Performing dow component over that time. So the big question for apple investors right now is, doubling down on retail enough to reboot this struggling stock . Kick off the discussion with Brian Sullivan and michelle ka russ russocabrera. Theres sliding glass doors, 6k video screen and the eyes probably cant pick up. Trees planted along its Customer Support section inside. Theres also a public plaza open 24 hours a day. Free wifi and live music. Apple retail chief says it is not about evolving store design. But creating a community for customers and visitors. But as sounds nice. Sounds gorgeous as tyler mentioned, should apple bet big on retail instead of focusing on the next big product is . Joining us is contributor jan niffen and john fortt and january, what do you think of this move . Apple is good at retail. Good enough move . Its not like they cant do both, right . Its the next great store and they have to have the next great new store and now they look like a microsoft store, right . Microsoft is opening stores. So they need something that keeps them the best store in the moll, highest productivity, most visited store in the mall. Most dollars square foot in the country. Nobody else in the mall drives the volumes that apple does and they want it to stay that way. Every mall in america wants an apple store. And they need to keep cutting edge on the store so i like what theyre doing. Do i think its enough . No. Whens enough is the next new great product, right . I have an iphone, an ipad. I write on an mac air. I didnt buy a watch. Now what . Yeah. Now what . Lets ask jessica out there. Obviously, the buzz is working because were leading the show with this story. But do you believe this will create enough of a real buzz to do anything meaningful for apple . Its not just about having a new store and a sexy brand and apple needs to keep updating the brand image, as well. But im struck by things in this store like an Enterprise Center to try to Sell Companies on the apple products and a boardroomlike area. I think its a practical move, as well, indicates apple needs to sell their products into new markets. And so, again, not going to be a game changer for the company. But a good practical step if they get into selling bigger products like tv and tvs and hardware. Theyre also gone to need more space so they really do need to transform their retail footprint. If needs to become a when, doesnt it . Judge it differently. What they have done with their huge cash hoard is bought into locations iconic and others cant afford to be in. 5th avenue store, its a landmark and a tourist destination. The same in grand central. Thats what they have done locationwise in San Francisco but the store itself was not that impressive. It was one of the first. Now they have upgraded it for tourists just to experience it. Is it going to shift the tide of apple sales overall . No. But it could shift share of wallet and the amount of other things agree with everything you said except it seems like an awfully expensive proposition just to get tourists to come in and take photographs. It is not like theyre capital constrained. Yeah. Its not like they are and, and this is a real tangible advantage that they have that they need to maintain. And so, especially as they move into services, if they can show people how the experience works, get people talking about, oh hey, look, on social media heres where i was. Keep the halo in the family. People loving it loving it more does matter. Will you play music in the apple store as a member of a band yourself . Yes. And thrown out. I wont be invited. Jon and jessica stay around. I didnt know you were in a band. In kentucky in the 90s. Long time ago. Jan in a bit here. Lets chat about the potential value of a yahoo takeout. New reports inform bids for yahoo coming in at 2 billion to 3 billion. David faber said that may be low. Do you think its 2 billion to 3 billion . I think and what sources are saying is this is a negotiation. Bids are due. People are posturing. Aol is sold to verizon for more than 4 billion. Its really hard to imagine yahoo s going to be less. So i just dont believe those prices right now. Okay. So yeah. I want to compare it to twitter mean ear im sure viewers take exception and bear with me for a second. Twitter has fewer than half the number of active users as yahoo claims and one half the revenue and twitters revenue is slowing and a market value of 10 billion saying one of the Companies May be grossly mispriced. Your thoughts . So comps are hard. The problem with yahoo right now is momentum. Not only is revenue not growing, but its hemorrhaging users. We had a story about huge declines of usage across all its properties and tech is a momentum game. Twitters stuck but not as stuck as why hoo and bidders anxious right now because theres so many questions over the company. Whats going the happen to the softbank deal . How real are the synergies for a buyer like verizon . And so, theres a whole different set of issues with yahoo but i think, you know, you can say the same of twitter, too. Comps are basically hard and right now its a negotiation. Sure. Basically will verizon bid up for it . You know, negotiation, what they should have done way back when, jon . Microsoft wanted to buy them. For 30 ugh, ugh, ugh whats microsoft saying, woof. Did we dodge that bullet. Holy smokes how things can turn. What do you think about the valuation here . They caught the nokia bullet right in the gut. I think jessicas exactly right about the difference of twitter and yahoo . I mean, twitter, yes, the users not growing but revenue has been. The team doing a good job. Figure theres some ways to exploit data ways they havent before. Yahoo on the other hand, that cow is milked. They have all kinds of ways to make money, probably milked yahoo mail too much. When email just really wasnt the way to go revenuewise anymore. Is it valuable for companies that needs users and eyeballs . That is it, right . Isnt that the whole game . Forget about twitter then. Groupon. Not exactly knocking the cover off the ball. Has a market valuation, a market cap, jessica, 1. 9 billion. You tell me yahoo may be worth 100 million more than groupon . Exactly why do you believe these prices right now. I think, look, this is a tense negotiation. I think the bidders continue to be anxious about whens beneath the hood at yahoo too. You have actist vary holders and seeing this play out and i think the numbers suggest maybe we wont see a deal or maybe have to see a different kind of deal, too. The saga is far from over. Yeah. It is a saga. Soap opera. So focused on yahoo mail. What about yahoo female instead . Yahoo female is where the the female customer so sully. So sully. Exactly what he was thinking. Apologizing to the viewers. Conversion is complete, michelle. Thank you, tyler. All right, folks. Thank you very much. When i find the camera ill talk to you. Yahoo is lower today but the overall tech sector moving to the upside. There is the green that you see in the nasdaq 100. Theres a lot of it there. Only seven stocks is that right . Seven stocks negative right now. In the entire nasdaq 100 as you focus down on some of them. Todays gains are pulling the nasdaq out of a correction. It had been down more than 10 for another time since its most recent high. Puts it back in the black for the week and the nasdaq dodging a fiveweek skid. Something it hasnt happened since way back in 2011. Chip makers, biggest winners on the nasdaq right now. Applied materials up top. I believe thats micron in number two spot. Lam, broadcom. More on the rally in the chips. The chips arent down. The chips are up. Well have more on that later in the show. Brian . News alert for the energy market. It oes time for the weekly rig counts and the counts coming in unchanged compared to a week ago. 318 rigs. The first time in nine weeks by the way that Oil Rig Counts have not fallen. We are still, though, down 341 compared to a year ago and lost last couple of weeks and we had 1,851 rigs gas and oil, 1,500 in 80 two years ago. Now what . 40 to 50 Jobs Associated with each rig. Those are jobs coming off. In a year. Lowest ever recorded data basically. Wow. Still ahead, hitting housing. We have new numbers showing that the spring selling season is in full bloom. Plus, do you want a brand spanking new tesla model 3 . All you got to do is go to work for a North Carolinabased company and theyll give you one. Youre going to hear from that entreprene entrepreneur. Why he is doing it when power lunch rolls on. Welcome back. Im tyler matheson. Fresh numbers showing the spring housing season in full bloom. Lets get to diana olich with more. How are you . Reporter no question, theres plenty of demand for housing and even a little bit more firsttime buyer demand than lately and pushed existing home sales in april higher by 1. 