Transcripts For CNBC Power Lunch 20240714

The end of may if thats the biggest youre going to get, hey, well take it big moves in bunds yields on the tenyear note falling below 10 . There you see it at 1. 99, if my eyes serve me. And gold marching higher prices up 10 so far this month. Sixyear highs on gold more on the gold trade ahead kelly. Tyler, thanks lets get to the comments from fed chair powell he was speaking in the past hour about the economy and fed policy hes still speaking right now because its still the council of Foreign Relations part of the q a. This is, again, Federal Reserve chair jay powell saying the Federal Reserve will act as necessary, as needed to sustain the economic expansion he says that uncertainty over trade and Global Growth have increased. But hes grappling over whether these uncertainties will actually continue. Still, though, jay powell, the fed chair, saying the economy has performed reasonably well this year, and that the baseline outlook for the fed remains favorable, and that policy should not necessarily overreact to any one specific data point powell also hinting at potential insurance cuts, pointing to research that shows its best to act sooner and more forcefully, an ounce of prevention worth more than a pound of actual action now, this comes after st. Louis fed president james bowlered spoke on bloomboard earlier, regarding his dissent vote in last weeks big federal Interest Rate policy meeting. He said it now seems like a good time for an insurance rate cut but that a 50 basis point cut may be overdone. He does see, though, 50 basis points worth of total cuts by the end of the year. Bullard said he hopes fed action will straighten out the yield conser curve as well. Interesting because it seems that bullard, one of the bigger perceived doves on wall street is now slightly more hawkish jay powell considered one of the more hawkish folks out there, saying maybe more accomodation is needed and preemptively. A muddling by two sitting and voting fed members you can see the Market Reaction there dow is down about 150 at the session lows down 118 dom, thanks. Thank you very much powell saying trade and Global Growth are among the uncertainties. We have fresh data showing Consumer Confidence in the u. S. Has fallen to near twoyear lows home sales also down gold prices, sixyear highs, and the tenyear treasury falling below 2 once again. Whats the signal and is it time to get cautious. Evan brown is at ubs asset management, and gabriella is global strategist with market funds. Gabriella, do you agrew with mr. Bullard that probably in total a half point cut by the end of the year is likely in order, called for . We do we think one or two rate cuts by the end of the year, probably one in july and then september or december is up for grabs. And thats really because we agree with their characterization of the economy. The consumer is the life fest, so things are still okay, but its clear that the uncertainty is weighing on Business Confidence and Business Investment would a rate help cut the u. S. Economy would it help the Global Economy . I think thats such an important point because we are fixated on what the fed will do. But really what we should be asking ourselves is will it matter will it actually help this characterization of a downshift in u. S. And Global Growth . And we really dont think so because its happening because of Economic Policy uncertainty, not because of tight Monetary Policy so we really dont think it changes the picture. Then why do it . I think as draghi has said as well, we have to do something. We have to try to help we cant just throw our hands up in the air and give up but is it really going to help not so much. Maybe it puts a floor on growth. It puts a floor on the market, but there is no big acceleration coming evan, what do you think i think we have seen a full shift from the fed to Risk Management mode, where in the average ahead of every recession, the fed cut has been about 5 they have 2. 5 of ammo and the argument is, lets act really early to make sure that were ahead of this. Because the worse thing that happens is you cut 250 basis points, youre back to zero, and everyone thinks youre behind the curve. So insurance, it does make some sense, and it makes some sense in light of the data were seeing today the software Consumer Confidence and home sales how much of a downturn are you predicting our view on the economy is bend dont break were undergoing a midcycle slowdown, same as we did in 2011, 2012, 2013, 2014 ultimately, its the consumer, the labor market, that is what will make us hang tight. We have to watch that data really closely in those cases, there was never a fed cut outright they might have paused for a little while, gone slowly here and there. What makes this episode worthy of a bigger response so i think its, what theyre saying to us is that that Risk Management point its that they are they really want to act fast and aggressively to kind of get the economy making sure that its stabilized and support the market so we dont think that they are restrictive right now. But providing a little bit more accommodation is not necessarily a bad thing with inflation levels do either of you expect a recession in the u. S. Between now and the end of next year not this year. We usually say there has to be a reason for that usually its Monetary Policy thats too tight that seems to be