>> either way, not a good look >> growing pains for a lot of these companies to put it kindly dan defrancesco from business insider and our own kate rooney. that does it for "the exchange" today. frenetic is the world. tyler for "power lunch." >> we'll keep that pace going. welcome, everybody i'm tyler mathisen new news at 2:00, a new tax for big tech and president trump's so-called social media summit. it's set to get underway if about an hour's time but facebook and twitter, apparently google, shut out of the social media summit. the fallout ahead. plus dow, 27,000, first-time ever has fed chair powell given the green light for the bulls to keep on running? we'll take a look at that. and the president dropping a crucial part of his plan to lower drug prices, once described as potentially the most significant move ever affecting drug prices. now out of here! stocks, moving big on that news.

plus, what investors and consumers like you need to know. "power lunch" right now. well, well, well an historic milestone once again for the dow. it's been a while, but now we are above 27,000 first time at that level on the back of 150-plus-point run the s&p and nasdaq, they have turned negative, but the s&p once again dealing above 3,000 briefly. united health, a major catalyst, accounting for roughly 80 points of the dow gains the stock having its best day since october 2017 we've got more on this we'll tell you the whys, where fors, and whether to buys coming up rates are spiking. yields on the benchmark ten-year treasury note jumping this hour, just 2.21% that, kelly, is quite a move >> and we'll keep a close eye on it tyler, thanks.

those old records do keep getting broken we have turned a lot lower in the past hour. bob pisani is here to explain it all. bob? >> well, just on that note, just let me show you interest rate-citi stocrate rate-sensitive stocks. it was a disappointing bond auction. this happens you have banks that tend to move up a little bit. utilities tend to move down a little bit and other things like real estate investment trusts or reits tend to move down and that's what happened all in all, that bond auction cost us about ten points in the s&p. but i want to concentrate on the fact that we were at 3,000 a short while ago, and it is remarkable from 2,000 to 3,000, that was only five years ago, we're up 50%, from 2000, it's largely technology, consumer discretionary that got us there. the biggest companies keep getting better tech, 100. consumer discretionary, that's amazon and home depot, essentially. let me show you the biggest stock s that were out there. microsoft was almost 7% of the reason we got from 2,000 to 3,000. of all the gain, it was amazon

you put these top five together, facebook and apple and jpmorgan, the top ten companies in the s&p 500 accounted for 34% of the gain from 2000 put up the next full screen, from 2000 to 3,000, ten companies accounted for two-thirds of the gain why do we keep paying all of this money for technology stocks what's where the growth is, kelly. growth is hard to find investors are paying anything for growth that's in technology >> so the fed chair, mr. powell, fueling the markets to new highs again today. he have testify today again in front of congress. he said that monetary policy have not been as accommodative as could have been what a change from last december and that the relationship between unemployment and inflation has gone away. the phillips curve he's also worried about the global manufacturing pullback. has the fed just given the green light for this rally to keep

going? steve grasso is here, he's a cnbc fast money trader, also, julia coronado, president and found of macro policy perspectives welcome to both of you let's start with the inflation issue, which i think, steve, mr. powell referred to multiple times during his testimony, that inflation wasn't quite at the level that they would like, or at least they're not worried about it heating up very much. but today comes news that inflation is, i think, at the consumer level, as high as it has been a year and a half, above 2% >> identikind of ironic, right,r to your point. but you know what was also ironic is that in december, when they were raising rates, he was -- powell was just as enamored by lack of inflation as he is today. and yet you kind of see inflation moving a little bit higher now so it is ironic where he's standing and speaking from, because back in december, you

could have said everythingthat he's been saying at these hearings, could you not. and yet a different action coming out of the chairman's mouth. >> so why do you think that is, steve? >> i think that he is, you know -- maybe he's caught between a rock and a hard place. i don't think that he is being pushed by the president. i know that we all think he is >> yeah? >> but maybe he's -- well, he is being pushed by the president, i don't think it's affecting his actions. i think basically he's saying, maybe i am -- maybe i should think twice about what i'm doing here we do have a global growth issue, we do have trade issues we do have a lack of inflation issue. so maybe i'm pushing on a string a little bit too hard here maybe i should be cutting rates. maybe he's just second guessing and he wants to pull back that december rate rise >> julia, do the -- has the -- let me ask the simple question has the fed given the stock market a green light to keep on running, as far as the green

