Power lunch starts right now thank you, michelle your money just keeps pushing higher and higher. The dow and s p hitting new alltime highs tech roaring back as a top performer. Energy lag a bit loyal prices falling today overall, though, a good day for your investments and your money. Straight to bob fisani with more on why theres a monday filled with optimism again. And we are at new highs for several reasons. Lets take a look at the new high s p 500 and the Dow Jones Industrial average new highs because the breadth of the market is widening out last week, tech stocks were losers many losers on the month not anymore. Apple, alphabet, microsoft, facebook when apple is up 2. 5 , thats a huge mover for the s p 500 also, broadening several banks have been moving up in the last couple of weeks even new highs comerica and many of the trust banks like state street, northern mellon. Then industrials a whole swath of the big, big names. Illinois tool works, honeywell, 3m, caterpillar, ingersolrand you have aerospace, boeing, lockheed and raytheon. Whats the story here . Last week the story was about rotation seeing money going into banks and transports and small caps. And money was generally going out of tech and consume are discretionary health care was strong today, slightly different story. Money still going into banks in the small caps but the tech stocks are moving as well. You get those big Leadership Groups in tech and health care strong, you start dragging in other sectors like bank and transports now a really powerful rally. And we have one bob, thank you from wall street to washington, many of the Top Technology ceos meeting at the white house right now. Modernizing the Governments Technology infrastructure. Kayla tausche is at the white house with more. Reporter its a little bit of a tense relationship between technology and the white house the industry in many of the companies here today have been critical of the white houses domestic policies but theyr big vendors to the government. They sell a lot of their services to the administration and that is what theyre going to be discussing today we saw many of those leaders walking in for this meeting that is expected to get under way the leaders of alphabet, ibm, microsoft, akamai, adobe, qualcomm the list goes on many would not say anything when i asked them what they hoped to get out of the meeting and what roles their company could play in shaping those the ceos of mastercard said they were looking forward to the discussion on cybersecurity. They specifically acknowledged that, yes, his company does a ton of business with the u. S. Government they are hoping to advance the governments move to the cloud and to secure much of its data but when i asked him about this discord between the west coast, between technology and the Trump Administration and his assessment of the white house so far, heres what he said overall, were excited to engage were looking forward to the progress we can make and, obviously, from maybe a bit of concerns to start with. Me and many of my fellow tech ceos are here to do a great job today. Are those concerns gone i think were excited to be here today and do a great job moving it forward. In addition to modernizing the government, there is one topic thats slightly off pieced and thats immigration reform. That issue near n dear to these companies and the white houses office thats putting on todays meetings acknowledge that was an olive branch that brought a lot of these companies to the table. Thank you, kayla. Lets bring in susie welch to discuss what this may mean good to have you here, as always the timing of this they planned this before the announcement of amazon buying whole foods. But that serves as, you know, this big flashing red light. This is a company that donald trump had already criticized when he was on the campaign trail. And it speaks to this bigger issue we hear more and more of are the companies in that room today at the whourks are they too powerful is that going to be one of the topics of conversation today no, i dont think its that i think donald trump is most t comfortable in these meetings with businesspeople. Now the ceos who are there, they know theyre going to hear about it from their employees. Theres going to be some noise about them going and sitting down with donald trump i think that its not hes not going to be criticizing them he needs all the friends he can get right now. Since he loves business, this is going to be more of a conciliatory session they want business from the government this is an administration we all can agree likes their friends and perhaps does not like the opposite of friends if you are a ceo and you publicly disagree with the president , or privately disagree, do you you have to be in that room, dont you you only have to be in that room today because it means revenue dollars for you. Think about thegovernment i not like an episode of homeland with hightech computers. Probably only Homeland Security has this grade imagine the legacy system upon legacy system of the computers in all different bureaucratic parts of washington. These companies are in the room because they want a piece of that action. Thats it. They have to be there for that alone. Can we talk about amazon and whole foods and whether they are going to be we have a woman coming up later who says they have too much power. They shouldnt be regulated as a retailer they should be regulated as a common carrier like the railroads during the gildedainigild eed age i dont think we even know what amazon is going to become are they the big store in the