Moving to the upside today rebounding beyond the major u. S. Indices oil is bouncing back. This is important. Its helping the market hire. This is after brent crudent entded in bear market territory. As for europe ftse ending up 0. 7 of a percent. In asia overnight, chinas selloff continues. Not as bad as the day before. And nikkei 225 hitting a twoweek low. Lets get to trading action here in the good old United States of america with bob pisani down on the floor of the nyse. Weve been do for an oversold bounce and it helps that earnings are better than anticipated today particularly in industrials. Look at the major sectors. Everything thats been a disaster this month is up today, which is the way it should be. Were due for a bounce in energy and materials and industrials. A lot of disappointments in earnings. Health care has been holding up. Thats on the upside. Watch the market leaders. Market leaders are internet stocks like google and Facebook Biotech stocks and banks. All of those are up again today and have been holding up pretty well in the recent downturn. Good sign for the market. Earnings better than expected. A lot of industrials. Cummins, a big truck company. Textron, aircraft revenue down a bit but overall good report. Those are nice moves in the big industrials. Home improvement, think cabinets and plumbing with masco. Home builders are having a great year. Revenues up for every one of them. A very notable ipo today on the nasdaq. Big biotech company. Cancer immunotherapy. They were talking 7 million shares at 20 to 23. Look at the stock chart. It opened at 37. We were talking about 20 to 23. They priced at 25. Opened at 37. Now trading at 32. 85. This is a hot space. One thing i would note is the float is small on a lot of these. About 8 . That just means theres a lot of demand and not shares outstanding that helps on the price side as you can see there. Puts that in perspective. Jetblue had solid demand helping bottom line. They expect passenger unit revenues to remain stable in july so sales perhaps better than some were expecting due to some strong demand. Those shares showing signs of life. Back over to you. Thank you very much. A news alert in the bond market with twoyear notes up for auction. Professor santelli tracking the action. Whats demand like . Great demand straight up 1 00 eastern for dutch auction. We gave this one a b. B for boy. Lets go through all of the details, shall we . 26 billion twoyear notes. Yield at the dutch auction,. 69. 69 basis points. That happened to be the offer side of half a basis point. So it priced right where it was supposed to. 3. 4 too good to cover. Thats the average. 54. 4 on indirect. Best since june of 09. 17. 9 on direct. Best since june of 14. Thats where the b comes from. Solid. 27. 8 go to primary dealers. Of course tomorrow well have five years followed by seven years as we continue of course to focus on the fed. This supply at this point in time went rather smoothly. One would think a twoyear note yield would move higher and selloff once the fed starts tightening but earliest anyone sees that at this point in september. Tyler, back to you. Thank you very much. Big day of earnings and weve got a hat trick of them to cover right now. Phil lebeau on ford. Jewel phil, you go first. Were going to talk about a big, big quarter for ford. Best north american profits ever in one quarter and the best overall profits for this Company Since 2000. What was driving it in north america . Demand for trucks and suvs. If there was one down note in fords earnings the company is slightly negative in terms of outlook for china. They are now saying theres a possibility that chinese auto market could be down overall for the end of the year. Take a listen to what ceo mike fields said today. Were still very bullish on china. Its going to go through fluctuations and thats what happens in emerging markets and well work our i wouldway through it. Smaller cities and those cities still have fairly strong demands. Tyler, back to you. Phil thank you very much. I asked julia a question offline. She wont answer it. What can we expect from twitter after the bell . The big focus is on user numbers. Everyone wants to know how many users twitter has because its a key measure of its appeal to users and its potential value to advertisers. Growth is expected to slow even more growing from just 302 million users last quarter to 310 million total active users this quarter. The other key area to watch, insight into the companys ceo hunt. The company is in the midst of a transition and investors want to know if theres any update and whether the interim Ceo Jack Dorsey who said hes not really interested or perhaps adam bain and third area to watch is twitters strategy. Questions on how it plans to change the service in order to add new users. They are working on a project overall. Its not due to be revealed until the fall. These three factors, ceo hunt, product overhaul and user numbers are likely to overshadow revenue which is projected to grow 54 and earnings which are expected to double to four cents per share. Profit number is expected to be good but the question for me julia, is has twitter peaked . Its all up to what happens with this product overhaul thats coming in the fall. Project lightning is designed to add more users which would be a game changer for revenue and the viability of twitter to continue to be a stand alone business so thats what we really have to watch. A lot riding on that. Nice to have you in the house. Good to have you here. Meg on pfizer now. Pfizer up more than 2 after beating on the top and bottom line. A lot of interest in new products. Barbara ryan joined squawk box this morning to discuss. Listen. Clearly were in a renaissance for the biopharma sector and whats leading that is fundamental innovation and i think were seeing that. People are interested both in pfizers new Breast Cancer drug and uptake of its vaccine that drove a lot of growth in u. S. Adults and speculation and talk about tax reform. The pfizer ceo says he expects movement on tax reform over the next five months influencing whether the Company Looks to do an aversion buying big overseas to move the tax base there. He continues to say u. S. Companies are at a competitive disadvantage with our current tax code and that brings us to whether the company will split up or do m a. Two huge things for pfizer back to you. Thank you. Mandy, over to you. Health care has been on fire this year with a slew of deals in the sector. Check out pfizer against one of the major etfs that tracks health care and pfizer is up almost 12 yeartodate. Both are outperforming broader markets. Switching gears. Senate appears set to pass a bill to keep it alive. A vote in the house is less certain. The commerce secretary is going to come up on our show in a few minutes time for an exclusive interview on why the Obama Administration wants the bank to survive but in the meantime we get a look at both sides of the coin. Take a look at the Export Import Banks website as it exists right now. Its not exactly a gone fishing sign but they are saying that authority lapse and they are not accepting new business over there while this in washington gets resolved. The issue is on the senate side its a highway bill. Usually thats a good way to pass legislation in washington attach your measure to a must pass bill in the senate that traditionally has worked but the house says were not ready to godo that. John boehner offering only a threemonth extension and as it stands right now theres no clear solution to this problem. Exim says it supported 27. 4 billion of u. S. Exports in 2014 and supported 164,000 u. S. Jobs and generated a 675 million surplus. That means theres no real cost here to taxpayers. Critics, particularly ted cruz in the senate and tea party republicans, are arguing that the exim Bank Benefits caterpillar and boeing and says if any loans were really market demand, banks and private institutions would step in and make those loans and those Big American Companies could do that business any way. Thank you very much for the details there. Once again. Commerce secretary will join us on power lunch in just a few minutes time to make her case. Wildfires blazing across Northern California have spread across 2,200 acres. 2,300 firefighters are struggling against the fast moving flames. It seems each time one fire is snuffed out, another pops up fueled by shifting winds triple digit temperatures and dry brush. Just 5 of the fires near fresno are contained. Fires continue near napa valley wine country threatening thousands of homes and forcing closure of many campgrounds. This year alone california firefighters have responded to about 4,000 blazes. Nearly double from a year ago. Its predicted this years wildfire fighting costs could exceed 1. 