lights will take it? >> well, let's keep in mind why the fed is moving -- excuse me, in this direction. and that is, i think, the risks on the horizon not the current data, not the current sort of state of the u.s. economy, which is great, but, yes, the global slowdown, which is quite pronounced and ongoing. the global data haven't been nearly as good as the u.s. data. and a number of domestic issues, self-inflicted wounds, if will our own trade policy uncertainty that we're injecting and while we've seen some good news, there's still a big cloud of uncertainty hanging over u.s. businesses and the fed is hearing that from their business contacts. and we're heeg sooseeing it in a flattening out >> he certainly did talk about uncertainty as a concern there but i want to go back to your first point, which is the global slowdown >> yes >> i think history would tell us that it has been very rare that the fed has reacted to global

slowdown storm clouds and let that guide u.s. monetary policy. i think that's rare, number one. >> i would beg to differ >> let me just finish my point, julia. i think what's also rare is the idea that we would somehow import from overseas a recession to the united states that is pretty unprecedented, i believe. >> well, wily in unprecedented times in many ways and we have never been more integrated as a global economy or global capital markets. >> don't disagree. >> so even in the late '90s with the asian crisis, monetary policy did ease in response to that and the risks it posed to the u.s. financial system and economy. in 2015, 2016, the fed did a similar pivot away from rate hikes, which were planned, a steady pace of rate hikes to patients on the back of a global slowdown, china led that rumbled through the u.s. markets in a

very similar fashion that we saw if q4. so the fed has seen this playbook before and is trying to get ahead of it. we know if we wait too long or downplay the global integration of the u.s. economy, that mistakes can be made and chair powell seems very focused on keeping this recovery on track and if that takes a couple of rate cuts, so be it. >> the only problem, though -- >> low inflation gives him that opportunity. >> the only pushback, i would say to julia is, why the 180 then a lot of these things that chairman powell has mentioned and that you had mentioned existed back, you know, in 2018 and we're starting to see that he's switched gears. and how about -- >> no, the global manufacturing sector slipped into recession in may. the global pmi, manufacturing pmi has been declining steadily since last year -- >> china trade headlines -- and fell below 50 in may and june.

>> china trade headlines have been going on about a year >> and we slapped on new tariffs in may we slapped on a new round of tariffs in may >> he said he doesn't know where inflation has gone so he was questioning -- he was perplexed by the lack of inflation before he even took on the chairman's role. >> sure, sure, sure. >> so these are -- persistence of low inflation has definitely been with us for a long time and it's a factor their still evaluating >> so is global growth -- >> actually, you're quite wrong about that look at the global pmi zp >> it's very simple. >> i will tell you getting back to the markets today, when you see the markets turn around, you have that action that didn't go so well and you have other fed governs now that don't seem to be on the same page farce a cutting trend. that's why you saw the markets not saying whether it's the smart thing to do or a dumb

thing to do. they're addicted to cuts and now they're questioning what the messaging was today. >> we'll have you both back. sprightly conversation there steve, julia, appreciate it. >> great stuff >> less than an hour from now, president trump will host the social media summit, so-called at the white house, but without facebook and twitter might be more of an anti-social media gathering. ylan mui joins us with more of what we can expect >> reporter: the president is bringing together conservatives who feel that the social media companies are biased against them outside groups like her taj and prager university will be there as well as lawmakers critical of big tech, and brad parscale, trump's campaign manager, will be there too they complain that companies act like moderators or publishers by taking down their content, but then they claim they're neutral platforms. that liability immunity is the bedrock of their business model and i do expect there will be a lot of debate about making companies earn that immunity one of the lawmakers attending,

congressman matt gaetz has called for getting rid of it all together some democrats say this summit just partisan politics over twitter, of course, senator mark warner said it shouldn't be about conservative versus liberal, it's about the future versus the path. and it's time washington stepped up to deal with the real challenges this summit will be open to the press, so, guys, you can keep watching here on cnbc or check my twitter feed for updates. back to you. >> that's a good way to follow it thank you, ylan mui. meanwhile, the white house is firing back at a new tech tax in france that hits mostly u.s. companies. kayla tausche has the details. >> the u.s. trade representative is investigating possible retaliation that could include new tariffs against france for a digital service tax that the country's senate approved today despite this threat from the u.s. under the rule in france, companies with under $750

