thank you so much for joining me >> thanks for having me. >> scott shane with comeback capital. and that does it for about "the exchange. i'll go engijoin tyler and melia for "power lunch." >> come on over. welcome, everybody and here is what is new on "power lunch." this is a thursday trade talks, they are under way and stocks are soaring up 168 points on the dow as the president teases a big meeting to come at the white house tomorrow details are straight ahead deal, no deal, we'll see we'll bring in howie handel. here comes the iphone bump another analyst pounding the table on apple following stronger demand for its new slate of smartphones and earnings kicking into high gear next week as expectations keep falling. are we in for a season of pain "power lunch" starts right now

welcome to "power lunch. a lot doing on the dow is up triple digits, although off the highs of date that is about 0.06% of a gain. take a look at abebed bath & beyond, the best day in almost two deck asd ades on its annount of a new ceo >> and kayla tausche is outside the room where it is all happening in washington today. >> reporter: and inside the ustr building just behind me, we are expecting that lunch is wrapping up and that some of the lower level officials are going to be returning for an afternoon negotiating session that we're expecting to last about four hours. and then around 6:30 p.m., the two sides will host a dinner that white house officials say is going to be a celebration of

sorts. i was told last night that it was a rather fancy and special affair, we're still awaiting the location on that one of course the main event is going to be tomorrow as we now know, president trump tweeting that he will be meeting yet again with china's vice premiere in the oval office he says that china wants to deal and raises the question of whether he does. but looking at past meetings where president trump has hosted him in the oval office, it looks like that there would be a positive development nonetheless. on january 31st when leo was in the oval office, he pledged a purchase of 5 million metric tons of soybeans by china of u.s. product on february 22, that meeting led to a delay of tariffs on march 1 just a matter of days later. and then in april, during that meeting they were working out details of at that time a proposed summit between president trump and president xi president trump said at the time

it was about four weeks away when they would be hammering out final details of a deal. of course that never happened. talks broke down tariffs escalated and now here we are of course there are about three dozen chinese officials in washington officials and principals were are smiling and happy when they arrived here for talks this morning. we will see if that mood continues throughout the day and tomorrow back to you. >> kayla, thank you. the markets reacted to every twist and turn bob pisani is at the new york stock exchange to run us through it it started overnight really. >> last night at 6:00ing and today's rally happened right after the open there it is, there is the president's tweet and that moved things here. and it contradicted earlier reports that the chinese officials may leave a day early. but the bar has been low, the market seems content with a mini

deal for the moment that might involve buying agricultural products in exchange for no new tariffs. that is what the market wants so the usual trade related sectors all moved, materials, energy, industrial stocks are hire and utilities are lagging would to get us through to christmas, that is what the traders want to know it may well be enough to keep us in the roughly 200 point trading range we've been in with the s&p 500 for most of the year and that range is 2825 to 3025 the problem is the truces can be easily broken and the market knows that and all of these truces do not change the fundamental narrative that has been developing for gone, that is lower growth, low yields, a defensive stock positioning like consumer staples, and overall lower earnings guidance. you have to reverse this market and narrativeand only a really

more comprehensive deal will do that tyler, back to you >> so will the trade talks lead to an agreement or will both sides once again walk away from the negotiating table with no deal done? here to discuss this founder and managing partner at bridge park advisors and also founder of reality check. gentlemen, welcome two founders with us stefan, i was struck in my notes that you say among other things market economies and nonmarket economies of the scale of china and the united states may ultimately be fundamentally incompatible the chinese economy after moving in the direction of a market economy has moved sort of back the other way under xi jinping so if you take that statement and sort of back time it through the thing, there won't be any big deal this week and we'll be fundamentally in competition and maybe moving away from china for

