Transcripts For CNBC Power Lunch 20170913

The president and his team set to dine with the two top dems tonight. Power lun power lunch starts right now welcome, everybody, to power lunch. Im melissa lee. Stocks are trading in a very narrow range the s p did hit another intraday high the best performing sectors, tech and materials, the biggest drags. Check out some movers. Up 6 . Leading the s p 500. The Company Buying new York Health Insurer fidelis care for 2. 7 billion take a look at dolby labs. Apple tv will support dolby vision here is what else is happening. Democratic senator, mark warner, asking the federal trade commission to investigate equifax Data Security practices and Customer Security response following the recent attack. Target getting ready for the crucial season hiring about 100,000 seasonal workers. That is a big jump from last year viacoms mtv seeing its first summer ratings growth in six years. Brian . Charlie, thank you. We begin with apple and its big event 24 hours ago in cupertino. Apple announcing three new iphones that will be available by the end of the year with these three new phones, there are five lines available for purchaser will be. The iphone se, the 6s, the 7, the 8, and the 10. Some of those models have two different versions so thats really eight different phones available to buy or order soon that doesnt include the various memory options for each. For those of you that have gotten a bit lost in all of this here is the handydandy current lineup of what you can and soon be able to buy from apple. The cheapest model is the iphone se, which starts at 349 or about 15 a month. A monthly fee is now the way many of these phones are being advertised and prized. The most expensive currently available is the 7 plus, 28 a month. Then, we have the three new phones announced yesterday, the 8, beginning at 699 the 8 plus starting at 799. The iphone 10, which starts at 999 if you get the 256 gigabyte version, it goes up to 1,149 the price range available to buy from the lowly 32 gigabyte se to the 236 gigabyte iphone 10, which is 339 to 1,149 twice the price of the original iphone after your carrier subsidy. Here is the question will people pay for the phones or do they have now wow factor to drive sales thats what we care about. Lets bring in onlg injuroger c the demo room yesterday. I dont know if you rode the rotating elevator. The question is, here is what apple and apple investors care about. Will, what you saw yesterday, make Current Apple customers upgrade and pay more or get some android people to sneak over and make the switch to apple there are a ton of apple users out there. Apple sold over 1 billion phones a lot of people are locked into the apple system they are not looking into the apple phone. Are they going to upgrade to the iphone 10 or the 8 or 8 plus a lot of folks are going to go with that more moderately priced middle tier. You think so . This Monthly Payment is become a thing. I dont know if i want to pay 1,000 it is a couple of 10 extor 12 extra. The supply is going to be very scarce. You have to wait an extra month for this phone for a lot of people that have been holding off, they are looking at the iphone a plus and dual camera which is pretty much the same as the iphone 10. They are probably going to think this is good enough. If you have a phone and you hear about the watch that is going o be to be untethered, ar thinking consumers will skip the upgrade to the 8 and buy a watch instead . An apple watch is still for early doctors. They are pushing that this time. That comes with a requirement to pay an extra 10 a monthon you cell phone bill. It is beyond the price of the apple watch. You are paying a monthly connection charge like your phone. For a lot of people, having a good phone is more important than the apple watch even with the lt connection. Roger, could they introduce too many things . I feel like there is so many choices here would they have been better off focusing the presentation a little bit more. There was a flood of announcements. I would have liked to have seen a more iphone focused event. Even the lineup at this point, you showed up for the lineup there is kind of like a mac book program with this lineup where there is too many iphones and it is getting a lot harder to choose which iphone is your goto phone. It wasnt a problem when steve jobs introduced the original ix iphones. For the year, they are still up over 35 . Will the new phones give shares a longterm lift angelo zino is with Cfra Research guys, good to have you with us amid, i will start with you. Should i be concerned that this date is later that what we expected should i extrapolate that there could be supply constraints here yes thats a fair presumption to have this is about a month, month and a half delay from what people thought it would be. The question is, is it delayed because, yes, there are supply constraints and apple is just trying to build up capacity to make sure there is enough for the Holiday Season thats a presumption i would have this is going to be delayed. If you get your hands on it in midnovember, you might have to wait another four to six weeks our tape, they are probably building more capacity, build up inventory so the product is more available as traditional launches come december we would say this yes, it will swing numbers from december to march or december to march to june but it doesnt change the fundamental belief that iphone x will generate 11 to 12 eps through the cycle it might change the quarters but it doesnt change the full year potential. Angelo, i am going to ask you about this notion of the super cycle. Almost every analyst on wall street expects there to be some sort of super cycle associated with the iphone 8. We also got a very expensive new watch which can be untethered. You have to pay extra per month for connectivity this is still a discretionary device you think people will opt for that instead of upgrading right now. Does this flatten out the super cycle a bit, because people have the ability to decide, im going to get a watch this year and not going to upgrade my phone . I guess just to start with the actual iphone cycle here, if we kind of look at this cycle and compare it to the previous recordsetting cycle, that being three years ago with the iphone 6, we are talking about a much large he installed base. We dont need a massive super cycle to get to the shipment levels that the street is looking at when you look at where the asps are with apple increasing the lower end devices, i really do think people are going to pay up for this higher price device as far as the watch, i do agree it is more limited to the earlier adopters it is the product i am most excited about. The fact that they were able to price that under 400 and keep it with an all day battery life. I think a lot of consumers are going to be tracted to it. We think potentially 20 million in shipments for the watch is more than doable it is a very interesting product for emergency use if you are out running and you dont have your phone or whatever reason you have left your phone behind let me ask you about revenues, amid where are they now overall for apple and where do you see them in six months or a year from now . This new suite of higher products would give revenue at the very least a very big lift actually, if i had to think about consensus models that people have, 85 Million Units for december, the asp number is going to go much higher. I think the asp, the mix, might be more x heavy versus not i think you could very comfortably over the iphone cycle look at double for some Growth Numbers the model versus the streets are looking at 10 we drive a very healthy revenue as we go forward if the phone is 1,000, angelo, does that mean apple makes even more on that phone . Restaurants work the opposite way. The cheapest pasta plate often gives you the biggest margin versus the very expensive steak. Where are they going to make the most money our view is apple kind of manages these product launches and pries these products based on capturing the margins they need to get. Obviously, we have the higher component price was higher memory prices. The old led screens. We expect themto price at gros margins in the high 30, low 40 range. They will get those margins overall. It will lead to higher profitability from the higher selling prices amid, we talk about the phone and how much it will cause people to upgrade. A lot of the new apps and Development Kits will not be able to be supported by the new phones a lot of the phones break down and stop working you are absolutely right on that 700 million iphone devices are used and 300 million are iphone 6 success. They are about 2 1 2 to 3 years old. They are ready to get upgraded you cant run things like ar, a killer app that will get doubled up on the system had apple launched any product at this point, there is enough of a reason that there would be an upgrade cycle i think a. R. Would be the one new thing this phone has that others dont that could force upgrades amit, angelo, thank you both. News alert in the bond market everyone borrowing money for 30 years. 30year bonds up for auction Rick Santelli is tracking it at the ame. Whats the demand like demand is straight up for the dutch auction. It was a charlie minus arguably, that is the best to breath not a great set. 56 billion supply done the 12 billion, 29 month, i gave it a grade of c minus. 2. 79 was the yield that was basically the high with the issue market, a tail, a third of a basis point if you look at the internals, 2. 21 to cover. Close to 2. 8 to cover. 58. 8 on indirect thats the softest since november of 16. Not that far from the 63 average. The thing that was spot on was direct at 6. 