not cut rates. we'll have exactly the same influence with president trump telling them cut rate which is is to say zero these folks, i mean they focus only on unemployment and inflation. >> even that the picture has been murkier than normal. that does it for the exchange every one. thank you very much. we'll see you in a moment. welcome to power lunch for a friday here is what's new at 2:00 we're on record on high watch. stocks within striking distance now of record highs as the market looks to close now for a thinker straight week of gains we'll tell you what can keep this rally moving upward basic tech und big tech under fire. a house panel demanding e-mails from four big tech giants as it ramps up its anti-trust

investigation. valuation dropping by the minute even as the tech unicorn tries to rein in the power of its ceo adam newman to appease investors. we'll bring you those details as pow "power lunch" begins right now. let's look at where the market stands now. two out of three in the red. those red numbers are pretty minuscule. the s&p down by less than a point. the nasdaq by a quarter of one percent or 20 points the dow industrials are up about a fifth of a percent let's look at shares of apple. that stock sinking as goldman s sachs slices its price target.

>> they bottom last wednesday and that was for the stock market look at this here. the ten year yield has rallied 45 basis points. this is the yields in the last week and a half. banks have led the charge in the last week and a half no surprise. first and most importantly u.s.-china trade headlines also expectations of more rate cuts i think that really strong u.s. consumer don't forget again today august retail sales and september sentiment with strong. the u.s. consumer is saving the world economy now. they've been in big demand historic highs in all of these dividend pairs, etfs including

back to you. >> thank you very much what will keep fueling this record rally president and cio of castle management welcome. good to have you here. where do you think this market ends the year? higher, lower? >> i think much if not everything depends on how this american trade negotiations develop. we have said that's what's been holding the market hostage

we had 3100 as the price target. if it's any indication of this is likely to proceeds going forward, we think that's plausible. >> it does seem that trade has been the governor of the market for better or worse and with each tweet or suggestion of progress or lack of progress the market has been the dog that the tail wags. >> that's right. i think what every one lost sight of is the fact that every different thing that came out that made it sound worse got investors further and further away from a balanced portfolio they just continue to own momentum and i think people found themselves at the entd of last month realizing there was

nothing that would speak to any re-acceleration of activities. any kind of reasonable fire or win win from both sides of this would probably set things on fire in terms of economic activity and push all these cyclicals back into portfolios that's what we saw on monday >> you also like large banks is all that predicated on continued better trade resolution or do you think this rotation will happen no matter wh what >> we have pushed so far to the extreme. the price low is 35. semiconductors like there's no recovery coming at all it would be double in the whole

space. there's so much cash flow in the businesses to leave them where they are sitting is absurd >> i don't know if any of the banks are considering that maybe things continue like this for much longer. mark, what parts of the market do you like? >> some of the same certainly. we have seen this mover before and i think in other words to sustain the rally we have seen in this cyclical advance of the last 20 days which has been remarkable, it's highly predicated upon non-u.s. growth. that's emphasized by way of what's coming out of china because of its radiation but europe as well i hardly have conviction we have seen the worst of global economic growth. it's kind of a barbell approach we have taken.

>> jeffrey, talk to me about what seems to be at the heart of the conflict between the u.s. and china. on the one hand its soybeans and u.s. agricultural products on the other hand it's huwei an access to technology if those two things can get resolved one way or another, is that a win win >> absolutely. if you get access to what's taking place, i think those are done the announcements, i think i read today they've begun buying a lot more soybean cargo we know the difficulties the u.s. companies would have if they couldn't get access to the equipment. those are kind of given. those are in the pipeline already. i think that's part of what they will have a conversation about what will come after that will

be probably even bigger, there's a big contract they were talking about. there's a whole series of other relationships that they built up a year ago that have been sitting quietly. i think we'll release a bunch of that in this truce that will allow them to move things forward. >> thank you sp have a good weekend. mplgt >> apple just providing statement to cnbc e responrespo this talking so much about. we do not expect the introduction of apple tv plus including the accounting