5 billion or half a billion over the Amount Congress allotted for this years wildfire season across the United States. We wish them the best of luck in trying to contain that. The power of nature is awesome. All right. Lets move to a topic that we spent a lot of time talking about and thats the fed. Well go inside the feds head. Policy makers kicking off that twoday meeting. When you see liesman in washington you know theres something going on there. Will this be the last Federal Reserve meeting for record low Interest Rates and how many rate hikes could we see before the end of the year or not . Former president of Federal Reserve bank of dallas will join us. S tom. Im raph. My name is anne. Im one of the real live attorneys you can talk to through legalzoom. Dont let unanswered legal questions hold you up, because were here were here and weve got your back. Legalzoom. Legal help is here. Hi my name is tom. Im raph. My name is anne. Im one of the real live attorneys you can talk to through legalzoom. Dont let unanswered legal questions hold you up, because were here were here and weve got your back. Legalzoom. Legal help is here. Welcome back to power lunch. Nike shares hitting best levels. A price target upgrade at jeffries saying target price is 128. It was 122. Nike offering 15 refunds or 25 gift cards to people who bought mike you why fuel band fitness trackers to settle a lawsuit claiming the band doesnt accurately count steps or calories. Those among positive for nike stock. Today marks the first day of meetings in d. C. For fomc. An increasing number of people expect to see the first rate hike in september of this year. Not at this meeting. Former president of the Federal Reserve bank of dallas joins us now. Mr. Fisher always a pleasure to have you with us. Take us into the Committee Room if you wouldnt mind and give me your thoughts on how much the open Market Committee will take into account whats been going on in china lately not so much the stock market demise but rather the economic slowdown there. How big a factor is it . Should it be a bigger one than it is . During the briefings you get an International Perspective and a domestic perspective. Everybody comes to the table well prepared with that background. China is being watched. U. S. Monetary policy will not be dependent upon what happens to chinese equity markets. Theyve been floated in an unusual way. Central committee put. Its being watched very carefully. Main thing is how it might impact our Economic Growth exports are a portion of our economy thats not unimportant. Imports are a portion that satisfy consumers. So one takes that into account in terms of balance but i dont think its a major factor unless it becomes globally disruptive in which case it may impact timing but not to a great degree of when you institute the beginning of reversing this zero Interest Rate policy. At the margin an important thing. What about decline in prices of many many many commodities which certainly does not help the fed in its objective to have price cpi growth of about 2 . Thats the intermediate term objective. A rule that actually Ben Bernankes legacy for the federal Market Committee. This is supply driven in the Energy Sector bumper crops driving so many of the soft commodities and then a decrease in demand for copper and some of the metals that come from slower Economic Growth in china but that also benefits our consumers. This will all be taken into account. I dont think it really distracts the fed from the most important variable which is growth and employment and how wage price pressures begin to raise their head and impact the calculations that go into approaching that 2 intermediate term target. Mr. Fisher you said that china is not a major factor. If not china, what do you think as the biggest outside risk to the United States economy right now and are any of them big enough to justify delaying a rate hike from a september liftoff . My view is that we are the central bank of the United States. Were the central, central bank. World. The key right here is our own economy. Were responsible to the american people. I shouldnt say we. They. Im no longer part of the group. Thats really the key factor thats going to determine. The u. S. Is pacing the world in terms of Economic Growth. Along with mexico and england and others are pacing global Economic Growth right now. Epicenter of growth particularly north america and thats where you have to be sure that you dont institute a policy that might set us back. At the same time you dont wait until its too late to start gradually tightening and taking away this Monetary Policy we have in order to help our economy improve. We have to focus on ourselves first. Thats our obligation as central bank of the United States. If you were in charge would you have already hiked rates . I would have advocated a long time ago. Its not an easy thing to do. I argued we should start early but not be terribly aggressive. I think that it has been communicated clearly that it will happen this year. It may not happen in a way that the next meeting you have an automatic price rise and after that you have an automatic hike in Interest Rates. But it needs to begin at some point because were beginning to see good employment numbers and were also beginning to see wage price pressures which gives you confidence youre moving towards that 2 number even though youre far away from it. I couldnt agree more with her communication. I grew up in the air of mr. Volcker and mr. Greenspan and they were anything but clear in this regard. Let me turn you to a question thats come up intermittently over the past month or so from the mouths of prominent investors namely concerns about liquidity in the bond markets, particularly the high yield bond markets. How concerned should we as investors in this country be about a possible liquidity trap in high yield bonds or certain more narrowly issued Municipal Bonds if there are defaults or other shocks to the system . This is a regulatory issue and has other dimensions. As you know because of doddfrank and scrutiny of large institutions and rate trading desks and so on there are less participation by them but theyve been substituted by others. This is an issue you hear on wall street today. You hear this constantly a concern. High yield market is an interesting market. You have to remember we had the lowest yields in history and lowest spread above that for noninvestment grades or junk and i cant quite figure out whether you have a liquidity issue here or just a correction that took place because spreads got too narrow and rates got too low. Lowest rates in 239 years of u. S. History. So its a little bit of both. Clearly youve had some liquidity issues. You hear about it a great deal. A lot of it is because those that are players in the market that provided inventory are now more restricted in what they do. Others are taking their place. Thats the important point. Let me just ask you a final quick question if i might. Last week there was a leak that indicated that the Federal Reserves own inhouse staff and their Economic Forecast turned out to be more accurate than the forecast of some of the Regional Bank president s. Should we just go with the staff . Thats actually news to me because i dont recall that being the case. But, you know . Its a good group. Works very hard. Excellent models trying their very best. I wouldnt say thats necessarily the case. It would vary reserve bank by reserve bank. Let me leave you with one great reminder given in a 1966 forecast which is not to be used externally and harmful if swallowed. Mr. Fisher thank you very much. We wont swallow it. Thanks a lot. Wti crude is bouncing back and its igniting a rally in energy stock hoping the overall market stocks extending their gains right now. Brent oil though different story entering a bear market. How much lower will oil go from here and what traders are saying about direction of oil coming up next. Dow up by 175 points. A gain of just over 1 . Shares hiding near alltime highs after boosting dividend and raising guidance. Billion dollar acquisition is helping to drive the growth. Reynolds plans to put more sales power behind that menthol brand so those shares certainly ones to watch. Over to rick santelli. We just finished auctioning off 26 million and you can see yields move down a bit. You can see if you move to volatile longer end of the yield curve 30year bond. If you look at the s p catch Energy Markets you see an improvement which correlates very nicely with the twoday of tenyear note yields but keep in mind were in a really tight range. Yesterday we did most of the trading between 2. 22 and 2. 24. Today a little bit higher but normalization of rates. Thank you very much. Stock market taketh away it giveth back today. Were at the highs of the today. Really nice gains of 1 or more there for s p and dow and oil rebounding. Weve got wti moving higher after brent slipped. Lets get more on whats going on there. Oil up 65 cents today trading over that 48 mark. This isnt surprising after hitting a fourmonth low yesterday. Overnight low, 46. 