8 so it is done. Not only was it a rough three auctions, but there is no noticeable response after supply usually, you get a move after supply the investor didnt seem interested in the concession that pushed yields up to buy in, which might be a statement about future path of rates in the treasury complex tyler, back to you rick, thank you very much rebuild or walk away thats a question many homeowners face in the wake of harvey and irma. What it could do to the Housing Market we will explore that still ahead. Bubble or no bubble, one of the big debates yesterday. What the smartest aibrnson wal street say right now thats next. Welcome back to power lunch. The most influential people came to the together for cnbcs delivering alpha many headlines, are we in a bubble or not . Leslie is here the bubble question was a big one at yesterdays delivering alpha. Jamie dimon called bitcoin a fraud and julian robertson, who is credited with calling the tech bubble of the 90s said the stock market is getting into bubble territory here is what he told our kelly evans. I think we need to appreciate and go up. I think we are creating a bubble a bubble in the market, in the stock market yes, maam. Lee on cooperman was a bit more optimistic about the equity market, saying they are in a fair but full evaluation and priced to appreciate in line with earnings. Cooperman it was a little bit like somebody had a foot on the throat of the economy and that foot has been taken off the throat of the economy. People are more optimistic about their business outlook, whether it is Small Business, Large Business i think it is constructive you have to be careful that we dont become too exuberant in our evaluation of the future cooperman said it is bonds in a bubble, not stocks, guys thanks very much. Appreciate it. Lets bring in bruce mccain, chief investment strategist with Key Private Bank and david katz, to discuss this topic more bruce, lets start with you. Bull markets or bubbles pop when a couple of things happen. One is Interest Rates rise steeply. That doesnt seem like it is in the cards right now. Number two, a recession is impending. That doesnt seem like it is in the cards right now. Stocks can stay highly priced for a long time without being a bubble or without deflating, right . Absolutely. More over, they can continue to rise as long as Earnings Growth continues to fuel the bull market that was based upon the improvement in the fundamentals. So from that standpoint, you have got to recognize the risks of higher valuation. Be very, very careful not to sell too early, particularly because there tends to be a blowoff at the top and it is often hard for people that have sold off based on valuation to avoid the temptation to rebuy closer to the top and slide down the other side with everyone else what are the major assumptions, david, on which this rally has been built . Which ones are in your view the most vulnerable assumptions . Im thinking there is an Interest Rate assumption, a growth assumption and there is a tax relief assumption that lower rates are going to come to american businesses. What happens if that doesnt occur . What halving ppens to stock mar sns. The economy is generally good a number of the governments policies in terms of business are allowing businesses to do better the ceos and cfos are the most upbeat about the economy than they have been in a long time. They are about 18 times the earnings we would agree with coopermans assessment if the economy continues to grow, stocks can continue to grow one thing we point out, Growth Stocks are at about 30 to 40 times earnings we think they are very richly priced and are vulnerable to the pullback there are a lot of values. We any thats a very good place to put money regardless of what your outlook for the market is the other thing that cooperman said, that leslie highlighted, he doesnt think stocks are in a bubble but thinks that bonds are in a bubble do you agree with that i am not sure we would necessarily label it a bubble. We throw that term around without necessarily making important distinctions bonds are far more expensive and make equities look cheap by comparison for that reason, you remain levered to equities and the fundamental improvement david talked about you said you would lean away from high priced Growth Stocks and towards some value choices like what . We like the financials, Companies Like bbt and wells fargo we think are well positioned advertisers, wpp is about 12 times earnings place over 4 yield, a good place. We think energy is going to be a better place our favorite there would be occidental and exxon bruce mccain, david katz, thanks very much for your help today. Credit, computers and cancer treatment, the good, the bad, and the ugly in todays trade. We are minutes away from our big interview with mike mull vaney. Well get his take on getting a tax deal done. Stick around not rebalancing your portfolio. Pursuing your passion, not reacting to market downturns. Focused on what you love, not how your money will last through retirement. Let us help you with those decisions, and get on with your life. We make it easier to plan for retirement with day one target date funds from prudential. Look forward to your 401k plan. Sometimes they just drop in. Always obvious. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Another day at the office. Why do you put up with it . Believe it or not you actually like what you do. Even love it. And today, you can do things you never could before. Youre working in millions of places at once with iot sensors. Analyzing social data on the cloud to create new designs. And using blockchain to help prevent fraud. So get back to it and do the best work of your life. Welcome back to power lunch. Back to the good, bad and ugly good, loxo oncology. A late breaking presentation, often the featured presentation at a conference leaving investors optimistic on to the bad, Western Digital down by about 4. 5 it lost out on the bidding for toshibas chip unit led by bain capital paying 19 billion after earning the day in the green, an ugly day for equifax that stock down 9 the ceo apologizing in an op ed. Congress is gearing up for hearings picking up the pieces. Some florida keys residents returning to their homes or whats left to them for the first time plus, the impact on the house can market how harvey and irma could trigger a massive new wave of mortgage delinquencies President Trump holding bipartisan meetings today and tonight trying to get a deal on tax reform done. What will get done well Ask White House dgbuet directory, Mick Mulvaney he is going to weigh in right here on power lunch. Dont move baby crying slow jazz music fly me to the moon and let me play bell ring hello, everyone. Im sue herera here is your cnbc news update for this hour. Floridas governor, rick scott, is busy surveying the damage across his state he took a boat tour on the black creek river in middleburg, which crested on tuesday he said his main goal is saving lives and getting power restored as quickly as possible quite a few people were rescued from their homes it is horrible when you see this sort of flooding you feel so sorry for these families my prayers go out to them. They can get their that the water will go down as fast as possible, get their houses cleaned out and get their power on my expectation for the whole state is we have to get our power back under the direction of fema, the u. S. Military is bringing food, water and supplies to the u. S. Virgin islands. Marines are helping to clean up debris and deliver supplies via Amphibious Landing kraft on a st. Thomas beach eight ships and the Abraham Lincoln are assisting in the efforts. How about this neighbor helping neighbor a nunn yielding a chainsaw was busy clearing the debris sister margaret ann of the nunns down in that area of South Carolina thats the news update this hour she looked pretty good with that she looked like she was ready. She knew es actualxactly whaa doing. She is the principal of the local high school in that particular air why, the catholic high school. Remember when everybody said the nones used to wrap you on the knuckles with rulers maybe she is getting some of those things ready for that. Thank you, sue florida has seen its fair share of destruction, nowhere more so than the florida keys. Here is some video showing the extent of the mess that Hurricane Irma left behind in the keys it looks like a devastated war zone some residents there are now beginning, just now beginning to return to their homes. The destruction of homes takes a huge toll on people and families, first and foremost the lost of homes maybe make its mark on the Mortgage Market as well diana olick is here to put the two together new math shows that harveys hit to mortgages could be four times worst than originally predicted, because of additional flooding and increased size of fema disaster zones. If you use katrina as a guide, the housing damage from harvey could mean that as many as 300,000 borrowers could become dill l delinquent on their loans and 160,000 on seriously delinquent. They compared harvey and katrina. Mortgage dellinquincies in mississippi and texas. If rebuilding costs more than the principle in their homes, they might decide to walk away tur turning to florida and irma, it was a wind storm there are 280 million mortgage p properties, twice as many as harvey total unpaid mortgage balances is 370 billion. Borrowers in florida also have much less home equity than those in houston remember, the foreclosure crisis if the math doesnt work for them, they could also walk away. Back to you. Those are pretty telling numbers, diana are you going to Say Something . I was going to ask diana. I would imagine in order to see the full impact whether or not people walk away it will take what, 90 days . Fannie mae, freddie mac, fha, they are all giving homeowners a broadlyway in theleeway the Mortgages Bankers Association of what to do. They are going to give them a leeway it comes down to how much it will cost them to rebuild. If they have to shell out 50,000, 100,000 to rebuild or fix their homes, thats more than they have in their homes already, then they could decide to walk away or at least go delinquent on their home loans the cash flow you have to pay the mortgage and to fix the house and pay to live somewhere else in the time a tripling almost of your costs. Thanks, diana. How could a potential surge following harvey and irma affect the Housing Market good to have you here. Thanks for having me how bad do you think this could get . Have you rn aun any numbers as o how many might walk awhich aay d what the implications would snb. It is too soon to tell. It is difficult for homeowners to leave their home and up root their families and move somewhere else only time will tell at this point how the whole process will work with submitting insurances and getting your costs covered and what you have to pay out of pocket versus what help you can get when it comes to fixing up your home again. We do know specifically in florida given that a lot of the damage was windrelated, not flooding related, although there was some flooding, hopefully, damages