treatment for that service to have a material impact on our financial results. goldman put out that research. slashed estimates for apple. saw him take the price target down from 187 to 165 that was the lowest of the mayor wall street banks. apple bushing back and saying it's a treatment of that service. >> thank you despite be market euphoria, trade war fears are rattling boardrooms around the world. we have more on how this is impacting. >> you have to remember euphoria is a temporary state when this was conducted in the days leading up to labor day,

the markets were flat to lower ceos see trade policy as having a negative impact on their business 16% say china is the biggest the compute between the two largest economies has financial decision makers worried abdomyi more than just their industry. cfos downgraded the economic situation of the u.s. of improving to stable. more than 60% of u.s. cfos says their company has made plan ifs the trade war worsens opinion nearly 50% say firms experienced higher input cost. they've had to increase prices to offset those tariff costs something we covered a lot on

cnbc cfos weighing in on the race before president these answers were given weeks after the second democratic debate they see 2020 as a two candidate race with 61% forecasting a trump re-election and 21% a biden win. >> they see the greatest threat to their businesses from u.s. trade policy >> absolutely. almost two-thirds say they don't see a recession in 2020. a threat but they don't think the economy is slowing down. coming up, wall street we have a problem. now it could be cut in half again. what can be done to save this em battled ipo. plus we're watching apple. just not in the wap y it hoped

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reports say it may cut its valuation now in half, again, to appease investors and that's not all. leslie has the latest. >> hey, it's a day by day

development here they balli the market is anticipating wework valuation will come in at $10 billion. the terms which would include a valuation range could come as early as monday. the company was most recently valued at $47 billion by softbank but investors indicated a lower valuation was needed we were announcing changes in an amendment filing this morning. requiring that any ceo will be chosen by the board and not by his wife and two other people as previous filings had earlier indicated.

the company is also decreasing its stock from 20 votes per share to 10 votes per share. we'll find out how much he still controls i would bet it's still a majority we'll learn that many the next amended filing >> stick around. there may be broader implications the saga is a reality check for the growth in silicon valley we're trying to figure out if this is a unique situation with this guy you're saying people are snapping to attention. >> there's just weak demand. these huge companies that have stayed private for a decade have been a reality check for silicon valley that business model isn't working. investors were saying it's

shifting the conversation in boardrooms they are saying we need focus on economic metmetrics, cash flow instead of users >> who would have thought. >> you're kind of seeing this shift. they are saying all right. it might be time to look for those safe r names r names. >> it really is a perfect case study of behavioral finance where you look at herding mentality of these firms. it was a safe bet that you keep putting your mind behind everything would be okay now we're starting to see a reckoning of that mentality.

this idea maybe it would have been better if you look under the hood a bit rather than just piled into these what happens if we said we're better off with private company. >> that's what people are saying the sense of discipline is needed you focus on different metrics it's wake up call. it's some great data over the past two decades the biggest money losers are all under water except for one in the top ten. the issue is they're not making

money. >> you look at that chart which is instructive >> i bet they are pretty happy they went public before wework did. not too dissimilar from where they were valued privately uber went to a lot of their corporate changes while still private before prospectus had been filed >> the business round table did a flashy thing about shareholder first. look at what the shareholder first public market are doing to improve these companies.

they are requiring them to be run better to figure out how to have profitable business models the take into account what they need to do and maybe not hand it out the door those are the kind of discipline that makes them better in the long run and maybe some people in silicon valley disagree >> i think that's really good point. it is the opposite of business round tables point companies should prioritize all stake holders involved in their company employee, suppliers, customers, things like that. it's still an interesting dynamic that we tend to see more and more with silicon valley that does push back against the share holder rights di namic >> you can understand it if you're a founder, you should have some ability to maintain

control. the media companies have had it for quite some time. >> definitely a silver lining. they have been saying it's realistic when it comes to ipo >> we've been vindicated mpblt as the dow closing in, apple is down after a price cut target by its credit card partner goldman sachs. could this be your best chance to buy the stock our traders will weigh in. apple isn't the only tech company under fire congress requesting e-mails and data from tech biggest name. more on the antitrust troubles those companies may be facing. coming up on power lunch

