To a 100 chance they dont raise rates on wednesday. Were going to dig in. Either way, among the biggest winners of the s p 500 right now, michael kors and general motors. Well get more on gm later on in the show. Welcome to power lunch. Im tyler imagimathisen. Here is what is happening on this busy news day. Were awaiting a News Conference from the new York City Police commissioner. New york city mayor. And the u. S. Attorney for the Southern District of new york. Following this weekends bombing. We will bring that to you as soon as it begins. We will cover it live at roughly half past the hour. Home Builder Sentiment to its highest level in nearly a year today. Good signs there. Aaa putting the National Average for a gallon of gasoline at 2. 20. That is down 9 cents from a year ago. We begin with the latest in the tristate area bombings. And our own Morgan Brennan with the latest details. So the suspect in these bombings in new york and new jersey is in custody just four hours after the fbi issued a wanted poster of ahmad khan rahami. That arrest being made. New details emerging about how that capture took place. Rahami pulled a handgun on an officer in linden, new jersey, he had been sleeping in a doorway, he shot the officer who was wearing a bulletproof vest in the abdomen before indiscriminately firing at passing vehicles as more officers arrived on the scene. Captain james sarniki saying the suspect, rahami, was shot before being taken down to the ground, but he had been conscious at the time of arrest. Now, here on 23rd street in manhattan, where a Pressure Cooker device exploded on saturday night, the fbi had been on has been on the scene today, still here, sweeping for evidence, and just a little while ago, removing the green dumpster in which that bomb had detonated. So were expecting more details on all of this at a briefing with new york city mayor bill de blasio, nypd commissioner jimmy oneil and u. S. Attorney pri prikh barara. That has not started yet. Well bring you the headlines as they come. Back over to you. Do we know anything about the condition of the officers, two were struck, are their wounds life threatening or do you know . Still getting a lot of details, but we do know from our from nbc is that both had still been alive, but i have to get more details before i start speaking on that. All right. Good to say nothing when you dont have the absolute details there in front of you. Morgan, thank you. Moving on, how did authorities find this suspect so quickly . Joining us is mike barrett, with the center for Homeland Security and resilience. He was the former director of strategy for the Homeland Security council. Good to have you with us. How did they do it so quickly . One of the things we have done, we have invested a tremendous amount of money in training and equipment since 9 11. And people often, you see news stories, are we getting anything for it . We are. We built out fusion centers, we have this model called intelligence led policing, we have networks with the joint Terrorism Task force talking to the state and locals extremely well. Were integrated at a rapid response. Thats what you see here. Textbook rapid response. How do we get ahead of this and stop the events from happening before they take place . In other words, were good at response, but maybe need to concentrate more if possible on prevention. What were the key clues here that led to this suspect . Well, here, you know, it is Pretty Amazing actually this guy had really terrible look. The race didnt start on time, didnt have any casualties there in new jersey. And also the rice cooker, Pressure Cooker bomb, the second one did not detonate. Because that didnt detonate, there is a whole slew of things like the cell phone itself, the sim card, fingerprints, any number of pieces of electronic data we can pull. And in an after an event, when we can pull data, there is lots of databases to run it against. Were not good at collecting data in advance of a event because people are worried about other conflicting priorities. Talk about that, why are we less good at collecting data in advance . You mentioned snowden and the hesitance then for intelligence agencies to tap some of the electronic fingerprints that might lead us to places. Exactly. So im a former intelligence officer. In the military and first thing i would tell you is i need the data. If i dont have the baseline, i dont are anything to check against. Im looking for patterns. Might have found this guy had a smaller decreasing size social network of friends, things like that. He had spent the last month really going off line. You can pick up traces and indications like that, it is the kind of surveillance and pattern analysis we do with our overseas intelligence all the time in this country. But domestically we have decided to selflimit ourselves. We decided to not collect that data. Thats a fair and legitimate debate. It needs to be had again given the rise of tremendous home grown threats. But, mike, that assumes you already zeroed in on somebody, like this guy and you can actually figure out hes narrowing his Social Circle and how about when youre just sort of you dont necessarily have an idea, how do you for Law Enforcement, how do you deem certain people likely to commit such acts and worthy of this sort of surveillance . So this is where we use metadata and artificial intelligence. This is not a human being sitting there looking at it and saying, i see a change. There is way too much data to do that on. You can have a situation where you have artificial intelligence, screening