tv Power Lunch CNBC August 8, 2017 1:00pm-3:00pm EDT
i don't think the president's performance has much to do with the way the stock market valuation is today certainly, 200,000 jobs per month is nothing to write home about. 20 years ago, we were getting 1 million, 600,000, 400,000, month after month with the population much smaller job creation is still very weak by historical standards. >> jeffrey, great to have you on really appreciate it >> thank you, judge. >> you got it. "power lunch" anyonbegins nw jpmorgan's ceo, jamie dimon, pounding the table, america needs to fix its broken tax system, its broken roads and the broken process in washington we'll break down his ex clue interview. google fires the engineer that penned that diversity memo. should they have canned him?
is there freedom of speech when you work for a big company not. we'll debate the profits go to pot quite literally. cnbc's marcus limonus goes inside california's market he is going to give us a sneak peek power lunch starts right now welcome, everybody, to "power lunch." i'm tyler mathisen i am never disappointed when jeff done lunlop is on ""fasfas" one more time, the dow is at record, 22,135 on the verge of an 11-day win streak and potentially its tenth straight record close. the s&p 500 joining the party. record interday high there up
three points or .14% check out some movers. fibrogen, up 50% and on pace for its best daily performance ever, overwhelmingly positive clinical data on its lung fibrosis drug flip side, dean20% meanwhile, chipotle, lowest level in four years at 336.50. trouble more for chipotle. brian? >> hey, tyler, i'm brian sullivan in kenosha, wisconsin. we are here for one reason there is no state that delivered the presidency to donald j. trump more than wisconsin did. there is perhaps no county or town that delivered wisconsin, that delivered the white house more nan kenosha 200 days into the
administration, we wanted to come here to a manufacturing facility in a manufacturing hub in a town that went for trump to find out if they are happy, what they still want to see get done and if the agenda is on track. where is the american economy headed wisconsin has a pretty good success story. we have a couple of ceos and you'll meet some millennials that are getting into manufacturing. they want to work and learn a trade. we always hear people are sitting on somebody's couch. these men and women are spending time learning machinery and manufacturing. they are proud of it we have a big show coming up in the badger state for the next couple of hours. >> we can see all the activity right behind you as we mentioned in the open, marc marcus limonus is here with us he will take us into the
sophisticated highly business of pot. >> it was an interesting experience i still don't know where i land. i will let you know tonight. >> cool. we're looking forward to it. our top story. america's banker, jpmorgan ceo, jamie dimon going one-on-one with our wilford frost our infrastructure is broken, the headline >> jamie dimon announcing that jpmorgan is making a significant investment in this robotics technician apprenticeship program in chicago's south side. >> i don't want to blame any one person half the kid in an inner city school do not graduate that's a disgrace. a lot of kids who do graduate both high schools, vocational schools and community colleges, they should have a livelihood when they get out. >> he would like the economy to
deliver those jobs on its own but at the moment that's not happening. >> what's embarrassing to me is our inability to get infrastructure done properly we haven't built a major airport in 20 years. china has done 75 in the last ten years. i mentioned education. we don't have a competitive tax system i trail around the world and meet presidents and prime ministers. everybody knows they need a healthy business environment to create jobs and wages and to have that, you need a competitive tax system our taxes are becoming less competitive over the last 20 years. everybody has improved theirs. we simply haven't. >> the other key takeaways, guys, he won't call it a bond market bubble but he would not buy ten-year government debt anywhere in the world right now. he said that wall street beats silicon valley when it comes to gender equality. jpmorgan has more work to do in terms of racial equality at the
company itself today jpmorgan's stock price hitting a record all-time high >> wall street is a lot older than silicon valley. i remember but maybe you don't if you worked at merrill lynch, you were probably irish catholic and if you worked at goldman sachs, you were jewish and if you worked at morgan stanley, you were white, protestant catholic that's probably not true anymore. >> very, very significant context, michelle. i quite agree. jamie there talking about jpmorgan itself, saying 3 of 9 of the executive committee are women. over 30% of his direct reports are. admitting there is more work to be done on that for him too. >> did you want to say something? >> no. this movement towards racial equality shouldn't be such a hot topic. it should be a topic every day it shouldn't be today's topic. i am still confused on why we
aren't making it a bigger priority from the beginning as opposed to after the fact. >> what do you do in your companies and where do you stand on racial and gender diversity >> i don't think about it a lot. we hire great people we look for more females than males by design. i happen to believe that fee mea females are better in a sales oriented position. i don't want to hire specifically people because of who they are or what they look like i want to find qualified people and foster their talent. >> wilford frost, if you are still there with us in chicago, we will be discussing your interview with jamie dimon from the big picture and the markets and another day of record highs for the dow and s&p 500, a short while ago, jeff gundlach, ceo of doubleline capital, told "halftime report" that he thinks the market rally could take a pause
>> i believe the market will drop 3% at a minimum sometime between now and december from what's now a grindingly higher level. >> let's bring in margaret portrano how are you? >> i'm good. how are you? >> i'm going to raise your seat there after a little while if i can. i feel like i'm towering over you. what do you think of what jeff gundlach just said i don't think many would be surprised if we took a 3% breather >> i think it is clear we are in the later stages of an economic cycle. before you batten down the hatches, we can be in the later stages of an economic cycle for several years. s&p fundamentals were okay one of the other things that jeff said was he doesn't see any signs of an economic slow. it wouldn't be surprising to see
some volatility. >> let me ask you tactically two questions. what is your average holding period for a stock i ask that in the context of what he did say there, which is i'm beginning to move to derisk in those areas that have gone up the most are you doing any of that? >> two questions our average holding period is several years. we are long-term investors. we have also been pivoting the portfolio a little more defensively. i see large cap growth intact. many of the megacap tech names, it is hard to argue they are inexpensive. we have been looking a little bit lower for names that offer good value and good growth >> of your top five holdings, the biggest holding, nearly 5%, is amazon.com. have you been lightening up or are you sticking with that >> we have sold amazon, trimmed
amazon four times in the last two years. >> and not added. >> and not added >> but you can't help yourself >> it is hard to argue that amazon is undervalued. a terrific business and a terrific company you have large cap growth managers that 70% of large cap growth managers avoid the fang >> i want to get a little more clarity. you said it is clear we are at the back half of the economic downturn give me some substance behind that i don't want just a feeling. >> you are starting to see signs that productivity is rolling over you are starting to see a consumer that is now spending less they are saving less but also spending less. >> where are we seeing them spend less >> in general. >> where specifically? you are seeing it in retail? >> you are seeing it in retail you are seeing the consumer using their savings to pay off their credit to pay off your normal day to day costs. health care costs have risen >> they are buying fewer cars. >> they are buying fewer new
cars >> new cars. the manufacturers aren't subsidizing as well. >> what a wonderful problem to have with amazon you are trying to trim it. it still ends up being a bigger portion of your portfolio. it goes up more than you trim. i wish my holdings had that problem. >> being a little bit more defensive has not worked to our advantage. the top megacap stocks have outperformed the market. we are not as overweight as some of our peers my hope is being a little more defensive will pay off over the next few years >> we have talked in recent weeks about the future of media. a couple of your holdings happens to be our parent company, comcast you also have a big holding in disney, which will report later today. how do you think about the future of television, cable, media delivery as you evaluate these stocks >> first and foremost, think about consumer discretionary if you have an option of owning and being long on traditional