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welcome back apple coming off the lows of the day but still many the red after disputing a goldman sachs call th that its earnings could come under pressure let's bring in your trading nation team. it did get traction on the down side but that comes after the stock had a pretty good run coming into today. how does ta set up the right now in your opinion as it sits below

the highs from last year >> right when i look at this chart. that's a bullish types for set up you measure the height of that consolidation. i can see the stock move up toward 270, 285. from my perspective, i don't see the negativity here in the charts apple continues to out perform the s&p 500. the real conversation on a apple is how much is the smart phone maturing >> they are looking at selling

future phones cheaper than current phones they had to price apple plus at a lower level than they anticipating ink tho i think those are signs of a maturing market. apple will probably get dragged into this regulatory probe but there are many participants who believe apple is well played because of their privacy i think that is news for apple the maturing market as well as u.s.-china relations that will continue to weigh on apple. you have to weigh all of those things >> certainly some skepticism on

the street which is a net positive thing thank you very much. ahead, tech under fire the house judiciary committee requesting internal documents from top executives. tax rate refugee while billionaire is fleeing to florida. lower interest rates are fueling home improvement stocks. can they build on these gains? all this when power lunch returns.

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welcome back here is your cnbc news update.

actress felicity huffman arriving at a boston courthouse for her sentencing he was accompanied by her husband. earlier a federal judge said the bribes paid will not influence the severity of their punishments. prosecutors are recommending a one month jail term and $20,000 fine secretary of state mike pompeo meeting with his brazilian counterpart at the state department >> when they met at the white house they committed to expand the strength today we're holding our first strategic dialogue in seven years. the change in our relationship is much bigger than any one meeting or set of meetings >> the fda announcing that some medicines including zantac contain traces of a substance that could cause cancer.

they are low and barely exce exceeding amounts found in common food. more testing is needed that's the update this hour back to you. let's get a check on the markets with near record highs the dow is the only average in the green now. it could billion over year so we're watching that closely. it's turned slightly negative by a point. take a look. on pace for its best week since november 2016. this has yields have surged back big time the oil market is closing for the day. >> oil prices are closing out the week on a more muted note. we are on track for a weekly loss for the major benchmarks. prices off by about one third of

1% world benchmark prices off a quarter of 1%. for brent, it snaps a four week winning streak for wti it snams a two week w-- snaps a winning streak t earlier there was active oil rigs in america declined to 733. that's the fourth week in a row of fewer active oil rigs back over to you the house sjudiciary it sees to me sending names to the biggest in tech. >> the list of documents they are request from each company is long just take a look at this letter they sent to alphabet.

it's nine pages long they are asking for e-mails and other communication from top executives around google search and the acquisitoion of youtube lawmakers are still in the fact finding phase. the letter came from democrats and republicans on the house judiciary committee. the congressman was who leading this investigation called the request an important milestone the industry has until october 14th to hand over the documents. let's dig daeeper into the antitrust probe.

welcome to you both. i'm glad you're here as you look at this, maybe from a cursory or 50,000 flip level where do you or where do others conceive harm to consumers because that's usually the real reason that antitrust cases come >> i think that important. the u.s. standards for aen trust violation is consumer harm these congressional investigations and the investigations at the doj, ftc, state attorney general, they'll have a tougher time finding provable, consumer harm. >> a lot of the products are

given away for free. where miepgt it lie? >> well, it's a good question. the standard has been for consumers but there's a change in the perception in washington right now that maybe if there aren't ha many come speter, that may be enough antitrust grounds for action we reported about how apple was ranking its own as well above competitor's that's the sort of thing that could be harmful to competitors. apple had an explanation

they did say the algorithm did that on its own. it was not intentional or underhanded by them. we saw congress put out a specific request for dozens of their top executives on dozens of issues to get specific correspondence, to try to understand the thinking behind the positions. they are looking for a smoking gun. a lot of these cases have been built on correspondence in the past to see if there was intent behind the movers. >> what's the unintended consequence. i think there's a real danger here it can have a real chilling effect on a dynamic industry