the connections, which youtube videos are watched, these days most of the suspects were worried about are communicating on encrypted devices but you can know that people are switched from an open communication channel to an encrypted device, things like that. Not going after the content until you put together a full pattern, Digital Pattern of life, that would indicate this person is an actual suspect you would want to look at more closely. But the thing is, were not allowing ourselves to get those tippers. We have to wait until something happens to get the tip that now we want to go where did this guy live who were his friends, who did you make phone calls to . We had no ability to do pattern analysis in advance because were not allowing ourselves to use the tuth we buiechnology we. We talked about this being potentially the part of a broader scheme, but, you know, lets back up a bit. This is a gentleman who in 2011 with his father and brother filed a lawsuit against the city of elizabeth, alleging basically discrimination over their Fried Chicken restaurant. That somebody made a complaint about it, we noticed that the bombs as you noted were not particularly sophisticated. What are the odds were going to find out that this gentleman was not part of some bigger cell, but just an angry guy who had filed complaints against the police and a neighbor recently, filed a lawsuit five years ago, and was just sort of a solitary angry guy . Sure, it is increasingly looking that guy. I would say the initial thought was thats a lot of bombs for one individual to make without any assistance whatsoever. I definitely dont think this is a situation where hes directed from abroad. Hes selfradicalized. The question is did he have one or two or three people helping him get the equipment and dropping off the bombs in one or two places. If it is a cell, it is a small cell, this is not i dont think even analogous to the things we have seen in europe where you had highly trained folks with real weapons expertise and tactical knowledge. We clearly dont see that in his modus operandi. We cant get weak and think because this guy didnt have it, the next one wont. One of my big concerns involved chemical, biological and radiological weapons because the same information is out there, how to acquire the materials and create dirty bombs and the like. Im not saying dont be vigilant and dont be concerned. We, to your point, as somebody who goes to seaside regularly, which is a sleepy beach town, we got very, very lucky. I guess what im trying to say, mike, is do we find perhaps some comfort in the fact that it may look increasingly like this was just one or maybe one or two angry guys, maybe mad at a localized situation, and not part of a broader cell, if you will . I do think that in the narrow confines of this case, we can say i dont think it is a larger cell, i dont think well see, for example, any follow on attacks from this particular group. But just like we saw in San Bernardino and like we saw in orlando where the body counts were much, much higher, those were also small, affected, disaffected, isolated groups. So unfortunately this is going to be part of the face of terror Going Forward. The concern that i have is that we overfocus on some amateur hour pretty much local Law Enforcement type problems and we dont do some of the other types of collection and preparedness that, you know, frankly i think is what were going to need if the enemy gets their act together. We appreciate your time. Thank you. Mike barrett with the center for Homeland Security and resilience. Go pro shares up today, down 55 in the past year. Will go pros new drone help move the stock higher. Nick woodman stops by live on power lunch. Thats next. Ent selling guys. What are we gonna do . How about we pump more into promotions . Nah. What else . What if we hire more sales reps . Nah. What else . What if we digitize the whole supply chain . So people can customize their bike before they buy it. That worked better than expected. Ill dial it back. Yeah, dial it back. Just a little. Live business, powered by sap. When you run live, you run simple. Waiter heres your check. Oh youyou got it. You know, since i got rid of my car, i really enjoy walking. Ok. Got it . No, im good. Announcer getting pulled over for buzzed driving could cost you around 10,000 in fines, legal fees, and increased insurance rates. Oh, youre home early. You live with your mom . Announcer thatll set your game back a few years. Buzzed, busted, and broke because buzzed driving is drunk driving. Go pro heading sky high with the new drone called karma. The new product, can it help the stock fly even higher . Shares are up 6 today. Down by 54 over the past one year. Lets head to lake tahoe. Josh lipton joined by the ceo of go pro. So you just got off stage. Lets start with the new drone, karma, 799. Why are you confident that you can compete and win in this market . What is the technology . What is the innovation that will make your drone really stand apart from the competition . Well, as i shared in the presentation, karma is so much more than a drone. Yes, it is a drone, but it is also handheld stabilization because the stabilizer comes out of the drone and plugs into a hand grip so you can film your family as youre chasing around the park or at the beach. And it also all fits into a backpack that you can wear during almost any activity. So what we say is it is really a hollywood caliber stabilization system and backpack for 799 bucks and will help you capture your life and make it look more beautiful