off the table otherwise, its some sort of shock that occurs. Now, of course, its by definition hard to see that shock on the horizon we do think this trade issue could potentially become a shock if we see further escalation in tariffs. You dont expect there to be a breakthrough this week at the g20 no, and i think the best we can expect and what the market is expecting is just a truce lets just keep talking and postpone further tariffs, and then that cloud of uncertainty hangs over it, but theres no downpour that drives us lower. The same question to you, recession by the end of next year trade solution coming . Or postponement more likely . Immediately, no trade resolution coming. We hear the white house already out today lowering expectations. The best we can really hope for is talks continuing. And that uncertainty will be with us. The key is we dont get escalation if we get escalation, the risk of recession spikes dramatically without escalation from here, we think about a 1 in 4 chance over the next 12 months or so if the fed is acting the way it is, then that lowers that probability of recession thank you very much nice to have you. Great to see you to the blockbuster deal today in health care buying botox allergan. And check out abbvie shares down 16 on the news. Allergan soaring theyre up 26 lets take a closer look at whats driving this deal and who might be the next takeover targets. Joining us is david maris, securities analyst at wells fargo. What was your first reaction to the news this morning . Why abbvie . Interesting youre looking at it from the allergan point of view i covered allergan longer than anyone who covers allergan, back about 20 years ago, sat in an office when david piet first joined the company so to see it go out here to the company that makes humira and raises price a lot is a little disappointing. Why disappointing well, first, the stock the premium was a lot to where the stock had been trading but the stocks underperformed a lot. So its really off a low base. The other is that i can see why abbvie wants to diversify away from humira. I dont know why an allergan shareholder would want to diversify into humira. Do you think theres a risk the deal doesnt get done because of all that . From what i can tell, theres no vote so its nothing that could be broken up easily. If abbvie share goes down enough that the premium doesnt look like enough, allergan could step away and say this isnt a big enough premium but i dont think someone is going to step in to bid above just because this has been a process, allergan has been looking at Strategic Alternatives for a little while. Dont think someone bids more and i dont think an activist gets involved. What do you think this augers for the whole area are there other is it a target rich area that this deal could spur so there are really two types of pharma deals, i think if i had to classify them. One is were behind in science, and we need to buy the newest science thats coming on to the market those are a lot of biotech type deals. Then theres i have something going wrong in a few years and i should fill in this hole or try to augment or diversify away from this problem. This kind of falls into that this fall into the pfizer Warner Lambert deal from years and years ago. This is a consolidating industry as pricing becomes tougher as the administration continues to put pressure on things, youll see more consolidation. Does this deal do that in and of itself i dont think so, but again, this is a sign of the times. What youre describing in the business broadly absolutely. You mentioned the price hikes. Why is that significant here in particular do you think . I think theres a bit of a culture clash. Putting two companies together on paper is easy actually integrating them and making sure they get along, so you have a company that has its roots in irvine, california, and new jersey, allergan, and then a chicagobased company. Finding the synergys and getting them to work could be difficult. Theres not a lot of overlap, either theyre going to have to come from somewhere they say 50 are coming from rnd. Now, all of that said, you have, if humira, abbvies ceo was testifying recently before congress on price hikes to humira allergans ceo had come out a couple years earlier about a social contract of limiting price increases for drugs. So is there a culture clash . Maybe there will be. Are these two companies too closely associated with single products for their own good . I think allergan is a little more diversified and again, i dont cover abbvie so im taking it from an outsiders view. They have a very big pipeline on products coming onboard, but allergan is pretty diversified but you think of them as the botox company. You do. Yeah, the botox company they have a few billion dollar products. They are botox, they have fillers, and they also have restasis who else does this put in play then . Because its such a unique deal, i dont know if it has broader implications i think there will be more consolidation. I dont think this will pull other people in, but do i think over the long term, if you look at the Major Pharmaceutical Companies as channels, then you have to ask yourself, does it make sense for there to be two swiss companies. Does it make sense for a company who is very focused on diabetes to only be focused there i think there will be more consolidation, but this in and of itself doesnt drive that david, thank you. Coming up, the fallout from the trade war with china well speak with a republican governor who opposes the tariffs, and were watching shares of lunauennar. And well take you to vietnam for a look at how that country could benefit from the trade turmoil. Power lunch will be right back after this carvana is six years old this year and is the Fastest Growing place to buy a car in the nation. Its because we have thousands of people working hard to make our customers experiences the best. Its because we have tens of thousands of cars ready to be delivered to your doorstep. And its why hundreds of thousands of happy customers have ditched the dealership and bought their car online, earning us an average 4. 