million euros of revenue, they would pay an extra 3% charge that means it would hit companies like amazon, apple, google, facebook, and more ambassador robert lighthizer says the move unfairly targets american companies that are, quote, global leaders. though the irony, that has led to scrutiny by regulators and lawmakers here in the u.s., too. even sew, the move is seen as a proportional response, earning praise from hawks and doves in the white house. and critics of tariffs in the past, like top republicans in trade in the senate and house. tech industry associations, and even the u.s. chamber of commerce now, principles on trade were supposed to have met at the white house earlier today to discuss this and china we are awaiting word on whether this meeting, in fact, happened. but i have heard some saying that even though tariffs are necessarily not a traditionally republican policy, this could be a welcome alternative to tariffs against all automobiles being imported from europe into the u.s.

guys >> all right, cay kkayla, thanku very much. let's dig deeper into that social media summit. joining us is kara swisher, cofounder and editor at large at recode and a cnbc contributor. kara, great to see you >> good to see you >> i'll ask the question that's pretty obvious can you have a social media summit if social media like twitter and facebook aren't there? >> no, it's ridiculous it's just a gathering of the people that brad parcell wants to work on the campaign with it seems like it's the plans for 2020 you can't have a summit without -- it's not a serious summit it's a side show and a lot of very conservative people that use twitter and things like that with a couple of crackpots mixed in >> i don't use the phrase disrespectfully, but it is loaded is it a show trial for facebook and twitter? >> it's just a lot of blather. there are a lot of serious issues we have to deal with facing tech and regulation and

this is just typical of the thing that isn't the problem, as much this idea that these groups are being discriminated against. there's no evidence. they just say it, which is very typical for this gang. and they don't have any proof, they don't have any way to -- it's just -- there's real problems with tech and there's real regulations we all need to think about smartly. this is not that >> i was struck, though, that they invited prager, which is a company that has run into a lot of trouble with youtube. i think they may have taken ad dollars away because they didn't approve of their message organize what have you there are a lot of people to your point who have very serious concerns that they're not able to get the eyeballs, the ad dollars, the platform on social media, because their views are not shared, i guess you could say, by the people who are rung these platforms. and in all the news announcements we've seen lately, seem to point more in the direction of more policing of content and not less so. we do have free speech in this

country and these platforms are caught in the middle of that >> let me just say, this is not the public square. free speech is about the first amendment and it says congress shall make no law. these a private companies that can do whatever they want like other private companies can do what they want so this mixing of public and private together just creates confusion. someone said, these are like the public squares, but they're not. they're private squares. and what happens is, a lot of the people attending break the rules of these platforms and don't like being told they can't break the rules of the platforms. president trump does it all the time i wrote a column in "the new york times" about it he gets off because he's a newsworthy subject and is allowed to do this >> what rules does he break? >> oh, constantly, there's all kinds of rules -- other people have been kicked off of things that he has done, and there's lots of examples where he's gone too far, it's possibly violence

incitement, some of them are the way he talks about people, promoting hate, some of the stuff around women and immigrants it doesn't matter. he gets a pass on this kind of stuff. he's a newsworthy subject and -- >> is there a point at which twitter might ban him? >> yes, yes. they say they have a line. he has not crossed it yet, apparently i don't know what that would be and i couldn't even imagine what he could tweet but the fact of the matter is, he is a public figure and one of the things that was interesting this week, one of the courts ruled he had blocking people who say things he doesn't like, dan scavino is running the twitter account. now he can't do that he's not allowed to block anybody, because he's using his twitter handle for government. >> but ironically, twitter this morning sacame out and said, we may be able to allow you to block tweet replies. your point about these being private versus public forums and the purpose of this meeting, in the way that the lawyers are going would suggest, okay, well, then these companies face a