these companies have to wonder what's out of bounds now what's breaking the rules now? that doesn't do anything to spur the innovation we're looking for. now they're going to be dragged into the bureaucratic mire >> at what point does it turn into a demand for that in. >> indeed. this is just a request for information. this is a congressional process. this could turn into subpoenas if the companies are not forthcoming. this is a bipartisan request fp it's a single party it's much easier for the companies to dismiss it but to have both parties in lock step means the

companies are payings taeattent. >> how would congress know if it's getting the -- how does it know know >> i think those will well handled in the terms of committee staff. i don't think that part of this is controversial >> any idea how much billions of pages of documents we're talking about here >> i don't have an estimate. i think it's a really good question is how does congress know it's getting everything at once we should know the defense department is looking at this. >> thank you very much >> thank you he's a lifelong new yorker

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the billionaire investor was born in queens and now he's moving offices from the empire state to the sunshine state. no longer in an empire state of mind >> that's right. carl ichan is taking his talent and taxes to miami he said he's moving to miami to the warmer weather and slower pace but taxes also may play a role deductions are $10,000. that's created a new incentive for high income earners to head to florida you have billionaire hedge funders packing up from the northeast and heading south over the past decade. in 2017, about 64,000 people moved from new york to florida that's in keeping roughly with

the historical average but tax experts say that pace has probably accelerated in 2018 to be far larger this year and next icahn has homes in miami the island has only 34 homes it's got a private police force. his immediate neighbor is a super model. >> well. nice neighbors down there. very good for him. what do these departures from the states whether it's leavie ing grenwich does it mean >> when david left new jersey they had to amend the budget projections because the impact of guy who makes 1 to 2 billion dollar a year had a meaningful

impact on that budget icahn's incomes probably flux waited a lot we have a city tax, a state tax, it's probably going to show up on the budget. >> none of these guys will say it's because of taxes because they doin't want to be called ta avoider. david said it was to be closer to his mother. carl icahn said it's the weather. seinfeld said you turn 60, you mover to florida web security company made its debut this morning

after a rough day, investors are relieved the stock was down almost 30% yesterday. it's backed by about 11% today juul is going up in smoke, folks. the valuation is coming down sharply as sources say it's value on the secondary market has dropped as much as 20% this is an industry that is under siege at federal level, state level, local level >> it happened very quickly in response to what was a dramatic worsening of public health what does it mean for that deal? a rocket sales for key wine dropped 5% it's causing companies like

constellation brands to sell their wine portfolios in other words to dump their sour grapes. >> sour grapes i wonder what it is. i wonder whether people are drinking more spirits. >> hard seltzer. it's been popular. talk about the cannibas. it has to be a combination of things home is where the heart it and might be where the money is too. why home improvement stocks have been surging in 2019 that and a full update on kitchen renovations ahead on "power lunch."

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all right. news moving now. we got an update on the trump administration from the trump administration on talk of a potential tax cut, as the 2020 campaign ramps up, eamon javers is at the white house. eamon? >> reporter: yeah, tyler, that's right. the news not happening here at the white house, but actually happening at the republican retreat in baltimore where larry kudlow has just been talking to a few reporters. and kudlow is telling them that the white house plans to unveil a tax cut plan some time next year in 2020 now, this is not a plan, i'm

told, that white house officials expect could pass next year. they're very aware that the speaker of the house is named nancy pelosi and is not likely to pass any legislation that they want to see passed on tax cuts in '20. what this is likely to be is the plan that they call here, tax cuts 2.0 it's going to be a campaign document for the president to run on and to make the case to voters going through the spring and summer of next year, if you re-elect me and a republican majority on capitol hill, then in 2021, here's what we want to do in terms of middle class tax cuts that's the goal of this administration, is to put together a plan that will be compelling for voters, that they can talk about during the course of the year next year. i've talked to aides today here at the white house who say there's no current planning for any kind of new legislation that could pass this year or in 2020. so ultimately, what you're talking about here is a 2021 thing, if the president's re-elected and that's going to be the pitch to voters >> eamon javers, thanks very