7 for the month, up 6 from a year ago and these numbers would be stronger were it not for a lack of homes for sale. Inventory is down close to 4 from a year ago and that is pushing prices higher. Take a look at the inventory by price range. It is way down, right where we need it in the most for those entry level buyers. Median home price in april 232,500. Up 6 from a year ago and realtors say that the gains in prices reareaccelerating. That doesnt mean that the sky is the moon for the sellers. Case in point, right here. Homes in the d. C. Neighborhood selling in days. This one was likely priced too high. Back to you guys. Thanks very much. Lets pick it up there with budge husky. Ceo of Coldwell Banker real estate. You have the window pain suit memo for thedy. Looking sharp. Diana has been talking for real i site ms like years now about the shortage of inventory. Do you see that in selected markets or nationally . Number one. An why is that . Well, of course, theres a shortage of inventory at the present time and part of the overall story of housing is the underlying economic drivers are creating demand for housing and its a great story but it would be a greater story if the inventory was there. Why isnt there . First of which, we know that part of it is the inability to see the moveup market. Individuals owning homes know its a great time to sell and questioning where theyre going to move next. We havent seen the level of new Construction Activity and starting to come back. Shifting from the rental market and then Single Family and we have a long way to go to reach the levels of historically. People feel a little locked in to their house in other words . They dont know where to go if they like the town theyre in. Will i have the money to move up . With all this, thats correct, we are seeing an increase in the number of new listings on the market and we have seen that on Coldwell Banker year over year. Demand is so strong, total inventory levels are declining in many cases. Are you encouraged by that slight uptick in the firsttime home buyers . I am. Not to historic levels of 40 , uptick indicates people are returning to market. We see household formation strong within the last 12 months and a lot of individuals are moving into rentals and getting them there, its twostage recovery an moufing into a home of their own. Do you think that slightly higher Interest Rates are going to cause some people to get off the fence and jump in . Always has. As you know, and any increase are going to be nominal as we know and not an impediment to continued recover. Thank you very much. Good to see you. Thank you. Great to see you. Coming up, an employer trying to attract workers offering a tesla why not just pay them more money . Well ask him. Plus power pitch. A startup dishing up a new super food. Its a vegetable more nutritious than kale. But will the panel eat it up . How are you using branding to differentiate yourself . What are you going to do to attract consumers that might not know about this . Stay tuned to find out. Olay total effects a skin transformation that rivals the leading Department Store moisturizer. Revives skin to fight 7 signs of aging. With olay, you age less, so you can be ageless. Olay. Ageless. Welcome back to power lunch. Time for todays power pitch. This is where one entrepreneur gets 60 seconds to convince a panel of expert it is startup has what it takes to be the next big thing. Hi, im lisa curtis and founder and ceo of cooley cooley. I began to feel mall nourished of beans and rice and someone told me about maringa. Its more nutritious than kale a and. I started to eat it and made me feel better and i introduced this amazing new super food to the u. S. Market and doing so, help to improve nutrition for women in west africa. Americans say that the number one diet change to make is more vegetables into the diet. But not everyone has time to stop and eat a salad. This green energy shots, powder and super food bars is a convenient and affordable way for americans to get their greens on the go. Its sold over Million Dollars worth of products and we Just Launched nationwide with whole foods. We are excited to capitalize on our first to market advantage and make it the new kale. Welcome to the power pitch. You just saw lisas pitch. Now lets meet the panel. Alease sha a board member of the new york angels, advises and invests in over 40 startups. And nir, he founded uprise ventures, focus there on early stage startups with several natural Food Investments in the portfolio. Also with us is kelly and angel investor. She mentors over 30 startups an founder of see jane invest, a company focused on womenowned businesses. Welcome all. All right. What do you think, alicia . Lisa, great delivery. I loved how you talked about your own background, the social purpose and also the traction youve had so far. I would have liked the hear a little bit more about competitive differentiation and also how youre getting the word out so ill give you a bplus. Now, on the competitive front, i understand there are other products with moringa out there. How do you differentiate yourself . Anyone can sell a product online and the Quality Control standards really arent there compared to whats sold in retail. This is the First Company to sell the products in Retail Stores nationwide and the first to develop a brand around the super food and we have the highest quality and most socially responsible on the market. Your thoughts . The pitch is well rounded and covered the major elements. The whole Foods Partnership is great but hard and expensive to build in whole foods or natural channel. What are the plans to beyond expand to conventional grocery . In july were launching with two Major Grocery stores. We havent announced them yet but theyre on the conventional side and you will see the products in even more stores nationwide. Kelly . I thought this was a really interesting pitch, love that its in the social impact space. I wanted to hear more an i have to say i didnt know moringa before the pitch. What will you do to attract consumers like me and why its better for them and they should choose at the store . We do a lot of store education, so if you walk into any store in america, youll start to see more and more people out there sampling our products. We also do a lot in terms of educating the store personnel so that they can educate the customers for us. Alicia . In the supply chain, your sourcing ingredients from womenowned farming cooperatives. How do you ensure that they can grow with you, soo too . We haven credible partnerships so were working with the Clinton Foundation and other foundations, International Development agencies to work with more womens coops and help them grow and scale as we grow. The current product assortment is broad. How do you think about a broad assortment versus limited focused product strategy . I think when you look at other companies that have acai of chia seed, they focus on the ingredient. We think of our shots and our bars for people to try moringa before they get to the green earthy stuff to add to the smoothie. Lets hear from the panel. Alicia . Building a new food company is incredibly hard and i have invested directly in the space. With that said, theres so much i like about this company. You have a great entrepreneur with traction in places like whole foods and partnerships with thicks of the Clinton Foundation. I also really love the social purpose and also just how much heart shes put into this company and its building on Health Trends so im definitely in. Nir, in or out . I like that the company has a compelling ingreed yept story, strong early traction. Can she expand outside of whole foods and perform well in the conventional channel or mass market channel . Im in. Kelly . I have also invested in the Consumer Food space and everything that i see shows she is right on track and everything she needs to do weps a niche food like this, starting in whole foods and go to a broader audience. I see a lot of great things happening and so im in. Okay. Lisa, what is your reaction . Wow thank you all so much im thrilled. I think ten years nobody heard of quinoa or chia i hope that everyone will have heard of moringa. Thank you to lisa and our panel. Thats todays power pitch. Kale is big. The new kale the new kale i just got the old kale. Dont talk about the ca cafeteria like that. Are you in or out on kuli kuli . For more on power pitch, go to powerlunch. Cnbc. Com. One day the market reacts to the fed. The next it shrugs it off. How can you make money no matter what happens . Tesla raising nearly 2 billion to build more cars faster. But will its suppliers be able to keep up . All that and much more coming up on power lunch. Life insurance automobile insurance i spent 20 years active duty they still refer to me as Gunnery Sergeant when i call being a usaa member because of my service in the military to pass that on to my kids something that makes me happy my name is roger zapata and im a usaa member for life. Usaa. We know what it means to serve. Get an insurance quote and see why 92 of our members plan to stay for life. Our cosmetics line was a hit. The orders were rushing in. I could feel our deadlines racing towards us. We didnt need a loan. We needed shortterm funding fast. Building 18 homes in 4 ½ months . That was a leap. But i knew i could rely on American Express to help me buy those building materials. Amex helped me buy the inventory i needed. Our amex helped us fill the orders. Just like that. Another step on the journey. Will you be ready when growth presents itself . Realize your buying power at open. Com hi, everybody. Im sue herera. President obama speaking from the oval office urging congress to pass a bill to boost emergency funding to deal with the zika virus saying its critical to be assured of the 2k3w0 governments response. Congress needs to get me a bill. It needs to get me a bill to get me sufficient funds to do the job. They should not be going off on recess before this is done. The European Space agency salts one of its satellites spotted a possible oil slick in the same area of the mediterranean where egyptair flight 804 disappeared. It is about 1. 