choice if they're seriously going to kick or think about kicking the president off the site, it's going to be bad for business if they want to have the biggest market share possible, they probably need to make sure that people don't feel like they have to go to an alternative platform to be heard. >> but they're not going to kick him off. they're married together in the most fantastic -- donald trump should send flowers to twitter ever day this has been a critical part of his governing and campaigning. just this week, he tweeted something about the census question and lawyers for the justice department, after the commerce and justice department had said the opposite, he called what they had said, they work for him, fake news and then, in court, the people who are charged with doing this said, we don't know what he means, because he's governing by twitter. >> if the president became dissatisfied with either the way these companies were handling other voices on the platform or his own, what if he said, you know what, fine. i'm leaving, i'm going to

tweeter or -- iyou know, i'm taking me and my followers and all of that value to twitter, i'm taking it with me. would that be a serious threat to your company? >> no, don't let the door hit you on the way out because he can't leave, hep doesn't want to leave, it's a great platform for him and there's nowhere to go. i outlined this in this column he's not going to get the same pop from snapchat or facebook. this is the perfect marriage of a person and a media and he is -- it's sort of like jfk and television this is his medium this is where he rules i sometimes call him the troller in chief but he's good at it. and there are others that are good at it, ocasio-cortez is good at it that was a controversy earlier today with nancy pelosi. you know, he should thank twitter for being here and i know he said in a tweet today, he would have got elected without social media i -- they helped him quite a bit. they helped him quite a lot. to reach his base, to say

things, to make allegations, to attack people, it's literally the best thing that ever happened to donald trump is twitter. >> interesting point kara and the analogy to john f. kennedy and the television is really thought provoking kara swisher, thank you. >> let's talk about the street's take of the impact on these issues we've been discussing mark mahaney is on the phone and mark, before we get into the french issue, any thoughts about the social media platforms and the threat that may come, either competitively or regulatory or otherwise from the conversation we were just having? >> i largely agreed with care rra on her points. i look at these big platforms. their biggest threats are competition, maturity and regulation regulation has clear reared up to levels that we've never seen

before ting breakup risk of these assets is extremely low, but that there will be increased regulations, fines, some restrirkss r restrictions of privacy policies and this is probably more noise than anything else but i think it does highlight how much these companies are in the public crosshairs. >> we spoke last hour to one trader who would be short f.a.a.n.g. he said the top is in and our policy expert didn't disagree that they face major perhaps microsoft-esque challenges over the next couple of years, especially on a day where amazon has pierced through the $1 trillion market cap marker would you put fresh money to work in this sector? >> yeah, we would. and the top pick we recommend is facebook i think valuation is still compelling you can buy this at around 20 times next year's earnings i know that's a premium to the

market but you've got here the owner of the two largest social media and the two large pest messaging applications in the world and it's trading -- we think at a discount to its growth rate. you rarely see big tech trade like that. when it does, it's a great opportunity. netflix is a name we also like with very, very little regulatory risk. in part because they have tons of competition coming their way from disney and other kmecompan. we're still long those four stocks amazon remains the investment piece there remains very much in tact regulation is a headwind, but these are powerful enough to work through them. >> how has twitter turned it around if we went back and looked at a two-year chart of twitter, it would be nowhere near where it is today what have they done right? >> i think they got product right. and they also cleaned up their marketplace or the twitter sphere there's no question there was a lot of abusive content on the

site and it was hard to navigate for a lot of new users you've got a core group of people that are very much enamored with twitter. and it's a great tool for tracking topics of interest. but they needed to make the site more intuitive, get rid of some of the harmful content that was on there i think they did that, and improved a lot of the ad tools that they offer to people. that's a stable, durable long-term business we're not recommending the stock right here, but that's a clear, justifiable turnaround >> we just did have that two-year chart up there. it's gone from the mid-teens or tweens to 37 today a 99% gain in two years. mark mahaney, thanks >> thank you coming up, health care stocks are soaring today after the white house drops its plan to eliminate drug rebates. we'll tell you what it means for these companies and you as an

investor, as a consumer. and can a star-studded concert headlined by taylor swift get people excited for prime day amazon sure hopes so "power lunch" right back -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.