68. Very wide range. Traders say they dont go down in a straight line. This is buying the dip menlttality and they are watching the report that will set us up for department of Energy Report tomorrow and traders expect a bill but range of that build is varying varying. They think well see this take another leg lower. Thank you. Ty . The big bank dividing congress and how it is not on wall street. Some say u. S. Business needs it. Others say corporate welfare and american taxpayers standing behind 140 billion of loans and other credits. Whats at stake. Plus owning a home has been part of the American Dream but is that dream over . Need to hire fast . Go to ziprecruiter. Com and post your job to over one hundred of the webs leading job boards with a single click. Then simply select the best candidates from one easy to review list. And now you can use zip recruiter for free. Go to ziprecruiter. Com. [ piercing sound ] daddy lets play sorry kids. Feeling dead on your feet . Ive been on my feet all day. Dr. Scholls massaging gel insoles have a unique gel wave design for outrageous comfort that helps you feel more energized. Dr. Scholls. Feel the energy hello, everyone. Im sue herrera. Senate Majority Leader Mitch Mcconnell is planning to hold a vote in the coming days on a republican bill halting federal funding of planned parenthood. This follows the release of undercover video showing planned parenthood employees discussing the use of aborted fetal tissue for medical research. Nato holding a rare emergency meeting at the request of turkey after sturkturkey was attacked by isis over the weekend. Nato is not part of turkeys plan for a safe zone free of islamic militants in northern syria. Bahrain pointing the finger blaming iran for a bomb that killed two policemen today. The explosive resembling some seized over the weekend that the government charged were from iran. The sunni monarchy in bahrain has accused shiite iran of stirring up unrest among the shiite minority population. Gadhafis son and eight others have been sentenced to death. That ruling coming down this morning in a libyan court. You are up to date. Thats the cnbc news update this hour. Back to you guys on power lunch. Thank you very much sue herrera. Lets look at the markets right now. You have a rally on your hands here. The s p 500 did drop five days in a row. Weve broken that. Were currently up by just over 1 at 2,090. Energy names like chevron and exxon mobil pushing that one hire and nasdaq gaining by almost 1 . Were near the highs of the session here. One sector thats moving us is chips. Its the biggest gainer on nasdaq 100 and intel announcing a new memory chip that increasing memory without using so much power and its very fast. Thats helped propelled chips today. Look at the sector overall. One of the best performing sectors up 2. 4 . For the month of july, we do have chips down. They are down for the second straight month. If you look at whats been happening this month in terms of the nasdaq 100 and big caps no chips up in the leadership. Nasdaq 100 is up again and its really been about four big stocks that have led to this gain. If you look at the nasdaq 100 up 150 points for the month and in terms of point impact these are the big four. They are among the biggest gainers. Youve got to look at amazon and google and netflix although liberty is one of the biggest gainers, it hasnt really contributed. And this month apple is run of the biggest drags. In fact, apple is getting close to correction territory once again. Its down about 8 from its alltime high back in april. Mandy . A quick question there since you finished on apple. Apple has exposure to the chinese market. I wonder how much of its recent fall is due to fears about whats going on in the chinese economy and market . What are you hearing . I think part of it is the fears of the chinese and part is the fear of execution. They didnt give any numbers on the watch that they sold. They didnt sell according to some people as many iphones as they would have. People are worried about the law of big numbers here. Can they continue to grow at the same pace that they have shown . Also little stumbles like this apple radio which is apparently interfering with itunes because it is built on the older architecture so a lot of questions about a very big firm. Its still the biggest firm by market cap and its still a monster when it comes to mobile. It sure is a monster. A good word for it. Are you with us over there . I am here with you guys yes. We talked last week about mayor narrowness on the broad market and Nasdaq Market as well. Apple has swooned just a little bit if you can really call it that. It still is so valuable and up for the year. Google seems to have taken its place. Facebook is doing very well. Netflix is doing very well. Amazon. Amazon. Talk to us about the narrowness of the leadership and whether thats a worrisome sign. A lot of people have pointed to this idea that market leadership has been so narrow and that so many small group of stocks is really helping to prop things up for overall market. Some people have concerns that not everybody is participating. A lot of people have thrown out the facebook apple, netflix, google phenomenon. You have four five six, seven companies in tech land driving the market forward. If you look at the picture and whats happening with stocks right now, youre talking about market overall with dow that has marginal losses so far for the month of july. S p 500 is claiming to 1. 3 gain for the month and you have whats happening with nasdaq up 2 for the month. So july has seasonally been on average over recent history here a more positive month for markets. Its not playing out this time around. It will be curious whether or not we can see that leadership really propel things toward the upside and keep things up for s p and nasdaq and we need help here to get that kind of a move to the dow in positive territory. On the flip side talking about the narrow leadership in the market i mean this morning i note that bob said there were 567 new lows on nyse. Yesterday there were 450. Before that every day for the past week weve seen that number go up and thats something when you look at the internals of the market giving people a flashing are warning signs. We hit record multiple highs for the year but not that far off from the same point last year when we tried to make record highs. We try to make this inching forward and things fall back. The worry is whether market internals are way more declining issues than there are advancing ones and whether that market breath, that gauge of sentiment really is showing signs of exhaustion here. The thing the bulls will point out is theres been a lot of this skepticism over the course of the past year or two arguably six years and yet the market still managed to make these highs. Again, the bearish case here like you said, some technicals and internals in the market are showing signs of weakness lack of momentum yet market still somehow manages to make a new high. You have the overarching story. I have to imagine that some investors might be a little cautious because weve got the fed and were not going to get most likely any kind of surprise increase in rates tomorrow. A lot of folks are wondering is it or isnt it going to come in september or in december . They might be starting to get a little cautious taking a bit of cash and dry powder and having that on the side so they can deal with that once that does come. All right bertha. Thank you very much. Dom, you have been watching the Energy Sector which has been suffering until today. Of course. We know about this recent weakness in oil prices so if you take a look at the Energy Stocks overall, they are getting that boost today. You can see up by 3 on a sectorwide basis in part because crude oil prices are rising recovering from a near sixmonth low. If you look at names like chesapeake and transocean and Eog Resources are some of those names leading the pack higher. A nice Cross Section between different types of companies within the oil segment up 5 to 7 overall. With crude oil, a lot of focus is there and for a good reason guys. That weakness if it does continue could Impact Energy Company Earnings that may come up in the second half of the season. All right. Thank you very much. Stunning new data out on Home Ownership rates in the United States. Diana olick has the details. Hi, diana. The last time homeowner share was this low was the year i was born. I may or may not tell you when that was coming up next on power lunch. You are looking at two airplane fuel gauges. Can you spot the difference . No . You cant see that . Alright, lets take a look. The one on the right just used 1 less fuel than the one on the left. Now, to an airline a 1 difference could save enough fuel to power hundreds of flights around the world. Hey, look at that. Pyramids. So you see, two things that are exactly the same have never been more different. Ge software. Get connected. Get insights. Get optimized. Can a business have a mind . A subconscious. A knack for predicting the future. Reflexes faster than the speed of thought. Can a business have a spirit . Can a business have a soul . Can a business be. Alive . A police chase in philadelphia ending in a crash caught by cameras. Police across the Delaware River in new jersey went after the van. An Armed Robbery suspect was driving. Gave them the slip and moved into philly and then philly police got their man after flipping the vehicle over. The suspect crawled out of the van and gave up. Watch this. Watch this happen here. I love a good car chase. Love a good car chase. Hold on. Its worth seeing folks. Dont go anywhere. Watch what happens. There you go. There he goes. You are toast, baby. There you go. With s p kay shiller report out showing Single Family home prices fell short of forecast. Denver, San Francisco and dallas experienced the biggest year on year home appreciation among 20 cities with price increases of 10 , 9. 7 and 8. 4 respectively. And new and stunning data out on the u. S. Home ownership rate this morning. It now stands at the lowest level since the year diana olick was born. Shell tell you what year it might be. Diana olick is live in washington. You didnt want to say it. 1967. A huge drop quarter to quarter and from a year ago and it really says where we are and where were going in this very unique housing recovery. Take a look. The Home Ownership rate fell from 63. 