there arent quite as extensive as they were in houston. People wont have to dig quite as deep to fix up their homes. We do know that Waterfront Properties specifically are very much in demand so we do think that the land will keep its value and thir is going to be a lot of demand for these homes. Hopefully, a lot of people will not have to walk away from their properties and find it more advantageous to fix them up and keep them as their Property Values will once again bounce back from this disaster. You do highlight the possibility that homes on the coast tend to be more expensive. Maybe the individuals are upper middle class and not subject to the same constraints as middle class or lower middle class who might face the dilemma of just not having enough cash to pay the mortgage and find a place to live and rebuild at the same time so maybe that eases part of the head wind when it comes to possible delinquencies keep in mind. Work with a lender they are being much more flexible trying to accommodate people as they are trying to make their payments and come up with the money to prepair their homes. When we look at these zones, charleston, prehurricane hugo in 1989, Hurricane Sandy on the coast, we have all these things. Is there ever going to be a time when coastal living is not desirable . People say it is just not worth it that every ten years, my house and my life is at risk will it just to your point always go up you have to live near the water. So far, i any we have proven that we have very short memories when it comes to Hurricane Impact i think people find it extremely desirable to live along the coastlines when we have seen these impacts from hurricanes, we have actually seen some interesting effects where homes become more valuable people invest more money to rebuild them properties and whole communities go up in values. You end up having nicer home that is are fixed up to a better degree that are more up to code or better able to withstand winds and floods people do return and they find these to be very desirable neighborhoods. Some people do get displaced that cannot afford it. We saw some of that. A lot of communities hit were lower income versus florida and houston might be a little bit different there. It was counterintuitive what you said there appreciate it. Of course so for home builder stocks, lets bring in susan mcclorey for home builders, i would imagine this would delay closings and delay entire projects that just pushed out to q4 from q3 . Yes, we do. For the builders specifically, we expect you will see lower growth because communities were closed local builder operators were out because of the storm and buyers were as well thats going to be the more immediate term impact you will see. You also will get those closings we expect the builders will largely make those up in the Fourth Quarter i would imagine for the Building Product companies, this is a potential boon for business it could be a help in terms of underlying volumes. It does take about four to six months before we see that coming through. Homeowners have to go through an insurance process and get their arms around the damage therefore, we will wait until next year to see how it comes through. Something to note is that part of this is dependant on capacity, how much industry decides to bring on and that will really kind of help in terms of volume versus price and how all that comes together next year susan, top picks. Pulte as well as owens corning, mohawk thanks so much for joining us. We do appreciate it. Thank you the president cozying up to leading democrats. We have seen more bipartisanship in the last few weeks in comparison to the last 16 years. Is trumps blue bear hug enough paedet tax reform ss white house Mick Mulvaney will join us next live. She cant become a guitar legend just by playing air guitar. The babys room wont build itself. And her paw wont heal on its own. Were all working forward to something. Synchrony financial can help your customers make it happen sooner. So she can plug into her dreams. And theyll have a new addition for their new addition. Whatever youre working forward to, even if its chasing squirrels, Synchrony Financial can help you get there. Welcome back to power lunch tax talks center at the white house today. With trumps bipartisan reach, will a deal get done live at the white house, budget director, Mick Mulvaney. Reporter a lot going on here at the white house i am here with director Mick Mulvaney let me ask you a couple of questions. We are seeing something here at the white house we havent seen in a long time a little glimmer of bipartisanship the president is going to have a meeting with some bipartisanship people and you are going to a dinner with schouman and pelosi. What is going on i think the president is sending a clear message. He wants to look at how to get things done. He is not looking at washington through a partisan lens much anymore. He is looking through a lens of, how do i get things done if i get them done through republicans or democrats, thats good too get things done. Democrats would say he came into office looking at a partisan lens. I think he is frustrated, as many people are, including many in the republican base, frustrated with how slowly things are going here it is midseptember and the senate hasnt passed a repeal or replacement for obamacare. We havent gun the tax we have slowed down for thing in the hill the president doesnt like that very much. He is a man of action, driven by results. He is looking for folks that will help him get things accomplished this tax proposal is going to be released on the 25th. What is going to be in there can you give us a hint on carried interest thats watched by a lot of hedge funds. We have between the white house and folks on the hill a general understanding of basic principles whats one of them we want the Corporate Tax rate reduced we want it to be 15 if you go down the other list of basic principles, carried interest is on the table think i there is a consensus it should go away in parts. There are some folks that are pushing for it, myself included, to get away with carried interest that is not a final product. We will go through this process. Some could see some higher taxes. Carried interest is something the president has talked about since the campaign it needs to be looked at very, very closely how about the treatment of passthroughs and partnerships that affects a lot of Accounting Firms and people like arky texts. Passthroughs are very difficult situation where if the corporate rate is here and the individual tax rate is here, which is what we have here, there is an arbitrage opportunity between those two things and that opens the door for fraud and abusing the system and people gaming the system it is very hard to deal with there is a reason we dont deal with tax reform very often it is not easy to do you told me off the air that the president has asked you to keep focusing on the idea of a 15 corporate rate is that realistic, though . You are a numbers guy. You know how this works. Is that rate ultimately going to be the Corporate Tax rate in the United States of america hope so it is realistic to work for tlar is absolutely no question the president pointed out to me, he is correct by the way, in china, our primary International Competitor or one of them, certainly, some of the Corporate Tax rates on specific industries are already 15 . How do you expect us to compete with other nations across the world when we have tax rates that are much higher than theirs we want to see a corporate rate that brings Companies Back to the United States and brings companies here for the first time this is an American Jobs Program by getting this Corporate Tax rate down to 15 yes. It is very clear to me we are still pushing for that give me a peek at your agenda going into this dinner at the white house with schumer and pelosi, democrats. You are trying to reach out to them on tax reform yes is there one or two ideas you could throw into this bill that you think might bring some democrats across that wont necessarily cost you a lot of republicans. I hope so thats one of the questions i think we will raise with some of the democrats that are here. Can you get to yes keeping in mind that that 15 Corporate Tax cut is a central piece of what the president wants. One of the questions ill be asking is, can any democrats ever support that . Democrats say the Corporate Tax is a tax cut for the top 1 . If they cant talk themselves out of that box, it will be very difficult to work with them. If you work with the democrats, are you worried about losing the republicans, if you are too close with pelosi and schumer . Thats how to get things past we are interested in the largest tax reductions and the most sweeping tax reforms we dont want to win the argument and lose to make dramatic improvements. We will work with anybody that makes us do that we are looking at an early invite list. One name i didnt see on the early list is gary cohen is gary cohen coming to this dinner i am on the invitee list but not an inviter gary is heavily involved with this i just had lunch with gary we talked about some of the work he did yesterday he spent most of the day with the Senate Budget committee. We could go into the weeds if you want the budget process is closely tide to the tax reform project he was at dinner last night wit the six senators he is still heavily involved in the process z who is leadi who is leading this effort . Go back several months. It is a good question. Thank you for that from the very beginning, it was secretary mnuchin leading on the dead ceiling and myself on the funding issues and taxes was split between mr. Kohn and mr. Man manushin still a team effort. You dont think that gary kohn is out of the loop at all i know he is not. Who else is coming to this dinner, in other democrats i know mr. Schumer will be here and mrs. Pelosi i think some of their highranking staff will be here. I get the invites and i go i dont send them out. Lets talk a little bit about the hurricane. Your the federal numbers guy, the person or one of the people who will be trying to figure out what the federal bill is here for all of that damage we have seen in texas and florida. Do you have any early inis estimates for how much this is going to cost the federal government absolutely not. We wont for quite some time this is not something you want to rush flew i heard a range that the total damage