7 stars in the process. So if you didnt know about us before, you do now. Were carvana, and we want to give you the car buying experience you deserve. We like drip coffee, layovers and waiting on hold. What we dont like is relying on fancy technology for help. Snail mail we were invited to a y2k party. Uh, didnt that happen, like, 20 years ago . Oh, look, karolyn, weve got a mathematician on our hands check it out now you can schedule a callback or reschedule an appointment, even on nights and weekends. Todays xfinity service. Simple. Easy. Awesome. Id rather not. News out of the white house today ahead of the meeting between President Trump and chinese president xi jinping at the g20 summit. Lets get to eamon javers. Thats right. Heres whats going on a Senior Administration official just had lunch at the hey adams hotel across the street from the white house with a number of reporters. And in that lunch, the official sort of laid out some of the expectations forthe g20 you can read this as expectation setting for the g20 to make sure that the Global Financial community understands what might happen, what might not happen at the g20 this official telling reporters just within the past hour or so, ultimately, that the United States is not willing to come to the g20 with a list of concessions on trade and also that no broad trade deal is expected here at the g20. The official also saying ultimately that theres a possibility that the u. S. china trade talks could go on for months or years. So that is the downside of sort of what the official said. The official also suggesting, though, that this g20 summit could represent the rekindling of talks between the United States and china remember, those talks broke down later in the spring. Now, this Administration Official saying that the white house simply wants to restart talks. And seemingly setting that as a barrier for success here for this g20. No final deal expected this week, but ultimately, if they can restart talks, that would do a good one other thing this other said that you dont hear officials saying, that the president believes the u. S. Dollar is too strong and that the euro is too weak. You often dont hear the president saying anything other than they have a strong dollar policy and suggesting the president is going to begin interviewing candidates for the fed before too long. For the openings, not for the chair . For the openings, but this official also telling reporters that there are a variety of opinions inside the White House Counsels Office about whether the president has the authority to demote the fed chair. Theyre still keeping that as a live possibility, that the president could demote the fed chair if he so chooses and in the same breath, saying he doesnt so choose right now. Thank you very much backlash over the trade war with china has been intensifyi g intensifying fedex suing the u. S. Government, saying it shouldnt be held liable for transporting products that violate the trump administrations ban on some chinese companies. All this ahead of that big meeting between the president and president xi on saturday at g20 with us now to discuss trade and the economy and more is Iowa Governor kim reynolds. Governor, welcome. Youre a gop governor, we should point out just for the record. I am. But you dont love these tariffs. Tell us why. Well, no, i dont im a free market gal and i want to do what we can to continue to grow our economy 1 in 5 jobs in iowa is attributed to our ability to export our goods and commodities across the world we want to make sure, first of all, what i would love to see done is congress ratify the usmca. That would bring a great deal of predictability and stability to the market, and if we can get that done, we can join hands with our allies and really focus on china and see if we cant move the needle there. I assume you were very relieved when there was sort of a stay of those tariffs on mexico, because as i understand it, mexico is iowas largest export market. It is that was my message to the president. What do you send there, beans, poultry corn, pork, soy you name it. So a big market for us so is canada so anyway, my message was lets really focus, i was afraid it would impact usmca, and its time sensitive we need to get it done before summer break thats the big priority what about china how much business do you do with china . Its a big trading partner with us, but iowans are in it for the long haul. We cant continue to let them be a bad actor. They cant continue to steal intellectual property and technology transfer. We had seed stolen right out of the ground in iowa they reverse engineered it to get the technology we cant