a generation >> yeah, i mean, it really depends on what you believe is the ultimate resolution of these trade frictions. and so if the resolution at least is a political resolution where we delay perhaps the tariffs, new round of tariffs that are supposed to come next us it, so you can imagine the chinese saying something around in-takellectual property protection, but it won't get to the fundamental part which is the communist party going to give up controlling of their economy. and so i think that won't happen anytime soon >> and alan, you say something that sounds relatively similar, the trump administration's paramount goal is recoupling the u.s. economy from china's as quickly as possible. what do you mean by that >> just as stefan said, there seems to be a strong conclusion that has been drawn by the administration as well as by many, many outside specialists that the two systems are

fundamentally incompatible, however deeply intertwined they are now, and that continued engagement at this level certainly does not serve u.s. economic interests, it doesn't serve u.s. technology interests or national security interests and that in fact some kind of an unwinding, and we've seen quite a bit of that so far, is what the u.s. policy ought to be seeking. and i think it is even more important to observe what is going on outside these current formal trade negotiations when it comes to u.s./china economic relations because this unwinding has already begun whether you are talking about trade flow, technology flows, human being flows. they are all shrinking >> and we have seen so many of the side issues that week, whether it be capital controls or banning people, so many

different issues that could find their way into the trade talks >> security issues >> exactly huawei of course as well do you think that they do make their way into the discussions this week? because when you read them, and you go item by item by item, it certainly doesn't seem like a very friendly way to start trade negotiations >> quewell and certainly from a political perspective, you have senator rubio amongst others, there has become on both sides of the aisle i think a bipartisan disillusionment with china. so you have that political disillusionment on the one hand and you have policymakers that are trying to have a more comprehensive complete deal getting done you have actually corporations that are very interested in long term planning. but you have market participants as was just suggested that are concerned about the volatility in the markets between getting from here to there

so i think that is exactly what you will have for some period of time you will have continued volatility in the markets if you believe this is not going to get resolved anytime soon which it sounds like both of us agree is not going to happen. >> could we find ourselves talking about these trade negotiations and seeing that all these various issues that you are talking about, that we are talking about here on set, have become negotiation chips >> i don't believe that they will be. especially going forward and one reason is, i think that because of president trump's political troubles, he has a stronger interest in reaching some kind of a nerve-calming mini deal as it has been called than he had before i think once that mueller report was out of the way and we all thought that the impeachment threat was basically gone, he had a much freer hand. his hand is now no longer nearly so free. and i think that it is really quite clear that in terms of these larger structural issues,

intellectual property theft, illegal subsidies, technology extortion, the chinese are in no mood to com indicaaccommodate h think are counting on waiting out the 2020 election. wellnd kicking the can down the so if they actually get some delay on these upcoming tariffs, that will buy them some time >> which you seem to expect. the ones that are supposed to go in on the 15th won't >> it is hard to expect anything the gonegotiating strategy has been a bit confusing what i would say is i think that it is -- there is 0% that this gets resolved in a comprehensive way over the course of these meetings so now your other choice is we'll proceed along the path that has already been described which is increasing tariffs next tuesday and then a new batch to come in on december 15th i believe there is a decent chance that we will make incremental progress that allows them to come up with some political victory and as part of

that, i might imagine a delay or are are a reward for this chinese negotiating team coming out of this meeting with the president tomorrow which i think both sides would view positively >> all right gentlemen, thank you very much i know we'll be talking about this one again turning back to the markets, stocks are suddenly taking a drop here off the highs. we were up about 80 points a moment ago for the dow, about 110 points right now but could a trade deal with china be the ultimate catalyst peter anderson and scott clemens are joining us peter, do you think -- i mean, it seems to me that no one is expecting any kind of quote/unquote big trade deal with china ever at this point, right in. >> well, it certainly seems to be pushed out. you know, we've been talking about this to some time. we've used game theory, all kinds of analysis and i do think that this is going to be far

more proceed tract tracted thane asked me about this say 18 months ago and i think we just have to manage through that. you have two choices as a portfolio manager, you can tell your clients that maybe they should go into cash and suffer through capital gains or plow ahead and try to find within this noise rational investments that you think will be durable throughout this continued volatility >> and i know that you have some of those but before we get into them, scott, i'm curious if you have the same point of view or if you think everyone has gotten too negative and maybe the tariffs are delayed and we have a nice truce for a while. >> well, you certainly could, but that is the whole point, to trade this appropriately, you have to actually get three things right you have to get right the proposal from country a, china or japan, the response from country bhchl, and then what it means for markets. so rather than are do that, i'd rather focus on the companies whose business modeling do not depend on a binary outcome