retail or media. i would argue that media, despite the transition problems, it is a more defensive place to be as you think about the media space over the next couple years, it is clear that folks are watching more content. that is proven and factual what's less clear is how they are going to watch it? >> how and where >> the business model question is, do all the media companies continue to make money when folks are watching a mishmosh of traditional cable bundles, online streaming and sports packages and how do they adjust their cost structure the nice thing about a comcast is that they have some diversification. they have content and the cable business they have the broadband business if consumption really does shift to over the top, they have a hedge against that >> disney has a lot of different lines of business too. >> we have to leave it there, margaret thanks come back. we'll get you a higher seat. google has fired the
employee behind the controversial memo on gender josh lipton joins us with more >> google's ceo didn't pull any punches. he wrote a memo to employees blasting james derori, the reported author of that divisive memo he said the engineer had violated the company's code of conduct. that says googlers are expected to do their jut most to create a workplace culture that is free of harassment, bias and unlawful discrimination he supports the right of employees to express themselves. he believes he violated that code whether he wrote that memo. remember, he argued that innate differences between the sexes could, in part, explain the lack of women working in tech even before the firing, a former senior googler said he thought he should have been escorted out of the building by security. others disagree, though. he also argued in the memo that google alienated its
conservative employees commentators on the right have come to his defense. rich lowery said it is one thing to disagree with the memo and it is another ning to beliething te views therein should be forbidden. with us is danielle cambia s she advises women of color in tech were they right to fire him? >> absolutely. i think it send a very important message. silicon valley is a small place. with all the focus on gender and diversity, i think google needed to send a clear message to the tech community >> i bet if he had written a memo saying these are all the reasons why women would be superior engineers and tech workers, he would have been lauded, right?
ten pages of that, people would have thought it was great and he was standing up for great things, right? >> i think that's not likely although, that would have been great. >> it would have been okay to express that opinion but not this opinion >> i don't think so. we are working toward being a more progressive and inclusive society and we need to focus on equality people of all backgrounds have equal opportunity and equal abilities to excess in any field. >> marcus said earlier, he hires women for sales because they are more empathetic and better listeners. if you say that, why can't you say women maybe aren't as good as engineers >> here is my issue. in this case, equality and diversity should be a constant my problem with this gentleman is that he used the voice box of the company and the company's access to people to have an opinion that is not authorized
by the company and the company chooses to engage in or not engage in any sort of view unless it is coming from there that is my issue >> very fair point there is no freedom of speech for corporations these are dictatorships. >> not on the company's memo >> however, he does raise this issue of gender differences and why they exist you acknowledge they exist when you think women have specific characteristics. let me ask you this. you can see the numbers at google this is the tech breakdown 80%, men, 20%, women 39% asian, 53% white, 1% black, 3% hispanic. those are pretty incredible. look at what women get degrees in top ten master's degrees for women, mba, education, social work, elementary education, curriculum and instruction, educational leadership, special education, counselor education,
nursing, reading, tech and teacher education. >> mba was number one. >> look at the men mba, number one, then, electrical engineering, education leadership, business/commerce, education, accounting, public administration, computer science, mechanical engineering, computer and information services if google wants to fix this, it is too late at this point. all these people have already graduated with degrees that are not applicable to google >> it's not too late you do have an issue with the pipeline problem that's absolutely true as someone who works with women in tech and women who are entrepreneurs, what i hear from women is that through the entire education process, both undergraduate and master's, women are weeded out you have a lot of harassment you are one of the few people in your class you are bullied. so it's not a great environment for women to stay in it is not that women aren't
interested in these fields they are weeded out. >> weeded out because why? they self-select out did this happen to you >> it is a combination i would say it is a combination. one of the things that you see now, there are so many programs where women can learn to code. women and people of color can learn to code at any age you see a resurgence of women going back, getting training and realizing they can align tech with whatever field they are already in and find their way into positions you are seeing a lot of coding boot camps, carly klaus has a great one. there are a lot of fantastic opportunities like that. >> so often the things that you study in school don't necessarily translate to what you do in your career. >> i'm a live can example of that let me come in here. this individual who wrote the memo didn't get into trouble because he talked about the pipeline that feeds into google
and that there are obviously not as many electrical engineers, women are not choosing electrical engineering root and they are getting higher degrees in other things. he pointed to what, as i understand it, what he thought were innate differences in men and women that led men to be superior in the fields that google does business >> i would say that's a lack of education. there are women who are responsible for creating computer coding. so there have been women all throughout the history of coding and computers and tech but when you look at the picture of the founders of apple, they are actually women there but they are cropped out. i think you see that all throughout there is a lock of women as part of the narrative of tech and silicon valley i think that's a big part of the
problem. men have the impression women haven't been a part of creating it >> is there a system discrimination issue in silicon valley >> why are you limiting it to silicon valley >> that's what we are talking about, google and silicon valley there can be systemic discrimination in lots of fields specifically, silicon valley, which you are familiar with, do you think there is that? >> absolutely, absolutely. there is a bro culture i should qualify by saying i have also worked on wall street. there is a bro culture on wall street any challenging field, you are going to have a bit of a boys club it is fair to say it is there. >> i know the control room wants to kill me i think one of his complaints was that constantly the message is given that it is 100% discrimination, the reason why we don't see more diversity in
various -- whether it is technology or others it can't be 100% >> i think it is systemic. we talk about these things a lot. people feel like because we are talking about it, we fix these issues the reality is that it takes time to implement these changes and have them roll through companies. the percentage of women, you read off at the beginning of the segment how many women are actually represented in these companies. it is small. it was what an average of 20%. until you have 50%, these changes haven't actually been implemented. >> thank you, daniel >> come back >> thank you, i will straight ahead, the profit, marcus lemonis, he is here and take your questions. please tweet them to us using
the #asktheprofit. made in america, brian is live in kenosha, wisconsin the president won the election by flipping pennsylvania, michigan and wisconsin. he did that by promising to bring manufacturing jobs back to pennsylvania, michigan and wisconsin. he doesn't make manufacturing jobs the people at facilities like this do. we came to the source to find out how things are going 200 ys in. that's coming up when "power lunch" returns on mi came across this housentry with water dripping from the ceiling. you never know when something like this will happen. so let the geico insurance agency help you with homeowners insurance and protect yourself from things like fire, theft, or in this case, water damage. cannonball! now if i had to guess, i'd say somewhere upstairs there's a broken pipe. let the geico insurance agency help you
i'm brian sullivan if you look at the election, you can point it three states giving donald trump the white house, pennsylvania, wisconsin and michigan wisconsin flipped 22 counties. kenosha and racine probably delivered the state that delivered the presidency to donald trump that's why we are here in the promise of manufacturing jobs. we are very honored to be hosted by kendall corporation, which is where we are jim hawkins is the ceo and president.