continue to let them get by with that or manipulating the currency we need to get it done were all hoping we can get it done sooner rather than later, but right now, especially if we can get usmca ratified and start to provide predictability there, our farmers are in it for the long game. The president did very well in 2016 with farmers are they hanging with him . They are. Especially, he was just in the state last week and was able to get done in two years what the Previous Administration couldnt get done in eight, which was to help us get e15 year round. Ethanol were the number one producer of ethanol it adds value to what we grow and produce and helps our economy in rural iowa, and theres tremendous opportunity around the globe to export ethanol and biodiesel, especially as more countries try to Bring Renewables into their portfolio. Youre also on a campaign to get jobs to iowa get people. Get people to iowa. Why does that take this kind of effort well, i think sometimes theres a misperception about what iowa is this is a great place to live, work, and raise a family we have not only great opportunities there, but we have a great quality of life. I think they forget about the amenities we have like great restaurants. Oh, sure, but tell me what your Typical Home Price is, fourbed, twobath, threebath 200,000, 150,000. Ill begin to cry now theres your message. Please go check out thisis iowa, our new campaign to highlight the wonderful opportunities in iowa. We set up a real estate shop here in manhattan, and new yorkers came in off the streets and were just blown away with the amenities and the opportunities that are in iowa you know the democratic debates start this week. Whats it like to have all these democrats in the state of iowa last week, we had 19 out of 23 in cedar rapids truly, as the first in the nation caucus, you know, we went through this the last election what we say is come here and come often spend your money in iowa help grow our economy. Just fine you dont care which party theyre from because it brings people to our state. And they get to see the great things we have going on. How do you make sure you stay first . We fight all the time New Hampshire is the first primary. Were the first caucus state we do it well. Iowans are very engaged in the political process. They know the issues they ask the questions you can campaign relatively cheap. You can have no money and still have an opportunity. We have one of our correspondents for many years has done a survey called best states for business in america dont know where iowa ranks. I imagine its well up there in the top quarter or there abouts. What makes a state good for business, business friendly . What are the three things . I think Regulatory Reform low Regulatory Reform taxes, and access to Talent Pipeline right now, every business that i talk to almost without fail, theyre very optimistic about the future and projecting Significant Growth in just our labor shortage right now is the biggest impact we have were looking at it from a holistic approach, but thats one of the reasons were highlighting this is iowa to not only new york but denver and dallas and San Francisco and just anyplace we can reach out and say hey, come check us out this is a great place to do business like a College Coach recruiting im doing my best every day i have a Phenomenal Team check out the video, this is iowa go to the website. Thank you goldman stocks dont normally move higher together, but lately, they have been well talk about the correlation, why its happening. Plus, our interview with Andre Iguodala got a lot of buzz what he said that had the basketball world atwitter. Well have that, stay with us. Driverless cars. All ground personnel. Or trips to mars. 4. 95. Delivery drones or the latest phones. 4. 95. No matter what you trade, at fidelity its just 4. 95 per online u. S. Equity trade. Your but as you get older,hing. 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. Healthier brain. Better life. Welcome back to power lunch. Im mike santoli at the New York Stock Exchange check out gold rallying this month and touching a sixyear high is this a beginning of a breakout for the metal that some consider money mark and michael are your trading nation team today. Mark, obviously, gold manages to crack through the upside of this trading range it had been in for years now. What does it say to you at the moment its maybe running a little hot, but others are looking for momentum to continue yeah, a couple things, mike this is a very constructive move in gold. The bulls have been watching for this move for over five years. Its finally happened. For the gld, getting up above 130 is very constructive in the intermediate term. The real issue, though, is momentum has gotten very overbought in a short period of time gld is up since may. Up at 134. Overall, a very good move. In the short term, though, i think its right to look the other way for a few different reasons. One is that rsi and daily charts is up to near an 87, and on a weekly basis, at 78. The highest since 2011 the second is that you have at least near term signs technically that Interest Rates and the dollar may be near short term support if those tend to stabilize in july, that could put pressure on pressur precious metals. I have been seeing marks, the three of those suggest that gold near term is not the best level to initiate new buys but on