2 miles song. The Israeli Defense minister announcing his resignation citing a lack of trust in Prime Minister netanyahu and no intention of leaving public and political life. Netflix launched a website to let you see exactly how fast your Internet Connection really is. Netflix is all about video and the faster the download speed, the better video quality to watch on your tv. There you have it. News update this hour. Back to i dont guys. Thank you, sue. Which is get and hindered by the speed of the wifi router. You just go as slow as absolutely true. You know whos really fast . Comcast xfinity is great. Excellent. And could be the Parent Company of this network. Thank you. I didnt disclosure. Thank you, sue. Final golds trades crossing for the day and look at the move, down. 1 to 1252. Big mover today is platinum. If you called it congrats. Silver seeing a little bit of a move, as well. All right. We are, though, seeing some rather sizable moves in the bond market. Today. All right. Obviously now the fed meeting maybe a live one meeting again june 17 and seeing a bit of a move here. To your there you go. Can you read this stuff behind me here . Seeing a move in the 10year treasury. We have breaking news on General Motors and now phil lebeau. General motors announcing how its compensating about 135,000 owners of 2016 vehicles with incorrect mileage on those stickers when they bought the vehicles. They put new emissions hardware on those vehicles when they were building the 2016 models. The stickers did not reflect that new mileage, a mile or two lower than what was stated on the sticker. So as a result General Motors is compensating the owners of those vehicles with either a Prepaid Debit Card of between 450 and 900 or a 48month Protection Plan warranty offer. Again, General Motors offering compensation of 450 and 900 to owners of the 2016 models, 135,000 of them with the wrong mileage stated on them. By the way, gm says this Compensation Program will not have a Material Impact on the bottom line. Back to you. All right. Breaking news on General Motors and i believe we would have bob lutz on the program in a bit but i think he is there now. Former vice chairman of gm is there, lets bring him here. Are you there . Im here. Thank you for jumping on early. I understand wrong mileage stickers on a car. How do you have incorrect mileage stickers on 135,000 cars . Well, i think that theyre just these are the socalled sport utilitieutilities, big cr, traver traverse, the Buick Enclave and so forth. And its buick phil lebeau said. It was an emissions change and somebody didnt get the word to the guys that were printing the stickers. I think its an honest mistake. General motors self reporting. An its compensating victims. I think its a total non story. Yeah. You know, i dont know. Bob, you dont want to accuse anybody of wrongdoing. I understand mistakes but same point i dont want to harp on this but it smacks of i mean, because if the mileage stickers were higher then its an equal mistake but the fact theyre lower, lower mileage cars with a lot more value. Well, i think it was a correction of a mile or two per gallon. It is not material. Most people might have never noticed. They probably wouldnt have reported any discrepancy to the government or complained about the fuel bills and so forth. But again, General Motors saw it. Saw that they had made an error. That there was a slipup in the system. They corrected it. And theyre compensating the owners who im sure will be delighted to receive checks in the mail. All right. Interesting. Bob, well bring you back in a few minutes so well get some coffee for you and water in the studio where you are. Sit tight. See you in a couple of minutes and talk about electric cars. Tyler . Okay. Fine. All right. Fantastic. Stocks rallying a little bit today shrugging off the possibility of higher Interest Rates in june. How can investors survive . Maybe even thrive under this fed volatility . Lets bring in katie nixon, chief Investment Officer of Northern Trust and bruce mccain, chief investment strategist at key private bank. Middle of the week, katie, the fed minutes indicated that, you know, june was a live meeting. Is there anything that you do as a portfolio manager, as an adviser to portfolio managers, thats different in light of that . No. Sigh ler, well keep your base case that the fed moves once this year and increased the probability of a hike, maybe in june or july. But from our perspective, if the fed raises rates, it is for the right reason and the reason would be a higher confidence in the sustainability of the Growth Outlook and a confidence that the inflation outlook moving more toward their target of 2 so if the fed raises rates for the right reason positive for risk asset. Bruce, are you doing anything differently, positioning any differently in light of the idea that maybe Interest Rates will move higher sooner . Or maybe a little more frequently than some scenarios suggest. I think you still focus on the longer term. And clearly, theyre not going to raise rates by very much. Its not going to have a huge effect other than the impact it has on Investor Expectations. And when you look at what the dollars done in recent months, in part because they began to think that the fed might not raise as much or as often, for example, you may get back some of what we have seen in the currency markets and clearly has Economic Impact and some effect on companies so i think you look for those sorts of minor tweaks to the longer term strategy and how that plays out as Investor Expectations catch up to the fed but beyond that, no, not a great deal of difference. You do raise that variable there and that is the dollar. Are you adjusting in any way your holdings of companies that might be affected by a stronger dollar . I think, certainly, you have seen give gunshot baback in tha the extent you have seen security that is have moved favorably to that without long term potential to continue their run, then i think its time to pair that back and move to things that may be advantaged more by the longer term strength of the dollar seeing and expect to see. To me, a kind of week of reminders, a reminder that the consumer may not be firing on all sill enders or buying the kinds of thingless or patronizing the kinds of stores they used to, a reminder that the fed is very much in play and a reminder yesterday that fears of terrorism are there and we cant ignore them. But the one risk factor that you are highlighting right now is the fear of a brexit. What do you think the likelihood is . What would it mean to investing . Well, tyler, one of our major risk factors is around the rise of populous pop tick politics the world and the fear of a brexit, abated quite a bit over the last several weeks with polls that suggest 75 are in the remain category so that risk certainly has dissipated and i think the risk of rising politics all over the world and the u. S. Does present a risk for the Financial Markets and certainly a theme to talk about for quite sometime. Bruce, a thought of yours. Summer comes, so do the olympics. It is a wild time but you like one stock that you think could get a boost from the olympics. Very quick thought on it. Well, nike is one that tends to sell obviously a lot of apparel that becomes much more attractive not only to those who actually patient in athletics and those that like to sit on the couch and watch it. Clearly this sort of trend to the extent not disrupted by the concerns for health and Rio De Janeiro would be a big plus for the stock and a solid growth franchise that does well in this slow growth environment we think longer term. Ill put on nikes and lululemons and watch this summer. Probably too much information. Thank you, bruce. And katie nixon. Go to powerlunch. Cnbc. Com to see another large cap stock that bruce bets on for the summer. That is powerlunch. Cnbc. Com. Consumer clearly spending less money at Department Stores but that money is going other places like automobiles. Can auto sales keep going or does a skittish consumer and endid e indebted one mean weve hit the peak . Thats next. If youre going to make a statement. Make sure its an intelligent one. The allnew audi a4, with available virtual cockpit. The call just came in. Shes about to arrive. And with her, a flood of potential patients. A deluge of digital records. Xrays, mris. All on account. Of penelope. But with the help of at t, and a network that scales up and down ondemand, this hospital can be ready. Giving them the agility to be flexible reliable. Because no one knows like at t. This clean was like pow. Everything well . It felt like i had just gone to the dentist. My teeth are glowing. They are so white. 6x cleaning , 6x whiteninga in the certain spots that i get very sensitive. I really notice a difference. And at two weeks superior sensitivity relief to sensodyne i actually really like the two steps step 1 cleans and relieves sensitivity, step 2 whitens. Its the whole package. No ones done this. Crest healthy, beautiful smiles for life. Technology moves faster than ever. The allnew audi a4, with apple carplay integration. Welcome back to power lunch. Tesla raising a couple billion dollars and increasing the production targets. It wants to make 500,000 model 3s by the end of 2018 and sooner than expected. There are questions, though, whether the suppliers can keep up. Phil lebeau joins us with more details. Phil . Michelle, the production goal for 2018 is 500,000 vehicles overall including model 3, s and x. But youre correct. Model 3 is bulk of the production and now were starting to hear complaints at least filtered out through other Media Outlets of suppliers saying, not sure were going to be able to meet the tar gets that tesla laid out. Bottom line is this. A number of suppliers for the model 3 saying that this production schedule with the first ones built by july of next year is far too aggressive. Essentially what you have is by the end of next month the design for it locked in. By july of 2017, thats little over 13 months from now, production will start. First deliveries in the Fourth Quarter of 2017. And again, the goal is 500,000 vehicles to be built at teslas plant in fremont, california, in 2018. This year i think theyre going to build maybe 95,000 vehicles and the plant has to had Assembly Lines to ramp up production of the model 3. Shares of tesla, announced to do a secondary Stock Offering to fund this production increase. Last night after the bell, priced at 215. Tesla raising with the shares being sold by the Company Little over 1. 