it was founded by his family thank you for having cnbc here when the president says to america, i'm going to bring manufacturing jobs back to the united states and you have been a manufacturer in the united states for more than 50 years, what do you think? do you think government can do that or do you do that >> well, i think government can help do that i think he has do that with negotiating with foreign countries and working with them. quite honestly, very early in the administration i don't think any of these programs have made an impact yet. i think more of the state-level programs are making a bigger impact >> we haven't seen much happen obviously. congress hasn't really changed up we have had some executive orders which have tried to roll back federal regulations as a manufacturing owner of an environment tally sensitive product. you make industrial lighting, have you felt the benefit of any of the changes from a federal level? >> we're only six months into
this, eight months into the presidency it is very early things in washington take years and years and years for us to feel them. i think what we're feeling more is the local issues as far as employment and job shortages >> the president may be watching right now. here is your chance as a manufacturing ceo with nearly 700 employees, men and women that count on you to put food on the table, pay their mortgages and send their kid to school, what would you like to see d.c. get done >> as far as washington, it would be a great help if we had immigration reform we need more workers tax reform and also deregulation the best thing for us at this company would be infrastructure legislation. we could get them to moving and building things again. >> marcus lemonis is going to
jump in. there is a gander mountain just down the road. we need more roads and more bridges and more schools and houses i know you have a question for jim as well. >> i want to go back for just a second when you look at wisconsin i went to marquette. i live about 10 miles from jim's plant. when you look at wisconsin and you look at kenall to be specific, they are building products that in my opinion have sustainability, because they are in the health care space there are other manufacturing companies inside of wisconsin, davidson being one of them, that are going to be subjected to other things my question for you, jim, is that if you weren't in a business that is largely supported by the growth of health care and the building of hospitals, what other manufacturing business in wisconsin do you think is under attack and how would the things that you wanted to change, immigration, tax reform, deregulation, how would those things actually help that
specific business? >> i think the businesses that are under attack are not embracing technology and not moving along with the change to an automated society anybody that is sticking their head in the sand, they are going to have issues and the products are going to eventually become obsolete >> when you speak about auto make mags, y automation, you are not speaking about job elimination? >> i think that is going to supplement jobs and make our jobs better paying jobs. as we auto mate, mate, we are g need more and more people to work and service those machines. >> there was 6.16 million open jobs in america. i think it is the most ever. there are a lot of open jobs now, you might have foxcon coming in with a couple thousand more workers, amazon is two miles up the road.
do you fear foxcon from a labor perspective? can you find workers now >> any growth in the region is good for everybody,ible. it is good for the state and the country. there is a strain on our labor force. there is a skilled labor shortage in the region, in the state and throughout the country that needs to be addressed we can not find skilled, qualified labor. >> specially if foxkrcon comes n with state or federal subsidies and they are able to unlevel the playing field by changing the wage game. wisconsin isn't as populated as some of the other manufacturing states there is going to be a wage game people will jump jobs for $2, $3 an hour. will a company like foxcon have that unlevel playing field for them is the state of wisconsin going to help propel that? >> isn't that a game you have to
play to marcus' point. governor scott walker is going to join us a lot of people have been critical of the manufacturing and agriculture tax credit that a lot of manufacturers get here. they call it corporate welfare you recently moved from illinois to wisconsin you have kept jobs in the united states you could easily be in china or mexico is our tax credits fair? >> i believe that the incentives that wisconsin has placed for manufacturing, coming into the state, are well thought out. i believe that the greatest economic benefit goes back to the state. when you have businesses move in here, the multiplier effect on the economy is dramatic. >> hey, jim, it is a real pleasure thank you for having cnbc at your facility. we have much more coming up out in kenosha, wisconsin. i believe you guys are actually
neighbors in a way you should get together and talk about this on a weekend. >> all right thanks very much we'll check back in a little bit. check out shares of michael kors, ralph lauren and wayfair we will break it all down. in a doughnut. right away, it was a success. i mean, it really took off. what people don't know is that it all started with points from my chase ink card. i bought the ingredients, utensils, even custom donut cutters. wow! all with 80,000 points. what will you create with your points? learn more about the ink business preferred card.