an intermediate term basis, any pullback would be a chance to get involved in the next one or two months coming into a seasonably bullish time, into the fall. All right, michael. I mean, how would you view it here, either tactically or as something to just put in your portfolio for whatever reason . Of course, we know there are many rationales for why gold may or may not work in a given cycle. Yeah, i mean, its really odd. You wouldnt really associate higher gold prices with high stock prices and lower Interest Rates. But because stocks are high, i think a lot of investors, i think theyre very fearful of a trade induced recession. Not only in the u. S. But around the globe. Trade tariff induced recession so i think theyre hedging their bets with gold i think this breakout, its been such a dead asset class for a long time, that this breakout is exciting people who are looking for some kind of opportunity around the world i dont think the g20 is going to do much to alleviate trade induced recession fears. The president wants to seem to walk down the u. S. Dollar, which should help gold so in our opinion, we think this momentum can continue into the intermediate term future and digital gold, bitcoin, also working lately. So maybe it all fits together on some level mark and michael, thank you very much for more trading nation, head to our website or follow us on twitter. Tyler, back over to you. Thank you very much ahead on power lunch, shares of the home builder lennar plummeting after concerning comments about tariffs and how theyre affecting the business there. Well speak to an analyst who downgraded that stock. Plus, a house hearing on taxes. The impact that eliminating state and local Tax Deduction has had on communities and made in vietnam. Cnbcs new special report on the countrys manufacturing boom all this when power lunch returns after this and now the latest from tradingnation dauts cnbc. Com during bull markets, many traders find themselves attracted to small market stocks because they have a higher beta, meaning they generally move up faster than the broader market, but dont overdo it because theyre also more vulnerab tleo pu pullbacks. Schwab is the better place for traders. My degree from snhu has helped me tremendously. The flexible class schedules allowed me to go to work full time, run my catering business and be a mom and parent. When i reached this accomplishment, it was like, its here, its happening, its now. We at southern New Hampshire university are the ones who succeed. We are the ones who break through. Through the at t network, edgetoedge intelligence gives you the power to see every corner of your growing business. From using feedback to innovate. To introducing products faster. To managing website inventory. And network bandwidth. Giving you a nice big edge over your competition. Thats the power of edgetoedge intelligence. Im Courtney Reagan and heres your news update at this hour Melania Trump announcing her spokeswoman will be the new White House Press secretary. Shell also take on the role of White House Communications director she succeeds Sarah Sanders who announced her resignation earlier this month Vice President mike pence launching a latinos for Trump Coalition in miami an effort to engage latino voters ahead of the 2020 election to everyone across the latino and hispanic community, that with your continued support and energy and enthusiasm, and with gods help, we will make america safer than ever before john sanders says hes stepping down amid outrage over his agencys treatment of detained migrant children. He would resign on july 5th. Thats the cnbc news update at this hour. Kelly, back over to you. Thanks very much. Were 90 minutes until the closing bell take a look at the stock market. Dow at session lows. A drop of about 158 points right there. Were briefly down 150 after remarks crossed the wires at 1 00 p. M. From fed chair jay powell he was speaking at a cfr event he made commentary about whether further accommodation would be needed you can see the reaction in the s p, down 23 points. The nasdaq down 106 as well this hour nasdaq the biggest decliner by far. Down 1. 3 . Dow down only about 0. 6 now over to dom chu. Were watching whats happening with shares of a couple large meat processors tyson foods and pilgrims pride, taking a leg lower after some bloomberg headlines say the United States government is probing claims of possible poultry price fixing at tyson and pilgrims pride and possibly others thats not the first time many of these meat processors, especially chicken processors, have been the target of scrutiny, not just from people claiming they may have allegedly fixed prices on chickens but also there could be some antitrust scrutiny. Still, those headlines moving the stocks lower we should point out that those two companies and others are still embroiled in a lawsuit alleging they did price fix chicken, so tyler, well keep an eye on those we reached out to both companies for comet. We have yet to hear back thank you very much the yield on the tenyear note below 2 today. Mortgage rates down as well. But is that translating into an increase in home prices. Diana olick has the latest numbers. Its simple if rates fall, buyers can afford more that means they can also bid higher this morning, we got the latest read from s p schiller, which is the most watched home price report it till showed the home price gains are shrinking annually prices up 3. 