of plan

>> well, the 401(k) is their own plan for many small businesses it's definitely very complex, you know, legally. i mean, extremely. and the expenses are definitely on the high side and you know, there are other alternatives that make a lot more sense for that type of business >> 15, 20 employees down unless they're professional, it's normally going to be the wrong type of plan >> what is the alternative plan that is economical, would work for the 15 to 30 employee company, let's say a law firm or a nail salon or a restaurant >> well, a law firm probably it will be a 401(k) because the attorneys want to put in the max they can. and 401k k gives them the opportunity to do that i have worked on ira-based models and there are five that i

have worked on that have lower max contribution limits. >> 401(k) is about $18,000 a year is the max? >> if you're over -- >> you have the catch-up provision, which you and i are subject to we can play catch-up >> sure, but there are many small businesses, when we get out of the professional environment, many of those businesses aren't owners making a couple hundred thousand dollars, okay, so a lower contribution limit makes sense to them, and so designs i have worked on are all ira-based. they don't have any fees and you know, the cost of the participants could be as low as 0.05%. and i run into 401(k) plans in the small employer market that have fees as high as 2.75% >> they're taking that much per year that should be against the law i mean, are the states just getting greedy why -- >> that's not the states

>> it's not the states >> i understand. >> it's the manager. >> well, the whole group of people who are involved, you have your financial organization you have your what's known as tpa, your adviser. the whole group of them. >> this is why, if you're a member of a 401(k) plan, it behooves you to figure out what the costs are in it, and you can then agitate within your employer to move to a lower-cost provider >> absolutely. there's an example here, when i was working on these first three models, i had a little business with eight participants contact me who had a 401(k), without getting into details, they were able to switch to model three, eliminate over $1500 a year on fees, plus the participants went from 2.75 to 0.15% you're talking years of additional retirement income to participants >> it's with no amount of humility and a high amount of

reverence that i ask the edison of the 401(k) the following question that is this -- if there's a criticism of it, it has been that 401(k)s made it all too convenient for employers to discontinue their pension plans, their defined benefit plans. and that those defined benefit plans that covered all employees, based on their salary, they would get a stipend at 65, that those plans were actually better for the employee than a 401(k). when you hear that criticism, what do you feel >> there isn't a fast answer to it i started -- >> we have all day >> okay. i started in that side of the business >> yeah. >> and a little while ago, you mentioned arissa, before we got on the air here. that is the number one reason for the death of defined benefit plans. not 401(k)s. and i'm not defending 401(k)s.

they're far from perfect they were never intended to be what they are, okay. but arissa, which was intended to save the pension -- >> what do you mean, they were never intended to become what they have become, which is $15 trillion worth of assets it's like amazon was never intended to become what it became in a way, right what do you mean >> it was a fluke politically. you know, the legislation here wasn't because some member of congress said why don't we set up this great retirement plan to help people save for retirement. it was enacted for what were known as cash deferred employer funded profit sharing plans. that was the reason for it that legislation was passed in the fall of 1978 had a delayed effective date of january 1980 january '80 came, no one was running around the country setting up 401(k)s we didn't have financial

advisers selling these because no one anticipated it being a big thing. it was in the fall of '80, you know, that i came up with the idea of throwing a matching employer contribution and an employee pre-tax contribution into this section of the code. and there wasn't anything there saying thou shalt not. so i chose to take the more aggressive interpretation, and ultimately, it got supported >> for better and for worse. >> very interesting. >> better and worse, exactly >> but aris ain your view is what ended pension plans or made them less attractive >> made it impossible to sell them i couldn't sell a pension plan after arissa and the reason for that was corporations had financial risk if they had a pension plan post arissa >> which they don't have - >> they didn't before. well, they didn't before >> all right >> ted, thanks very much for your time. again, if people want to read more about it,