4 billion. Remember, the remaining portion will be coming from sharyls that ceo musk is selling and no doubt this is a very aggressive production schedule and tesla admitted as much announcing it in the Earnings Call last month. Yep, sure is. Thanks. A man really hoping that tesla meets those production numbers, nick demarco. He is the ceo of practacum promising employees a different kind of ben in it. Nick says hes going to lease a tesla model 3 for every single employee. And he joins us now from raleigh. Nick, good to have you here. Why not just pay them more money . Nice to be here. The tesla car is really an inspiring car. Im fortunate to drive one and had it for about a year and a half. Its really an inspiring story. And i want our employees to come in every day and touch that Steering Wheel when they get out of the car and come in and realize they can do that same sort of amazing thing with our entry. Why not just pay them more money . Money isnt as inspirational as Something Like this. Plus, everybody has to drive a car. This is a great benefit for people. This is are you having trouble hiring . Do you really have to go with a perk like this . Is it tough in raleigh right now to get more employees . You want to hire more people, right . We do. And its very difficult to find Software Engineers who are extremely good and passionate people. Theyre in demand. It is a hot field so we, yes, we have trouble hiring Software Engineers specifically. Have you done any cost benefit analysis of i mean, the cars not out yet, right . What do you think the lease will cost per month and per month for your Company Versus what you could have done with the money . Right. So what it cost leases we have modeled the leases out and what it would cost to lease a car versus, say, a recruiter fee or versus, say, the advertising and things to do to get publicity for candidates to come to us, its far we think its far better for us to do Something Like this rather than try to go with the traditional channels. Besides, it is different and kind of in our companys personality. Already getting the free publicity right now. Thats true. You know what it would cost buying it on cnbc . Millions to get this many minutes. Thank you. Thanks, nick. Good luck. I appreciate this. Brian . Well stay with cars, michelle. You might remember, folks, the former president and ceo of Mercedes Benz joined us here on this show. I asked him about record Sales Numbers and asked if were at peak auto. Heres what he said. Its at a peak. 17. 5 million, very healthy peak. The question is how are the automakers responding . Driving up at centers. Propped up peak. Increasing fleet sales. Driving up incentive spending. All about market share. How long at this peak and how much to cost to manufacturers the hold on to it . All right. We are at peak but its a healthy peak. Bring back in former gm executive bob lutz and ivan fineset who was just out at tesla, as a matter of fact. Bob, are we or are we not at peak auto sales . I describe it more as a plateau. And this time we have a kind of a differentiated market. The main battle for market share that he was talking about interestingly enough this time is among the german Luxury Brands who are primarily, primarily focused in cars and thats not where the big demand is. You know, bmw has had oversupply problems. Three german luxury makes are in a constant battle of number one luxury seller in the United States. And that kind of competition is never good for Luxury Brands. But if you get to the look at the real market, the real market is now over 50 trucks, crossovers and sport utilities of all sizes and of course thats where the three American Companies are particularly strong. Bob, hold on. Theres a school of thought in ten years, five years, 20 years that all the car makers are screwed for lack of a better term because well be in self driving pods. Will that doom the Auto Industry . Yeah. Ultimately. Not sure its ten years out but, you know, when you asked about the peak, i was wondering if i should give my normal Autonomous Car speech and i decided, no. Thats not what youre interested in because the market looks at the next year or the next 18 months. I think for the short term or short to medium term, sales are going to remain strong. But if you ask me will ultimately the creation of autonomous modules with no steering quheel that are totally standardized, they all have the same performance, they have much the same proportions in length so that they can blend together in a train on the freeway, et cetera, yeah. That is going to be tough for the Auto Industry. I mean, okay, somebodys going to have to produce the modules but whos going to want whos going to care whether they call up a bmw module or a chevrolet module . Do you agree, how do you invest around what mr. Lutz is saying . I agree with what he said. We have the look at the next one to two years. Ten years is long time away. One thing about self driving cars is people love to drive, its fun and the cars produced today by all the auto manufacturers play on that fun. People still like to drive. An at times great to have an auto pilot, tired or fatigue and e lemm nate those accidents. Your job is to make money for your clients. How do you make money around the stuff we just said . Do you sell short . I dont think were auto . I agree with what bob said. Were at a plateau. Im still bullish on the Auto Industry. Demand will remain strong. We have penlt up demand, the average car on the road is close to ten years old. And the total cost of ownership of new cars is going way down plus the engagement. The Collision Avoidance systems, all the technology are also driving car sales. Are you an owner of ford or gm . Personally, i dont have any con fligflicts on buy. We have a strong buy on gm and neutral on tes l. A. Bob, i put out a twitter poll saying in 25 years, what will be the primary powerer of automobiles . 34 of respond entsed is interesting. Do you agree in 25 years electric already the number one power plant force of cars . Yeah. Id be interested what the socalled other might be if its not natural gas, gasoline i made that. I had fuel cells in mind. I was also thinking of giant m hamsters. Hamsters on a treadmill might work. You have to put a lot of pellet ntz h is in the hopper. Electric vehicles are held back primarily by battery, energy, storage, and cost. In order to get a lot of range in a vehicle like tesla has done, it generates extremely high prices and even then, you know, tesla is still selling the things at a loss. So batteries will acleave some sort of breakthrough. Energy every university and every klem call company and every car company is working on this. Ultimately, batteries will be able at a modestly priced and modestly sized battery pack, theyll be able to store 350 to 400 miles. Lets hope. At that point the piston engine is redunltant. There you go. Bob lutz, thank you very much. Ivan, thank you very much. All right. So we talked a lot about the consumer today and this week. We just talked about cars. Has the consumer, that means you, america, really stopped spending or just changed where we are spending . Around that, what Retail Stocks should you be buying right now if any . All that, believe it or not, coming up on power lunch. When a moment turns romantic why pause to take a pill . Or stop to find a bathroom . Cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. Tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. Do not take cialis if you take nitrates for chest pain, or adempas for pulmonary hypertension, as it may cause an unsafe drop in blood pressure. Do not drink alcohol in excess. Side effects may include headache, upset stomach, delayed backache or muscle ache. To avoid longterm injury, get medical help right away for an erection lasting more than four hours. If you have any sudden decrease or loss in hearing or vision, or any symptoms of an allergic reaction, stop taking cialis and get medical help right away. Ask your doctor about cialis and a 200 savings card. It takesbut stealing itd work to eaonly took a few days. Female announcer protect your money. Find out if youre dealing with a registered investment professional at investor. Gov. Before you invest, investor. Gov. Check out a few names hitting all time highs to day. Lowes, assurans, nvidia and International Flavor and fragrances. There they are. Well, new highs until we werent new highs with lows and iff, theyre down. Coming up, look at that building. Look at it now because it wont be there after about 2 00 p. M. Eastern time. A massive implosion of a Major Corporate complex coming in texas. Were going to show it to you when it happens. Also, stores claiming discrimination at air b b trending on social media, stories of, i should say, does the company have a race problem . Well look at that coming up on power lunch. Theres a lot of places you never want to see 7. 95. [ beep ] but youll be glad to see it here. Fidelity where smarter investors will always be. 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. Our cosmetics line was a hit. The orders were rushing in. I could feel our deadlines racing towards us. We didnt need a loan. We needed shortterm funding fast. Building 18 homes in 4 ½ months . That was a leap. But i knew i could rely on American Express to help me buy those building materials. Amex helped me buy the inventory i needed. Our amex helped us fill the orders. Just like that. Another step on the journey. Will you be ready when growth presents itself . Realize your buying power at open. Com welcome back to power lunch. Take a look at the markets here. We have green across the board with the most notable gains in the nasdaq that, vaely being led today by a huge move in the semiconductors. Meantime, so far so good for friday, michelle. Yeah. Absolutely, memelissa. Look at your screens. Were going to show you live pictures from ft. Worth, texas. Boom goes the dynamite, we thichlt literally in ft. Worth. Check this out. American airlines is set to implode the former headquarters in ft. Worth any moment now. Ceo doug parker helping to flip the switch. It is going to implode the buildings as they prepare the site for a new corporate campus in ft. Worth. Dallas demolition is going to use 100 pounds of dynamite. You go to the dallas demolition website, they say large or small, we wreck them all. Implosions are always great to watch. This is amr and saber as well. And this is going to be a new headquarters eventually. Its been shuttered since 2009. Theyve been getting it ready. Took them six months to get this thing ready for all the dynamite thats in various spots in the building. Have you ever seen one of these . Ive not seen usually you see a smokestack or like a stadium or something. Never there it goes look at that, man. And boom goes the dynamite. Wow. Simultaneously. That sim pressive, right . They really did it at 2 00, too. They are more on time than their flights. Thats