sky . When are they going to go into cars so that youd buy your car what are you not going to buy on amazon . They are getting very mackey long before they became a part of amazon said groceries were going to be amazons waterloo and and yet you sold to them. Wanted the synergies and wanted to keep his job, which he did. I thought the regulators may sniff around this and people push back and said its the retail, retail i want to be clear my issue is not with amazons retail you have a new German Company opening up its not groceries its their data. Their knowledge. They own Amazon Web Services they may be running some of the same cloudbased computing systems for the companies they are now going to compete against in grocery we dont know who is all hosted. So i wonder if the Government Plus the washington post, thats jeff bezos personal thing, but i doubt many people could separate them. I dont think in this administration regulators are going to be sniffing around. Thats one thing that jeff bezos in the dark of night has to be happy about with the Trump Administration is that i think in any other kind of in the democratic administration, they would have to be really worried about regulators this is the one time they can grow like crazy without get that would mean separating what Everybody Loves to call deep state now turkish politics from 50 years ago versus what donald trump candidate donald trump said while he was running theres been a lot of differences between what candidate donald trump said. One thing thats very clear is they are from actions that have been taken is that regulations are being diminished and ive talked to Business People who have said its a whole different world out there now. Theyve been moving faster and theres fewer regulators who are clamping down on them. That might explain why we see what the averages are doing. A lot of people will say, why did stocks keep rising when it looks like tax reform is problematic at this point, that they cant get things through. If you even just stop regulations, if you so under President Trump versus what would have been president clinton, we know that regulations would have gone up and a lot. And i think thats why the averages are moving. Theres an environment in Small Business especially but in all types of business that the that theres more possibility that i was just talking actually to somebody who is in a very new space which is Food Technology and there used to be a ton of regulations around creating food and meet in test tubes they used to fear the regulators enormously and now they feel like its a whole new beginning for them because theyll be able to move forward much more rapidly. Thats happening in a thousand different ways and industries. The economy is an upward spiral right now it seems that way. More jobs. More spending. More productivity. But earnings are good as well. Not taking anything away from the administration earnings are pretty good when you look at it and talk to jack. What do you see as the biggest risk whats your fear you sit around the dinner table. Heres what im worried about. Well, it could all come to a streeching halt with the midterm elections and the balance of power you think politics have that much pow over us now its a sad statement. We could go into a stalemate and there could be no movement in any direction government could sort of shut down if theres not a majority and a lot of and i think the scarier thing or bigger geopolitical things because suddenly there could be the rise of, you know, say we had a month in the United States like londons just had. Say new york had a month like that that could significantly change things in terms of the uncertainty. A freeze on retail and spending and Everything Else entertainment industry. Thank you, suzy are you sticking around . I dont think so. You dont want to hang out with us . Well discuss it during the break. We liked you until just now i am staying. There is news outside of d. C. The Worlds Largest air show under way just outside of paris. This is where all the big deals in aviation are made, and boeing already making some deals and headlines. Phil lebeau in paris, or outside of it, with the latest a lot of those deals revolving around the 737 primarily. They introduced a new version of that thats on the commercial side. But today the defense contractors, they took center stage here why . Check this out this is the f35 built by Lockheed Martin soaring over the Paris Air Show the first time weve had a chance to see the f35 flying over an International Air show outside the United States. It also comes at a day when Lockheed Martin is negotiating a 37 billion sale of more f35s to 11 countries. Heres the ceo talking earlier today about the increased interest in the f35 we have Nine International partners eight International Partners plus the u. S nine of us that put money in the front end and invested it. Thats how important the aircraft is. And Foreign Military sales and flind and belgium and germany all expressed interest, and there are others lining up were very excited theres another reason why marillyn and lockheed shareholders are excited look at lmt hitting an alltime high today and the f35, Rockwell Collins builds the hightech helimess t helmets the pilots in the f35 use. He spoke about the demand. He said were busier than ever more discussions and conversations with potential clients. The ceo says it all goes back to the Trump DefenseBudget Proposal of an increase of 10 it is really business defense business is improving, particularly the u. S. Government business and so were very busy with