7 in q1. Home ownership peaked at the end of 2004 at just over 69 at the height of the housing boom when anyone with a pulse could get a mortgage. Household formation is rising. A new household is formed when a young adult moves out of his or her parents house and into their own place or a group of roommates separate into their own homes. Again, thats rising thanks to an improving jobs picture but the new households are all on the rental side. That was where a drop in Owner Occupied Housing Units from a year ago. Thats whats behind the surge in the multifamily market. Better than expected q2 numbers yesterday reported by avalonbay. A stunning drop in Home Ownership. Diana, thank you very much. Diana olick reporting. House of representatives planning to pass the highway bill as early as tomorrow but unlike in the senate it will not include renewing the charter for the Export Import Bank which expired last month. Joining us exclusively on power lunch is u. S. Secretary penny pritzker. There are lots of interesting threads in this conversation about an agency that here to for has been as bland and white milk. Never as controversial as it is today. Let me go to what topic that interests me. When the exim bank makes a loan do we not allow emirates to compete against our own domestic carriers more effectively. Carriers that cant get the same subsidized loans whether its delta or united or american and dont they in effect lose jobs that emirates gets as a result . I would disagree with your entire premise. Export import bank is not about subsidized loans. Its about enabling American Companies to sell their goods and services outside the United States often to countries that dont have the ability after some level to be able to purchase without an export import loan. Export import Bank Supports 90 of their loans supporting small and medium sized businesses and the Export Import Bank contributes to the treasury so its profitable. Its a tool thats used by American Business to help them be competitive around the world. 85 other countries and 85 other agencies around the world have similar tools, Exportimport Banks or similar type of facility that help their companies in their countries sell their exports. So i dont understand why we would consider unilaterally disarming from having a tool that pays for itself, thats beneficial to American Business pre predominantly small and medium sized business and we know that exports support american jobs. Lets speak to what types of Companies Benefit principally from activities. Exportimport bank. You said 90 of the total number of credits and loans go to smaller businesses. I would be interested in knowing whats defined as small by those terms and more importantly, what about the dollar volume . Is it not true that the vast bulk of the dollar value of those loans, Something Like 60 of the dollar volume goes to some Ten Companies led by Companies Like boeing that may get Something Like 40 of the dollar volume and others like caterpillar, General Electric and others. Talk to me about that. Well i think a Small Business or medium sized business is around 500 employees or less. In terms of dollar volume a significant portion of dollar volume goes to largest businesses but that ignores the fact that they have a supply chain. Supply chains of thousands of Small Businesses whether its ge that has Something Like 2,500 major suppliers or boeing that has 15,000 small and medium sized supplier ignoring the fact that the sale of the boeing jet is supporting all of those small and medium sized businesses in addition to the small and medium sized businesses that are directly benefiting from Exportimport Bank financing being available and so this is to me a tool that is absolutely essential for our businesses particularly our small and medium sized businesses to be able to access markets outside the United States where they need the companies that are purchasing need support in terms of financing or the existing Company Needs help with insurance as it is selling its product. These are basic offerings by the Export Import Bank that are absolutely necessary to continue the growth in jobs in this country. We have 11. 7 million americans whose jobs are supported by exports and Export Import Bank helps keep that alive. Secretary, thank you for being with us today. We appreciate your time. Power lunch returns in two minutes. Youre driving along, having a perfectly nice day, when out of nowhere a pickup truck slams into your brand new car. One second it wasnt there and the next second. Boom youve had your first accident. Now you have to make your first claim. So you talk to your Insurance Company and. Boom youre blindsided for a second time. They wont give you enough money to replace your brand new car. Dont those people know youre already shaken up . Liberty mutuals new car replacement will pay for the entire value of your car plus depreciation. Call and for drivers with accident forgiveness, Liberty Mutual wont raise your rates due to your first accident. Switch to Liberty Mutual insurance and you could save up to 423 dollars. Call Liberty Mutual for a free quote today at see Car Insurance in a whole new light. Liberty mutual insurance. Whoa what are you doing . Putting on a movie. Im trying to watch the game here. Look i need this right now ok . Come on i dont want to watch that. Too bad this is happening. Fine, what if i just put up the x1 sports app right here. Ah jeez its so close. He just loves her so much. Do it. Come on. Do it. Come on yes awww, yes that is what im talking about. Baby. Call and upgrade to get x1 today. Welcome back. S p is up by over 1 . Lets look at sectors driving top of the leaderboard. We have Energy Moving up by over 3 . Certainly helping overall stocks. You also have materials after nine down days material sector here up by nearly 2 . Down here in the lagging corner but still positive you have telecom and utilities so those are stocks and sectors were looking at all green here behind me. Well be back in two minutes. You focus on making great burgers, or building the best houses in town. Or becoming the next highlyunlikely dotcom superstar. And us, well be right there with you helping with the questions you need answered to get your brand new business started. Were legalzoom and weve already partnered with over a million new Business Owners to do just that. Check us out today to see how you can become one of them. Legalzoom. Legal help is here. Why should over two hundred years of citi history matter to you . Well, because it tells us something powerful about progress that whether times are good or bad, people and their ideas will continue to move the world forward. As long as they have someone to believe in them. Citi financed the transatlantic cable that connected continents. And the panama canal, that made our world a smaller place. We backed the Marshall Plan that helped europe regain its strength. And pioneered the atm, for cash, anytime. For over two centuries weve supported dreams like these, and the people and companies behind them. So why should that matter to you . Because, today, we are still helping progress makers turn their ideas into reality. And the next great idea could be yours. Oil and stocks both recovering today but is the longterm pain really over for oil and where are the best opportunities to invest in it right now . Answers to both of those questions ahead. Plus, will the fed move the market tomorrow . We have exclusive information on what the stocks do and dont do on meeting day. Back to you. Lets get back to markets. U. S. Stocks managing to move higher following a fiveday losing streak for three major averages. Lets bring in John Buckingham and miller blackstein. John whats changed so much today from the past five days . Is it all just about energy . I think maybe sellers got tired. We have to keep in mind that corrections and downturns and pullbacks are normal. Weve had 28 times the Dow Jones Industrial average lost more than 4 since the major market bottom in march of 2009 and were dramatically hire over 200 higher. China was a big concern for a lot of people. Earnings have not been that well received even though the actual comparisons to forecast for q2 were favorable thus far. 72 of Companies Beating expectations. Outlooks and guidance has been subdued and cautious and that has people nervous and were here in the summer as well. Lots of reasons for the market to kind of just tread water. Those who take a longterm view of things should look to put money to work to take advantage of the stocks beaten up . The multitrillion dollar question, do we keep treading water or move higher from here . There are some stocks if you look at the way the market split apart, stocks are moving higher based on better than expected fundamentals and that will continue. There will be a loosening policy in europe. Maybe end of loose policy in japan. Beginning of loose policy in china. This coordination or lack of coordination is going to lead to choppiness and volatility but i think overall for domestically based companies, thats since you brought up a september rate hike. We talked with Richard Fisher and he believes that the markets already discounted the first fed rate hike. Do you agree with that . You only know who is wearing a bathing suit once the tide goes out. Well know when it happens. Everyone can say theyre prepared for it. Well see what sort of happens. I think the question is everyone is prepared for september. I think expectations is below perhaps where the fed is at and that all depends on the overall economy. To tell you the truth, i think domestic u. S. Economy is strong right now. Real quick. You mentioned the opportunity to grab a couple beaten up stocks. Seagate down. Trinity down 36 over the past year. You like them. I like them because they have gone on sale. Seagate you get 4. 