the first Time American Airlines has been on time all year. Oh, my gosh. There he do have a tough on time rate. Demolition one, American Airlines zero. What is it cool about implosion thats we love . Hopefully that theyre controlled. Poor people on the radio are wond wlaerg is going on. They blew up a giant three story huge former corporate campus. It imploded in they left the right side hanging. I notice. That i wonldered if they missed a few explosives. Maybe that is by design. We have to leave the demolition. Impressive nonetheless. Its been a packed couple of weeks for retake. Walmart is showing streng njt latest results. Is the Consumer Spending or not right now . Lets bring in the ceo and chief research over at telsy Advisory Group and welcome back jan rogers. Ill kick it off with you. Youre sitting next to me. What is your impression . Clear winners and losers. Theyre spending on their home right now. Maybe theyre spending on home goods at walmart. What is your take . Thats my impression as far as what the consumers are doing. Theyre buying houses and cars and stuff for the home. Theyre going out to eat and doing fun trips. Thats withdraw the money is going. Why did walmart do so well . Because they dropped the price. You know what consumers like . A deal. It drove their business. Theyre also doing retailing 101 right now as well as theyve ever done it. They have better instocks. The stoor is better than it was two years ago. Assort dg ments are better. What really droest business, they said were going continue to vest in price and keep investing in price. Dana, does the consumer continue to act this way . Is this a permanent change . Temporary change . What is your take . I think overall the consumer does continue to act this way. I think theyre very discerning. They have more choice on what to spend on than ever before. We were at this event earlier this week called shop talk the convergence of both digital and retail. The future is now. Whether its mobile or whether its crm systems, sat data is powerful. Thats what companies and retails have toinlt act with in order to figure out where Consumers Want o to spend and why. Im angry and annoyed. Why . Not in life. Just about this segment. I lot of fact that all the everyone is like this new trend of wallet share shift. Do you remember two years ago i said to you and i called it the home and car indicator. My uncle owns a car dealership and my big friend runs a big retailer. This was the shift coming. I think at the time you said i was crazy. I think at the time i agreed with you. For two years now ive been saying theres a big problem with the shift online. Theres a big problem with the fact that people are buying just as many clothes as they ever did but theyre not paying as we talked about this here 18 months to 24 months ago. My question to you is now that everybody is sort of on this wallet share shift, do you think that it will now go the other way . I think the prices for apparel overall, its almost like the race to the bottom. When you have number one more choice of where to buy apparel at cheaper prices and number, two the fact you dont have as many occasions to buy apparel for. What you wear to work, you wear on the weekend. What you wear on the weekend, you wear to the gym. Its all about that and wearing to a party. I think consumers today, they want experiences. I was at the opening last night of perch. Perch is a store that sells both items for the bathroom and items for the kitchen. And thats the experience. Theyre making food for you so you can buy the kitchen that you want best. Take a look at cosmetics, mac is doing Outdoor Events at malls. Its a different reality. How do you clothing makers excite customers . Can they do the equivalent of the events that will spur interest in their new lines of sweaters or pants . Lets pretend that half of all sales will be online in 13 1 2 years. So if youre not doing something great in your store and great in your mall, youre in trouble. Lets pretend that brians shirt is 40 cheaper than it was 13 years ago. So to make . To make and buy. You can buy it 40 cheaper than you could 13 years ago. Really . You have this race to the bottom on pricing. Youve got this race online which is also race to the bottom. Pricing is transparent. So you better have a one fun store if youre going to get people in there. Experience is going to matter a lot. Dane yashgs youre the stock picker. When i look at nordstrom that are 50 discount where they were, they are strayeding in single digit price toerngs ratios, its not hard to think the companies will be around. Do you like eitherst names . I think they will figure it out. Macys and nordstrom will be able to reinvent the assortment. In orderstrom is the leader in going to digital and mobile. Even buying ecommerce sites to learn. I think macys, they have a team in place that theyre looking for the next product cat gorey. Theyre look wlg its buying blue mercury, putting best buy in shops, its all about change. I think the companies will look different three and five years now than what they look like today. All right. Going leave it. There thank you so much. Dana telsy and jan rogers. All right. You think that the guys on your trading december sk have low st. What are we talking about here . Low standards at the fed . What do you know about high standards . The fed this week points the markets toward the chance of a june rate hike. So how can the fed hike if the jobs reports heres the answer. The fed has lower standards than the market. While markets see 2900,000 mark as met sure of healthy payrolls, fed officials have a much different threshold. That is two weeks from today when the may jobs report very leased. The question is not if its strong, it will be if its Strong Enough for the fed to hike. Here are various fed officials have said there are on the job growth. You keep the Unemployment Rate steady. Where job growth quaez entrance to the wake force. The San Francisco fed president 80,000 on average, and janet yellen was 100,000. Eric rowsengren spoke about what he sees as a strong jobs report. Given broad demographic trends, normal and trend payroll bloiment growth now is between will 80,000 and 100,000 a movement the difference is the fed thinks in terms of full employment and in terms of capacity. The market looks at job gains, earnings and hiring and growth. If you want to know what the fed is going to do, lower your standards and think of job growth the way the fed does. Which is a little lower . So theres one number, ron insana joins us now to follow on on the conversation. Job growth is one thing. Inflation is another. Weve been waiting for inflation to pick up, pick up, pick up. Most recent number was as high as its been in quite some time. Is that going to trigger it . In my experience, the fed typically waited until we really reached the peak of the Business Cycle in as far as the Unemployment Rate overshot the feds target. We got as low as 4 during the bush years. And now theyre normalizing as opposed to tightening right now. There is a distinction given how the Global Economy s i think its premature. I wrote a column about this earlier in the week. I still get readers saying either i want the foed keep rates at zero because it benefits me, not at all. I think you dont get to normalization until you get to normal times. And were not there domestically. We know this through the politics. Were certainly not there globally which is still a consideration. You dont get to normal to full normalization, but do you begin the glide path up toward it . I wish someone could tell me why. Is inflation a threat to Economic Growth . Not when you look arent world. When you look at agriculture commodities, theyre in glut. There is three pounds of cheese for every man, woman, and child in this country. There is downward pressure on food prices. There is some upward pressure on energy. But inflation is not the type of problem that requires a response. Even a preemptive one. Heres the thing. What some fed officials will tell you, ron, is that a normal capitalist system requires there to be a cost to money. Yes. And that you are distorting the system and distorting it permanently. The fed would like to the extent you have no cost. Right. You should have a penalty, right . If you buy today rather than wait for tomorrow, you should get Something Back for waiting. And thats the way the system is kind of designed to work. Its very difficult and you create distortions. Guys like eric rosengrand start to talk about concern about speculation and commercial real estate. Thats one reason. Theres no doubt its. There. A couple other reasons i want to point out that will be the basis for hiking rates. One is the effects of the strong dollar and Lower Oil Prices are seen coming out of the comparison figure. So youre going to get. This the other is youre at 16 on the core rate, hoping for two. That wla is the difference there . You cant glide this Aircraft Carrier to come through a little shoe box. We have to leave. To the extent that we run the risk of getting to inflation thats a problem, i think that is deminute mus. There is a difference between raising rates and taking away emergency stimulus. I think a lot of the fed want to take away some of that. The law firm of insana liesman. Michelle, back to you. I dont know if i want to visit that shingle. Thanks, tyler. The hacking of twist. The global Bank Transfer service may be worse than we thought. The organization doesnt know for sure just how bad it is because the participating banks dont tell swift when they get hacked. We have more on that. Yeah, swift is trying to do something about that today. They put thought letter to their customers. Think of swift really as the Central Nervous system of the Global Financial system. Its the electronic mess efrpging system that banks use to authorize transer ifs of finances. Sometimes millions of dollars, certainly billions of dollars a day riding on that system as the Global Economy churnz throus th the daily operations. Swift is telling customer thez want them to tell when it they have been hacked. Here what swift said