in texas might be between 120 billion, 140 billion thats 20,000 million of difference we want to act responsibly and make sure the people that need the help get it and make sure the damages are real and we dont end up wasting a bunch of money on waste, fraud and abuse. We will take our time and work with the state the president and the administration has shown they will bend over wack wards to get the state everything they need they have na now fema has plenty of money to do their job. It is way too early to put specific job numbers on this is this going to be one bill and a followup bill by necessity, at least two, three, and maybe four pieces we think that fema has enough money in the coffers to get somewhere near the middle of october after we stop rescuing people search and rescue is still going on thats the right priority. Thats where we are spending our time now we will work into thingslike debris removal and trying to get folks back into their homes. Next comes the beginning of the investigation about how much damage there might be. We do think there will be another vote for additional money sometime maybe middle of october. Maybe you are in the first part of next year when you Start Talking about those big dollar figures for repair and rebuilding ultimately, you are going into this dinner tonight whats your one hope for a takeaway from this meeting the first real opportunity we have seen for all these leaders to get together and break bread together and go over the fall agenda do you have one thing you want to come away with this with . Yes can the democrats vote for something the president likes. Thats a real concern that the democrats might be committed in their own mind for political reasons that they simply cannot give the president a victory his first year in office, ever maybe in office. What we got last week was nice, procedural, not substantive. Can the democrats work with this president to help him get a substantive victory . I want to know whats on the menu for dinner when you come out of there thank you thank you so much let me toss back to you up in inglewood cliffs like some repod suggested. I was also very interested in what he said which is a really core question. Will the democrats ever vote for anything that President Trump wants and give him a victory in his first year i think thats actually a really good observation that maybe this is smoke and mirrors from the now famous chuck and nancy as President Trump calls him. What happens tonight, i dont know if its relevant or not. Go ahead. I was just going to say, yesterday mr. Mnuchin addressed the matter of the 15 Corporate Tax rate and there feels like there is a little push and pull going on there because mr. Mnuchin was playing and saying and he wanted it to be low and competitive, but he recognizeded that 15 may be beyond the grasp, the reach exceeds the grasp there by a little bit, but he wanted to be competitive. What happens with passthrough income is really critical here, as well, and as mr. Mnuchin said yesterday, hes going to be in talking about state and local tax writeoffs he said those are on the table, likely to go away and where do those two senators come from new york excuse me, new york and california because that was a giant something to the blue state democratic vote, i suspect all of you wealthy coastal liberals who voted for hillary clinton. Well give you a little present and you cant write off those high property taxes you pay. I also do worry, all we say is all of the democrats and all we need are a couple and there are some in 2018 where trump took their states they may want to get onboard the tax train well have that discussion in the next hour of the show. I like to preview stuff early. Good. Your daily dose of street talk is next. Kevin, meet your father. Kevin Kevin Kevin Kevin Kevin Kevin Kevin Kevin Kevin Kevin trusted advice for life. Kevin, hows your mom . Life well planned. See what a Raymond James Financial Advisor can do for you. Time for street talk recommendations on the stocks you need to know about best buy is getting estimates boosted over Credit Suisse it reflects recent q2 results and the analyst spends a lot of time talking about the new iphone in q4 best buy could benefit if it could recoup loss sales from samsungs note 7 and the year on year sales at the high end, the analyst says hes waiting to adjust estimates to reflect the iphone pending better supply visibility which is a big question particularly for the x. I thought retail was dead this stocks up 66 over the last 12 months. Second stock is the newly named down dupont, dwdp is the ticker town and company upgrades this from market perform. The stock has gone past 60, but the analyst believes that the Specialty Products and the realignment is, quote, a major step in upgrading the eventual earnings of spinco, the Spinoff Company because he thinks his future stand alone entities and they expect each of those two segments to get an independent lift because of synergies, maybe 5 to 8 on ebitda the new 80 target is 14 upside. And this, by the way, is a monster trading close to the highest levels since it started trading on an exchange back in 1937 wow square, this after a monster run for the stock. Cantors initiating the stock at an overweight price target of 31 bucks and 12 upside potential and square is penetrating market penetration, mobile payments should increase at a compound annual growth rate of 33 and with increased Online Retail activity, square should be the beneficiary. We talk about ipo pain like blue apron and snap, as we should a quiet winner here. If you bought it on the day it closed you still doubled your money on square. Wow your final stock is finish line after the stock collapsed at 55 in the last year, susquehanna gets bullish and they upgraded to positive from bullish and about 15 upside this is a deal call. Analysts says despite the poison pill finish line put in place, it believes Sports Direct will end up still buying finish line. The Analyst Thinks the deal defense there is too, quote, force a conversation with the board. The new 12 target factors in a 75 a deal is done, but they do note that if nothing gets done there is Downside Risk to finl thank you very much meet the student who is helping consumers sue equifax without the help of a lawyer the second hour of power will begin in two minutes time stay with me, mr. Parker. When a critical patient is far from the hospital, the hospital must come to the patient. Stay with me, mr. Parker. The at t network is helping First Responders connect with medical teams in near real time. Stay with me, mr. Parker. Saving time when it matters most. Stay with me, mrs. Parker. Thats the power of and. Being the incredibly busy man that i am, ive asked chase sapphire reserve cardmembers to scout the world to find my next vacation. Elton, what are you up to . Im having breakfast in uganda. Uganda be kidding me, elton its a. Its a joke. James, were going to look for gorillas hang on, what . Thats a real silverback gorilla. Look at it no, dont look at it. Shhhhh stay. Okay. Im freaking out sapphire reserve, from chase. Make more of whats yours. What . Pony neighing] hey gary. Oh. Whats with the dogsized horse . Im crazy stressed trying to figure out this complex trade so i brought in my comfort pony, warren, to help me deal. Isnt that right warren . Well, you could get support from thinkorswims inapp chat. It lets you chat and share your screen directly with a live person right from the app, so you dont need a comfort pony. Oh, so what about my motivational meerkat . Inapp chat on thinkorswim. Only at td ameritrade. And welcome back, everybody. Joining us for the second hour of power lunch. Glad youre here im Tyler Matheson and here is whats on the menu this hour reaching across the aisle. President Trump Holding a meeting at the white house at this hour, a bipartisan one. Well tell you whats on the agenda and recover and rebuild the new image coming out of the u. S. Virgin islands showing destruction across the island, st. Thomas and st. John massively hit. We will talk to the governor about how dire the situation is and what it will take to rebuild. Forget using lawyers, one student has developed a unique way for consumers to sue equifax over the recent data breach using a chat box whatever that is hell explain what it is, i promise you when power lunch begins right now chat box make me nervous they might anchor some day a check of the markets right now. Stocks are mixed at this hour although the s p 500 did hit a record high in early trading right now, take a look the Dow Jones Industrial average is lier by 16 and the s ps lower by threequarters of a point. Retailers are higher and the srt is on pace for the Third Straight day of gains and the best day of the year, in fact, finish line, nordstrom and hibbett are among the leaders. Hitting an alltime high and thats after announcing it it will buy fidelis care in the health care space. Disney, boeing and chevron leading the dow. Apple is the lowest performer following the Product Announcement yesterday. The city of light and la la land both have reason to celebrate because moment ago it became official. Paris will host the 2024 summer olympics and los angeles gets the 2028 event you may have your pick of employers because job openings hitting another record high last month. There are now 6. 