north korea has successfully produced a miniaturized nuclear warhead that can fit inside its missiles, crossing a key fle threshold to becoming a nuclear power. jacob zuma surviving a parliament after growing anger over alleged corruption and no growing economy. mazda says it is aiming to make autonomous driving technology standard by 2025 it plans to launch a new engine in 2019 to be called sky active "x." mazda says it will be the first commercial gasoline engine to use compression ignition jury selection has been completed in taylor swift's civil trial involving a groping allegation against a former disc jockey both swift and the d.j. are suing each other over the alleged incident that is the cnbc news update
there he is, the profit, back with a new episode at 10:00 p.m. eastern in this special, he talks about businesses moving in to cash in on the coming legalization of recreational marijuana here is a clip >> reporter: i've never smoked pot. in fact, i had never even seen pot. i walked into kendesa and suddenly found myself surrounded by it. >> very fragrant how much inventory is in this room >> we want to get to 65 pounds of dried flour per harvest we harvest every 10 days >> 65 pounds >> reporter: so $195,000 >> we are pulling down a room every ten days and it runs at $165,000 a month >> reporter: it is a great business joining us now to dive deeper into california marijuana
industry is andrew freedman, the former directory of marijuana coordination for the state of colorado and now leads a consulting firm that works with governments, communities and private businesses on legalizing marijuana. thank you, andrew. how are you? >> my pleasure i am doing great >> i don't mean to hit you hard but i travel to colorado oveften i was fascinated to see if the money really flowed through the streets in colorado. walk me through why the level of homelessness and accidents and crime has actually exploded in colorado when everybody is telling me the market is changed and there is money everywhere. >> i would say the rumors of colorado's demise are greatly exaggerated. the homelessness population has been going up over time. most homeless experts believe that is more of a function of the fact that denver's economy has gotten really hot and we didn't grow affordable housing at the same time as that >> what does that have to do
with homelessness? >> so then people come to get jobs in denver they can't find jobs that pay enough money to key a rent and they fall into homelessness. that's the most typical function of homelessness. >> go ahead. i'm sorry. >> as far as highway safety goes, i think there are troubling trend lines with driving while high it is important to note that our roads are historically as safe as ever in colorado. so it is something to keep an eye on but it is not something to get hyper bolbolic about. >> i want to get a snapshot of the commercial things. what's happened in the denver metro area >> commercial real estate in colorado for the last decade has gotten hotter and hotter marijuana is a part of that puzzle, particularly where house space in the south of denver, the north of denver, in neighborhoods where large wearhouse spaces are going
directly towards marijuana grows. you are the former director. what are you doing today are you consulting >> yes we consult mainly for governments and for ancillary businesses that we believe add compliance and safety into the industry >> have you been to california lately is there any advice you would give to california residents or california business owners on lessons learned when marijuana became legal in denver what would you tell them >> i have been to sacramento a few times over the last month. i think the state officials and the local officials are communicating very well on this so far as far as an individual goes, i think it is important to know that your voice needs to be heard on this part almost every local government i know are holding community listening sessions about how this should look in your neighborhood once it is set, it is going to have its own momentum. now is the time to weigh in with your voice if you are a small business owner, there is going to be a number of ways that this can interact with your business.
the first is, are you going to change your drug policy if you happen to have somebody that tests high for marijuana but isn't coming into work high, is that something you want to let go are you going to service the marijuana industry knowing that there is some legal risk to that if you are a nonprofit, are you going to accept marijuana dollars coming in? >> thank you for joining us, i appreciate if. >> my pleasure >> for more, watch my show tonight, "marijuana millions" on tonight at 10:00, eastern and pacific. >> can't wait. >> me too. >> it was fun. >> did you smoke pot >> no. >> i was going to ask you. on most of your profits, you have sampled the products whether it is a baked good or a beverage >> when i used to go to concerts with friends of mine, they would point out people that were smoking marijuana. after spending 2 1/2 weeks in different environments, i can go
anywhere and smell anybody and say, marijuana smoker. >> you and i have had very confiding conversations about this over the years. would you tell us now where you come down on this, whether you favor legalization for recreational use or not? >> i learned a lot about the benefits of medical marijuana. in terms of recreational use, i can't get there. i can't get there from an investment standpoint. when i am hearing 30% returns, i still can't get there. >> we are going to come back and talk more. flight delays, lost luggage, getting bumped, a new report card on what it is really like to fly right now it may surprise you. america's manufacturing, brian is in kenosha, wisconsin >> reporter: to understand why people think and vote the way they do, you have to understand their history. this is the history of old
manufacturing is dirty and millennials are lazy those are two myths that we set out to expose the falsehood of when we sat down with four students at gateway technical college and asked them what they think about the country, manufacturing and the future of america. one of them began by explaining the conception of manufacturing is all wrong >> everybody thinks manufacturing is unskilled, dark and dirty but what they don't realize is that most manufacturing needs skilled jobs >> do you feel like there is a real gross misconception out there about what having a manufacturing job is >> i think there still is a stigma about manufacturing i had the same misconceptions as
well being a process engineer at kennel, i can see there is way pore that goes into designing or manufacturing product. >> reporter: when you said to your folks, your friends, i want to go do this, what did they say? >> well, i think a lot of them were surprised, because they just weren't informed correctly on what the program was. they thought, oh, you are just going to get a factory job there are so many more opportunities available than that for example, i'm interested in design so that could be from the beginning stages of computer design and solid work all the way to the finished product with packaging and shipment >> there are plenty of 22-year-old liberal arts college graduates who cannot get a job do you ever worry about having a job? >> not anymore specially looking into the future, i think there is more need for skilled workers >> reporter: do you get job offers >> yes >> reporter: multiple job offers >> yes, multiple job offers to the point where there are companies trying to bate you in.