welcome back health care stocks are soaring today on news that the trump administration is scrapping a key part of its plan to lower

drug prices. it's dropping the proposal to eliminate rebates. bertha coombs is looking at those big movers for us and meg terrell is here to explain what it means for investors and for consumers. bertha, kick it off. >> this was a big reversal on a key drug price proposals from the administration that's why you're seeing such a strong relief rally for names like cigna, that acquired express scripps late last year it's up 9% today and also the others as well. some of its rivals with pbms are also surging the proposed bans on rebates while the firms have started to move away from those negotiated rebate contracts and the administration thinks they should get credit for that, the firm said with a quick change, they would have had to raise medicare premiums substantial lip next year. hhs secretary alex azar says that's the reason the administration decided to pull the plug on that rebate ban. but drugmakers today are lower

because azar says the administration's other drug price proposals are still very much on the table. and don't forget, that includes basing some medicare drug prices on lower rates paid overseas, which the president also talked about. tyler? >> all right, thank you very much bertha coombs. now to meg terrell, for more on what investors and consumers should be looking at meg, i was going to ask you to explain exactly how drug pricing works, because i know you could do it in 45 seconds or less. but take it any way you want >> i'll explain how rebates can work we wanted to explain a minute how the drug rebate system works. when you have an insurance plan, you pay both a monthly premium and when you get a prescription, you pay out-of-pocket costs at the pharmacy counter over here on the way that rebates work, the drug company sets a list price for a medicine let's say hypothetically it's $100 the pharmacy's benefits manager negotiate a rebate on that drug. the average rebate according to

hhs is 28% right now the pbms and insurance companies take that rebate and spread it across their planned beneficiaries to lower premiums for everyone what the trump administration rules sought to do was instead apply those rebates directly to the price of drugs at the pharmacy counter the patient being prescribed the drug could be paid a lower price at the pharmacy. but because they wouldn't be spread across, premiums could go up and we're hearing that's why the white house killed this rule they didn't want premiums to go up on medicare beneficiaries, particularly, guys, right before the election >> that's exactly what we were talking. come on over with ana gupta going back, what was the unintended consequences of this be hey, you want to lower drug prices, but what happens if insurance premiums as a result of that go up for everybody, which is fascinating so meg, the question now is, as bertha said, you're seeing pressure on some of the drug companies today, the united healths of the world are looking

a little bit better. so now what's the state of play? >> the state of play is that the trump administration is expected to roll out some other issues. he said last week, he mentioned something called a favored nation clause. what people interpret that to mean something the interpretation has already talked about the ipi. tying drug prices in the u.s. to what they are in a basket of countries overseas and for some of those drugs, they're twice as much here as they are overseas. so for a regeneron drug, it could be cut almost in half over the next four years. >> this is in part because the government is not allowed to negotiate the price of drugs >> right medicare can't directly negotiate the price of drugs -- >> the way health services in france, italy, england -- >> right, they're talking about importing these quote/unquote price controls from other countries or importing drugs from canada and other countries they're priced more cheaply. these are all things that the

trump administration has put on the table, and it's fascinating, because drug importation is usually a democratic idea. that's why drug stocks are down so much today. >> you've got so -- to call the drug pricing system opaque is to give it a compliment, frankly. because you've got so many people touching at different points you've got distributors, the pbms, whose role is deeply opaque, very murky and the rebates are highly proprietary. correct? >> yes, they are >> and then you've got insurers touching the it. and you've got pharmacies touching it. >> and drug distributors >> and all along this daisy chain, everyone has taken their cut. and they want to get this down somehow, do people sell the whole space, because it's a little bit less for everybody all along the way, or there's somewhere and maybe they look to the insurance companies today to say, they're going to be okay. >> the folks i talk to today

say, people are shifting into the managed care, the insurance space, thinking they'll be focusing their efforts on the drug space leading into the 2020 election, that's probably not realistic, considering how candidates love to talk about big pharma >> and the obamacare issue is completely unresolved. >> medicare for all. this is all going to be up in the air r lo te.foa ngim >> holy moly >> all righty. we're taking a quick break and we'll be right back. twenty-four people came together to sign an agreement that created the stock exchange. just the right elements coming together. it started when scores more people came together, just down the street and traded bonds that helped pay for the revolution, and the nation it created. it started in an office on the corner where the right people witnessed the telegraph and brought information and humanity together forever. it started with the markets, bringing together steel and buildings and silicon and medicine and rockets. we believe the possibilities of life and investing are greater

when we come together. it's why for eighty years we've connected ideas with technology, data with inspiration, investors with solutions. so that every day together, it all starts again. ♪

na blend of quality probiotics. and fermented whole food botanicals, expertly curated to naturally support your gut health every day. go with align whole food blend. from the pros in digestive health.