5 annually in april versus 3. 7 in march, but this report is pretty backward looking. We have newer reports from zillow, the realtors, and core logic showing home price gains getting bigger again for the first time in about two years. Even the case schiller report, when you break down the gains by large cities, a growing number of cities are seeing the price gains increase now as for the builders, we saw the median price of a new home sold in may drop almost 3 . A lot is the mixed shift, meaning more lower priced homes are selling than the luxury homes. Builders are pivoting to the lower end now, but that hits their margins, given higher cost for labor. All right, thank you. The nations second largest home builder is meanwhile on track for its worst day since 2018 lennar tumbling after starting the session in the green after its earnings beat. But shares took a sharp turn lower during the Conference Call they said chinese tariffs and material costs as headwinds, saying the impact has been about 500 a home. Our last guess downgraded it last week. Do you have any special insight on that, buck, or what told you that things didnt look so good. The report itself did originally look fine. Well, thats true and like diana mentioned, falling Mortgage Rates has provided a tailwind, and we did see buyer activity was improving in april and may and i think thats what drew some buyers into the stock, which led to evaluations of not just lennar but across the group. We saw elevated evaluations going into the end of may and early june and got to a point where we started to realize, you know, look at these gross margin expectations, and we started to realize a consensus earnings expectations werent factoring in that the level of incentives and promotional activity that was needed to boost that demand was much more elevated and extended much longer into the springtime than this time last year now, thats a function not only obviously, tariffs are a cost input, but those incentives are a function of higher competitive resale inventory the core Home Building markets where we were tracking the data and monitoring this activity, were just wrestling with a lot more resale inventory on the ground for the builders to compete with right, so to be clear, what youre saying is in markets like las vegas, this supply of existing homes is up 85 its up 50 in seattle, 21 in dallas and these are typically lower priced so the new homes cant compete. Why is the inventory up so much in these markets thats a great question you know, starting to see a little bit of mobility coming back, and you know, maybe just an elevated level of demographic shifting going on right now. A lot of inputs into that. Not necessarily an easy one to precisely pinpoint, but you can see when its happening. Thats what we were trying to identify, on a year over year basis, the builders did not have the same level of Pricing Power. We got some tailwind from the Mortgage Rate decline, but it was an awfully sluggish start to this years spring selling season we were clawing back to break even, which is effectively what lennar reported with 1 order growth on a year over year basis. You also see declines in Consumer Confidence. I wonder if that is manifesting itself both in home Purchase Intentions and actions and also in auto sales among other places we have been zeroing in here on the fact that tariffs, says the company, are impacting them to the tune of about 500 per home. Is that material or not . Well, its a factor its one of several. I think land costs are another factor land costs being prohibitive because the cost of entitlement continues to extend. Thats largely a function of local regulations and government taxation measures. Couple that with just the promotion. The promotions for lennar, for example, were up 2300 per house, whereas the identified tariff impact was 500 per house. So its all adding up, and its all leading to cost pressures, and as diana mentioned earlier, the level of Pricing Power in the market this year just isnt what it once was all right buck, thanks very much appreciate you joining us today. Thank you stocks are at session lows right now. Bob pisani at the New York Stock Exchange tracking all the action is this powell or what its powell and bullard so heres the story. The market has come to expect that theres going to be aggressive rate cuts, which might even be 50 basis points next month when they dont get that, they throw a hissy fit. And those expectations were tempered today so bullard comes out and says, its a good time for insurance rate cut then he says, the situation doesnt call for a 50 basis point rate cut yet thats a disappointment. Then mr. Powell says, Monetary Policy should not overreact to any individual data point or shortterm swing in sentiment. Another temprerance to the whol were going to do 50 basis points remember, were getting near the end of the quarter we had tremendous outperformance in several Sectors Technology stocks and Communication Services have done well theyre weaker theres a little profit taking going on here. Finally, if that doesnt impress you, the three there are three stocks that have contributed to the majority of the gains in the s p 500 microsoft, amazon, and apple are the majority of the gains in the s p 500. How can that happen with 500 stocks you have three dozen super cap stocks if they move, the whole market moves and the other 490 can do nothing, and these stocks have had tremendous gains, particularly microsoft this quarter. Disney also had a big gain thats a big influencer. Call it the triumph of indexing, tyler, when these super caps move up, the whole market moves. A reallocating going on, i assume, as well, as we come to the half time of the year. Bob, thanks. Meanwhile, yields on the tenyear falling below 2 . Guess whos tracking the action at the cme rick absolutely. And even before we get to tenyear, we had a twoyear note auction. 