5 dividend yield. Trinity trading at seven times earnings. They are going to produce a ton of money here over the next three, four years. There are lots of opportunities in this market even though there are many stocks that are expensive. And value has underperformed growth by a wide degree this year. I think folks should gravitate toward value stocks especially those that worry were near an alltime high on major market averages. Thank you for your comments today. Go to powerlunch. Cnbc. Com for more. All right, folks. That is the first hour. It is indeed. Second hour we hand it over to your waiter for the day. Big words all around for that game. Whatever its called. Its 11 00 a. M. In San Francisco. 2 00 p. M. Inside the halls of the Federal Reserve of washington where policy makers are meeting to talk about Interest Rates. Im brian sullivan. Stocks are higher. Oil recovers. Dow jones industrial average at the highs of the day. Lets get right back to bob pisani at the nyse. How much is oil recovery playing in the conversation on the floor of nyse today . A big part of it. The industrial and commodity recovery is the main story. Lets look at the s p 500. Were at the highs for the day. Number one, we are getting a notably oversold bounce in sectors that have been beaten up most and its about time after seven Straight Days where declining stocks and advancing stocks of the New York Stock Exchange thats rare and as brian mentioned energy is the lead here. Materials are making a comeback and industrials. These are three groups most beaten up in this month and theyre bouncing. Health care has been a market leader. Was wobbly recently because of some disappointments on biogen in biotech area. Elsewhere, sector bounces in subsectors. So metal stocks. Oil and Gas Exploration and dow transports. A notable lagger. They are market leaders today. We are getting an oversold bounce. Money coming out of treasury etfs in a large way. We see treasury etfs that are specialized down here at the nyse. Money moving out. Total return that also is seeing money come out. All that money is going into the stock market right now. All right, bob. Thank you very much. Now let us hit oil directly. Crude oil is higher right now. Keep in mind earlier today it fell below 47 per barrel. Its now down 19 over just one month. Lets get right now to Jack Deangelis with more. I dont want to burst anyones bubble, Short Covering is part of the story, buying the dip. You mentioned the point that we fell under 47 a barrel overnight. Its not surprising we with see a buy in dip action. Only up 55 cents. Nothing has changed in fundamental story right now and traders tell me these things dont always go down in a straight line. You have a dollar index thats stuck in a range right now. Well hear later from api and it will set us up for department of Energy Inventory report tomorrow and all eyes will be on that. We are expecting to see another build and that could be enough to push us lower again. Back to you. One thing to point out, most are up but the ones up most are the ones that are down the most over 90 days. Definitely the shorts that work on equity side as well. Jackie, thank you very much. The drop in crude taking a huge toll on the Biggest Oil Companies lately and their workers. Bp reporting profits were nearly twothirds lower than a year ago. British giant also cutting its fullyear Capital Spending plan. Even with todays gains, its been a very tough few months for investors in oil stocks. Look at some of these 90day returns. Marathon oil down 30 . Conoco phillips down 22 and chevron down 17 in just 90 days. If you like oil stories longterm, perhaps these are just good stocks trading at a discount. Lets find out now and joining us by phone, Senior Energy analyst with oppenheimer. A tough run for 30 days. Good companies that are trading at bargain prices or has something fundamentally changed for the worst for these companies . There is no change in fundamentals. I do believe that oil prices are going to be lower for longer and that is what bp said this morning that oil prices will likely stay at lower than most people expected for longer time and thats exactly what we think. Most of the oil stocks are down and they were down significantly as of yesterday. 50 of them closed at 52week low. Obviously this is like bargain hunting, bottom fishing, rebound reaction if you will and Short Covering but fundmentamentalfundamentally, supply is ample and the demand picture is very weak. Fear in the hearts of most people. So we dont see the change in fundamental that reflects the jump in stock prices. Bottom line then do we then look at chevron like its trading at 17 off or do we look at chevron as if it should be worth 17 less than it was . Well actually chevron is probably more lower prices than most of its peers. Most of these companies are not covering Capital Spending. They are borrowing money to pay their cash dividends. So we are not out of the woods yet. I do believe that were going to have another six months maybe a year of very bad trading environment and the stocks could go much much lower. So you mentioned bottom fishing, Short Covering rally, et cetera, isnt this like catching a falling knife. You said lower for longer. That could be absolutely. I agree 100 . Can you say that any of these stocks in your view are buys or do you say to investors that its not worth it at this point to buy any of these stocks because of the oil picture . I actually say to people who are willing to trade the stocks sell them on a spike. Buy them on dips. Sell them on spikes. Today is a good selling opportunity. Good selling opportunity. Cant be more blunt and clear spoken than that. Thank you. Talk to you soon. Lets stay with oil and look at drillers. Joining us ken, your stocks have been hurt tremendously hard. Any companies that stand out to you saying okay this one deserved to be wiped out 30 in 90 days but maybe this one didnt. I mean in this kind of environment, you have lower oil prices, its taken people by surprise. Weve been of the opinion that theyll stay lower until we get through some of the excess inventory that built up. Companies with bad Balance Sheets struggling to maintain their cash positions are definitely ones that we would stay away from. The flip side is guys that are particularly Oil Service Companies where cost structure is more variable and where they have some size and scope and international size good Balance Sheets and good cash. This is the kind of environment where they can gain share and take advantage of opportunities fors on s onconsolidation. On the good side you have the industry bellwether putting up excellent numbers on cost savings in this corporate transformation. Halliburton is doing well. There is a merge with baker that caused noise but operationally its been good. Small mid cap name we like is superior energy. They have a great Balance Sheet and could take advantage of this downturn. They are growing internationally. They report later this week. Bad Balance Sheets a few particularly in heavy asset drilling stocks. Hercules offshore already said theyll restructure debt. Vantage drilling hired an adviser. Debt trading way off. Thats a sign of distress there and in the oil service names, key energy services, the debt is trading at 50 cents on the dollar. Cash balance is low. If business continues to kind of coast along here at very low levels are dip further, they could be in trouble also. All right. We appreciate your time. Thank you very much. Well see you soon. All right. Thanks. Take a look at shares of twitter. Pretty much at session highs along with the rest of the market. Twitter reporting earnings after the bell. Stock is trading lower by over 14 over the past quarter. Michael and rob join us now. Rob, you have a neutral rating on the stock. 39 price target. Ill start with you. This quarter, obviously monthly active users is a real focus. We expect a flat picture compared to first quarter. They wont break out fast followers. Is that going to obscure twitters true health and growth by including that in that number . It may. We have a year over year comparison. It inflates the mau by 6 million on q1 number. 2 million overall growth may mask. Eyes are more focused on u. S. Amus and theres not much contribution there so i think that will be the key metric. Do you project a flat growth rate . Were up 1 million. Theres a range of expectations. Some suggest that it could be even negative. I dont think anyone has good visibility into the millions of units in the number. I dont think the stock would do well in a negative u. S. Comp environment. Thats something to look for. You have a buy raiding on this stock and 52 price target. Is this a throw away quarter . Do you not care really what the metrics are because we have an interim ceo at the helm now. Were waiting for word on a new ceo and you think google tiein longer term will be the story driving twitter. I do think that rob makes a good point about users and im not expecting anything good from them this quarter for users and even really on advertising revenue for that matter. I am a little more focused on the longterm. I think later this year the google tiein is going to be able to drive quite a bit of traffic to twitter. The company is working aggressively on some new products to monetize those casual users as they come in from different places and i just think longer term theres a lot of room for twitter to monetize users and they also have a big opportunity in their margin structure currently underearning relative to comps like facebooks where its a third of the level. I want to follow up on what melissa said. We talk about this new old ceo in jack dorsey. Often when a politician comes into office or ceo comes in theyll dump everything out first chance they get because they want to hit the bottom and blame it on the old guy and work their way up. Is there any chance tonights report is going to be laden with stuff that jack dorsey wants to get rid of and blame on dick so it looks shaky on the surface but hes cleansing it. Hard to benchmark that or gauge probability. Its different in his affiliation longterm with the company. Also, hes there on an interim basis. Hes not expected to carry the load for long unless they make the appointment full time and he relinquished his obligations over at square. Its hard to say. I do think that its notable that they reiterated q2 guidance but not fullyear guidance. Something to watch on expectations for the second half. Guys thank you very much. Heres your power menu. Forget guesswork. Were going to tell you what stocks really do on fed decision days and remember thats tomorrow. Also, were talking the big money in Fantasy Sports with the ceo of draftkings. And can you name todays mystery chart even with todays gains its still the worst performing stock in the s p 500 over the past 90 days. Tweet us your guess. That answer coming up when power lunch returns. 