>> reporter: what do you hope to make in ten years? what do you think you can realistically earn a year? >> not out of the realm of reality to make six figures. >> reporter: doing manufacturing? >> doing manufacturing >> working your way up it is surprising how close most people are in manufacturing to making six figures >> reporter: walt, are you optimistic about america >> yes, i am i think the manufacturing industry is going to take a new turn moving forward. i know another revolution and i think all of us are going to be in that industry >> reporter: do you like what's happening in washington, d.c.? >> i do. i feel like a lot of manufacturing is going back to america where it wasn't before everybody wanted to go overseas where it was cheap and now they are realizing you actually need skilled workers, which you can find right here in america in wisconsin. >> what i liked about that as well, not only are you dispelling a couple of myths i learned a lot about how
complicated some forms of manufacturing are. kyle took him two years to learn how to build this and make and run this one machine which makes custom parts these are xcomplicated jobs they are well-paying jobs. everybody on that panel had hads multiple jobs offered. these are 22 or 21 years o ld m men and women are going to make 100 grand a year they're the ones that went to provocational schools. that makes me optimistic >> bry >> brian, thank you very much. social media has been a place for air travelers to go to vent their anger now, jet blue is trying to take a bold step to reinvent the aiinrle's commerustomer service we know it we'll hear from it next. don't move
ingesting investing in its start up across all multiple platforms such as phones and texts and e-mails and facebook and messages. lets bring in our joseph -- i hope i pronounce your name correctly. >> that's preferfect >> explain what the product would be a ticket agent at jet blue terminals in kennedy when my flight has been delayed or canc cancelled. how would they use it. >> joseph ansanelli. jet blue is trying to solve two problems the focus is on the support team two things, they want to figure out how to drive-in novations
around knowing how you are as a customer imagine you send an e-mail one day and you pick up the phone the next day, the person on the phone sees the whole history and communication in a single place. do they know what was said in those conversations. lets say i have an e-mail chain, do they pull the whole thing or see my search history when i go on jetblue.com and what do they learn from that? do they learn that i am a pain in the rear or learn that i am a frequent business class customer and i ought to get special treatments what do they learn >> great customer service is about demonstrating and knowing our individual situations. lets say you are traveling for a big family event and they can make a note and say this person is traveling for a wedding or you earned a business trip of your points. the idea is they're crew members. the more they know of who you are, they can deliver and surprising and delight you with
an exceptional customer service experience so they know you are a frequent travel and you are apart of their true blue program. it is really about knowing who they are god bless them for surprise and delight. it is not a prophahrase that i d often. >> how does it, as a consumer, how does it feel to me do i notice it and what's the effect on me when i call in a complain to do whatever. >> i think they're spending time focusing on you as supposed to spending on time of looking at various systems and looking at situations >> will i notice the thing you will notice and i will give you an example, a couple of years ago, they have someone making a kmecomment on social media, they were taking a trip to the world wrestling championship and they wanted to hear our song when they got on the airplane when that person showed up at the gate that day, jet blue was
playing the theme song for one of the wrestlers >> that's cool >> i want to compliment you on two things i love the fact that you guys understand the dispute resolution is a time management time you are giving the company the ability to manage it in realtime what i want to point out and correct me if i am wrong this is a data minding tool. this is a marketing and data minding tool where you are collecting information >> it is not a data minding tool it is a customer service platform so you are not collecting data we have the history of all your communication that you are having i think that everybody when you are experiencing a challenge or an issue, one of the things by knowing who you are and what you are dealing with, you can then
get better customer service. it is really about that knowledge and empathy that you can deliver. >> joseph, thank you very much, good luck to you >> thank you very much >> two years ago, disney raised fears of the impact of court cutting on espn, the stock is still down 10% since then. what will disney say in its latest earnings report after the bell today plus, the late night david letterman making a return to tv. where? look at the stock chart, netflix. and marcus is here, he's going to take your questions tweet us use the #asktheprofit. we'll answer some ahead. excu e. 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 patient's genomic profile.
comes espn woes. david letterman is back. we'll tell you the new gig and the stocks that can benefit from his return the second hour of "power lunch" starts right now lets get a check on the markets right now. a gain by the dow would be a tenth straight record close. the dow is down by 13 points the nasdaq is higher by 13 some big names jumping on better expected results norwegian cruise line and valeantcbs now, lets send it over to bryan sullivan in wisconsin. >> reporter: hey, we are in
nicosia. wisconsin going red for the presidency for the first time since 1984 and understand why people think and vote the way they do. you have to walk a mile in their shoes. we cannot do that. we can drive a few miles, that way. coming up in a few minutes, we'll show you a giant gaping hole in the ground that maybe the reason president trump not only won the presidency, wisconsin and more importantly one nicosia. that's coming up in few minutes. bryan, thank you very much economic data today, should wall street get used to these numbers? last weekend is a bit of a surprise steve liesman is joining us. >> we'll talk about two pieces of good economic data that we got this morning job opening rising
$6.2 million small business in july rising for the first time and jumping 105.2. it came after the healthcare repeal and tax reform could be stalled that came along hiring time and expectations for sales and profits. you can see the peek at 105.9. overall, what's happening on main street must be good to support owner optimism given the upbeat news and strong jobs reported, is it time to raise our expectations for jobs growth over the past seven months payroll exceeded 200,000 five times. more than half the time and wall street have substantially under estimated those numbers almost every time by an archverage of
46,000 >> check this out. we went back and look, thanks to our friends at kenshaw on jobs, the dow joness gained 99 pioints. the markets like strong jobs growth today's data suggests big numbers can be more in the future with the major question, do we have the workers to fill these jobs >> i want to see what it says. >> steve, stay there >> i don't talk to you that way, giving you orders like that. >> he's excited about these jobs number >> we'll catch up. >> prosperity is great >> prosperity does not cause inflation. inflation is caused by excess money and sinking dollar and we
don't really have that so the inflation rate can below while the economic pictures is not >> sinking dollar, we have al dollar that's slightly a little bit. a stronger euro. >> now, lets go to the befo before -- before we do anything else lets go to jp morgan ceo, jaime diamo diamond, he spoke this morning to wilbur ross >> i am proud of america we have not built a major airport hub in 20 years. last time was with denver. china have done 75 in the last ten years. i mentioned education. we don't have competitive tax system here. i travel around the world and i meet presidents and prime ministers, everyone knows they need a healthy business environments to create jobs and wages. you need a competitive tax system our tax is becoming less
competitive over the last ten years. we simply have not >> i find it hard to disagree. the largest public infrastructure project in the united states going on right now is -- >> i just want to say, i was frustrated and angry of these things before jaime diamond was. i think one of the things he's coming from. i don't know we are going to be in the exact agreement here. >> it is in ability of democrats and republicans who basically agreed on stuff that needs to get done to find a compromise and get it done. that's the source to me of the ultimate frustration >> i am a huge fan of jaime diamond and policies i tweeted this earlier, quote, "i am not going to blame anyone, everyone wants to get it done or at least everyone in the republican party."