2 million open jobs in america. Here is some good news for hardhit florida florida light and power expect power restored to nearly all of their customers along the east coast at the end of this weekend. At the white house, President Trump set to hold a meeting with lawmakers from both parties talking tax reform and more and tonight hell have a dinner with several members of his cabinet as well as senator schumer and pelosi or as he calls them now, chuck and nancy. How cozy eamon javers is live at the white house with more on the bipartisan meetings. Eamon . Were expecting that to start at 2 45 eastern time and 45 minutes from now we may see pictures of that. The president will have an opportunity to talk to reporters and hell be in the room momentarily and well bring you anything that he says in that event. Meanwhile, just a few minutes ago i had an opportunity to talk to Mick Mulvaney, the director of the office of management and budget and one of the figures taskeded with carrying out the tax agenda of this white house i asked him about some of the particulars and he didnt want to say exactly whats going into this deal yet and theyre not ready to unveil it yet although he did seem a little bit skeptical about the idea of carried interest that loophole remaining in the tax code once they get this all said and done with ultimately, he said todays bipartisanship is about a president who is frustrated with the pace of the way that things are going in washington, who wants to get things done, who sees himself as a man of action. I asked mulvaney if he had one goal for this bipartisan dinner tonight with nancy pelosi from the house and Chuck Schumer from the senate, what would that one goal be in terms of the democrats and that bipartisan outreach heres what he said. Can the democrats vote for something the president likes . Thats a real concern of mine. Sure. The democrats might be committed in their own mind for political reasons that they simply cannot give the president a victory his first year in office and maybe ever in office and im curious to see what we got last week with the deal in the debt ceiling was nice. Can the democrats work with this president to help him get a substantive victory. Thats my question Mick Mulvaney portraying this as a substantive victory for President Trump. Ultimately, the question is whether or not democrats will want to participate in that given just how divided this town is is there any overlap at all between the two parties and well begin to get a sense of that later on this afternoon and then after this evenings dinner in which democrats will clearly bring some of their agenda items to the president s attention, as well thank you very much, eamon. We appreciate it and elon spoke to one of the democrats leading the meeting with the white house, that would be representative josh gotheimer. What can you tell us i caught up with him on capitol hill before he left with the white house and this is actually his second meeting with the president in just about a week tax reform, of course, is going to top the agenda today. He said he wants to make sure that any plan benefits workingclass families as well as small and mediumsized businesses, but he also said he has one very specific request for the president and that is to keep the state and local Tax Deduction. Being a jersey got to be parochial for a second its very important we dont favor one state over another the tax and local Tax Deduction i plan to work on right away thats a very big issue for me. He does support lowering the corporate rate as well though he did not give a specific number and his caucus, the Problem Solvers Caucus believes that both republicans and democrats should support linking a tax reform to infrastructure he plans to make that pitch at the white house, as well if youre not at the table which i really believe if youre not at the table you cant be in the conversation and affect the conversation and you cant talk about what i think and making sure theyre there and cant talk about the importance of infrastructure and thats why were going todd and i am very glad that we have this new eraa of bipartisanship, and i hope it sticks i asked him if he agrees with the time reform and whether or not its realistic and he said no, but hope does spring eternal on capitol hill. Back to you guys. Yes, especially after we heard from treasury secretary mnuchin. A lot of people are hoping for that elan, thanks very much. Nick, good to have you here. How are you what do you make of the bipartisanship and the minority leader having dinner with the president tonight . Think its great and something the president has to do and were getting ahead of ourselves and i wish larry kudlow were on the show and watch the Budget Committee and my good friend Jonathan Swan gets right to that point if the republican his divisions about how to proceed with this, about getting the budget done which sets the framework for tax reform and what house conservatives are telling us is that they dont want to vote for a budget until they see the specifics of tax reform and they dont want to release the specifics of tax reform until they have a budget framework done we may get the latest is well get an outline of what the tax reform might be in two weeks so that may move that along a little bit and we dont see any details of this and we dont know where republicans will fall. A procedural catch 22, so to speak. Absolutely. If we can talk bigger picture, we know President Trump is targeting democrats who are up in reelection in states that he won handily, west virginia, north dakota, et cetera. Do some of those people have to vote for this for tax reform because of his win in those states in terms of reelection. A little bit of insurance remember Obamacare Repeal went down because they lost republicans. If you had one or two democrats on their side they may have gotten it through. It makes perfect sense to go after democrats who were in trump states to see if they can be pulled away again, were on step two of a tenstep process we still need the budget and the details i get all of that and the proed sopr procedure. Mick mulvaney was just on and hes not convinced that the democrats will want to give the president a win ever and certainly not in his first year. Hes skeptical tonight, by the way, the discussion is on tax reform and Chuck Schumer and nancy pelosi said theyre there to talk about daca and not about tax reform. Is Mick Mulvaney just being cynical . Listen to the language he used in that interview with eamon. Will democrats come to the table and work with something that the president supports theyre putting the own us nus m and do what republicans dont want to come and do and i dont think Chuck Schumer and nancy pelosi are doing that. It looks perfect sense to look at the democrats who will have tough reelections and see if theyll be someone who can work with republicans on taxes, and again, can we see what the details are . So on one side there are factions in the democratic caucuses of the house and senate that might lean toward supporting some form of of a tax reform on the other hands, there are factions on the republican side who might not go along with it with what the white house proposes anyway. Absolutely. It wont be strict enough, it will add to the deficit too much. Pay attention to what paul ryan told the Associated Press today when he wouldnt get nailed down on whether the tax reform wouldnt increase the deficit. Not answering that question is a huge deal to the freedom caucus. So if they bring something thats not revenue neutral to the floor you will lose republicans. Is there one Single Person outside of the president who is the most important in getting this done . Is it pelosi is it schumer . Is it ryan or someone were not talking about . Oh, man, starting with speaker ryan and the House Republicans and i dont want to pair with larry kudlow when hes not here and look for the framework coming out to begin to move this process forward. One thing we want to have yesterday on axe yos and the talking points republicans have on the hill, lets, limb nate deductions and lets figure out repatriation and no details on how to do that and until they start filling the blanks its just a guessing game sure is nick, thanks so much thanks for helping us try to guess. The numbers impacting the hurricane economy. The economist suggesting the twin hurricanes that slammed the u. S. Will have a sizeable negative impact on Third Quarter growth most, but not all economists say harvey was the more damaging of the two storms Goldman Sachs taking their estimate down by 0. 8 down to 2 theres macro advicers to 2. 3. Moodys 2. 5 and oxford down by 0. 4. Goldman sachs saying if damages are significantly higher and if florida continues to spend on housing and investment activity we will expect additional downside to the nearterm growth and we hear that from a lot of people and these are early days to estimate irma one clear positive, the u. S. Economy, you can see from those numbers was doing pretty well before the hurricane hit and gdp declines are to the old 2 trend and above still and most economists see the Fourth Quarter getting a boost as rebuilding begins. These are setting a benchmark, guys and we know the data will come in and it will be affected by the storms and this is what well look for and the street will not be bothered them. I want to ask you and youre close enough to punch me, so please dont does this wipe out thirdquarter numbers for anything, economically or earnings wise . Do we get a pass on it because the numbers will be so messy in the old days i would say, but people are sophisticated now and theyre modeling these changes and the hits to gdp are saying okay, my new benchmark is 2. 5 and i think the economy is doing better and if its down towards two maybe the economy is weaker. Thanks steve. Sure. All right. The major stock averages trading a little narrow range, but a number of stocks ask sectors are moving fairly large. This hour, bob ps annie isani is tracking them at the nyse. Lets call this a pause after a twoday rally. Take a look at the s p 500 we are up 1. 5 and thats a nice move up and remember, he are at historic highs brians right, weve had some breakouts and first retail all right. You heard it before, but retail is in one of those faces where everything is up nordstrom is specific and theres private talk out there and not confirmed there, but thats whats happening. L brands and gap, j. C. Penney and ross stores, a lot of the retailers up 4 , 5 , 6 . Another group, and this is the third time this year theyre picking at the bottom of energy and with oil at 49 we have marathon, apache, halliburton hess all up 4 or 5 , as well. Another group that was in a mini rally that are pausing are the bank stocks and we saw bank yields moving up and lets call this a split on most of the bank stocks and all of them are up 2 or 3 . The bo om littom line, its a consolidation and after the two or three days thats a good sign thank you very much, bob pisani. Whats coming up on power lunch, cord cutting and how the Media Companies are dealing with it nordstrom shares are popping and bringing other retail names higher, as well and making lawyers obsolete well talk to the 20yearold who wants to make it easier to sue equifax. All of that and much more all coming up on power lunch. Hey, hows it going . Um. Who are you . Im val. The orange money retirement squirrel from voya. I represent the money you save for the future. See . Were putting away acorns to show the importance of being organized. Thats smart. Whos he . Hes the green money you can spend now. Whats up . Oh you know, gonna pay some bills, maybe buy a new tennis racket. Tennis racket for a squirrel . Hes got a killer backhand. When its time to get organized for retirement, its time to get voya. Track your pack. Set a curfew, or two. Make dinnertime device free. [ music stops ] [ music plays again ] a smarter way to wifi is awesome. Introducing xfinity xfi. Amazing speed, coverage and control. Change the way you wifi. Xfinity. The future of awesome. A new report this morning showing how Many Americans are canceling pay tv Julia Boorstin has more on the trend. Julia . Reporter well, emarketer expects more people to drop the tv bundle than previously expected projecting the number of people who dont have cable or satellite tv will grow 33 this year to 22. 