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 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 for daily use and a free 30tablet trial. No students ever done the full hand raise in ap calc. But your stellar notebook gives you the gumption to reach for the sky. Thats that new gear feeling. All hp ink buy one get one 50 off. Office depot officemax. Gear up for school. Gear up for great. Hi mandy. How are you doing . Whats happening. Mandy drury running through the studio here. We found when we asked you to identify the mystery chart, its often helpful to show you the mystery chart. Worst performer in the s p 500 over three months. The answer to who that is in moments. Meantime the streets of beirut, lebanon, covered in bar garbage there. The government is split and at odds over everything including where the trash should be dumped, hence the great trash crisis of the summer of 2015 in beirut. In france, farmers in the northwestern part of the country in a massive protest over the low prices they get for their milk. They blame cheap imports being sold at grocery chains left them on the edge of bankruptcy. France prohibited from giving direct Financial Aid to farmers. Lets recap the top headlines of the day. Cum cummins reporting a rise. Nike is giving 15 payments or 25 gift cards to people that purchased nike fuel band fitness trackers in last 3 1 2 years settling a lawsuit claiming false advertising and corona beer may get more expensive. Beer prices racing 75 cents. Strong beer demand one reason theyre able to raise prices. Time to load up. A programming reminder in just under 24 hours, the Federal Reserve announces its latest decision on Interest Rates. Well have full coverage of that decision and full Market Reaction right here on power lunch. And speaking of the fed, heres a good question. What exactly happens to stocks historically on fed decision days . We dont have to guess. We ran data to find out. Here you go. On average the market hasnt moved a lot on fed days in the last 2 1 2 years. Not all fed days are treated the same. Check this out. Heres what we mean. On fed decision days that do not have a press conference like tomorrow stocks almost always fall. Since the start of 2013 the dow finished positively only once on a nonNews Conference fed day. Nine of ten fed days without a presser, stocks ended down. That average drop has been about one half of one percent. On flip side the dow tends to outperform when the fed chair speaks following the decision. Over the past three years, dow averaged a gain of half a percent on News Conference days. Tomorrow, no News Conference. History says stocks will fall. Will they . Tune in tomorrow for find out. Time for reveal todays mystery chart. That thing is the worst performer in the s p over 90 days. That thing is freeport mcmoran. Its having a decent day today because it announced cost cutting. You can see its down over 40 in the past three months. Yesterday jim cramer said that freeport is really the poster child for oils recent pain and the commodity route. And heres where the analysts stand on freeport. Six buys six holds, zero sells. Fair to say some analysts missed freeports pain. Up next it is the biggest biotech ipo ever. Its taking off in its debut and ceo of nantkwest will join us. Incredible details of the video when power lunch returns. No students ever done the full hand raise in ap calc. But your stellar notebook gives you the gumption to reach for the sky. Thats that new gear feeling. All hp ink buy one get one 50 off. Office depot officemax. Gear up for school. Gear up for great. By the time Police Arrive on a crime scene they could have little to go on. A vague description. A single piece of evidence. A partial plate number. With an app from ibm officers can now access over a billion police documents to find hidden connections and identify potential suspects. Ibm analytics helps one hundred thousand officers work smarter every day. One Million Dollars in coins discovered. It is dated 1750. Only a few are known to exist. The loot is believed to be from a flagship of a spanish treasure fleet. Speaking of striking gold its the largest biotech ipo ever and its soaring in market debut. Look at how shares of nantkwest are jumping. Lets get to meg with her exclusive interview with the ceo. Joining us now is ceo of nantkwest. Thank you for joining us. Tell us about the technology you have here. You are using natural killer cells to fight cancer. Theyre not like tcells that we hear about. Tell us about it. Its a rare cell in the human body called natural killer cell. The natural order of the immunity system is that it protects you and i from cancer and from virally infected cells. It has ancient receptors on it that floats around and looks for an infected cell and kills it. As it attaches to that cell it calls on the tcell and between the tcell and natural killer cell, they attack the cell. Its a naturally occurring cell in your human body waiting to protect you. We hear about companies that are taking patients cells out of their body and beefing them up and giving them back. You have an off the shelf therapy. How much threat are you to those companies . Its completely different. We have taken the view we need to follow the natural order of biology and the natural order of biology is the first cell to be called on is the natural killer cell. And then the tcells occur. Engineered tcells are trying to become a killer cell which exist innately. What we also do differently is these natural killer cells, the reason patients have cancer is natural killer cells have a receptor that the tumor activates and puts the natural kill cell to sleep. We were fortunate to discover this amazing cell from a cancer patient of natural killer cells that had all of the killing activities but not the inhibitory receptors so we surmise could we grow this cell as a cell bank and inject this and kill cancer regardless of the cancer type based on the biology of the cancer and thats what the natural killer cell is. From a patient standpoint because a lot of people when they follow biotech and think of imunotherapy they are getting these cells injected that may be depleteded in someone that has cancer. Were in a sense growing it off the shelf. So the idea is that we were able to do the signature of a cancer patient and maybe then take the natural killer cell and grow and target it to that signature. The beauty is that we can grow this off the shelf. Weve done this in 40 patients injected it checked it as outpatient and you can inject it multiple times in high doses. We have a patient in complete remission with hodgkins and patients which we treated lung cancer and renal cell cancer. You can grow it in large quantities and inject it repeat repeatedly repeatedly. You just went public with a 40 pop. Would you consider putting yourself up for sale . This is an area in general that is talked about as a prime area for m a. The reason we took this Company Public is i spent a career looking at how were going to treat cancer. We want to change the paradigm of giving low dose chemotherapy and Combination Therapies going after drivers and then adding the immune system. So were not interested in considering it. Were interested in creating an ecosystem to create a solution set for cancer. Doctor so much more to talk about. Well leave it there for you. Thank you for joining us. Thank you. And nantkwest is up 40 today. All right. Thank you very much. Lets get another check on oil. The final trades for the day are set to cross and crude oil bouncing back today. Its up exactly 1. 5 . 71 cents a barrel to 48. 