much for the details there appreciate it. home builders are having a strong year thanks to lower mortgage rates some retail names are also benefitting from general housing trends home improvement stocks also hitting some highs this week names like home depot, lowe's and restoration hardware soaring this year, are each up 41% with us to dive deeper and brian nagel, an analyst at oppenheimer. and brian, a lot of the year-to-date numbers are affected by the fact that the fourth quarter was so bad. what are the standout names as far as your concerned in this space that have legs here for some time still to come? >> sure. thanks for having me i think about the overall consumer environment you know, it's clear to me that one, the consumer is still spending and two, the home is very much a focal point for consumers to spend. so i look through my coverage universe i've looked the home improvement retailers, home depot and lowe's for a long time. i continue to like these names i know there's some chatter today about mortgage rates now

popping off their lowe's, but as i look at the trajectory of mortgage rates, they're still very low historically, very low from where they were not that long ago as i think about those businesses and you mentioned the builders in your opening, the builders are probably more tied to rates, but companies like home depot and lowe's definitely see a benefit when mortgage rates are lower, you have more housing activity, and people just feel overall better about investing back into their home >> what is the general -- you know, we talk about the catalyst for major home renovations is it when people have purchased a house and are arriving in it and want to, you know, make the changes then, or is it when people feel stuck in their house and want to make a change, you know, which of those is more important and which is more important to the performance of these stocks right now >> you know, it's a good question and there's not a great easy answer, but as we've looked at data over time and i've studied home depot and lowe's for a very long time now, i tend to think

when i think of what drives that, it's, one, the age of the homes. the homes goat s get to a certat where they're dated and needs to be worked on but we also see a very good correlation about home equity. right now, there's a slide i show my clients all the time that home equity is at record levels so there's a lot of relt tiweal up in these homes. that helps to drive those remodeling projects you're talking about. on a smaller scale, we do see what you're mentioning, though, too. someone moves into a home, they make some initial changes to make it there. when someone's preparing a home for sale, they clean it up so it looks better on the market >> i'm curious, what percentage, if you know, of home depot and lowe's business is contractor related as opposed to do it yourselfer related >> yeah, so right now, it's difficult to tell for sure but i would say generally speaking that the sales at the home centers are somewhere between 20 and 30, maybe 25 to

35% to the professional customer now, in both cases, and this is really a positive for home depot and lowe's, in both cases, those companies are making a bigger push into those markets. they're looking how to serve better those professional customers. the key for home depot and lowe's, that's a larger market, still much more fragmented that's why there's still such a big push into that area. >> brian, thank you very much. appreciate your time today thank you. >> thank you for having me appreciate it. >> i've been updating my house and i want to show you some pictures this was the before there on the left last winter this was taken roughly -- the afghan war comes to mind as an analogy there and there's the after. we're in the ninth inning. it could be a long ining >> you're close. how many knobs are on that stove? >> there are eight knobs i'm so proud of those knobs. and i don't know how much those knobs cost per knob, but there are eight burners on that beautiful -- that thing is a

beast, that stove! >> and that hood with the paneling >> the vent-a-hood >> on every home rent variety's mi renovator's mind, was it worth it >> we'll see i have to say, it will be the thing that will sell our house eventually will it sell our house at a cost it will recoup everything we've put into it? i doubt it >> are you going to florida? >> no comment. no comment not soon we're there in beautiful jersey. my son loves it. check, please, i think is next we've got time you should be mad at airports. excuse me, where is gate 87? you should be mad at non-seasoned travelers. and they took my toothpaste away. and you should be mad at people who take unnecessary risks. how dare you, he's my emotional support snake. but you're not mad, because you have e*trade, whose tech helps you understand the risk and reward potential on an options trade

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that's it from us. thanks for watching "power lunch," everyone >> check, please -- no, check, please "closing bell" right now >> welcome to the "closing bell," everyone. i'm wilfred frost. i'm here at the jpmorgan chase post today as that stock hit a record high. banks have been the best-performing sector of the week as yields have risen and today the dow is set for an eighth straight day of gains wee we've got 59 minutes left of trade. >> and i'm morgan brennan in for sara eisen better than expected retail sales helped calm some worries about the threat of recession. plus, that has yields surging to their highest level in weeks and the trade optimism continues. but stocks like apple and broadcom are sinking, weighing