welcome back, everybody. i'm sue herrera. here's your cnbc news update at this hour. the house judiciary committee voting to authorize subpoenas for a dozen witnesses including jared kushner and former attorney general jeff sessions this is part of a broad corruption and obstruction of justice probe of the trump presidency white house chief economic adviser larry kudlow telling reporters, if france imposes a digital tax on big u.s. tech firms, the u.s. will respond of new threats on new tariffs on french imports >> ambassador lighthizer yesterday put out a statement that if that digital tax is, in fact, imposed on american companies and we are the bulk of it, we will be looking into it with a 301 investigation not pulling the trigger, but we

will be exploring it >> and the cdc says most americans would like cigarettes to have less nicotine. researchers surveyed over 4,000 adults and 81% favored requiring cigarette makers to lower nicotine levels. smokers also supported the action you are up to date that's the news update this hour tye, i'll send it back to you. >> we have about 90 minutes until the closing bell it's about 1:35, 2:35 in the east right now the dow industrials, still above 27,000 at 27,016, u 116 points a lot of those, united health care responsible for about half of that gain s&p down about a quarter point the oil market is closing for the day. >> phillips 66 taking a big step as forecasters say tropical storm barry could become a hurricane, threatening louisiana's coast, idling a refinery in the evacuation area.

meanwhile reuters reporting that pbf energy and valero do not currently plan on idling their refineries on the gulf crude oil production has already been cut by 53% due to the tropical storm in total, 191 production platforms have been evacuated. oil prices as you can see flat, but closing above $60 a barrel kelly, back to you >> seema, thank you very much. the global battle over trade is front and center again today. the u.s. is holding a strategic alliance with india in washington comes on the heels of the president's tweet earlier today. joining us now is john chambers. he is chair of the u.s./india strategic partnership forum. and former ceo of cisco systems. >> john, welcome >> it's a pleasure to be with you and tyler again. and for us, we look forward to digging into all of this can i first, if you'll indulge me, just ask you about the china

trade issues, which are of course related to all of this. list listen, lately it seems like we came away from the g-20 with the good faith that china were going to buy more offer ag products and we would be easier and now there's reports that there's maybe a more of a hardline in charge of those negotiations were we all way too kmioptimistc about this truce >> i think when you talk about tariffs versus india and tariffs versus china, two separate issues maybe the same underlying impetus. on china, china has been great partner for the u.s. i originally bet on china in 1995 i've been there for 30 years and it was a win-win mentality the last few years have developed into hiddwin-lose our trade deficit has gone from $100 billion 15 years ago to $400 billion today

different rules apply to american companies and china versus chinese companies here. there's an unacceptable level of industrial espionage and that has to be dealt with so even though i'm a huge believer in china and u.s. relations, i think what's occurring in terms of holding china accountable is a must. the tariffs is just one of the issues india is an entirely different phenomenon india is the most important strategic partner to the u.s. and the world. and india also views themselves as the u.s.' most strategic partner. when i started saying that four years ago, when i became chair of the u.s./india strategic partnership forum, people didn't get it but today if you are in this room and listen to secretary of energy, rick perry talk about it or secretary of commerce, wilbur ross on or speaker pelosi at lunch, she was just amazing and we're hearing from jared kushner later today, you've got the top american government leaders saying, this is a country we

want to have a partnership with. the tariff issue with them is more transactional we'll work through that. that's what our partnership is about. and you see the same thing from prime minister modi, who is amazing in india and whose cabinet we meet with regularly if you're beating on one country outside the u.s. for gdp growth, double down on india modi just won there in a big time physical you're looking for new ipos, they'll be coming out of india and a lot of the india disorra are formi inin ining cos well and if our two, we can improve it and i would agree with that, you're suddenly looking at an ability to invest in start-ups in the u.s. from the india as well so i think they are entirely different scenarios. the trade issue is just a common bond >> it's interesting, john, that you should describe india as our most important strategic partner