2 million. Thats about 7 million more people than it previously projected. Emarketer isnt referring to the number of subscribers or households, but rather the total number of individuals without access to a pay tv bundle. A group of four roommates decides not to pay for cable that is four cord cutters. For fewer viewers, emarketer cut the spending forecast and predicting will grow just half a percent this year. Just yesterday Brian Roberts ceo of cnbcs parent comcast reassured restors after comcast warned it will lose as many as 150,000 video subscribers this quarter. Roberts saying the trend is stable and 50,000 subscribers lost in the last 12 months and knowing that higher ad prices will offset tv declines and other media giants are working on alternatives to the traditional bundle, as well and Goldman Sachs conference today, via coms bob bachus is working on a new content bundle that doesnt include sports and foxs executive chairman lackland murdoch says they will offer content direct to consumer well see how these new options impact the cordcutting numbers. Back to you. Thank you the question may be this. What happens with the socalled skinny bundle ends up costing just as much as basic cable or get worse . Principal analyst as well as Los Angeles Times writer stephen battaglio. None of us are coming from a neutral position we have a varied interest in this, and i dont want to be a homer for the industry were seeing a lot of cord cutting, no doubt, but populations are growing and Companies Like comcast, our parent are starting to tie in phones with cable tv with a smart thing to do. Do you ysee the trend slowing down or continuing and accelerating we see more and more people having more and more options to get the programming they want without having a traditional relationship with a cable or satellite provider now if you want to go alldigital, you have lots of different live tv alternatives and you also have the entertainment channels that people have been using like netflix, amazon and hulu and they keep ramping up the content. For the sconsumer, the roads ar leading more in the digital drakz than traditional. If you pay for hulu and netflix and this and that, at some point why dont you just pay for cable and get them all well, its an interesting point, and i dont think that cost saving is necessarily the biggest motivator to cord cutting. I think its more choice, and having the content you want on the device you want at the time you want and frankly, its the fact that people are paying for stuff that they dont get on the cable bundle so by doing it in a little bit more of an a la carte fashion at least theyre feeling theyre getting what they pay for even if what they pay for is comparable to what they have been. Stephen, within the past week or so, weve had two Wireless Service providers offer free subscriptions to netflix and that would be tmobile and hbo, and that would be at t announcing that yesterday, and im wondering, is this conditioning people to say, you know what . I dont need cable i can watch. I can binge. I can have my unlimited data plan and have free hbo and netflix and watch on my device why do i need a box . Well, i think its really the best advertising you can do is to offer a free sample and get that consumer hooked i mean, hbo is such a powerful brand in our culture and it has tremendous cultural currency and you only have 50 million households getting it. So obviously, at t sees a lot of room there to grow and theyre going to use this new alliance and the ownership of time warner to expand that i think that netflix as well, once you get people in there and once you get them to try it. After a while, theyre just going to depend on it and passively take it. Theyre made to be one show that they watch that they have that service for and theyre going to keep it. However, i do fall on i tend to side with brian on this i think that there is a limit to how Many Services that people are going buy and then after a while youll do the math and say, well, i can subscribe to cable and i can get in all these devices and maybe i should stick with that and some people will come to that conclusion. Usually the buffet is cheaper than if you buy every single item on the buffet, a la carte paul, which of the cable brands seem to be in the strongest position because they stand for something . In other words, it would seem to me that some of the secondary channels are highly vulnerable to losing not only subscribers, but advertisers. What say you i think it comes down to content and to stephens point, hbo is a huge brand, show time, and disney is now going to start offering its own streaming service and espn, abc, and the brands that have the content that people want to and feel that they need to watch are the ones that are going to be in the drivers seat as they make this transition. What about the time, guys, quickly, to phones the point i tried to make in the beginning and not towing the line for the parent company. I use them at home so i know this 45 a month will get you unlimited cell phone usage on a verizon network, but only if youre a Comcast Xfinity customers so if you cut prices on the phone side it may make up for what people see as expensive on the cable side. Thats why were seeing deals between phone companies and Cable Companies. Think Cable Companies have to become a lot more aggressive in marketing the value of a cable subscription you have a cable subscription and you can use it across all different devices and use it on the phone and get phone service. I mean, that really has to hit home, and i think people have to start doing the math and showing the consumer that there is still value in this product. Paul, stephen, thank you both very much. Well, speaking of media, tomorrow do not miss two big exclusive interviews on squawk on the street. First verizons Lowell Mcadam and les moonves will join us and it will start at 10 30 a. M. Eastern times. Well ask them, guys, whats the future of tv what will the chat be . Its interesting what battaglio said that they had to make the case for value and we were given regional monopolies because it was so expensive to lay out cable and they said you can have this one region to yourself and have competition. You didnt have the world of the apps. And you need to have a cable subscription to activate most of these apps now anyway. Youve got to have broadband, right. You also have to have at least a pay plan on a lot of these to log in to some of these apps and if youre going to get a 45 all you can eat cell phone bill it reduces the cost perspective. There are a lot of stuff to work out. The triple play as they call it, remember yeah, yeah, yeah, yeah. Look, it says here look at the s p retail atf do that right now. Look look right there there it is, up 5 in a month and today getting a boost from nordstrom. More on that coming up, plus massive devastation in the u. S. Virgin islands well talk to the governor about the situation there and how long its going to take to start the rebuilding process power lunch returns after this not rebalancing your portfolio. Pursuing your passion, not reacting to market downturns. Focused on what you love, not how your money will last through retirement. Let us help you with those decisions, and get on with your life. We make it easier to plan for retirement with day one target date funds from prudential. Look forward to your 401k plan. Rocketing higher today and bringing the Retail Sector along with it. Courtney regan is joining us with behind the move. According to sources the Nordstrom Family is close to partnering with private equity fund Leonard Green to help finance a deal to take the retailer private remember, nordstrom announced its intention to go private in june the sources tell cnbc. Com that nordstrom is talking to len adgreen about contributing 1 billion and lining up 7 to 8 billion in Debt Financing from banks. If it comes to fruition, the Nordstrom Family would like to retain control of the company. The group collectively owns more than 31 of shares right now the possibility of a deal going to go private is boosting stocks of other Department Stores like macys and j. C. Penney, but many arent so sure it will ultimately work out or if it does, it will be at a premium to nordstroms current value. Our report does also suggest that nothing is finalized at this point, but the hope is helping to lift shares a couple of other retail storylines lifting stocks we should mention, target shares up on a new tv star chip and Joanna Gaines and finish line shares up 8 after a price target increase by susquehanna and finish line, the shares have been under pressure since the earnings reports. We talked about finish line, brian did in street talk and part of the call was the notion that it would be bought. Yeah. This could be like the linens n things going away that sort of impact on the sector and i think thats a really good point we talk a lot about the death of retail i dont think retail is dying and i think retail is changing and its very hard to be a public retailer when you have to make drastic changes like big investments. Sometimes shareholders dont reward you for doing that. Theyre seeing it more as desperation than of growth or an opportunity to fix whats wrong. Does the Nordstrom Family not want to deal with the Public Markets . Thats a great question if you were them would you no. No no no exactly and even if you go back to what ron johnson was trying to do with j. C. Penney, if maybe theyd taken it private maybe it could have worked a little bit they would have had more time. That was the point