Your money as power lunch starts right now welcome to power lunch. Im michelle carusocabrera. Todays gains pushing the dow positive for the month all s p 500 sectors, 11 of them now, are up. Tech financials leading the way. Energy, utilities, they are lagging. The chip space is a notable rally. Nvidia, micron, advanced micro they are up. Im tyler mathisen. We begin with the fallout in charlottesville. President trump speaking a few moments ago condemning the violence and specifically describing hate groups like neonazis, White Supremacists and the kkk, quote, repugnant to everything we hold dear. This came after a member of his White House Council stepped down from the Group Following the protest on saturday. Eamon javers is at the white house and Kayla Tausche is in virginia eamon, you first. The president did what he was criticized three days ago for not doing on saturday. Specifically naming the kkk and neonazis as the problem over the weekend in charlottesville heres what the president said in a hastily scheduled set of remarks from the white house. Racism is evil and those who cause violence in its name are criminals and thugs, including the kkk, neonazis, White Supremacists and other hate groups that are repugnant to everything we hold dear as americans. We are a nation founded on the truth that all of us are created equal. Reporter the president s comments today came after ken frazier, ceo of merck, resigned from the White House Council heres what ken frazier said in a statement from merck our country stems from diversity, and political beliefs. As ceo of merck and as a matter of personal conscience, i feel a responsibility to take a stand against intolerance and extremism. That comment from ken frazier did not go over well with the president of the United States who responded saying the following, now that ken frazier of merck will have more time to rip off lower drug prices. The president s decision was to criticize merck and its ceo for drug prices when the he was criticizing the president for his remarks of the incident in virginia we got a statement in from ge. Heres what they are telling cnbc at this hour. Cnbc has no tolerance for hate or bigotry and strongly condemn what happened in charlottesville over the weekend ge is a proudly Inclusive Company and represents all religions, nationalities, sexual orientations and races with more than 100,000 employees in the United States, its important for ge to participate in the discussion on how to drive growth and productivity in the u. S. Therefore, jeff immelt will remain on the president ial committee on American Manufacturing while hes the chairman of ge that statement just came in. Well wait to see whether other Companies Follow ken fraziers league or jeff immelts lead in staying on the advisory council. The decision has led to a lot of ceos having to wran gel wiglh that decision. Kayla tausche is in charlottesville, virginia. Kayla . Reporter a few streets remain close, specifically the one where a car drove into a crowd and Heather Heyer died during that incident james fields will appear in court on august 25th the Business Owners say that they are open in solidarity with those who are marching against the White Supremacists here in charlottesville, an affluent, liberal college town there has been an ongoing debate over the potential removal of confederate statues. Thats ignited the altright and they see this as a symbol and they have continued to come back here Business Owners say if they continue to do that, theyll have to think of contingency plans but so farther not shaken by it and want to remain business as usual. We spoke to the chamber of commerce and here was his message to potential tourists coming to charlottesville. Two calls today of someone looking for real estate, one from maine, one from atlanta so this is a vibrant, diverse town, growing community with constructive citizenship and opportunity. Nothing has changed other than the fact we were captured for 24 hours by folks that would do us harm they did us harm in the National Images but well get over that reporter as the Charlottesville Community recovers, one question is how the student body of virginia will react when the Academic Year begins in just a matter of days back to you. Kayla, thank you very much. Business has been one of the president s biggest support groups is trump at risk of losing some of that support or were his comments Strong Enough lets bring in a member of the American Leadership council. This is not part of the white house, we should say, and there are two things here. Youve got the business side, lower taxes, lower regulation and then you have the other stuff like this weekend. As a Business Owner who has sum ported trump, does that make you waiver in your support of him or in your agenda no, brian look, all americans condemn the violence that occurred in charlottesville on saturday. Those were heinous acts by radical extremist groups and nobody, nobody supports that behavior in fact, those perpetrators need to be tried and put in jail. That is unacceptable behavior and whack jobs like neonazis and the kkk, they are not representative of the American People and their views and beliefs should be strongly condemned. You know, all of that, of course, is very true, roddey i guess what im asking is, when you go out and say i believe in this agenda or in the president himself, after things like this weekend, you know theres going to be more heat placed on companies and individuals that say that brian, i think the president is pushing a positive economic agenda and a rising tide lifts all boats. It doesnt matter whether youre a male, female, your sexual orientation, your color. What we need is a strong economy. And you get there by lowering taxes, knocking down these crazy regulations and people will find opportunity. But youve got