in a letter to the banking customers. They said, we specifically remind all users to respect their obligations to immediately inform swift of any suspectsed fraudulent use of the institutions, twist connectivity. Why is this happening . Just last night we learned from a reuters report that a bank in ecuador had been hacked for about 12 million using the overall swift process. Swift was also a part of the hack that was involved in the 81 million theft at the bank of bangladesh. En that is risen all the way to the attention of the new york fed bill dudley, the head of the new york fed was asked about this by our Steve Liesman who you just had there on set just yesterday. Heres what dudley had to say. We fleed to continue to assess our internal control environment because as we see from these episodes, the threat the threat environment is always changing. And so we always have to ask ourselves a question. Are we doing all the things that we did k. Can do to make sure o system are as safe as possible . Of course were doing. That. He says, of course, were doing. That we dont know publicly though what exactly the new york fed is doing to tighten up cybersecurity in the wake of this bank of bangladesh hack. Remember, the money in that hack, the 81 million that was stolen, was in an account at the bank of bangladesh maintained at the new york fed at the time i was stolen by the hackers. Now its gone to places unknown and to hackers unknown. And the question here is how much of this has been going on in the Global Economy that we dont know about yet . Thats what swift is trying to get to the bottom of today. Weve been running a thing on the bottom of the screen that said the chairman of swift didnt tell swift that his bank was hacked. Right. Go back and look at that reuters storey. One of the players involved in the ecuador situation was an official with swift. Swift is a global collective that is run out of brussels. It is not a central privately run corporation. It is a collective of financial institutions. A lot of people in the Banking System sit on various boards and associations of swift. One of those people was involved apparently according to reuters in this hack attack and did not inform swift of the fact that it had happened. Thats what swift is wrestling with. Banks would rather sweep this. Narrator r under the rug and not admit it happened. Unbelievable. Okay. Thanks. You bet. Slamming the door. Airbnb facing accusations that hosts discriminate renters by race. Does the company have a race problem . That and much more ahead on power lunch. Air bnb slapped with a lawsuit after an africanamerican user claimed he was racially discriminated against on the lodging site and that his complaints were ignored about it company. This might not surprise our next guest. Harvard Professor Harvard Business School professor says that africanamerican guests are rejected more often than white guests. Also with us is former citigroup director of diversity. She now runs her own Consultancy Firm and she changes her name so make sure she can book a room or a place or a mansion. Welcome to power lunch g to you have both here. Professor, this individual tried to rent a room in philadelphia for a weekend. He says he was rejected. He went back and created two other identities where he pretended to be white and he says that same person accepted those two people. You did a study, so im assuming this kind of situation doesnt surprise you . It doesnt surprise me at all. Its completely consistent with what we found in our study. And what did you find . We found that africanamerican guests were about 16 less likely to get a why from a host. If a black guest applies, their chance of getting a yes is lower than a white guest with everything equal about them say other than a name that suggests theyre white or black. No photos, correct . Thats right. We put a gray outline of a person with no racial characteristics, no face, nothing like that. So white guests, 50 persz of the time got a yes while africanamerican guests only got a yes 42 of the time. And you are convinced that based on the way you designed this study that it is solely due to race . That is what we were trying to achieve and we think we did it right. Guests were both rookies on air bnb, none of them had any reviews, reputation, linked friends. The black rookies have more than the whi. The way did you that is based on name. For example, a white girl is named kristen. An africanamerican woman was named tamika, a white male would be brad and a black male would be rashid. We used studies to get the whitest and blackest names for people in their 30s today. I saw when you go to paris, for example, you book an air bnb, you change your name. Yes, with a name like fatah, people believe that im either a muslim or i might be black, sometimes people pronounce it as fatima. So when i was going there several months back, i made sure when i created the profile so i wouldnt be discriminated against, i changed my name is jane smith and didnt have a photo up. It wasnt until i actually secured the location, paid for did it i tell the person what my real name was. Professor, is there anything to be done about this . Can you create a platform . Could air bnb create a platform that would avoid this kind of situation . Absolutely. Theres no reason why a host needs to know a guests first name, last name or photograph in order to assess whether the guest is trustworthy. If the guest has paid the money, thats a pretty good start unlike a hotel, say, which needs to worry whether youre going to pay upon departure. If theres a worry about the safety of the reputation of the guest, okay, then air bnb should verify a drivers license or maybe run a credit check, what you have, check that you really live where you say you live. Check that ip address matches the mailing address. Incidentally, they do manufacture those things and, in fact, if a black guest creates a new account in a fake name and then air bnb asks to see a scan or fax of the drooifrivers lic what then . They cant go around creating fake accounts in other peoples names b half the time, air bnb will var vie them before the transaction is created. Uber, for example, when you talk about a disruptor and online zrudisruptor, we found i new york city, for example that, it far more likely that you can get an uber where africanamericans live as opposed to a taxi. So i mean in some ways, technology can be an equalizer and other ways not, necessarily. Well, i think it also speaks to a broader issue that might be going on with the tech sector as a whole f were going to talk about uber, uber has the own challenges. They have run promotions in new york that discriminate against harlem and upper manhattan. It so ill table the uberri issue right now. Can you look at air bnb that has 17 latino, 3 black, they have an internal problem and its not just about their platform. All right. Thank you lady and gentleman. Great to you have here. We reached out to air bnb this very a blog post about this situation. Discrimination based on race is plagued societies for centuries and sadly this kind of behavior takes place online and off line. They go on to say they do not support it in any way and that they tried to do things such as instant book where actually you just pay right away and there is no discussion about whether or not the place is available or not. You can check it out if youd like to see more of air bnbs response. Move over San Francisco. There is another big west coast city that is fast becoming a hot startup scene without those crazy real estate prices. Find out where next. San Francisco May get all the attention for the billion dollar startup scene, but in california, san diego holding the own now ranking as a top ten startup city two years in a row. Venture capital funneleding hitting the highest level since 2007. 1. 28 fwhl 2015. Kate rogers live with a look at more of that citys startup ecosystem. Kate . Hey there. We are in the other bay area of the san diego bay. Its where jeff winkler decided will he to start his business Origin Code Academy after realizing there was only one other competing code class in the area. But he also wants the people that he hires to get jobs afterwards. So well go out to the big employers in the area like qualcomm and microsoft and ask them what kinds of skills they want in entry level hires . Then hell taylor the curriculum to fit. Whether we had conversations with employers and really heard how frustrated they were because they couldnt find tall nent san diego because it was leaving for the bay area, that is whether we decided we had to be here. Winkler got the idea after taking a coding class himself and realizing he didnt learn all the skill he needed to get a job. But he also wants to keep his talents from migrating up north to San Francisco. So far hes taught 36 students and his job placement rate is at 100 . Did he a really good job of preparing us and, you know, when i went into the job market, i was going led to head with Computer Science majors and getting jobs over them. Origin code academy is not just accepting anyone. They have 450 or so applicants for their last class of 16. Like we said, he is cautious of not growing too quickly. Does he want to keep that job blasement rate at 100 . He also wants to make sure the talent he is helping to cultivate stays right here in san diego. Back to you. Thank you very much, kate. The winning week for oil. Prices getting ready to close. Well have the final trades there in three minutes. Plus, debris from egyptair will 804 has been spotted in the mediterranean. A former ambassador to egypt tells us what this plane crash means for security in the region. Tmobile is going big for small business. Youll never get charged data overages, ever. Get your own 24 7 dedicated business account team. And with double the lte coverage in the last year you can get more done in more places. Right now get 2 lines with 10 gigs each for just a 100 bucks. And for a limited time get a hot spot free, yeah free. Switch your business to tmobile work today. Theres no one no one surface. E. No one speed. No one way of driving on