all right, now i want to turn this into a big partisan swing but i will say this. >> that's what larry said? >> that's what diamond said. >> the democrats don't want to play ball. trump would much prefer and trust me on this he would prefer partnershisan s. if they come to the table and play, we can get stuff done faster but the gop is going to get his tax cuts and the senate budget committee is going to mark up in september they're going to get the tax cuts and go through reconciliations. i am sorry, i am just saying >> in other words, the tax cut package then gets hooked in the budget that's the way to go through the
60 votes >> as it should be the budget act and the budget's resolution are spending revenues so it works nicely a piece of good news on this, i don't want to talk about tax cuts but they are the deciding now to use something called the current policy based on which gives them a lower revenue base and that means a lot of corporate tax credits are going to be made current that allows them and advice them $500 million i think they can find another trillion >> how do we get to a place politically where neither party cooperate under circumstances with others. you could go back six years ago what the democrats are trying to do, they would get no help >> can i >> steve is right. all these agreements of corporate taxes, for example, need to be lower but the fight have always been what do you do with the save and democrats want to use whatever money comes in because of firing growth and
reducing spending. there is a secondary fight that never goes away. it gets on who gets the tax spending benefit >> i don't that's where it collides >> at this moment, it is not about that, it is not about spending it is about growth verses class warfare. that's what it is about. i think i was watching -- >> larry, your theory is corporate companies cannot grow without tax cuts >> companies will invest much more and money will come home much more and by the way, 60 to 70% of the benefits go to the workers. that's what the new study shows. they won't result in new data. they're going to do whatever they do. it is their money. i don't have any problem with it by the way they'll invest and ready to pull the trigger and there is plenty of cash around
i am watching democratic pollsters. mark pence and others saying to the democratic party their polls, you are obsessing about russia and you should not be you should be playing ball and get stuff done and they're not that's the problem republicans are not blame less and absolutely not the president would much rather go partisan. he would >> i am sorry, larry, that's the biggest punch nonsense i ever heard. >> the president wants to be piby partisan >> you name a single thing he has done suggesting to anybody that he wants bipartisan >> fairness, he may wants to if he wants his agenda getting through it >> he has no interests at all. >> give me a single action, larry that suggests of anything to do with inauguration. >> come on, he met with them
let me find tweets about schumer. how many minutes after the inauguration >> blumenthal from connecticut is not going to --- >> which one >> from larry and the president. he has no comment on how he wants to do healthcare >> he has a program. >> what they're going to be regulated by this. >> what does it mean >> when it comes to financial, it is very clear >> tell me what it is. >> what does that mean it means that you will have to talk 12 different agencies and the government wanted the trades
to be violated >> regulations have been rolling back and right >> the atlantic. >> the tlinatlantic just did a r on trump >> you are a businessman, have you felt any of that >> none. >> you are a businessman, does all of this conversations about tax and deregulation and infrastructure you calculate this >> business plan >> i am in favor of a lower tax rate for corporations. you want to know why i want a bigger description. >> i am not going to invest more of my business >> i want to push back on that i think the lack of new regulations of the trajectory of regulations would continued under hillary clinton. that ending and declining of significance i am in favor of those regulatory agenda up to the
point of a lot of the environmental stuff that i think has maybe gone too far and some industry thinks it is gone too far but that's a different story. my only point is there is no mandate. if there is a corporate tax cut, that money has to be invested. >> thanksgiving dey're talking e mandate. there is a deal. >> lets deal >> let meggett this. >> there was a deal between senator schumer and speaker bryan, okay? others were involved in the deal the deal was repatriot iation at some rate. >> not the corporate tax rate. one time the thread was 10% verses 18%. the deal has legs.
i did not like the deal and told brian that that deal as part of corporate tax cuts is still on the table if some are put into infrastructure, it is not my favorite thing but i can accept it and return for lower corporate rate i can accept that. you will see some great things happen that's the last word larry? >> appreciate it >> yes >> do i get the next last word next time? >> here is what's coming up on "power lunch." disney on deck reports, it is not excites as we just talked about. >> the market gets its mow jjo back >> we are heading back to bryan in wisconsin bryan. >> reporter: hey, tyler, question for you quickly, do you remember the car the amc pacer >> i do remember the amc pacer,
i do >> reporter: it was an unfortunate looking car. coming up after the break, i am going to show you how the amc pacer in some ways may have doldto deliver the presidency na trump that's coming up hey gary, what'd you got here? this bad boy is a mobile trading desk so that i can take my trading platform wherever i go. you know that thinkorswim seamlessly syncs across all your devices, right? oh, so my custom studies will go with me? anywhere you want to go! the market's hot! sync your platform on any device with thinkorswim. only at td ameritrade
the amc pacer, the ugliest car ever built helps deliver the presidency to donald trump before we do that, lets talk about why we are here. wisconsin went red for the first time since 1994. none were port than nicosia county which is where we are that's why we came to the county that delivered the state that may have delivered the white house to the president when i am referred to as a pacer is this. for generations, there was a huge amc and chrysler manufacturing facility of four miles that way of downtown nicosia. we stop making cars there in 1988 and they kept on making engines in 2010. once the engine business died, the plant employed 4,000 people shut down. they levelled it and it is literally a giant gaping industrial wound in the middle of the nicosia
it is five or six blocks long or four or five blocks wide you can see the bars and restaurants and businesses were around it and everyone is struggling to hang on as well i bring it up because understand why people think and vote a certain way, you have to understand the history the history of that plant and other manufacturing jobs lost is the reason that this county flipped. that's why we are here focusing on manufacturing here is the good thing according to polls, donald trump's approval rating maybe down 41% in the last one however, 53% of people believed that wisconsin is headed in the right direction and 4% point of the last poll. i can talk to these hardworking men and women and get a better response in some polls the polls is all we got. industrial problems led the state to make some hard decisions. scott walker, faced a recall
vote and protests and he pushed through some laws. wisconsin's rate is at 3.1% of the lowest in the united states. some of those changes helping the state recover from the lost of those plants. we'll speak with government walker coming up at closing bell at 3:00 p.m. >> brian, what was the unemployment rate a year ago in wisconsin? >> reporter: which county? >> well, you said it was 3.1, right? >> you referenced that was that in wisconsin or nicosia county >> reporter: that's wisconsin. you put me on the spot 4.7, i think it is right around that. >> it is interesting to me of the poll numbers that you cited
and whether they are right or wrong, i have no idea. in our previous interview there was a young man that says all these jobs are coming back what jobs have come back >> reporter: well, from his perspective because i think marcus, there are more opportunities for him, maybe he has the impression jobs are coming back. the reality is since governor walker passed this manufacturing tax credits, some critics have said there is no manufacture jobs growth. you got to walk them around somebody's shoes for him, he's a 22 and 23-year-old guy. multiple jobs offer making more money than he thought to him, jobs are coming back here is the thing. 675 jobs roughly right here came from illinois a few years ago, amazon got 4,000 employees up the road uline and foxconn is bringing
in jobs and the german gummy bear company says they're going to open a plant. there are some jobs that should be, could be and hopefully are moving >> i am moving to wisconsin if hairball is moving to wisconsin. [ laughter ] >> there is room for you >> reporter: it is the executive suite. you slide through a giant cheese hole >> thanks bryan. great stuff. ahead on "power lunch," marcus answering some of your questions. houses in the bay area sells for up to $5 million however, listen to this. one couple managed to buy an entire street for just $90,000, you are never going to bieelve this stick around for that story ahead. ecall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory.