that jim coulter made yesterday at alpha at lunch that the Public Markets are under pressure because companies dont want to go public. Right or they want to sell to a private company. Thats right. If you think of a company like amazon, obviously, we know theyre very different, but shareholders are rewarding the innovations theyre doing and thats not always the case with some of the other retailers and theyre getting punished for things that may help them in the long run, but it may cause them shortterm pain. Maybe this is offtopic for the discussion, but i hear a lot of people complaining about etfs now because if you just sell an etfs, and youre dumping etfs and say all retail is dead and lets just sell etfs and if youre in it retail or otherwise, your stock may go down regardless of how youre executing. You could be the greatest Management Team in history and because youre in a bunch of etfs that everyone else is selling. Walmart would be the biggest in the etf and walmart is doing well this year theres the other side to that theoretically someone just shrieked over there because of the eetfs. I dont think management matters anymore. Not much interesting interesting conversation. There will be more to talk about. This is not over thanks, court lets get over to sue herera for the headlines. Thanks very much, melissa heres whats happening at this hour, everyone House Speaker paul ryan telling reporters that republicans will soon unveil their plan for the first Major Overhaul of the tax code since the reagan presidency this is the beginning of the process. Its the beginning of a very important process, and overhauling our tax system and giving middleclass families a muchdeserved break, but well do it no matter what target is recalling about 175,000 dressers after a dozen reports of them tipping over or collapsing the recall involves room essentials fourdrawer dressers sold in three colors the dressers were sold at target from january of 2013 through april of 2016. And Pete Domenici, the former republican senator of new mexico has died. He became a power broker in the senate for his work on the federal budget and Energy Policy he served six terms in the senate beginning in 1972 Pete Domenici was 85 years old thats the cnbc news update this hour melissa, back to you thank you very much, sue herera we are 90 minute away from the closing bell on wall street. Stocks are little changed. Although we did manage to hit a new intraday high on the s p 500 and were at 25 and change on the s p. The nasdaq is down by just about a quarter of a point and the dow is in the green right now. The oil markets are closing for the day and lets get to don at the cnbc commodity desk. Energy stocks among the best performers because oil is up pretty well here if you look at the highs of the day well close up at that level up by 2 west techs, tech west texas, were looking at double the gains and things are off in the green after the International Energy agency raised their outlook for Global Oil Demand this year and there was a reason for weaker oil with the u. S. Information Information Administration or eia weekly dating showing a much better than expected build in oil theec woo ending september 8th showed 5. 9 Million Barrels and expectations were for a bill of 8. 2. Gasoline stockpiles dropped by the largest amount on record followed by 8. 4 Million Barrels and oil and supply and demand dynamics are being muddied by the effects of hurricanes harvey and irma you have the refineries getting back to normal operations and questions about demans for fuel in parts of the gulf coast and florida regions. As these supply and demand dynamics plays out, it will be interesting to see if it bears ought with the supply picture snoop. White House Press Secretary Sarah Sanders speaking about President Trumps bipartisan meeting on tax reform. We also have new detiles whether or not gary cohn will attend tonight. Eamon javers is at the white house with details eamon . Thats right. The White House Press briefing is still ongoing now here at the white house, and we are learning from nbc newss Peter Alexander that gary cohn will, in fact, attend that dinner tonight with the bipartisan leadership including Chuck Schumer and nancy pelosi, the two Democratic Leaders who are coming over here for a rare, bipartisan breaking session at the white house with the president tonight. So thats interesting because gary cohn had not been on some of the initial lists of people coming to the dinner that we saw earlier in the day now we are told he will be here. Sarah sanders in the Briefing Room just now pushing back very much on this idea that the republican ideas wont be represented in this room tonight because mcconnell and ryan, the two Republican Leaders are not going to be at the dinner saying that the president himself is the leader of the republican party. So, of course, republican ideas will be at the table i am told that this is going to be a wideranging discussion on the entire fall agenda tonight, not just tax reform and also things like the d. R. E. A. M. Ers and where we go on a whole host of other issues affecting the government, guys back over to you when you read the descriptions coming from chuck sh schumer and nancy pelosi, they said it was just about daca. I asked Mick Mulvaney exactly that question a little while ago. Hes the director of the office of management and budget and i asked what is the agenda for this is it daca or tax reform he said the president s primary focus for the fall arc jenda is tax reform this is a tax reform meeting although its to discuss the entire fall agenda and democrats might have a different point of view as they often do. Eamon, thank you very much eamon javers on the north lawn check out this video from st. Thomas it says drown, but i know you mean drone how long will it take to get electricity back to get the island up and running again. The personal stories and the tragedies there almost inconcvae. E governor of the Virgin Islands will join us next. Ol . This guy. Check it out selfappendectomy oh, thats really attached. Thats why i rent from national. Where i get the control to choose any car in the aisle i want, not some car they choose for me. Which makes me one smooth operator. Ah still a little tender. vo go national. Go like a pro. At ally, we offer lowcost trades and highyield savings. But if thats not enough, we offer innovative investing tools to prepare you for the future. Looks like you hooked it. And if thats not enough, well help your kid prepare for the future. Dont hook it kid. And if thats still not enough, well help your kids kid prepare for the future. Looks like he hooked it. Well do anything. Takes after his grandad. Seriously anything, to help you invest for the future. Ally. Do it right. Your bbut as you get older,ing. P it naturally begins to change, causing a lack of sharpness, or even trouble with recall. Thankfully, the breakthrough in prevagen helps your brain and actually improves memory. The secret is an ingredient originally discovered. In jellyfish. In clinical trials, prevagen has been shown to improve shortterm memory. Prevagen. The name to remember. Hit extraordinarily hard by Hurricane Irma the storm killing at least 43 people as it crossed the caribbean and now a week after it passed, the islands are recovering from catastrophic damages to homes and businesses. Though aid is being delivered there are reports of lines of up to three hours for supplies of food, clean water and fuel joining us is kenneth mapp, the governor of the u. S. Virgin islands. Our sympathies you and all of the people of the Virgin Islands, you have the basics, food, shelter, power and water not really present there what percentage of the population of st. John particularly and st. Thomas are homeless right now caller well, lets go with what percentage of the population of st. Thomas and st. John have severed damaged homes and damaged homes in terms of structures because the folks are still back in place. I have between the two isle around i believe ive got 400 people in shelters, 400 to 500 people in shelters the the islands, those two islands in st. John, more than st. Thomas took a devastating blow from Hurricane Irma, blew homes out and tore roofs off and breached walls and took out windows, severe. A number of homes were unscathed and a number of buildings still have some roofs intact and so folks are doubling down and staying with neighbors. Right and families and that type of stuff. Are you getting the federal help you need . What is the military, the navy, the army, National Guard presence and how and what are they doing caller they are mobilizing heavy. We are getting provisions of water, food, and theyre coming into the island. We are opening that faucet more. We had administrator brock long here yesterday weve got the u. S. Army corps of engineer general and u. S. Coast guard commander and the chief of the National Guard bureau on the ground in the Virgin Islands today. So the assets of the federal government is coming in. The people of st. Johns and lines were opening up more distribution systems, but the bottom line is we do need help in the u. S. Virgin islands and were reaching out to communities and wanting to get more line men sent in to help restore the Power Distribution system the lines on st. Thomas and 90 down on st. John 50 down we brought some power up on st. Thomas, but this is going to be, im telling my citizens and my residents this is going to be a long haul, but were going to make it happen yeah. We went through hugo. You are the u. S. Virgin islands. Do you feel abandoned by the United States . Definitely not. Definitely not i spoke twice with President Trump. Ive been speaking with members of his cabinet aid is here. Assistance is here mobilization is here its rolling it out. Its a cat 5 event and so were just trying to manage the expectation in terms of getting to everyone and every corner of the island we are making sure the Security Apparatus is in place. No theres no question that the federal response has been awesome in this event. I see the folks showing up, and i see the military people setting up their command centers and rolling out work so i have to thank the president. He indicated hed be here in the next five or six days to see the federal mobilization of work and see the devastation. It looks like an Amphibious Landing from some of the video that we have seen. Very quickly, are any of the large retailers