40 billion. One would think with all these questions about Monetary Policy, it wouldnt go well, but it went quite well can gave the auction a b 40 billion twoyear notes at 1. 659 priced right the metrics there, they were all above average. Directs were actually quite a bit above average. Dealers only take 27. 3 . As for the intra day chart of two year, look at that volatility, whether it was bullard or jay powell, having a 50 in one chunk, maybe the market wanted it, most traders were suspect even before the conversations out of the fed and finally, dont count out the dollar index what goes on with rates is paying a big deal for the dollar and dollar investors, you can see the dollar index had a lot of volatility, and its still in positive territory, although yesterdays close was the lowest since march 20th of this year. Back to you. Rick, thanks. Vietnam is experiencing a manufacturing boom, and it could get bigger as the u. S. china trade war drags on a look at how the country is trying to get its workforce ready. Stay with us thank you so much for coming in. Is something going around . Yeah, uh, welcome to cold season. [ sneeze ] you know at cdw we get that sometimes its smart to work outside the office. Thats why we would suggest the powerful, portable Lenovo Thinkpad t480. To let your people stay productive from anywhere. Wow, i feel really great about this. [ sneeze ] its probably nothing. Or something, really bad. You need it orchestration by cdw and lenovo. Featuring the intel 8th generation core processor. Aas a guy withe his own catchphrase, i appreciate that after 75 years smokeys only said. Smokey bear only you can prevent wildfires. Al but, im filling in because theres a lot more to report like when there are parched or windy conditions out there, you gotta be extra careful with things like burning yard waste. After all, wildfires can start anywhere, even in your neck of the woods. Go to smokeybear. Com to learn more about wildfire prevention. Welcome back as the u. S. china trade dispute drags on, Many Companies are considering moving some or all of their production out of china, and vietnam could become a popular destination if they have enough workers with the right skills carl is live in hanoi with that story. We have been here in hanoi all day talking about vietnams emergence as an alternative to chinese manufacturing going into the g20, obviously, in the face of a trade war last hour, we introduced you to a textile maker here with facilities a couple hours north of hanoi been around since the 70s hiring like bad. We talked to one of the managers there who said the demand for workers is so intense that even though theyre in the apparel business, they have to get into the housing business one of the Sustainable Business challenges is to build the people and build our business so in order to grow the business, its more important for us to build the home for the people than actually building a factory. Its part of the development and part of the longterm plan strategy average worker there makes about 280 a month believe it or not, thats above the minimum wage in vietnam. Those wages crept up as Companies Like samsung moved in down the road a couple years earlier and lifted the entire labor pool expectation for what a living wage is here. Youre beginning to see a lot of economic effects come in, even as business interests also comes in kelly, tyler, back to you. Carl there. Our tasting menu is up next todays special, practicing proper etiquette when it comes to paying using venmo and others recapping our power player, and prime days power lunch back in two. Woman my reputation was trashed online. I felt completely helpless. My entire career and business were in jeopardy. I called reputation defender. They were able to restore my good name. If you are under attack, i recommend calling reputation defender. Vo theres more negativity online than ever. Reputation defender ensures that when people check you out, theyll find more of the truth, not trash. If you have search results that are wrong or unfair, visit reputationdefender. Com or call 18778668555. On our tasting menu, here is a taste of some of the other stories. Amazon is doubling down on its biggest ecommerce event prime day will run for 48 hours, it starts july 15th. And amazon prime members will be offered more than 1 million deals including the new featured lighting deal. This annual event, i dont know what that is, but it has become so popular that amazon has extended prime day by a full day. I saw ads for it on amazon last night. Already wow. It will be a week im sure in a couple years there is no limit. Mobile money, more problems. The peer to peer app venmo has commissioned a survey of users you have 24 hours to pay up. 72 of users say that this is the best Response Time after receiving a request. In other words, pay right away