i am not joking. business can be very -- you said it earlier that tyler asked you a great question okay, when it comes to the legalization, you see that people can make money and ultimately for recreational use, you did not think it is a good idea. tell me why. i just cannot get my head around investing something recreational, no matter how good the returns are. >> and the returns are good.
>> they're amazing. if you look at the building, the facilities are being built to grow marijuana in doors, the federal government steps into stop it all? >> you are looking at it as an investment or a businessman. >> talk to me about that i cannot >> i understand the benefits of medical science because i saw it with my own eyes from a recreational side, i don't want to tell people what they can or cannot do. if somebody asks me to vote prop 64, i would not. >> why motnot? >> i don't love the recklessness that can potentially happen. >> people driving with it, articulate >> i can, i am not being invasive, i am being honest. i don't understand the purpose
of legalizing recreational what's the purpose civil rights and the rights to use marijuana. i literally lost my mind to draw a parallel in between. >> the parallel most common is alcohol. >> yeah. if i could have a crystal ball and go back in time, i think things will be different there, too. i cannot get my head around it and feel okay that, for example, i saw a lot of edibles edibles wrapped and gummy bears and chocolate bars and all these different products they are wrapped and packaged just like the same stuff i see at 7-eleven. it feels decisive to me. >> sounds like they are trying to attract children.
people have the right to do what they want and i support that and i have the right to feel how i feel >> all right, lets get to some questions that have been sent in for marcus lets get to rob. what's the best way for a simple investor to get involved in the green rush i think real estate is the safest opportunity because returns are high i think you are going to see overti overtime >> you are describing of the breaks and comparing them to marijuana verses -- >> like my own business or retail business you pay a cap of 5% or 7%. the cap rate would turn for these in door marijuana facilities of 30%. a 30% return by the way, you still have the asset. unlike investing in a fund worth
30% and you don't have control of your cash >> by the physical product >> bryaso now we turn to you. >> i don't think there is an implosion. >> it feels like it. why? >> because every single quarter their sales go down. >> what will happen to ralph laur lauren >> that's a brand. >> but when you talk about department stores. >> it is a brand that sells its product. >> retail stores every quarter, courtney sat here yesterday and said, every company is going to have declinining sales. >> cannot be one of the two retail retailers? >> you are special >> there are and business its f
itself -- businesses that sells something else that requires expertise or experience that are knockers we'll go to the last question or we adodon't have time? >> i guess we don't have time. >> it is great to be with you. >> watch the show tonight. >> be sure to watch "the profit" marijuana millions sue herrera with cnbc headlines. thank you very much, ty, here is what's happening a 6.5 magnitude earthquake struck in china today and killing at least five people and injured many more. all five of those deceased were tourists sleep apnea blamed in part for a deadly 2013 commuter rail accidents in new york city the testing is being rolled back as part of president trump's program to slash deregulations
it is a decision that puts millions of lives at risk. an american israeli jew charged of a bomb threat of the jewish community offered to sell his services on an online black market michael cater offered the illicit marketplace alpha bay to send customized threats to schools for a fee of $35 little caesars unveiled pizza portal after ordering and pay the food through an app, you get a three digit code and then you scan the code with your pizza inside. you are up to date, that's the news update at this hour >> a pizza portal. >> thank you, sue. >> coming up back to wisconsin to talk to the ceo of garner denver of manufacturing in america that stock is up 17% in the last
welcome back, earlier in the program, marcus asked, what jobs are coming back? >> lets find out, i want to vus y introduce you a new company in wisconsin. they are based in milwaukee. >> the ceo is joining us, thank you for joining us i say newest because you guys are 155 years old and now you guys are back public you guys did all kinds of industrial product and air compressing like this factory would have to use. how do you decide where to build factories and create jobs? >> bryan, our strategy is simple
in terms of expansion. we want to be close to our custome customers. over the past few years, we have opened up new service centers and we have done that by being close to our customers >> so you are 37 around the world of about 40% of your products are made in the united states that's why we were eager to speak with you because you are a good example of the company that does globally but also does in the united states. >> yes >> can you give us an idea how competitive the u.s. is in terms of pricing around the world, are we close >> the way i would like to say is all about what we do internally in our company to be competitive across all the region one thing that we pride on ourselves is innovation and how our products are uniquely in the market as long as you create, you are going to be highly competitive >> can you make stuff in the
united states profwith profits >> absolutely. >> we grew 25% growth in the second quarter and profitability improving and 40% of the basis not the u.s. clearly, that base grew on profit >> i think you had growth across every division >> we have a broad base across industrial and medical energy you're exposed to oil rigs and countdowns have be countdo counts have been crowe grgrowinp are you see any topping in your oil and gas. that half of the business is morda more dependent on the wells. our pumps is what drives the
rigs to wells. our leading indicator is the intensity continues to grow and now what we have seen is, you know, our customers and pressure pumping service company. you can read the report and maybe talking about labor shortage >> one of the reasons is your leading indicator from manufacturing. i need to be able to breathe in the factory from your perspective, are we going see more growth from your customers? >> what we are seeing and the numbers that we reported, we saw an industrial segment of strong gr growth in america. we saw double digit growth vincen vincente reynal. if that's not full
globalization, i don't know what is at least he's got a good question >> great stuff, bryan, thank you, vicente >> late night tv, letterman, can he help keep the run going one saavy couple, listen to this, they bought the whole street, less than that yeah, all the houses the neighbors are t ppnohay. you got to hear about this one whoooo.