cnbc.com/investinyou thank you for joining us appreciate it. nbcuniversal and comcast are ventures and investor in acorns. >> let's get to the bond market with rick santelli tracking the action at the cme. >> hi, melissa lee we had a pretty good set of data points regarding employment on friday if you look at in tra day of tens, you can't tell 2.03 is where we settle. we have done most of the work slightly below that level. it isn't until you hook in friday you can see that changed the balance a bit. everything perked up on the fixed income side. but mostly, it's been about curve flattening and the strong dollar now, the fed day and the decision not to move rates was the 19th let's look at the dollar index since the 19th remember, mario draghi kind of upstaged the fed, talking about stimul stimulus, and you can see the dollar suffered a bit, but it has been improving and maybe that's because the euro currency after its rise on mario draghi's comments understands like many debating the fed's next move, lowering

rates doesn't cure everything, and finally, here's that tenns minus twos we have flattened rather dramatically, that's another reason the market seemed to be demanding a rate cut >> thank you very much here's what's on the tasting menu facebook and twitter get left out. the fallout from a fire, and one giant mistake for nasa stay with us we'll cover all that when we return with sofi, get your credit cards right- by consolidating your credit card debt into one monthly payment. and get your interest rate right. so you can save big. get a no-fee personal loan up to $100k. join us for a walk?

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here's a taste of some of the other stories we're looking at today the white house is going on a social media cleanse this week with its new social media summit, by reportedly not inviting facebook and twitter to participate. the white house spokesman, a white house spokesman said the meeting would, quote, bring together digital leaders for a robust conversation on the opportunities and challenges of today's online environment sources told cnn that they're not surprised that the two social media giants weren't invited. given the backlash from the president and others in conservative circles who claim that those two outlets limit conservative speech. so we shall see what happens

there at the white house >> i mean, still, can you say anything substantive if you don't have the two biggest players in the room? you need them in the room. >> they should just do a parallel summit of their own who needs the white house to host anything? they could just have it on their own. >> 23 miles of the kentucky river apparently are flowing with up to 45,000 barrels of jim bean whiskey after one of its kentucky warehouses caught fire. there have been multiple reports of dead fish floating down the river, which environmental groups believe could have been caused by the whiskey. >> yikes >> that's not a pretty sight there are fish that are probably quite happy. >> that's terrible >> terrible fire >> one small step is expected to translate into a giant profit for a former nasa intern in 1976, nasa unknowingly sold the best surviving tapes of the apollo landing for just $218

in honor of the 50th anniversary of the landing, sotheby's is auctioning those bids. the minimum bid is $700,000 and they're expected to sell for $tomillion not bad for the intern who ended up with them >> seems like $2 million would be a lot of money to spend in 1976 >> you think they're selling old tapes around here? >> are they worth anything >> all right, up next, we're talking golf with nbc sports' david feherty. he has the claret jug with him eaof nt ahd exweek's championship "power lunch" will be right back of your investments. key portfolio events. all in one place. because when it's decision time... you need decision tech. only from fidelity.

the golf world will be focused on northern ireland next week the 148th open championship tees off for the first time in nearly 70 years there our next guest will be at the royal portrush golf club, covering it for nbc sports back with us now is golf analyst david feherty, who is originally from northern ireland. he's here with the claret jug,

which is the trophy that will be given to the winner of the open. welcome back >> thank you nice back. >> this is the first time in 70 years it has been in northern ireland. >> yes >> what kind of pressure does that put on an irish player like a rory mcilroy to perform well >> well, it puts a lot of pressure on. that's his backyard. it's really his home golf course, along with graeme mcdowell and darren clark. each of them calls royal portrush, really, their home course the tournament sold out in a matter of days, which is the first time that's ever happened. the sense of excitement is just off the charts >> if one of those three men you just mentioned is in contention on sunday, the collar is going to get a little tight. >> well, yeah. >> not that it wouldn't otherwise. >> my collar is usually loose. >> yours is usually unbuttoned, i know >> it'll be difficult for me to remain objective, shall we say

it's very difficult not to be a cheerleader when someone from the province might be in contention >> so let's talk about the who the favorites are. obviously tiger won the masters. he has not played much since then >> no. >> do you think he's match fit to come in and contend >> i think he'll be match fit, yeah but he's not typically a great bad weather player it wouldn't surprise me, being from there, if we get some weather. you get some days at royal portrush where the seagulls walk to work. >> yes and i would think also the rough will be long >> yes >> and tiger is not known for having the straightest drives. >> yeah, and it's not a golf course that'll particularly favor the longer hitters there isn't a level lie on the golf course. you have to mold yourself to the slope. the rough will be savage in places you could lose your dog in it, never mind the ball.