new opportunities. And i feel really good about our positions in the defense market. Rockwell collins, like the other defense stocks today, also moving higher. Guys, the bottom line is this. Typically we see most of the headlines generated by commercial airplane orders here in paris this year, because of so much greater spending on military budgets, its with the defense contractors. Back to you. All right phil, thank you very much. Well, there is a lot more still to come on the program as the reverberations from the amazon whole foods deal continue to grab headlines. Well talk about what retailers may be the most at risk and whether amazon is indeed getting too powerful plus, robots, jobs and the future of manufacturing in america. Time warner making a big investment in snapchat and the interview you dont want to miss tonight, jim cramer ttg wn wsiindoith Lloyd Blankfein tonight on mad money. 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Courtney reagan has this story amazon has fundamentally changed cloud computing, video content and much more. One area it hasnt figured out is grocery despite a decade of experimenting in various markets. Still any company that sells food sold off on the news of amazons purchase of whole foods on friday. Amazons competitive forces, scale and efficiencies push prices lower at some point if not immediately, when it becomes a competitor in almost any industry grocery already has razor thin margins and lately has seen a period of extended deflation amazons entrance is the Biggest Issue for smaller regional grocery and food manufacturers that cannot fight back with the same might analysts are split, though, on how and if it will hurt retailers like costco and target where grocery is a piece of what they do. Walmart is the largest u. S. Grocer it serves a very different shopper and has had success with Online Grocery ordering. If amazon can push prices low enough at whole foods to entice a walmart shopper in areas where both have locations and offers online ordering and figures out fast, free delivery, watch out everyone the biggest problem for retail is if and how amazon uses the new 460 whole foods stores as additional fulfillment or pickup centers. That puts amazon that much closer to your front door and that is what the retailer should that last mile. That last mile. Theyve got the remnants of what was web van way back when back during the dotcom bubble. I remember the photos of all the refrigerated trucks. They were going to deliver groceries back then. Theyve been thinking about this for a long time. Bezos learned a lot from whatever happened or didnt happen theyve been experiment with amazon fresh theyve looked at it in london Online Grocery delivery is really hard. Nobody wants to pay for it you dont want to pay for that convenience because amazon got us used to not paying for that its very expensive to have a fleet of refrigerated trucks the logistics of ordering and knowing exactly when youre going to be home if someone can figure it out dont they have a deal with instacart already . I would imagine instacart has lawyered up trying to fig are out, hey, we still have a deal here a lot of the folks i spoke to are aware of the insta cart but its prohibitive to them folks shopping at whole foods are very concerned about quality and they also want to feel their own fruit. They want to pick out their own meat that sounds silly i think fresh direct solved that but Online Grocery is only 2 of the total grocery market. There are a number of things maybe amazon bought whole foods because they realize people dont want to buy groceries online as much walmart has had a lot of success. So they can feel their own fruit. Exactly and it does help some that sounds so weird. Why is it weird when i say it but not weird when she says it yes it is courtney, stay right there. Lets bring in patrick, the senior Equity Analyst with mkm partners he thinks target and others could be getting hit and this deal could spell trouble for them patrick, welcome back. Who do you the market sold off everybody on friday because theyre afraid theyll get, quote, amazond themselves youve had a few days to think about it who may be most at risk to this newfound partnership, assuming this is ultimately consummated hi, brian just sticking within my coverage university, ive got walmart, target, the Dollar Stores and a bunch of others. Within my coverage id say target is probably the most vulnerable and that was the stock that got hit the hardest on friday. Just got whacked what is it about target that makes them vulnerable . Courtney has reported correct me if im wrong 12 of the last 16 executives have left over the last 12 years what makes them so vulnerable what makes first of all, its certainly not as big of a business as it is for walmart. Its 21 of targets business. Its 55 plus of walmarts business so grocery is not as important to target, but it is a traffic driver its an area theyve been struggling in. They are trying to fix it, and theyve been bringing in more organics, more better for you. More fresh trying to improve their fresh assortment so thats and also they have a customer that lines up nicely with that core or with that amazon prime customer. Those are the key vulnerabilities here for target. Based on what you said, id think walmart would be the most vulnerable considering what a large percentage grocery is. And im assuming that amazon is going to make prices cheaper than they already are when it comes to the grocery aisle walmart has been doing a better job in perishable food. It looks better. Its fresher theyve been