each and every road. But there is one car that can conquer them all. The mercedesbenz cclass. Five driving modes let you customize the steering, shift points, and suspension to fit the mood youre in. And the road youre on. The 2016 cclass. Lease the c300 for 359 a month at your local mercedesbenz dealer. Here at the Td Ameritrade they work all the time. Sup jj, working hard . Working 24 7 on mobile trader, rated 1 trading app on the app store. It lets you trade stocks, options, futures. Even advanced orders. And it offers more charts than a lot of other competitors do on desktop. You work so late. I guess you dont see your family very much . I see them all the time. Did you finish your derivatives pricing model, honey . Td ameritrade. Michelle obama announcing new nutrition fact labels at a summit in washington as part of our lets move campaign against childhood obesity. This label will tell you how much sugar in your snack was added during processing and how much of it comes from ingredients like fruit. Youll no longer need a microscope, a calculator or a degree in nutrition to figure out whether the food youre buying is actually good for our kids. Striking verizon workers wearing red shirts taking part in a protest march across the George Washington bridge. They have been on strike since last month after working without a contract. Health care and pension costs, the sticking points to a new deal. Russian president putin says russia is ready to offer full assistance to the world antidoping agency. During the investigation into claims of a russian state sponsored doping scheme at the sochi olympics. He also voiced hope that the inquiry does not have any political overtones. And maroon 5 is joining the list of big name acts to cancel shows in North Carolina because of that states controversial bathroom law. The concerts were scheduled to take place in september. Youre up to date. That is the news update this hour. Back to you. All right. Sue, thank you very much. Well, the oil market is set to close today and for the week. Prices down a little bit overall. Overall, a pretty good week for crude oil bulls. Prices up a little more than 3 1erz whi3 which means goss prices are going rise in your neighborhood as well. You know what else is rising this week . The dollar against major currencies. What is the best way to play, trade, invest this move . Lets ask the trading nation team. Chad, give yurs beus your best play a rising u. S. Dollar . As the Federal Reserve raises Interest Rates, that puts the bid under the dollar. We recommend the long end of the treasury curve. The long end of the yield curve. We believe that global investors, especially institutions are starved for a yield. So effectively, what theyre going to do is reach for perhaps the ten or 20 year treasury. On the back of that, theres also fragility that Financial System and as the Federal Reserve raises rates and the dollar increases in value, we believe that volatility is going to increase and thats also going to ginn up demand for the treasury. Okay. Nick, a, do you agree . If not, what else would you be doing . Thats a very solid thinking, particularly on the volatility side. From our perspective, were seeing a lot of sell side interest on consumer staples, companies with a lot of internationally branded businesses. And theyre going to face a head wind from the stronger dollar in terms of their operations overseas, not being able to repatriot profits of a weaker dollar. Thats a head wind. Even though the group up is 3. 5 on the year and a gwynner weeshgs seeing some selling because i think people are looking at the potential for higher rates and worried that dividend yield stocks may not be as attractive. Thats a group to really avoid right now. Okay. There is some stronger dollar ideas from nick and chad. Guys, thank you very much. Well see new a bit online. Folks, reminder, we do two additional segments online every day. Can you find them online. I think i mentioned theyre online. They are. Check them out. The search continues for missing egyptair flight 804. The Egyptian Army found passenger belongings and other parts of the plane north of alexandria. They say it was possibly a terrorist attack that brought down the passenger jet. Lets bring in edward walker, the former u. S. Ambassador to egypt to israel and the uaeg to have you here. Thank you. We dont know for sure its terrorism yet wouchlt be surprised if thats what we find out . I wouldnt be surprised. The sinai has been a series of terrorist attacks against egypt. Theres a the love bad blood. I would expect this is possible retaliation. Why is egypt more of a target right now, say, compared to other parts of the world . Even though, of course, we have seen paris attacks and belgium and the United States. Were talking about isis now. The islamist radical group. Egypt has been fighting them for a long time. And they have been upgrading the defenses and the sinai and they cut off their tunnels which were going into israel. They cut off the trade routes for isis. Theyre isolating them in the sinai and theyre having a fullcourt press. So obviously isis is not happy about this. Is there additional potential retaliation because a member of the Muslim Brotherhood was lekted to lead egypt and then pushed out of the military along with the popular people that were not happy with him . Im not sure that isis is enamored with the Muslim Brotherhood anyway. Theyre not on the same page. Theyre both islamic but at all of the same nature. Im sure this didnt help any. And what theyre trying to do is theyre trying to destroy the egyptian economy. What needs to be done at this snoint. At this point, all hands on deck to try to defeat these people. What does theyre not going away. Does that mean more involvement from the United States . Is that more involvement from europe . Define that for me. All right. Certainly you are going to have a lot of support for egypt in this circumstance from europe and from the United States. Im not sure that there is much we can do at this point. Im certainly sure the president isnt going to authorize troops nor do the egyptian need them. They have more troops than they know what to do with. So it will be a long, hard slog. And the egyptians have been at this for years now against this group out of the sinai and i think well do everything question to support them. But its not going to be easy. Tough situation. Thank you so much for your insight, ambassador. You bet. Ambassador walker. All right. Listen up, tsa. How to solve the problem of the long security lines at the airports. Were going to speak with the ceo of the Health Care Company that is taking its scanning technology from the lab to the airport images, videos, social updates. We call it dark data. 80 is invisible to most businesses. The ibm cloud has tools that can help see dark data and put it to work. Hello, my name is watson. Working with watson in the ibm cloud, we can help an Energy Company predict pipeline corrosion. And help a startup to use social data to predict market trends. Now businesses can get more out of their data. Thats what the ibm cloud is built for. Welcome back to power lunch. Im sue herrera with this breaking news bulletin. Mexicos Foreign Ministry approved the extradition of el chapo guzman. Since he was captured, the United States juaned him extradited back here. Mexico was pushing back against that. But right now the mexican Foreign Ministry has indeed granted the u. S. Request to extradite el chapo back here to the United States. Well keep you posted. There is no date or time line yet, tye. When we get that or if we get that, well bring it you to. I expect there could be appeals involved here. He was recently moved from the prison from which he had escaped to another prison that was closer to the u. S. Border maybe in preparation for just this kind eventuality. There he is today on the day of his arrest. You know, in this latest person that he was in, they would move him up to eight or nine times a day because they were so worried that he would be able to find some way out again because he did escape from that previous prison twice. But they kept him on the move. It looks like hes going to be extradited back to the United States, pending any appeal. Thank you, sue. Ahead of the tsa is in chicago today for a firsthand look at the long security lines at Ohare Airport and they are long. Phil lebeau is there as well. Hi, phil. Tyler, we should say they were long. Imagine that. The tsa chief comes to chicago and all of the lines are remark my short and it was a quiet day here at ohare. That did not prevent the meeting between the person that runs the tsa as well as dick durbin and rahm emanuel. They met for a half hour talking about the need to do better. All of this comes just a few days after the tsa announce second down 58 more officers will be coming to chicago airports this summer. Theyre adding staff to the largest airports around the country. Remember, last weekend and we saw it last week as well, there were hundreds of people around the country who missed flights because they were stuck in long tsa lines. Sometimes for two or three hours. The tsa blames the long lines on the system breaking down and the need to improve the situation. I think this summer is going to continue to be a challenge. We have passenger growth. Im not i have as much staff as i need. I think were doing everything question to mitigate that at the largest airports. My goal is i think youll still see crowds in airports. My goal is to keep you moving. We cant have a situation like we will here in chicago again. One person who met with him today was American Airlines ceo doug parker. He was in the meeting. We couldnt be in the meeting but we did hear him say, look, we have to do better with there system. American, by the way, has pledged 4 million to hire more people at many of their busiest hubs. Those people will assist the tsa. Theyre not going to do security screening. They will help the tsa at those checkpoints so that hopefully people with move through quicker. Again, guys, no lines at ohare today. All right. Phil lebeau, thank you. One company