so it will be someone who hits fairways and can play, you know, a nice technical player, someone very used to links golf. wouldn't surprise me to see a veteran win. >> ratings wise, what are the expectations seems to have a lot of ingredients for a very well-watched tournament. >> yes, well, the crowds will be huge the buildout for the tournament, you know, the bleachers and whatever, the biggest i've ever seen around the 18 the green is just spectacular. the open is a tournament where you walk into a canyon at the end. it's kind of claustrophobic almost this is a semicircular arrangement where i think it seats close to 20,000. it's just spectacular. really is. i can't wait i'm just so excited about it being, you know, home. >> i didn't realize how much people bet now on golf why have people taken to it so much in sports betting what impact do you think that's going to have on the sport >> well, it's been going for a

long time in the uk. you can do individual match betting. there's all kind of things you can bet on you can take one player out of the field and say he's going to play better than another player out of 150 or a combination of both or whatever there's a lot of money in it that's for sure. but as always, it'll be the bookmakers that make most of it. >> are these all people who watch golf and follow it passionate, or are there people who say this is kind of an interesting thing? you can bet on so many different tim types events now that people aren't watching that much, but they become conducive. >> i think it's a mixture of both in belfast, for instance, i was over shooting promos for nbc about a month ago. it was interesting to see. there was one particular row of shops where there weren't any shops. it went bar, bookmakers, bar, bookmakers, bar, bookmakers. three of each, all in a row. an indication of the main past times there. maybe a few drinks and a wee

bet. >> we know the short list of men who may contend next week, mcilroy would be there jon rahm just won the irish open i guess tiger, dustin johnson, koepka is there a long shot, a dark horse that we should be watching >> it's difficult these days to pick a dark horse. the strength and depth is so amazing out there. i wouldn't really call rickie fowler, you know, a dark horse he's maybe a gray horse. he's overdue >> and he usually wears an orange about as bright as melissa's dress. >> exactly that orange, in fact, yes. >> but keep your eye on him. i'm going to cheat a little bit. no, we're not going to go. we're going to ask this last question you do a lot of interviewing you said this morning on a radio show who your favorite interview of all time was. who was it >> bill russell. >> the basketball great. >> yeah, wonderful man i adored him >> thank you so much >> i wish he would adopt me. >> you would be an odd couple.

have a great time. >> thank you >> have fun at home. >> thanks. >> all right the open championship begins next thursday the 18th on the golf channel on nbc. >> and don't go anywhere "checklee"ft ts. pas aerhi your brain changes as you get older. but prevagen helps your brain with an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. healthier brain. better life.

this year's wife-carrying championship, there you see it, took place saturday. men compete on an obstacle course with their wives slung over their shoulders, as you see there. the winners this time around

were a lithuanian couple it's really something you would like to see once >> you know what you win >> what do you win >> your wife's weight in beer. not that i know personally what you win. anyway, thanks for watching "power lunch." >> "closing bell" starts right now. welcome to "the closing bell." i'm morgan brennan in for sarah eisen, here on the floor of the new york stock exchange at the boeing post. stocks down 1.5% right now it's one of the biggest drags on the dow. more on that and everything else an investor needs to know before the mark closes in 59 minutes. >> yes, we do, morgan. i'm wilfred frost. good afternoon to you. let's get to what's driving the action today investors awaiting fed chair powell's testimony later this week shares of apple weighing on the tech sector. and health care is underperforming. let's check in on what the market is doing. down 0. 5% on the dow. the nasdaq down