>> such as >> well, things that are related to the consumer is where we're finding it because the resiliency of the american consumer and spending seems to continue at pace for matter what is happening in the white house. >> a couple examples in. >> anything in consumer staples or discretionary, business models that sell essential products and services, loyal customers. those companies aren't immune from the trade dispute, but they are at least inoculated against it >> peter, i know for you it is data security, data storage, senior health care do you think those can be the ports in a storm >> i've spoken on this program several times about data storage and security so i'm certainly a big fan but the newer one that i've been focusing on is senior health care and believe it or not, i think that there are common themes in all three of these sector in that there is an undeniable growth rate. as seniors increase in population, did you know for instance 50% of people over 70

years old will develop vision and hearing issues and so that is a virtually predictable -- you can model that and so if you accept that thesis, it is pretty clear that you should be investing in stocks in those industries. >> in terms of the broader markets, it seems like the uncertainty in the market will only persist if the baseline scenario happens and that is no deal with many things kicked down the road. i mean, the issue of capex and ceo confidence won't be resolved with that sort of framework in place. and so with the markets, 3% away from record highs at this point, is that enough to sustain us at these levels >> one of the things that worries me is the degree to which the woes of the manufacturing sector, which are in part driven by tariffs and trade uncertainty, begin to bleed through into personal consumption. personal consumption is 68% of

the economic equation. so to the degree companies decide to postpone hiring or expansion plans and that begins to be reflected in the report, he yes, it is a risk i think we'll get better insight into that as third quarter unfolds. still exposed to the consumer at this stage because that is the heartbeat of economic activity that is not dependent on one particular outcan of tome of the disputes >> gentlemen, thanks and a news alert on capital requirements for banks let's bring in steve liesman >> yeah, the federal reserve right now holding an open meeting which is expected to vote on easing capital and liquidity requirements for smaller and medium sized bachks. this has been a very, very, very long time in the making. and now they are voting on the final rule it will become actual law, it reduces the capital requirements

for those smaller banks and medium size banks, not really altering it very much for the larger banks it is also altering what is called the living will with a resolution plan of some of the biggest banks that have to file them and also the smaller banks as well. i think this is well telegraphed by the markets, so i'm not seeing any big change in the banking stocks but it is something that some bank analysts have said that investors need to factor into their investment thesis, the idea that some of the regulations is getting easier relative to the original dodd-frank >> steve, thank you. coming up, lebron james and the lakers playing in china without incident we'll tell you why so many players have suddenly gone silent on china. plus apple shares nearing an all-time high, we'll talk to an analyst who just upgraded the stock. - [spokesman] if you've tried college but never finished,

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apple within inches of its all time high. apple has been outperforming the s&p 500 all year gaining more than 45% while the broader index is up about 17% to 2019. let's bring in sean harrison great to have you with us. we've seen a parade of analysts come out getting more bullish on

the procespects of the iphone 1. what convinced you that there is in fact demand for the 11? is it the reports from the suppliers? what was it? >> it was two fold actually. number one, it was our industry research that highlighted an increase in production in the iphone that we haven't been able to say that for more than two years, so that is a clear positive and second, trends in china and outside of china are up year over year. >>and is there any concern, yo know, i understand that now hardware is going to be a tail wind going into the end of the year as owes possessed tooppose wind but are there other headwinds that are unknown apple was in the news recently for now removing the map app which was used by protestors to avoid police and i'm wondering if that zep