youve got to take some bold steps. Mr. Dowd, its michelle here. You were so strong in your statement at the top the reason why the ceo of merck stepped down from the Manufacturing Council was because he wasnt convinced that the president was Strong Enough over the weekend were you disappointed in what he did over the weekend and were you satisfied with what he did today . Well, michelle, i generally have to work on the weekends and i did see the president s remarks initial remarks i just saw the ones he made. I thought his initial remarks were very strong and forceful. So i would try to always step back a little bit. When president obama initially spoke after the dylann roof shootings in charleston at the church, his response was very measured i would argue that trumps response this past weekend, initial response, was bolder than that and, quite framnkly, think he handled the situation very well with milder initial remarks. You didnt feel the president needed to measure his remarks at all on saturday, if i hear you right . Remarks that they were bold, enforceful and the justice was going to be served he clarified his remarks today. Let me turn to another area that seems to have people in washington concerned and that is the idea that the president has had a hard time relating to members of congress, particularly to members of his own party on the hill. Hes been very critical of the speaker, mr. Ryan, and quite a number of members of his own party were at least implicitly critical to the events over the weekend. Does the fact that he has seemingly some tricky relationships with members of his own party, does that make you concerned that hes going to have a hard time pushing through his legislative agenda well, let me address the idea of congress and the president. We see a Congress Talking about lower taxes, getting rid of health care, get me the house, the white house and well get it done well, best i can tell, were in the middle of august and congress fumbled on health care and fumbled away a lot of the time most ceos, if you gave somebody a deadline for a plan and gave them eight months and they whiffed it, i think there would be a problem so, yeah, i can understand some frustration and, quite frankly, let me get away from running a Manufacturing Company and tell you what i hear at the grocery store. I live in a small, Rural Community and people come up to me and go, what in the world is going on with the congress so the president is trying to get stuff done and get stuff done that he can do but they talk about all of this stuff and they do nothing. So can you understand the frustration of the American People i do. All right. Roddey dowd, appreciate your time thank you. Tripledigit surge in the dow today. Dominic chu is on the floor of the new york stock exchange. Dom . Reporter the idea what is happening in north korea or charlottesville could have an impact on the market was not a farfetched idea but there are many traders who feel as though, yes, things are abating and calmer heads have prevailed. The s p is about 25 and the big three in terms of indices. With regard to the sector moves, it has been risk on and off and its one where we are seeing the cyclical economic sectors picking up the slack here and i would note that the best performing of the s p 500 sectors and its worth noting that the stocks have been hit hard over the past couple of weeks among amazon and other concerns if you look at proxies for risk overall, check out the names that we see all the time in terms of risk aversion and treasury note yields we saw them move lower the yields are starting to move above the treasury note. Were also looking at gold prices they are moving to the downside reverting back to where they were prior to this of course, what happened as well with the yen we saw yen strengthen on the heels of north korea and Dollar Strength overall so risk proxy certainly indicating that. Well see if it continues for the rest of the session. Back over to you. Dom, thank you very much. So is the rally back in place . Lets bring in marjorie patel and doug mckay, president and chief Investment Officer with Broadleaf Partners maggie, why dont you go first the market seems to have calmed itself over the weekend. How do you explain that and what does it tell you that we ought to be doing with our money well, any setback we have in the market is going to be small. I dont think weve seen that 10 correction that wed all like to see as investors and the economy is going to continue growing forward because the fed is going to be out of the way and that says to me its a good time to put money in. It seems like the market has been calm in terms of volatility but to lurch from one to the other, its internal white house problems and then a conflict with north korea and now its Domestic Violence and the response there, too. So is the market simply climbing that wall of worry and has that wall of worry gotten steeper or has it leveled out we havent had a correction in quite some time the reality is no one can tell you when were in a lowgrowth environment. I recently have become a kayaker and i realized the best strategy in kayaking is often not to paddle too much. Let the current or the trends carry you along the way and ignore the noise of the political gaffes and ups and downs of the economy and just let the trends, the current do much of the work i think investors would be much happier psychologically. Ive also kayaked and officially flipped the kayak over because the currents got too strong. Right. There is a story today about whether ftfs are skewing the market because past investing is pushing everybody in the same direction, down that river that youre talking about do you worry that all of this passive money coming in is going to skew us because eventually there may be a waterfall at the end of the