10. It was below 47 bucks earlier in the session. Your crude close with power lunch returns. A subconscious. A knack for predicting the future. Reflexes faster than the speed of thought. Can a business have a spirit . Can a business have a soul . Can a business be. Alive . Im here at the Td Ameritrade trader offices. Ahh. Steve, other than making me move stuff, what are you working on . Let me show you. Okay. Our thinkorswim Trading Platform aggregates all the options data you need in one place that lets you visualize that information for any options series. Okay, cool. Hang on a second. You can even see the anticipated range of a stock expecting earnings. Impressive. Whats up, tim . For all the confidence you need. Td ameritrade. You got this. Hello, everyone. Im sue herrera. Heres your cnbc news update at this hour. The u. S. Parole commission has ruled that Jonathan Pollard convicted of spying for israel will be released from prison on november 21st after serving 30 years in prison. He will be required to stay in the u. S. For five years. Secretary of state john kerry says his release has nothing to do with the iran nuclear agreement. The u. S. Coast guard and navy are still searching the Atlantic Coast off florida and georgia for two teenage sailors who have been missing since friday. They are still optimistic that the two can be found alive. Hillary clinton returning to New Hampshire to campaign where an nbc poll shows her lead over the democratic field narrowing. She began her tour with a town hall meeting and a press conference. She refused for a second straight day to answer whether she supports the Keystone Pipeline project. The body of Bobbi Kristina brown was moved from the Fulton County georgia medical Examiners Office this morning. The white hearse carrying her body to a funeral home and Funeral Services have been set for saturday afternoon in georgia. Thats your cnbc news update this hour. Back to you, brian. Thank you very much sue. Well get back to the markets here as well. Oil is rebounding today. Crude oil settling up 1. 5 today. Stocks taking off perhaps because of that. Dow up nearly 200 points at session highs. Best performers two Oil Companies and the dow. Exxon and chevron. Caterpillar getting a boost and in fact only three stocks in the dow are down. They are cisco, coke and dupont. Time for trading nation because traders trade better together. Today lets zero in on china. Looking at your charts and also Options Market for you today. You have a chart of the biggest china based etf. Fxi. Whats it like trying to chart something with such wild swings . You know, usually i just kind of stay away from Something Like this where its just been so volatile and really dont see a strong trend in place here so were just staying away. If you look at the fxi, since its collapse from 2007 to 2008 its been this wide range between about 32 and 52 on the upside but also happened to be two very important retracement levels of that decline. More recently the etf is oversold possibly due for a bounce but the trend line over the past few years suggests im going to take a pass on this one and wait for a better setup elsewhere. Im staying away. Hes taking a big pass. Andrew, is the Options Market implying that china could be oversold . It is a little bit oversold. If you look at the daily chart, we have support down at 36. We have sold off from 52. If you look yeartodate and over the last 52 weeks, were unchanged. Weve corrected but the correction is overdue. If we look at february options, 15 move up or down so its implying that fxi can get up to 46 or down to about 34. I think it can rebound higher. I put on a trade in fxi in february buying bullish call spread. On this trade its kind of contrarian. The chart isnt that great. It can get me three to one reward set up if im right and if i can rebound up to 46 by february. I want to give this trade a lot of time. Its been very volatile and its been all over the place. How risky is it . You put that long bullish bet to next year but how much do you put on the line here . Is this an educated bet or gambling . Its a great at bet. We have moved targets to 34 or 34. Market makers implying stock will move up to 46 or down to 34. If it moves up to 46 on this trade i buy the calls and sell 46s for 25 cent debit. Spread can go to 1. If it is above on february expiration i have the reward to risk set up is 300 . Its a great play. Im rushing around because i want to get to headlines. Tom bradys suspension upheld by the nfl. If youre in boston its a big deal. It just crossed now. Well get more details in just a moment. The nfl upgrading or upholding the fourgame suspension for tom brady as part of that deflategate. More on that breaking news. You should care having gone to harvard yard in cambridge. Its a big story in boston. Unbelievable story. More details straight ahead. Were watching markets very closely. Were just two points off of the session highs on s p 500. Bob pisani at the nyse. Beaten down stocks are driving this rally today. Exactly true. Look at the s p 500. Off the highs. Were essentially there. Two developments today. First is a reversal of the declines weve seen in the last seven or eight trading sessions. Energy, materials and industrials have been the most beaten up. They are rallying. Its about time were due for an oversold bounce and health care is doing well. Market leadership has held up which is why there hasnt been a generalized panic in markets. Internet stocks like google and facebook have held up. Biotech held up and bank stocks are down a bit in the last few days but not in any way that caused any big concerns. Second thing thats happened thats positive is earnings today have been better than usual. Better responses. So for example, great numbers for masco. Plumbing was good. D. R. Horton to the upside. Good numbers from industrial companies. Put up the treasury etfs we put up because i want to point out that a lot of money is coming out of treasury market right now. So a lot of money today. Barclays atf a lot of volume. Money coming out of treasuries and bonds and into the stock market. Back to you. Bob pisani thank you very much. I do want to recap the news that just broke out of the nfl. This is big news for the nfl. They are upholding the fourgame suspension of new England Patriots Quarterback Tom Brady all surrounding that deflategate controversy that had him or someone in the Patriots Organization perhaps deflating the balls below their allowed psi so once again they are upholding the four game suspension of tom brady. That collective sound you hear folks, is boston yelling and everyone else in america cheering. Either way, jimmy garoppolo, you are on the clock because youll likely be the starter for the first four games of the 2015 nfl season. Well be right back. And now the latest from trading nation and a word from our sponsor. Earlier we talked about the drop nationwide in Home Ownership but something not dropping are home prices in San Francisco. According to kay shiller, the city had one of the highest gains in home prices. You are a luxury broker. Justin, welcome to the program. Were going to call this section real estate porn or maybe dreaming because you brought in two properties. When i look at these properties and i look at the prices even living in this area my eyes roll into the back of my head. Three bedroom house for 2 million. Explain. Its a standard. Theres just not enough supply to fit the demand in San Francisco and ten years ago, 10 15 years ago, Silicon Valley was the center of the tech bubble if you will. Now its really transitioned to San Francisco. Twitter, instagram, all funded in San Francisco, uber. Theres not enough space. Its 7x7 and places where people want to live is even smaller. 1. 998 million. Its easy access to the south bay. Silicon valley freeway access. Great weather. Originally a working class neighborhood. Now average house is probably seven it ten offers. Per home . Per home. This house is likely to sell at that price or higher . Or higher exactly. These are frankly quite modest homes. They dont look like super large homes. Location in the center of the city prime for young families. Lets look at the next house you brought in for us today. These are big numbers here. This is 1. 8 million. Am i to assume this is a condo . Its a condo. Its a one bedroom loft. I thought you said one bedroom condo. Its 1. 8 million. Thats 1. 8 million a bedroom. 1,800 square feet which is large. Its one bedroom. Its a hot neighborhood right near a lot of hot Tech Startups and was purchased by a tech couple. By the way, that area is where twitter is based, correct . Uber is based there. It used to be a Warehouse District five years ago. When i was growing up it was nonexistent. Now its the center of the new development in San Francisco. Most of the startups in the city are based there. 1. 8, 1. 9 million. Per bedroom. By the way, who are buyers of these . All tech millionaires . Majority of tech yeah. It has to be stock. Yeah. About 30 pay all cash. If youre 30 years old, unless youre in the lucky club and you inherited it definitely stock. They worked at twitter. Had their own startup. Stuff like this. Twitter created a couple thousand millionaires. They need it now. Thank you very much. By the way, you can catch justins show Million Dollar listing San Francisco wednesday night on bravo 10 00 eastern time and pacific. Melissa . A heated debate in washington over the Exportimport Bank. Earlier we spoke to the commerce secretary about it. Its been shuttered temporarily due to a spat on capitol hill. Its not clear where that is going. Shes making the case that the United States needs this kind of support for american exports. Take a listen. I dont understand why we would consider unilaterally disarming from having a tool that pays for itself thats beneficial to American Businesses predominantly small to medium sized businesses and good for the american worker. Not clear that Obama Administration will get what it wants. Right now the Exportimport Bank is held up on capitol hill. They attached reauthorization to a highway spending bill. Common tactic in washington to get the thing done. But over on the house side, theyre not going through with that. They have a threemonth edition that doesnt include the Exportimport Bank. The fate of that bank is up in the fair despite what the Obama Administration wants. Should america revive the Exportimport Bank . Its a good debate. Joining us is director for center for trade policy at the Cato Institute and an economy for center of american progress. Lets start with you, dan. You are fundamentally against any revival of the exim bank why . It lives on fumes of being the institution necessary to u. S. Exports. It underwrites 1. 