uncertainty plays into the last quarter of the calendar year again. >> the comps in china are relatively easy. so sure there is iuncertainty. but apple usually doesn't change its viewpoint on demand unless it is pretty confident of what is occurring out there >> and in terms of the demand for the new phone, what is your forecast in terms of the mix of phones and i understand we won't get units, but the mix of phones will certainly help us figure out perhaps what margins could be like. >> so the mix is going more to the low end. up side is more in the iphone 11 versus the other higher priced models so the cut in price apple made this year is actually doing what apple wanted, which is driving incremental demand >> and you also say that you like some of the suppliers

is that already reflected in these stocks or no because a lot of them jumped on those initial reports. >> they have jumped. and broad com, texas instruments, all have high exposure to apple. and so i think the broadcast for the september quarter or december quarter at least in terms of consensus estimates previously weren't reflecting strong iphone demand it was a pretty meager outlook so we've had some jumps today, but i would expect probably as we go into earnings season maybe more of a follow through on that business as we see the true up side >> does about puncture the idea that people would wait for a 5g phone? >> i don't think so. i think this is more akin to the iphone 7 cycle the 6 s was a disappointment, and iphone 7 out sold a bit. so i think this is more of an underestimation of demand out there, maybe a bit of pent up

demand, pricing helping the programs to stimulate demand as well and then still potentially more up side for the 5g in 2020 this is more of an interim bump. >> all right great to speak with you. thank you. coming up, bed bath & beyond shares, they are beyond today having one of the best days ever can a new ceo really turn the company around and earnings season kicks off in a really big way next week. eching y vethg u edo know

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welcome back to "power lunch. i'm mark santoli check out shares of bed bath and beyond soaring today after naming a new president and ceo come early november. the stock playing catchup following a very long slump. so is this the beginning of a bigger rebound todd gordon and gina sanchez joining us todd, probably has a long way to go this stock to kind of win back the benefit of the dow that has been really pummeled, but what do the charts tell you in terms of how promising this bounce is? >> you're right, the orderly of

this decline has been amazing. the market through these lines, i didn't it couldn't be anymore technical. we need to break through this down trend which is right around the $18 region in order to get the buy stops and more buyers starting to come in. and that is the weekly chart let's go to the daily and there is one more intermediate take your get, that is the 200 day moving average that is a about the $13. there is the channel from the weekly the way i look at it, this is kind of a trade that is like missouri, the show me trade. break through before we start to give it some attention >> all right so obviously going to have to monitor the progress gina, clearly the market likes the idea of having this very well respected merchandising executive to see if they can kind of put up a fight against amazon and all the other structural changes in retail what do you think about the

stock? >> well, i think this has been a blood bath and beyond for a while now. and so this turn around on i go defini definitely needed something. this new ceo could be interest in addition to all the changes that they made but the big cloud hanging over their head is 65% of their imports come from china. that was in a recent report that showed that 13% of their earnings could potentially be impacted based on their china exposure that is kind of a big black cloud. but obviously they are making moves to go in the right direction. and this new ceo could be a really big boost for that. >> yeah, and one of the cheapest stocks if you believe anything about next year's forecast earnings in the markets. so we'll see if they can get any traction against all those challenges todd and gina, thank you

ahead on "power lunch," as the nba's backlash in china continues, cnbc has new reports that sports agents are advising their clients to walk a fine line and not talk about china. those details are next plus you might not have heard of this chinese ride sharing company, but it dwarfs already uber and lyft. we'll dig into de it generally speaking a strong dollar is good for the economy but that doesn't mean that all companies are going to benefit equally. in fact, companies that do a lot of business an blood and those in manufacturing tend to be more vulnerable to a strong dollar. so if you believe that the