river. Right its kind of like the pilots in a plane or the o. B. S in a birthing room. Artificial intelligence is being handled to themselves and were in a period of time where the experts are still needed and you still have to be aware but as far as the etf phenomena, ive heard that that has called the vix to be low. That may be the case but the question is what are these people going to do when volatility doesnt spike up. I heard an amazing statistic and i dont know that you can point to that being positive or negative and im talking about investing in things that have longterm sustainability and stick with the trends marjorie, if i want to be a little defensive in the market today and or i want to get income out of my investments, where would you have me look well, ironically, i think Technology Provides a lot of that we think of that as being a volatile sector but many tech names have dividend yields and very high cash flow to increase their dividends and still have a growth cycle that looks as if its going to be a few years and i think actually very counterintuitive, energy may be very interesting and its very controversial and not a wellliked sector and theres a lot of debate over whether oil prices will go down forever and whether supply and demand is coming within balance. I would say the negatives are in there. Theres room for Capital Appreciation and those names have attractive dividends. Folks, thank you very much. Thank you. Netflix snagging one of tvs most successful producers away from abc the mega multiyear deal is it going to pay off for netflix . The latest in the battle for content and talent next on power lunch. So you miss the big city . I dont miss much. Definitely not the traffic. Excuse me, doctor. The genomic data came in. Thank you. You can do that kind of analysis . Yeah, watson. I can quickly analyze millions of clinical and scientific reports to help you tailor Treatment Options for the patients genomic profile. You can do that . Even way out here . Yes. Even way out here. One of tvs most successful producer is signing a multiyear deal with netflix. Julia boorstin has the latest. Julia . Reporter well, signing Shonda Rhimes will bring their new shows to netflix while their hits will continue to air on abc. This is just the latest in a slew of big names netflix has signed, including David Letterman and the cohn brothers. After last week, disney announced its pulling films for netflix to create its own streaming service. That pushed netflix shares down 5 last week now, rick moran says that the network will continue to benefit from shondaland. It will be an important part of abc studios and we wish them all the best in this new endeavor. Theres a concern of lack of ownership over the hits, including house of cards is critical of a cover story calling netflix a hit renter, not a hit owner, warning that the stock could fall by more than half by 2020. Netflix offers creative freedom. No limits of a broadcast schedule or episode orders well have to see how that and netflixs deep pockets draws even bigger tv names. Julia, thank you. For more on what this means, lets bring in andy hargraves. What do you think of this hire does it move the needle for you and what do you think it means its a great hire i think were seeing a talent rush right now for the top 1 , call it, of writers and creators in hollywood and its good to get your fair share of that. I guess thats a positive. In the grand scheme of things, though, i dont think it means all that much for netflix. The beauty of the distribution model is because of their scale. You can dominate demand and really provide a huge channel for any supplier and find your hits rather than being forced to make them. Does it play into the explicit freedom that theyre going to have to spend a ton of money, negative Free Cash Flow as long as the eye can see, how much longer does the investor put up with that well, as long as it keeps working, we put up with it its sort of ironic in a way they criticized netflix for renting and not owning, and the negative cash flow comes from the transition of not owning you have to fund the production budgets. Theyre very quickly moving to an ownership model and what were seeing as bullish investors is that there is real value in the distribution, the scale of the demand that they are able to drive and owning that supply is a good thing. Netflix in the past has proved that they can be pretty nimble when they see industry changes coming they used to be a company that delivered cds by mail to your home and then pivoted and became the ultimate streaming competitor but now they have another, it seems to me, kind of twofront war that theyre going to fight against the content creators, whether its disney or fox or anybody else. How are they positioned and what are they going to do to fight back against those companies that arent maybe going to be as cooperative with them as they were in the past and want to own their own streaming path into the home yeah. Well, thats the advantage of the Subscriber Base that they already have the reality is, content wants to get sold its made to fetch the highest price and thats the reality of the market and netflix, by virtue of the scale that they have and the global Subscriber Base is able to pay high prices so, yes, youre going to see some people make the strategic decision to pull back content from netflix but they are also able to source globally, produce themselves and that offsets it. Will netflix have to raise prices will they have to they probably could go without but i think they will. Price increases, they have been met with outcry but have they been met with subscriber defections it doesnt seem like it the subscriber number has increased for the last five years. People are finding quite a bit of value in the service. Thanks, andy. Thanks for having me. Sti