in the world i want to linger on that thought for what it says when we were last together a couple of years ago, you were talking about how india is, not sleeping squlint, but really the goliath of south asia. is the playing field on trade between india and the united states level and if not, how does it need to be level so it's more equitable? >> so in the consequence you just raised, india has been the sleeping giant, a slow follower, now it's becoming a fast leader. the economic growth over the last five years has been the strongest in the world modi got re-elected in a landslide. there needs to be changes and a little bit more balancing on the playing field. but the indians understand, we've got to find a way for this to be a win/win. it isn't a seasonal tractional issue. we have huge alliances on defense, huge alliances in terms of innovation, job creations our companies are working

remarkably well together there is no industrial espionage issue, patent protection, et cetera does it need to be balanced a little bit more? yes, i believe it does and even good friends will have disagreements. i look for this one to be settled pretty shortly prime minister modi and president trump actually get along very well. president trump said in the g-20, he said, were great friends, and by the way, the relationship between our countries has never been befottr that's the relationship you see inside the room. that's one thing that democrats and republicans agree upon, the importance of india and the u.s. becoming partners, and now people are realizing, perhaps the most important relationship in the world >> the french idea of taxing american technology firms. last time we were together, you were very, very high on the way the french have gone about introducing or bringing technology into their nation

ef-into their classrooms and so forth. do you think they'll go through on this tax on american technology companies and how destructive is it likely to be >> tyler, you've hit on series of very important questions. first, do i still believe the french are the start-up engine of europe? yes, i do. they've gone from 145 start-ups in four years to 740 per year. at the time, the u.s. is actually declining on the number the french government, the u.s. government has said the same things to several of these large high-tech companies out of the valley out here, if you don't change your ways, regulation is coming and taxes is coming and if you don't find a fair way to interface to us that you the proper privacy, we're going to regulate you they didn't want to anymore than washington if the companies in the valleys don't listen, they'll get regulated.

the ones who hear it worst are start-ups both in europe, france, and here in the u.s. so the unintended consequences when large companies -- i'm sorry, when governments start regulations in large companies, has unintended consequences to smaller companies. so, no, my opinion is, i still think very positive on france's future i think what they're saying to a couple of the large high tech players in the see and the west coast is you've gotten straighten up a little bit here or we will regulate you. >> john, great to see you, thanks a lot for joining us. >> kelly, i enjoyed it a lot >> john chambers joining us today. >> uber, pinterest and slack are some of the big venture-backed companies that have gone public so far this year, turning 2019 into one of the best years ever for vcs. what's coming up next more them as all the stocks trade lower in the session today. plus, mel gibson's former medieval mansion is on the market

we'll take you inside that when "power lunch" returns.

welcome back the s&p back in positive territory, but it's time now for powerhouse today we're taking you inside a medieval mansion once home to an academy award winner robert frank has more. >> that's right. today's powerhouse was owned by actor mel gibson, who sold it to finance executive richard lichter of newbury partners. now the 76-acre estate is located in greenwich, connecticut, but even though a famous movie star once lived here, lichter is having a bit of a hard time selling it check it out this 76-acre estate in greenwich, connecticut, was once the home of actor mel gibson >> mel bought this estate when he was starting to film "braveheart. i think this room in particular sort of had that feel.

>> reporter: back if 2010, private equity executive richard lichter paid mel around $24 million for the property >> put the braveheart sword over the fireplace. >> i tried to buy the sword, but that was one thing that mel absolutely would not part with at almost any price. >> reporter: every inch of the 16,000-square-foot residence has a middle ages feel, from the great room with stained glass windows to the library's oak paneling that dates back to the 1600s. even the game room feels medieval >> mel gibson left everything behind here. this is his pool table this is his furniture. >> reporter: check out the walls of the breakfast room. >> the mural was put in by the owner before mel gibson, who was a close friend of picasso and was very much entrenched in the art community. >> the 15-bedroom residence also has a movie theater, where gibson screened his own films.

out back, there are four formal gardens, an english maze and a swimming pool. and if that's not enough -- >> this is the private island on the private lake how many properties have their own island >> reporter: but richard is prepared to take a loss on the property he paid $24 million for it he's listing it for just under $20 million. >> and he's still not selling. that's because sales in greenwich falling to their lowest levels in eight years there's now that two-year supply of homes in greenwich. you can get a full tour of this house, lots of other megahomes, including the home that p. diddy is vacationing in right now in aspen, colorado, in all-new "secret lives of the super rich" tomorrow night rear on cnbc. coming up on the tasting men yew, lulu lemon goes all in on experience starbucks' wild new drink and a new trend gets old again stay with us