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michael bloomberg blaming the u.s. government for taking the world backwards on climate change during his opening statement at the c 40 world mayors summit in denmark -- >> even if you don't have the support from the federal government, that is no excuse not to try to make change and certainly something that does not prevent you from doing it. in fact in meck, you can make the case that trump has done us a favor. every time he reallies against climate change, the money comes flooding in to help c 40 alaska and american airlines will scale back their mileage plan partnership early next year alaska airlines members will not be able to earn miles on american airlines international flights beginning march 1 of 2020 and they will no longer be able to use it for reward raffle. and today is world mental health day and prince harry is using the occasion to highlight

important initiatives in i england. you are up to indicate that is the news update this hour kelly, back to you.up to indica. that is the news update this hour kelly, back to you and we're well off the highs of the day we're up 134 right now hanging on to the half percent gains for the dow. the s&p up a little more than that and nasdaq adding 39 points now let's take a look at some power players netflix rising goldman and ubs keeping their buy ratings on the stock goldman sachs mostly bullish with analysts saying fourth quarter sub growth will exceed street expectations. and take a look at delta air lines reporting results this morning, missing slightly on revenue. did he wi delta scissors it is hiring more workers to keep up on demand shares are lower by 2% and some of these pot stocks

are falling as hexo withdraws its guidance hexo is the biggest decline since november of 2015 oil markets closing for the day. >> closing in the demean today you can see here wti up about a dollar, 2% gain today to $53.66. this is only the second time in 13 sessions that crude has closed the day higher. opec cutting its forecast for oil demand growth which has traders hoping that the group will impose steeper production cuts at its meeting in december. despite the ongoing fallout for the nba in china, the highly anticipated lakers/nets game in shanghai went off early today as planned. the nets won a close contest against the lakers but it wasn't exactly business as usual the players were not available to the media before the game or

after. the commission per canceled his pregame news conference. and neither country's national anthem was played before the tipoff clearly the nba is still in cleanup mode and cnbc now reports that sports agents are telling their hoops clients not to comment on china. here with us now to talk about the story is jabari young. good to have you here with us. what i think is happening heradg the best damage control he can, one is to calm the situation with respect to the chinese and two is to calm the situation with respect to his domestic critics who are saying you are knuckling to the chinese and he has put out things saying we're defending free speech here but it seems that probably internally the word has gone out to agents and team executives and players, do not touch this

third rail >> it is not hard. very hard being a leader, right? and that is what we're hearing agents are telling their clients if you cannot come up with a respectful answer, stay away from it all together because it is too much money at risk, too much to lose and you do not want to lose this a lot of nba players go overseas to endorse their product, all of their brand. this is not just a salary here, it is a brand hit. and these guys have lives outside of basketball because when the game is over, they still got to make money. and so right now, they clients are saying listen, agents are saying do not you touch it it is the safe bet because you are -- >> a very good point because it is not just a league issue, it is a personal issue because a lot of these guys have endorsement deals and kobe bryant was a big hero in china >> absolutely. >> and i'm sure lebron is and steph curry and all of them. >> i remember kawhi leonard, former spur, raptor, now clipper, he went over to china in 2017 and talking to his camp,

they couldn't believe the love that they got over there so it is a big business between the nba and china. and that is exactly why right now the fallout is hurting and that is why teams are saying we cannot go forward with this, we don't want to comment. and it is kind of interrupting the natural business the tension is there guys didn't want to talk >> are you getting the sense that this is also the message from the nba and really the nba talking to agents saying tell your clients so we don't have to be on the record saying to our players don't talk about certain things >> no, i think it is the agents. they are saying we don't care what the nba is saying, you stay away from it they say baseball questiketball only >> i don't think that they have to be told certainly -- >> yeah, they are smart enough to know. these are businessmen. >> they are businessmen. >> and what happened to morey?