that we think of like home depot, costco and others are present i know theyre not on st. John and what has their response been yes, well, the corporate mcand a good number of the companies changed here and have been working with us to mobilize aid and assistance weve lifted a provisions portions of the curfew the supermarkets have been opened the pharmacies are open. Weve done the medevac and the hospital was pretty much made useless in st. Thomas and we were able to fly all of those patients out and get them out of there, but the Corporate Companies and i believe home depot for sure is providing provisions, as well. All right so were getting help and im asking folks to go to usvirecovery. Org usvirecovery. Org and help the victims of Hurricane Irma here in the u. S. Virgin islands its a lovely part of america and good luck to you we want you to come on down to visit and we hope to be able to start doing that again early next year. Kenneth mapp, governor of the u. S. Virgin islands, thanks. Thank you. Investors in equifax continue to lose a lot of money that stock is down 12 after the largest and perhaps the most damaging data breach in american history. The ceo apologizing and thats not enough for many including a man you will meet after the break who wants you to be able e shue equifax for the max at thpu of a button without an attorney stick around the babys room wont build itself. And her paw wont heal on its own. Were all working forward to something. Synchrony financial can help your customers make it happen sooner. So she can plug into her dreams. And theyll have a new addition for their new addition. Whatever youre working forward to, even if its chasing squirrels, Synchrony Financial can help you get there. For tech advice. Dell Small Business advisor even if its chasing squirrels, with one phone call, i get products that suit my needs and i get back to business. If only the signs were as obvious when you trade. Fidelitys active trader pro can help you find smarter entry and exit points and can help protect your potential profits. Fidelity where smarter investors will always be. The strikingly designed lexus nx turbo and hybrid. Lease the 2017 nx turbo for 299 a month for 36 months. Experience amazing at your lexus dealer. Equifax ceo smith apologizing for the data breach this time in an op ed in usa today, the cyber attack was, quote, the most humbling moment in equifax history that equifax will make changes. Its not helping the stock it is down 12 today and down 28 in the past week and three dozen senators are asking the sec to investigate the firm over alleged executive stock sales. If you are one of the millions of the Equifax Breach and chat bot without hiring a lawyer its the brain child of a student. This bot is just the beginning of his bold plan to make the law free for everyone. Josh, its great to have you on power lunch. Thanks for joining us. Thanks for having me. I think its the beginning offic maing the law free and the end of equifax. Lets first talk about how this can be used to sue equifax. What exactly do you do and how does this chatbot work its a unique legal approach. Unlike a class action, consumers in all 50 states where equifax does business can take them to Small Claims Court this is a great approach because it means that equifax cant pay lawyers. Lawyers are often not allowed in these proceedings and the judges are very reasonable. So you can a button, use my software and file the necessary documents to take them to Small Claims Court and get up to 25,000 for doing so you do still need to go to physically to the courthouse and you still need to pay a filing fee and this doesnt completely remove the onus on the person who want tos sue, kwi fax. Thats true im looking into even doing that for the consumer at the moment you do have to pay the filing fee and go to court, however the judges are very reasonable its not like the supreme court. When you go, if you argue that youve been hacked as a result of the breach these judges will hopefully apply the state level negligence laws and give you compensation what if you havent been hacked by the breach what if youre just worried, does it help you then . I think its best to wait and see what happens i think there are a lot of people who are trying to get money for nothing, but there are also a lot of people, me included, i was actually hacked just the other day, probably because of the Equifax Breach. I was an equifax customer and said this is from my own personal experience. I think im trying to help the people hit hardest first how often have you filed small claims suits, josh youre the founder of chatbot, you can sue everybody. Yes its worth mentioning that ive been doing lots of these projects it started out as an app to help you get out of parking tickets and the great things about Small Claims Court is anyone can go. These systems are designed so that you can go without having a lawyer and my project is court system without the help of a lawyer i think lawyers charge hundreds of dollars for doing very little and really its just simple. If someones broken the law against you, stop work and figure out the problem, press a button then get it solved. Josh, well be following you. Thank you so much for your time. Thank you so much founder of do not pay all right. Coming up, good old fashion stock sector showdown. Which one of the two bestperforming groups this year are still worth urewyo n money trading nation is next when this bell rings. It starts a chain reaction. Thats heard throughout the connected business world. At t Network Security helps protect business, from the largest Financial Markets to the smallest transactions, by sensing cyberattacks in near real time and automatically deploying countermeasures. Keeping the world of business connected and protected. Thats the power of and. Were drowning in information. Where, in all of this, is the stuff that matters . The stakes are so high, your finances, your future. How do you solve this . You dont. You partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. Morgan stanley. Two of the top sector performers this year are health care and technology. If you had to invest in just one of them, right now, which should it be . Lets ask craig johnson. What say you well, lets look at the charts if we look at the charts of the xlk and the xlv. You can see right now that the Technology Sector has been leadership, xlv has been picking up on overall performance. Theyre both trending well, brian. Go to the next chart, you took a racial chart of these two. You had an interesting Inflection Point right now and youre starting to see the xlk outperform the xlp our pick is to stay along the xlk. The leadership of this market has been defying stocks and law and tech into year end boras, what about you, tech or health care ive been long tech since the beginning of the year. Its a secular story tech is the future its disrupting everything in our sight. And health care is going to be under tremendous amount of costs. Bernie sanders is a move towards medicare for all is just the beginning. I think its going to present a lot of problems for the industry which is 20 of gdp and very bloated. Boras and craig, short and sweet. Thank you. For more trading nation, head to tradingnation. Cnbc. Com check please is up next. An 80yearold baseball record that is on the verge of being broken and now the latest from trading nation. Cnbc. Com. Not rebalancing your portfolio. Pursuing your passion, not reacting to market downturns. Focused on what you love, not how your money will last through retirement. Let us help you with those decisions, and get on with your life. We make it easier to plan for retirement with day one target date funds from prudential. Look forward to your 401k plan. Flexshares etfs are built around the Way Investors think. With objectives like building capital for the future, managing Portfolio Risk and liquidity and generating income. Thats real etf innovation. Flexshares. Built by investors, for investors. Before investing consider the Funds Investment objectives, risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. President trump is speaking to reporters right now were going to show you the tape in just a little bit but we do know some of what he said, quote, we should be able to come together on tax reform that is pro jobs, pro family, and pro american president also saying he will discuss health care with lawmakers and president also saying he wants a bipartisan deal on the daca program shielding immigrants across the United States children also that he wants a lower u. S. Corporate tax rate that would bring back trillions from overseas and during the News Conference today, Sarah Huckabee sanders saying the goal is still 15 for Corporate Tax rate, even though mnuchin yesterday suggested that would be tough to do there is, there is a tremendous amount on the table there is a huge opportunity, the deal maker make deals there is a lot of forces mules too budgets, lots of things lots of moving parts it is going to be a fascinating fall fascinating dinner tonight to hear about tomorrow. Watching big point today and check please here we go. Last down about 10 since jamie diamond called it a fraud yesterday. Coming out today saying that it has some similarities to a pyramid scheme tonight were talking to john maciowa if i, he says bitcoin will reach 500,000 within three years or eat a body part his words, not mine. And he had a specific body part, but were a family show. It doesnt matter Cleveland Indians going for a 21st win in a row right now. They are leading 53, is that still the score . Bottom of the eighth it would be 21 wins, would break a more than century old record theres a debate, the cubs in 35 won 21 straight games, 1916, 28 straight games, but there was a tie in the middle of it. So they really, the streak is the cubs that would not be a win to me tie is not a win they ran out of no lights and no lights at the time. We have to go closing bell starts right now. You definitely have to go with the cubs streak, that was consecutive games on consecutive days i digress. Welcome to the closing bell everybody. Im kelly evans. And im bill grif fifth right now President Trump is holding that bipartisan meeting on tax reform and other key issues on the agenda hes meeting with members of the house. Eight democrats, five republicans. That is bipartisan well get tape from that meeting shortly and bring it to you as soon a