as much as you can about twothirds of users also think that it is inappropriate to ask someone on a date and then venmo request them for half of the bill. That does seem like a little bit yeah, come on that is never appropriate. I dont know if i abide by that 24 hours i have been a little delayed i have to tighten up on that and iguodala omaking big news here what is he said when i asked him about klay thompson. I think that they will be back with the warriors we keep in contact but regardless, if both did decide to leave, they are both still my brothers. Just wish the best for both those guys you are crushing the knicks fans nobody is going kelly said nobody is going to the knicks he barely needed any prompting. It was quick. Like are you serious . Why would you even ask ive done a lot of interviews as we all do and none has impressed my son more than yesterdays with Andre Iguodala it lit up his phone. So big stuff yeah, got picked up everywhere and there were so many little interesting nuggets. I was almost wondering if msg shares were going to move on that that is not a good sign the way he is talking about the reputation for the knicks now across the league. Yeah. He was a very thoughtful fellow. Very. Very. He thought through a lot of things the book is really terrific. Unintendsbend intend conseqe tax law changes taking stage washington it impacted me you and 11 million others we had some testifying in congress about the pain that is being caused by the catch on state and local Tax Deductions the socalled salt cap effectively raised taxes on many americans, many high earners in mostly democratic states democrats held the hearing as part of an effort to get the caps repealed saying they are hurting governments and real estate republicans saying repeal would only help the rich and tom rice had this exchange with a wisconsin fire chief. What is your average firefighter make, how much money . About 45,000, 50,000. He aint going to get one dime of benefit. Does he understand that he is going to have to pay more taxes to give this tax break back to rich people . 3450e7b whimeanwhile other dn the capitol were calling for higher taxes on the wealthy. Senator Chris Van Hollen speaking at a taxing the very rich conference announced a plan for a 10 surtax on income over 2 million and provision to end the step up part of the tax code which benefits wealthy heirs the democrats were supporting a plan that only helps the wealthy. 96 of the benefits go to the top. Whereas the republicans were saying this is a disguise in the guise of helping the middle class, really a break to the rich and sthoont happhouldnt happen. So turned the world upside down. Robert, thanks very much. Le San Francisco could ban the sa of ecigarettes, that is ne next onn power lunch. Driverless cars. All ground personnel. Or trips to mars. 4. 95. Delivery drones or the latest phones. 4. 95. No matter what you trade, at fidelity its just 4. 95 per online u. S. Equity trade. No matter what you trade, at fidelity at cdw, we get that trying to simplify data storage can get very complicated. But cdw will assist your needs and implement a dell emc unity xt allflash unified storage platform. It delivers speed and efficiency, while providing simplicity and flexibility. For unified storage platforms, you need dell technologies, and it orchestration by cdw. On a scale of one to five . One to five . Its more like five million. Theres everything from happy to extremely happy. Theres also angry. Im really angry clive actually, really angry. Thank you. But what if your business could understand what your customers are feeling. And then do something about it. Turn problems into opportunities. Thanks drone. Customers into fanatics change the whole experience. Alright who wants to go again . I do i do i have a really good feeling about this. . A few showers San Francisco could be the first city to ban the sale of e cigarettes aditi roy has the latest reporter the city is slated for a final vote on the issue in just a few hours and if passed, mayor breed has ten days to sign the bill into law. There are a couple of measures that the board is considering. One would ban the sale of ecigarettes in the city, the other would ban the sale, manufacture and distribution of products on City Property. Juul is based in San Francisco and its headquarters are on City Property and in todays wall street journal, dr. Gottlieb offered his thoughts on how to curb the teen vaping epidemic he suggests if the makers want to keep them on the market, the fda could carve out a path for approving them as over the counter drugs. To that juul responded taken together with our industry leading action on youth prevention and hopefully category wide actions from the fda in the near future, we are confident that adult smokers will not be left without a viabled a ter in viabled a alternative. And juul is working on an alternate plan all right thanks cant sell them in the city wonder if you can use them in the city i dont think so, but they sell cigarettes. Thanks for watching. Closing bell starts right now. Good afternoon allergan is up 26 broader markets near session lows some down 0. 7 59 minutes left to trade everything you need to know coming up. And lets get straight to what is driving the action dow down 143 just off session lows. St. Louis president says no need for half a point rate cut. Disappointing to hear. And technology i