>> morey was a general manager >> never tweet on a friday night. >> never tweet at all. stay away from it. it is really unfair, you see social media and players are taking a big hit talking about when it comes to china, they don't have anything to say but china is not their hole, the united states is their home. they speak on issues that they know about steph curry said we don't know enough about the chinese history and hong kong, so we don't want to comments. but as we gain more knowledge, then we will comment never said they won't, they just said he we'we're staying away ft right now. >> this is not like the nfl anthem protests. name a single player who come out in favor of the hong kong protests they won't do it they know very well where the dollars are. >> and it is unfair because they are getting dragged into something that had something to do with a general manager. so you know, you got to side

with them a little bit, stay out of it. and i thought steph curry had the perfect comment when he said this is very sensitive, and we'll stay away from it. >> and kantenes kanter who has n very outspoken about turkey's liberal the movement and he can't go home. there is a player that you would assume if he is asked about the protests might come out in favor of them, but i'd be hard pressed to name another. >> yeah, not now again, as they gain more knowledge, and learn the history of china and hong kong and all of it, then i think that they will be more equipped to answer those questions. but right now i don't blame the agents telling the players to stay away from it. i don't even want to touch it. but this is smart, this is business, and everybody has to make don't want to lose it so stay away from it >> and welcome to cnbc by the way. if you pump up the enthusiasm, you'll be fine great to have you here

>> appreciate it >> love it and to read his full article as well as all of our coverage on the nba and china, go to cnbc.com, you will find it there 37 and check out "fast money's" interview with jamal mashburn tonight at 5:00. hundreds of thousands of pg&e customers in northern california are without power the utility shutdowning off the lights to mitigate the risk of wildfires. strong winds are blowing through the area josh lipton is joining us with the latest >> reporter: here is the latest stats. 126,000 customers have had their power restored, but that means about 600,000 customers still don't have power and as you mentioned, the strong winds, peak winds hitting about 77 miles per hour in parts of california and that is what has pg&e nervous here that damage to the infrastructure and potentially leads to more devastating wildfires. so the bottom line, 34 of 58 counties across the state are impacted though i spoke to one resident

that actually wasn't angry at the utility. take a listen. >> i've spent two days, yesterday up in napa, preparing for it and i'd much rather have them be overly cautious and be able to say after they turn the power back on perhaps we helped prevent a fire that is a positive attitude to take that is a responsible attitude to take. >> reporter: still others are upset, outages have resulted in runs on supplies companies by the way are taking action too tesla apparently telling its customers to remember to charge up guys, back to you. and all this week we've been looking at the rise of the unicorn, checking on the biggest private companies. up next, it is chi'snsr na aweto uber, a closer look at didi. stay with us beyond the not-so-routine cases. comcast business is helping doctors provide care in whole new ways.

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she was told the meeting lasted about an hour. and this was the first face-to-face meeting with bar are a oig and the uac leaders. back over to you and to the bond market now rick santelli is tracking the action hi, rick >> and there is a lot of action. and not all of it starts here. we're used to being the center of the universe when it comes to interest rates, maybe that is changing look at the 24 hours of 2s and 10s, we're seeing significant gains and steepening of the curve. ten year up basically a half dozen basis points let's talk 30 year bond. completion of 78 billion in supply, 16 billion was 30 year bounds a c-plus what was noteworthy, the direct bidding best since 2014. look at a chart starting in june, what is notable? it is now above 209. left of the chart, that was the all-time low markets don't forget these important features the fact that we are back above

it is significant. finally, let's look at what is going on the other side of the world. let's look at boounds since july, it is really starting to surge. maybe christine lagarde isn't going to be mario draghi and now the world's second largest venture backed company, didi is dominating the rride shg space with more than half a billion users. let's head deidre bosa for more >> where uber has been retreating from major losing markets, the chinese ride sharing giant has been aggressively expanding key to the global ambitions is latin america which also happens to be key for uber so the two are duking it out there. and in true ride sharing fashion, they are burning through billions of dollars to do so. beyond its physical footprint, it owns stakes in other ride

sharing startups grab, bolt, ola, and lyft and uber they are invested in both. so you might very well call didi the king of ride sharing, perhaps the king maker but its latest valuation, $56 billion, guys, that should be taken with a grain of salt it is likely that like other money losing unicorns, it has taken a haircut in the wake of public market response to other money losing startups. didi is another one of them. back to you. >> all right thank you. and it has been a rough month for the banks. goldman sachs and e misaradniean stanley both down. can the numbers turn around. [leaf blower] you should be mad at leaf blowers. [beep] you should be mad your neighbor always wants to hang out.

