. >> the reality is if you look over the last three years, paychex has, you had paychex on led. and asked them why is your margins higher and he said like we use technology effectively >> just given people a sense, i know paychex very quickly wen to emotional. marty runs the tightest ship in the world. you think what a lot of uc does can be applied >> actually to be clear, adp is -- 25% of adp competes directly with paychex. paychex is 41% margins, pretax profit margins in their business but largely an s & b company adp's s & b segment if it had the -- clearly there's a bigger opportunity. >> one of things i posted on twitter, a couple people ask a question, adp's done well why go after adp. why doesn't bill go after some companies he wen after historically, and really turn their company around >> it's all about the need for improvement. we think adp is a great company but has massively underachieved its potential. >> we knew once it was on its own it would have a laser like approach to its business >> that's what we need adp needs to pretend it's a spin off. when we looked at a

up most recently because of adp and ackman but paychex is up today, earnings beating expectations. > and bottom line. the stock trades right up against the 52-week high still looks good. >> next up, our "halftime" quality earl report. it's judgment day here as we see which picks hit and which missed for the traders in q3. first, let's see what's coming up on "power lunch" with my colleague brian sullivan hey, ri. >> coming up on the show, warren buffett says the stock market is not expensive. bank of america says they are seeing warning signs we debate who may be right plus, get this, a top tech fund manager gives his best stocks for the next tech boom and apple is not on the list we'll show you who is. the ceo of hbo lays out how he plans to follow up the massive hit "game of thrones" and, of course, the very latest from the las vegas. all thathe aad on "power lunch." more "halftime report" right after this like agriculture to feed the world. and energy to fuel its growth. real estate such as e-commerce warehouses. and private debt to finance transportation and infrastructure. build

for a long time, the competitiveness of adp on the small side was suffering versus paychex.s is the one that led the technology process to put run in place, which is the product for the small business side. very quickly, that gap closed on the small business side. there is no pure play if you take a look at the business. yet to take it apart business my business and actually get into a little bit of detail. vonnie: let's do that because i think that is what shareholders need to know at this point in terms of the larger businesses. what are the margins for adp? greg: i have not been on the board for three years, so whether publicly disclosed is what i have, so you will have to ask carlos that question. vonnie: are you not curious? given that you are taking a stake in this fight, are you not curious what those margins are and could be? greg: well, what i look at is very simply, how has adb performed over time? you know all of these numbers, 200%.r is up over over 500 basis points of margin improvement. carlos has a plan for another 500 basis point improvement. adv is a company

for the middle class, we want americans to keep more of what they've earned it and we want to get paychex going as well. we want you to earn more as wel well. that's why we put an emphasis on our main street local businesse businesses. every middle-class family wins. >> harris: can you give me a number with regard to the middle class? anything that attaches itself to an actual cut? >> not yet and here is why. we are finalizing the income tax brackets so we can deliver a very strong middle-class tax cu cut. 9 out of 10 americans, we want to make sure we really got that. >> harris: i would imagine the numbers much smaller than that. when is the first group of meeting where you will get to gather with democrats? what is next? >> we will continue discussions, talking about how they can be engaged in the process of that will be ongoing. in the meantime we are meeting daily with lawmakers from across the country about the areas they really like. other areas where they have suggestions, each day we worked to improve it this to be ready when that budget is signed, sealed, and delivered we are bri

what is under our control in congress, getting healthy paychex, and tax reform and that is more importantd. day. i know bob well. he will vote for tennessee, vote for america and vote for tax reform. so put this twitter dispute aside, the fact we have is had tore i can chance of actually fixing this tax code, giving people pay raises, getting the american economy growing at rate where we can actually get bigger paychecks more take home pay, healthier economy. that is what matters. all the stuff on daily basis, twitter this, twitter that, forget about it. let's focus on helping people's lives, dying things we said we focus on this or tax reform? reporter: [inaudible]. how do you plan to lower rates without -- >> i would love to answer the question because that is what the ways and means committee chairman does but i have to refer you to the kevin brady. ways and means committee. they hold the pen on this thing, writing this bill. all the things will be answered shortly when the ways and means committee put on their mark. if you have any specific questions about it, i encourage you to ask t

joining us now marty, the ceo of paychex.> on the wage side, we're seeing wage increases just under 3%, which is frankly very solid and nice and stable as well given that inflation is still around 2%. you know, consumers are getting some gains out of those wages. >> what kind of impact do we see from the hurricanes? >> well, we're still not seeing the hours come back in tampa, miami, houston, those areas. that's still slower. that's dampening job growth and hours worked in those areas. we still expect to see that comeback and, frankly, expect to see a bounce out of contractors and roofers and all the repair work that will take place in those areas. >> have we seen additional -- we've already had a shortage going into the hurricanes of contractors, of construction workers. did that -- did you see in the data that that actually worsened >> well, we definitely saw hours worked go down we'll have to see if the contractors, you know, typically they kind of migrate to those areas because there is so much work there to do from a rep

consumers who are confident about the new direction for a growing economy with more jobs and fatter paychex. and then something like this happens which shakes our confidence. now, i know that congresswoman sinema mentioned this, and i want to ask everybody in our conference, republicans and democrats torque support a way for congress to help, the senior safety act. we think it's good idea if seniors who are very vulnerable to this sort of identity theft and fraud are able to g to their bank materials and their insurance agents and plan for their retirement and say we suspect fraud here of all types. we want to speak up to the authorities and not be liable for doing so. that's a great bill. thank you, mr. smith, for being here. appreciate your time. >> time for the gentleman has expired. the chair recognizes the gentleman from pennsylvania. >> thank you, mr. chairman. mr. smith, when i first heard about the breach i was obviously very concerned like all americans were. equifax, which is tasked with guarding millions of americans' sensitive and personal data, has violated the trust of the ame