is working on new ways to improve the security process. That company is analogic, a leading maker of airport baggage check screening systems. Jim, great to have you with us. Thank you. Good to be here. Youve been working on Ct Technology for the past 40 years. Primarily for medical imaging and then after 9 11, the government said how can we use this . You got this machine now and you say that it can cut passenger wait times in half. How . Thats right. We started talking with airport authorities and with the tsa about eight years ago. We figured that if we could automatically detect exactly what is inside a checked bag and a half second or so on a high speed conveyor belt, we should think about how can we apply that technology at the check point . So about seven or eight years ago we started on a design process to take the technology and trial it at the checkpoint. In the u. S. We trild it around 12 different airports and trialed in various airports in europe. We recently completed trials and we recently collected a lot of data, completed trials that are now operational in londons airport. So we have hard data that suggests that we will improve we will reduce wait times by a factor of two. Part of this, i mean this is all for the carry on luggage. Part of this is that people dont have to mess around with their taking the liquids out and laptops out. Can you leave that in the bag and the bag just sails through. Thats exactly right. A big part of the reason why its slow today is people have to take items out of bag. Often the person scanning and looking at the xray machine is going to stop and start the machine and rescan and that really slows things down. With the Ct Scanning Technology like ours, the system runs real time and it keeps running. It doesnt stop. It segments what inside the bag. We know what is in. There we can tell the operator what it s we can automatically flag if there is something were not quite sure of the system runs dramatically more efficiently. The xapescanners are in operation. I wonder, you know, weve seen a video of last the long lines at all these airports especially cla chicago ohare. Have you been talking to the tsa and how much does this thing cost . We have been talking with the tsa. The tsa fairly recently started to show more interest. I think the europeans were starting to show interest earlier. They see there is a real business reason why to adopt this technology. Were what were trying to do and todays product, we have a product today that will go into the line, into the line of commerce. Its slightly more expensive than what you do today with a multiscan xray machine. Which is what they have right now, sfligt. Thats right. Thats right. The new system is going to be the same overall cost but dramatically different. Half the speed, half the weight times. There is technology today. It is up in operation today. And youre in talks. Jim, great to speak with you. Thank you. Great. Thank you. Jim green, analogic ceo. Onablist is getting bullish on a bearish stock on the street and one retail stock that Goldman Sachs says could surge 30 from here. Those calls and three more. Street talk is on deck. What are you doing right now . Making a cake ayla reminds me of like a master chef and emiana reminds me of like a monster chef. Uh oh. I dont see cake, i just see mess. Its like awful. It feels like i am not actually cleaning it up whats that make mommy do . doorbell whats that . Swiffer wetjet. So much stuff coming up. This is amazing woah. Wow. Now i feel more like making a mess is part of growing up. Stop cleaning. Start swiffering. Jake reese, day to feel alive jake reese, day to feel alive jake reese, day to feel alive we didnt forget about street talk. Stock number one, dish network. Jeffries adding dish to the franchise picks list. The analyst says the street is overly bearish on dish and says everybody else, except for him, is underestimating the value of their spectrum holding. They like the fact that the spectrum is socalled mid ban. Any other spectrum could be a positive catalyst. Its got an 80 target on dish which is 70 upside. Yeah. And its been a target of the short sellers of late. It came on this network to present its bear case. The stock is down 32 . Like a 100 million short positionsome. Something like that. Its big. Its big. Next up. Drexel hamilton is on an upgrade with a 152 price target. Those concerns seemed to be receding after they named a former lougheed director. Its a bold call. Stocks have nowhere ever been near 152. Id have liked to vn seen it three weeks earlier. Stock number three, jones lang lasalle. This is goldman upgrading it to a buy. Theyve got a 144 target with a 30 7 upside. Much of the call has to do with the companys underperformance. The analysts say despite slowing capital managements jones lang should be able to benefit from market share gains. Remember, second positive call in a few days. I was going to say. A buy at 131 target. Exactly. I like to double call them. Next up. Applied materials posed well above the consensus. They say its one of the best position companies. Its benefiting from strong near threeyear term. It got exposure to foundry and logic demand. Those segments are not that great but the segments seem to be improving. Price here, 26 bucks. Two in one day. Finally, if youre under the radar, smaller cap name, parr pacific, parr. Theyre depressed and going down. They see it in their portfolio. They geesht a 21 target on par, which is a few pennies above 16, so a significant upside seen on this. Nice oneday pop. 7 . With that we wrap up street talk for the day and the week as well. Speaking of amac, chip stocks are rallying. Theyre on their best streak since february. Heres the question, melissa. Will the rally last and what stocks should you be buying right now . Find out when power lunch returns. Recently, a 1954 mercedesbenz grand prix race car made history when it sold for a record price of just under 30 million. And now, another mercedesbenz makes history selling at just over 30,000. And to think this one actually has a surroundsound stereo. The 2016 cla. Lease the cla250 for 299 a month at your local mercedesbenz dealer. Mercedesbenz. The best or nothing. Our cosmetics line was a hit. The orders were rushing in. I could feel our deadlines racing towards us. We didnt need a loan. We needed shortterm funding fast. Building 18 homes in 4 ½ months . That was a leap. But i knew i could rely on American Express to help me buy those building materials. Amex helped me buy the inventory i needed. Our amex helped us fill the orders. Just like that. Another step on the journey. Will you be ready when growth presents itself . Realize your buying power at open. Com chippies rallying. The best since february. Lets bring in patrick hoe. Great to have you with us. Orders hitting 15year highs there. Theyre seeing growth in particular from 3d and them. I think its a broader perspective, particularly on the 3d man side and as the technologies emerge in the industry, a lot of it relates to the smartphone processors and thing of that nature. I think it gets a lit bit more of a boost. A lot of the names are rallying. Lg display and others. Im wondering if you think theres still room here amongst the other players. Oh, i think for Applied Materials first specifically, i think this is an area of Sustainable Growth over the next several years because i think from an industry perspective, in capacity is at the early stages and where its applied particularly in the deposition as will as what they talked about, they have market share leadership, but from an industry perspective, i think theres a lot of other opportunities out there. And i know you dont cover the makes per se, but how should we take this news . Did the semiequipment makers do better and then the chip makers follow or would it be a coincident rally . I think its a little bit of a lead indicator because as ive always told people. You have to have the equipment in place before you actually produce the chips. So were seeing it on the man side. Thats the supply end user demand thats out there, particularly with data centers. The cloud. All of those stores needs are going to require it. So it does benefit Companies Like the intel os the world. So, yes, i think its a bit of a lead indicator for the rest of the chip maker world to follow patrick, were going to leave it there. Thank you so much. Patrick ho of stifel nicolaus. You know whats not up, and i owe this note to an eagleeyed viewer who said, hey, look at mcdonalds. I know its coming off alltime highs. Its down ten shares. By far the worst performer in the dow. I dont have any information on why. Maybe well find out on fast money. We actually are going to be talking about mcdonalds. You know what else is curious . Apples move on the week. Its up 5 . Maybe the trends of eating are changing. What is the yield . That seems like a big underperformer. This has been a week in which people have been taking a hard look at the winners for the year and given the uncertainty around the fed, we saw that, for instance, with home depot. They reported a great quarter and people took profits in home depot. We should mark this is the week where once again, summer rate hike. Its reminders of all of those things. In the old incarnation of street signs, we had an f jar. Every time you said fed, we put money in it. Im all for it. Thats a good idea. I bet well have 500 in it by the time of the fed meeting. I bet we will. And we can take it and go to mcdonalds and up their stock. Have a great weekend, everybody. Closing bell starts now. Four, three, two hi, everybody a, and welcom to the closing bell. Im kelly evans. Welcome to the New York Stock Exchange that im bill griffeth. The dow could close down for the fourth consecutive week, something that hasnt happened since october of 2014. A couple of years there. Well take you through the final hours of trading. And a new report that tesla suppliers are getting nervous about the model 3 production target. Weve got news on the expectations. This is like a senior thesis. Youve got a very ambitious thesis planned and the deadline is coming. Yo