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the index is showing a high correlation with the s&p 500 and gdp. joining us to discuss the ceo of gallup capital what are you expecting >> despite all the noise and talk which is important about trade in china, the u.s. middle america economy is driven by personal income and consumer spending with unemployment at 3.5%, wage growth at 3% u.s. middle companies are doing great. they don't have the drag from commodity priced driven factors. they don't have a drag from weaker international demand. and it's important that we just see this continuing strength in the core of our domestic economy. >> there's a big caveat to what you're seeing and that's this data was collected and surveyed in the months of july and

august month of september clearly we had weaker than expected services number which ignited concern about weak manufacturing spilling over. i'm wondering, if you're getting any signs from just talking to your client base as to whether or not this could be a factor in the future, ultimately be a factor for the quarter >> we're not seeing it so far. you're right, though, for example if you look' nfib data still positive but it's less positive in september than it was before the price index was flat consumer price index was flat. we're hearing from our portfolio companies having trouble finding qualified workers. so, i think the theme of moderate growth has continued even through september >> you know, the index you say tracks relatively closely or is a good predictor to the s&p 500, the s&p 600 small cap index and

gdp. >> earnings not price. >> not price, earnings but could this be the time when there is divergence because these more middle market companies are less exposed to the trade tumult >> for sure look at the u.s. dollar and u.s. dollars appreciated almost 3% during this period. so s&p 500 companies that have a lot of their operations outside of the united states, the math just requires that those foreign earnings even if they were at the same level in local currency will be lower in u.s. dollars. you're 100% right. there are some factors here that custody severe against during this period. also possible some estimates are just too conservative. >> does it make sense in the environment you're describing where we're plagued by labor shortages wasn't the earning you mentioned, do fed rate cuts make sense to you in this environment? >> no they don't they haven't made sense the to me for a long time u.s. companies having trouble

meeting demands, having trouble filling spots. increased demand isn't capable of doing much good except run the risk of creating bottlenecks and accelerating the end of growth as opposed to helping the growth >> cap x is expected to be up 3% for the third quarter. i wonder if you're seeing that amongst the businesses you serve, that there's an uncertainty surrounding capital outlays? >> not really. capital spending in our businesses are doing better than those statistics show. nationally declines in cap x are heefl influen hopeful influenced by drilling, boeing those have not had much impact on the labor market. the labor shortages are pushing more investment for automation i think there's certain political cloud that doesn't help, and there's uncertainty about planning but we haven't turn that into any decline in

capital investments yet. >> lawrence, great to speak with you. thank you. >> thank you more "power lunch" right afr is teth

welcome back we got a news alert on apple josh lipton has the details. >> reporter: remember we covered all day apple removed that app that hong kong protesters had been using to track police cnbc confirming a letter that

ceo tim cook sent to his employees explaining this decision obviously that kind of decision is never an easy one however he tells employees over the past several days the company received credible information from the hong kong cyber security and technology crime bureau as well as cook says from his users in hong kong that this app in question was become used maliciously in his words to target individual officers for violence and victimize individuals and property where no police are present. in other words, making the case it wasn't just hong kong protesters using this app, criminals were using this app. he build the app to be a safe and trusted place. we thoroughly review these apps and believes in cook's words this was the best decision to best protect his users >> josh, thanks very much. interestingly he saym of the app itself which reports police checkpoints he s benign, it's the way it's being used which goes to the importance of protesters.

if they can keep this fre fulcrs when the violence breaks out and if this was being used to spur that >> then you lose it. >> thank you for watching "power lunch" >> "closing bell," right now welcome to the "closing bell," everyone. i'm wilfred frost. i'm here at delta, they are sinking. the markets are softening a bit. we're up half a% with 59 minutes left of trade. >> i'm courtney regan. let's look at what's driving the action today hope for a deal as the president analysis talks will continue into tomorrow, yields sticking higher which has bank stocks and commodities rising as well but ipos suffer. youl uber