.

welcome back to power lunch. what about lunch at lululemon. lululemon opening its biggest store ever in chicago today that

includes a restaurant, workout studios, meditation space and one-of-a-kind merchandise with a unique perk, customers will be able to wear selective gear free of charge during the workout classes to test before buying. >> that skeevs me. i have to be honest. i'm going to chicago for one of our events and maybe i'll check it out. >> what's old is back to being old again. wells fargo says the retro trend has peaked and beginning to wane they signaled out champion, the throwback label owned by haines brands as the label that may be most affected by this. i guess you could throw converse in there i don't know. >> sure. >> they said adidas even. >> run into a sort of slow down. >> yeah. >> we'll see for dessert starbucks released a limited edition drink with three days worth of sugar. this is what the tie dye frappuccino looks like supposed to taste like laughfy

taffy candy. you can see the instagram ploy. >> 75 grams of sugar. >> three times what the human should have in one day we got a couple of them. >> we have one here. doesn't really look like that picture but maybe some of the tie dye part been has smashed. >> tyler is bravely taking a sip. >> that is sweet. >> i don't like banana. >> you don't taste much banana >> why is it called a frappuccino if it doesn't have coffee in it >> where did the coffee go >> very sweet. >> if you like a lot of sugar this is your drink. >> might be as instagramble as you hoped. >> pretty so good it is really not bad. it kind of tastes like a pixie stick. many ipos this year are getting many, many people rich, espealencily vture capitalists we'll have more on that story next 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. ♪

with so many high profile unicorns going public, 2019 could be one of the best years ever for adventure capital aditi roy has that from san francisco. >> venture capitalists never seen returns like this the second quarter, the long awaited debuts of unicorns like uber, pinterest and slack among others drove a record $138 billion in exit value for vc backed companies this according to new data released from pitch book the biggest prior period second

quarter 2012 when facebook went public ipos made up nearly 83% of total exit value, also a new high according to pitch book. uber by far the biggest contributor, accounting for nearly half the total. most of the rest came from a combination of pinterest, slack, zoom, and crowd strike the spike in returns sparked an increase in new investments, total vc investment through the first half of the year reached $66 billion. nearly on pace to match the record levels of capital deployed last year and potential road blocks ahead. the head of the venture capital association says the u.s. government's increased scrutiny on foreign investment and its immigration policies remain hurdles for the country's startups back to you. >> we've hit a several milestones including today, art cashin has his own way of commemorating this as they do at the nyse there's the hat for 27,000 in

the bottom right and for the four levels. >> ageless art cashin. i will guarantee you that if they made a hat for dow 1,000 art would have it. he's been there that long. >> don't know about that. >> he had s&p 3,000. this isn't a dow preference situation. >> so as we look at the dow at -- in record territory there at 27,034, s&p has moved higher, not back above 3,000, nasdaq is down, a lot of focus this week on trade, easing tensions there on chairman powell and next week, folks, the focus will be on earnings. that's where the rubber meets the road there are some of the titans we'll be reporting from citi, j&j, morgan stanley, black rock, ebay and others, that will be a big part of what we cover next week as the market digests those earnings reports >> i'll be looking for that netflix report. >> yeah. >> i mean, it's a little early to see if they're going to be

hit by competitive pressure now, but they have a lot coming at them. >> indeed. >> folks -- >> we're going to finish off these tie dye -- >> 100% sugar drink from starbucks. >> thanks for watching "power lunch." >> get yourself a tie dye cream frappuccino. "closing bell" starts now. >> good afternoon. welcome to the "closing bell." i'm wilfred frost. goldman sachs, that stock up nearly 3%, one of the big leaders on the dow that crossed 27,000, on pace for a closing high 59 minutes of trade left and everything you need to know as an investor is coming you. >> welcome i'm sara eisen to what's driving the action higher today health care stocks rallying after president trump's reversal on drug rebates. fed members this afternoon, williams and bostic saying the u.s. economy looks pretty good, but fed chair powell in his second day of testimony says there's room to cut interest rates. joining us