than youve ever seen it. Your investor, will want to know, listen, can you sell a lot of the drones . Can you do big volume with high margins . How do you respond to that . I think karma is the most exciting addition to go pros product lineup. I think it is the most exciting product we have ever made. Certainly the most enabling product in terms of helping people capture incredible professional quality footage of their lives. And share stories like theyre used to seeing on the big screen at the movies. So given that thats what go pros brand has been built on, i think karma has a good shot at being successful. And, you talk about this consumer drone market, a 1 billion market by next year. But some analysts say, listen, they look at dji, say thats a company with tremendous resources, has great products, but youre optimistic you can take share there . Yeah, go pro is one of the strongest brands in the world. And people buy a go pro to help capture and share their lives in a stunning unique way. Perspectives that truly capture the experience as though youre reliving it and karma takes that to the next level. And karma is one part of the overall go pro solution. Were now an end to end storytelling solution. At the beginning is capture with a camera and, yes, with camera, air on the ground. With our new software, cloud syncing, hero 5 cameras and making it easy for customers to access and edit content on the go with the quick app on mobile, go pro is really a complete storytelling solution that the whole company is much more than a drone. Melissa, i think you had a question for nick. Yeah, nick, you were touting the ability of taking the drone and using it by hand, so you can follow around your family in addition to flying the thing. Are you worried about cannibalization with the rest of your product line that people out to buy this drone and not buy other go pro cameras . No, because you still plug a go pro, hero 5 session or hero 5 black into karma. Karma is compatible with hero 5 and hero 4 cameras, also backwards compatible. So all of our customers, new and previous, can enjoy karma. So karma is really complementary to go pros Product Offering and in no way can it be cannibalistic. How do you view your market . The concern is that you guys tease this karma drone back in may 15, been delayed, delayed again and here you are releasing it in the fall. At this point, how big is that market given other drones have already been out there, how do you view people who already have drones . Are they potential go pro customers you got to steal . I think that karma definitely will bring in new customers to go pro. And there is no question that karma is an incredibly powerful solution for existing customers, whether theyre consumers or professionals producing content for film and television. Karma is simply the best solution out there for stabilization in the air or handheld or mounted to your favorite gear and go pro is the only company in the world making this solution possible. I think were in a really good position. Besides the drone, you im sorry. Go ahead, ask your question. Ill follow. Nick, let me ask you, we talked about the drone, right . You also introduced the new line of cameras. There is concern that when we talk about the go pro camera, there is saturation, that if you want a go pro, you already have one. How do you respond to that . As we shared on investor calls and this is public information, sell through retail is strong, meaning that our retailers, best buy, walmart, the local surf shop, are continuing to sell large volumes of go pro cameras. The argument that demand is waning just simply isnt true. And that is sales of go pros that are 2 years old. With the introduction of hero 5, our new flagship and the fact that hero 5 can auto offload your content, your new photos and videos to the cloud, to go pro plus and now access that content on your phone and make an edit on the go, thats a new experience that is not possible with hero 4 and older go pros, so we expect our existing community and new customers to be really excited about what we have got for them. So, nick, explain to me about what i get when i buy this karma. Do i get a new camera . Can i use my old go pro im happy with and fit it on this camera . And what if any clearances do i need from the faa or anybody else to be able to use and operate this device in urban areas, particularly . Sure. So karma is 799. And it is for the drone, the removable stabilizer, the grip, the controller, and everything you need to use karma in a backpack that you can wear during almost any activity, that package without a camera is 799. If you want to bundle it with a hero 5 camera, hero 5 session bundle is 999 and hero 5 black bundle is 1,999. There is a ton of value there for the consumer. Karma is compatible with hero 4 cameras. If you own either of those cameras, it will cost you only 799. In terms of consumers being able to fly, there are safety regulations that consumers need to abide by and professionals can fly if they have a license, it is straightforward and i think consumers will have a great time with it. Nick, lots of new products and services. Thank you. Back to you guys. Thanks to josh and to nick woodman. Up next, a big victory for one biotech investor who nailed his call on sarepta. That stock is up 89 . Look at all 11, yes, 11 sectors on the s p 500. Reits today trading on their own as a group. Power lunch is back in two. When a moment turns romantic, why pause to take a pill . Or stop to find a bathroom . 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