4 of u. S. Exports. Its not necessary. It imposes costs. Politicians in the Business Community like to talk about exim like its a costless wand. When we subsidize exports of steel, we are taxing u. S. Users of steel. If u. S. Steel gets a subsidy to sell to australia, the other u. S. Steel companies are hurt by that as is john deere, caterpillar caterpillar, downstream industries that compete with australian beneficiary. If we dont subsidize, were going to be we already have countries that are pegging currencies. China. Isnt that an unfair advantage for them . Dont we need to do something to help our own industry along . I dont view trade as an us versus them proposition. There are lots of american exporters and importers. Trade is many transactions. The idea that we need to keep subsidizing because china does we had our Export Import Bank in 1944. We want to stop this global subsidies race. If we point to other countries as a reason to keep subsidizing, it will lets get the other side. Why do you favor the revival of the exim bank . Its a useful second best option. A lot of firms making use of this bank are small firms that dont have access to really deep pools of capital in the International Markets so its a second option that they can turn to if they cant get a loan from a citibank or a group used to working with large companies. Okay. So respond to some of what dan commented on. He used this as an unfair subsidy but just a subsidy we dont need. Trade should be more free. I mean i am all in favor of free markets but thats really not the world we live in. Once youre out of a first best its not clear to me that unilaterally disarming in one area will improve outcomes there. I dont know that you can point to analysis that says that. Exim bank the subject of a hot debate. We appreciate it. Is betting on Fantasy Sports really a game of skill and not luck . Well ask the ceo of draftkings when power lunch returns. No students ever done the full hand raise in ap calc. But your stellar notebook gives you the gumption to reach for the sky. Thats that new gear feeling. All hp ink buy one get one 50 off. Office depot officemax. Gear up for school. Gear up for great. Mornings. Wonderful, crazy mornings. We figure you probably dont have time to wait on hold. Thats why at xfinity were hard at work building new apps like this one that lets you choose a time for us to call you. So instead of waiting on hold, well call you when things are just as wonderful. [phone rings] but a little less crazy. Were doing everything we can to give you the best experience possible. Because we should fit into your life. Not the other way around. Fantasy sports have become a massive business and continues to get bigger. Yahoo lost a Fantasy Sports site and yesterday draft kings secured 300 million in funding. 150 million is new funding in fox sports. Here is jason robins ceo of draft kings, number 45 on the cnbc disruptor 50 list here. Welcome to the program. Want to get your comments on your hometown buddy tom brady. When i look at this and the business you are in there is one risk i guess if somebody in congress decided they were going to make this a game of luck than not of skill, which would make it gambling and heavily regulated, why is this a game of skill and not luck . First of all, thank you for having me. Im not sure could make it a game of luck and not skill. The game is what it is. If you look at the data and play the game, its clearly a game of skill. Arent you better on what other people are going to do . I am a huge fantasy football guy. I never used your site. You cant predict what others are going to do. I beg to differ. You can predict what others are going to do. There is a tremendous amount of statistics out there. You mentioned you havent played. I would go on and try it tonight then you and i can chat again and you can tell me if you think its a game of skill. Ive been playing fantasy football 20 some years. You win a league a couple of times. It doesnt seem like the amount of work you put into it maybe im not good at Fantasy Sports. Talk about the competition from yahoo. Are you concerned about yahoo . I think yahoo is a tremendous addition to the industry. Its a renowned Digital Company and they have a tremendous brand and very large fantasy audience yahoo will introduce new consumers to the game. It is further proof this is a rabidly growing space that is exciting. Is that good . You think people will check it out and will eventually migrate to draft kings because your platform is better . I think what we really stood out and how we differentiate ourselves is to have a better platform. We were the first to mobile. En weve done consumer research, our product is generally rated higher than anyone elses product out there. I dont know explicitly we are thinking yahoo can bring a bunch of people in and theyll migrate to draft kings. I think anything good for the growth of the industry for bringing new players in and helping educate the public this is a really fun and exciteing way to enjoy sports. The competition is not just yahoos platform but also a platform called fan duel. Investors do include nbc Sports Ventures and the nba. What is interesting is both of you guys have gone the route of finding funding rounds from media partners. How do you see this space evolving . You are in the early stages but do you see, for instance a side by side channel of sorts to go along with these Traditional Media Companies . So draft kings funding includes not just Traditional Media Companies but also Major League Baseball the nhl, Major League Soccer and really i think, between us and fan duel having a variety of sports leagues and media companies, there is going to be a lot of really interesting and cool things we can do to integrate with the actual live sporting experience. The nice sort of synergy that exists between our product and those, when people play draft kings fantasy products they tend to watch more games. They tend to be more into the statistics and doing research on the games. All the games around the league are interesting to them not just those from their home team or have playoff implications. Even when a game is a blowout, its fun down to the last moment because fantasy statistics are being accumulated. You care what the third receiver on the jaguars is doing any begin sunday. Yeah. Weve got to leave it there. Tom brady, suspension was upheld four games. He wont be back until week six against the colts. Jimmy garafalo will be on draft kings. Com as a starter. Thanks very much. Well be right back. Hi. Hi. Hi. Hello. Hi. Hi. Hi. Hi my names josh. Kelly. My name is raph. Steve. My name is anne. Tom. Brian. Krystal. And i am definitely not a robot. Im one of the real live attorneys you can talk to through legalzoom. Whether its for your business or your personal life, dont let unanswered legal questions hold you up. Because were here. Were here were here and weve got your back. Legalzoom. Legal help is here. So youre a Small Business expert from at t . Yeah, give me a problem and ive got the solution. Well, we have 30 years of customer records. Our cloud can keep them safe and accessible anywhere. My drivers dont have time to fill out forms. Tablets. Keep them all digital. Were looking to double our deliveries. Our fleet apps will find the fastest route. Oh, and your boysenberyy apple scones smell about done. Ahh, youre good. I like to bake. With at t get up to 400 dollars in total savings on tools to manage your business. Quick street talk. First stock autonation upgraded to a buy. Selloff providing an opportunity. Companys in a unique position. Their target 76, 28 up side. Baidu. Ouch today. 52week low for the stock. Sector what itretary sector weight on the back of earnings. Baidu providing search traffic may negatively impact revenue and shift to 020 could lead to higher monetization. Facing competition from alibaba. That could last for years. Bojangles upgraded to buy. Next year paypal initiating with a buy rating. This is a recent spin from ebay. There is a scarcity value of the stock. There arent too many other stocks out there that are large cap, high growth have secular tail winds and global brand. The Balance Sheet is strong. No debt. More than 6 billion in cash. Analyst likes the acquisition of zoom. What is on fast money tonight . You are like a carnival barker. Half right. Twitter, yelp panera. What do they have in common . Reporting earnings. Well be on the Conference Calls and get you set up for tomorrow morning. If you want combine those companies into one, be spectacular. Closing bell starts right now. Guess whos back back again the music sounds different today. Welcome back. Welcome to closing bell. Thank you. Welcome back to you. Im kelly evans at the New York Stock Exchange. Scandinavia, kansas. She went to scandinavia, i was in kansas. Big family reunion. I think you got the better part of the deal. Im not going to argue with you on that one. Norway has 916 billion Oil Sovereign Wealth Fund and they are subsidizing hydropowered
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