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will disney's theme parks help the company over come lets bring in your julia boorstin who's at our hq brian, lets kickoff here, what are you looking to hear from disney >> anything that lays concerns of slow growth of the cable network decisions pairing with any erosions when i look at the evaluations
the company compares to fox. i see stocks that are valued >> still over valued >> despite the fact that it has no t move much >> on a relative basis take fox, i estimate its value of 40% of what disney is strategic positioning and their long-term revenue growth trajectory won't be different. on a relative bases, i think the bigger thing that investors are going to be focused on, are we seeing erosions as suggested of 3% year over year, i am sure there are pricing power on their core cable networks. advertising is not very strong right now and that's going to hold them back >> it is a pretty negative story overall. >> julie, i expect a lot of the conversations that you are going
to have this afternoon it is going to be frustrating, right? he's got good news when it comes to the movies. everybody is focused on whether or not they can retain the level of subscribers of espn >> there are more analysts who have buyer over rating on the stock than the wholesale of it he's in the minority in having a sale rating of the stocks. across the board no matter what analysts think of the stock is we heard a lot from the ceo of what's going to happen next in terms of the media outlets they talked a lot about it and making sure espn is included and all the digitals we have not seen the impact of that on the company's bottom line now we hope to learn more of when exactly we'll start to see those revenues trickled in
disney is going to launch its espn app sometimes this year there is a lot of people interested in seeing how that is going to pan out and learning more of how much traditional tv subscribers are declining and how much skin any bundles are >> how about the bachelorette, that's what i want to talk about. i watched the finale last night and all of this conversation, we never hear about the abc television network, is it just a rounding era for them? >> it is a small revenue stream. the context of disney business, it is relatively less profitable it is not like theme parks in the studio the reason why we focus on espn so much because it is a identifiable business unit that counts for the profitability of the company.
>> brian, i think the young lady on that show got engaged to a guy named brian. there you go that's a tie in. brian and julia, thank you very much >> be sure to tune in at 4:00 p.m. when bob iger sits down with julia boorstin for our first nbc binterview. all the new contents, is that going to share netflix shares higher or weigh them down stacey gilbert, did you raise your price to $215 today because of david letterman >> it is unrelated that's critical. they got david letterman, essentially their version of
disney buying march valvel. it is a good strategy. they zrodon't have to go out and bid con at the present titentco. they're trying to find unique ways to do that. we raise our targets on basically international markets and the view that you don't need super low income countries to make them achieve the targets they are looking for, for long-term describer. stacey, what do you think? >> yeah, this is an interesting name it is not for the fate of heart. it is a company that's going to have negative cash flows for the next few years this congressmen is mompany is s subscriber numbers what's interesting setting up in the auction here is you can buy protection one of two ways where you are buying out of the money protecting from the pull back
here if you look at the prices of those options where they have been at the bottom the last several years which does make them attractive. there is an stock replacement where you can bind in the money to call to continue to havethe upside exposure. we'll get back in if if there ia pullback or head line that has netflix sell off which it has been when we've had f.a.n.g. rollovers. i think this is a great opportunity in the options to buy protection. >> all right fundamental view and then some ideas for trading different ways, depending on how much risk you want to take thanks, guys, and lady find more market insights at tradingnation.cnbc.com. >> with sky high real estate prices in san francisco, this may be one of the most savviest investors ever we'll explain next. >> the latest from tradingnation.cnbc.com. short selling can help you profit from a stock's decline. however, because it involves unlimited risk, you must have a
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san francisco neighborhood is in the middle of a street fight after a bay-area couple took advantage of had a little known auction sale and ended up buying an entire street. aditi roy is in san francisco with this wild tale. aditi? >> reporter: it is a crazy story. take a look at these mansions behind me, gorgeous. this neighborhood is once where dianne feinstein and nancy pelosi have lived. it's so exclusive we can't get in we're not allowed past this gate here, but on the other side of the gate, a street fight is brewing because one of the streets in this ritzy presidio terrace neighborhood is now owned by a couple who took advantage of an obscure sale real estate investor michael chang says he hand his wife tina bought a lot in an auction put on by the tax collector's office couldn't see the property and didn't realize what they had bought for $90,000 until that
sale was done. why was the street up for sale in the first place in the homeowner's association owned the street but their lawyers say they didn't pay their annual property tax bill because over three decades, get this, it was sent to the wrong address prompting the auction. cheng says they are considering charging homeowners for street parking or reselling the street. homeowners are outraged and have asked the board of supervisors to resend the sale and have sued the city for making the sale in the first place. the board will discuss the issue this fall so the fight continues. guys, back for you. >> great thank you. >> own the street for 90,000 in the most expensive city on the west coast, for sure. >> fine, give me 180 grand and you and the neighborhood can buy it back. >> you buy it back. >> cheek, please is next don't move
check, please. >> welcome back. time for check please, and mine from wisconsin is this wisconsin sort of gave the presidency in many ways to president trump by flipping for the first time since '94 and people expect the congress and president to get something done, but as you heard our first guest say state and local policy may be more important than national policies, and we're going to talk more about it a in 30 minutes with wisconsin governor scott walker unemployment has come down 66% since the peak in 2009 more than the national average so we'll talk about some of those pro-growth initiatives
with governor walker coming up. >> brian, as you look at the manufacturing that's taking place in wisconsin you went back and looked at the empty hole where the american motors chrysler plant had been what's the difference qualitatively and the kind of manufacturing jobs that are there today as opposed were there 25, 30 years ago, both in terms of what they are doing, what they are building and what those workers get paid because my guess is that a lot more of them 30 years ago were high-wage union jobs compared with today >> they probably were and i have no way to know what the factories looked like but i'll say this you just talk to people. the jobs now are cleaner they are safer, and they take computer skills. not somebody rubbing something up against a lathe and you have sparks flying. punching a lot of stuff into a computer tablet and watching the machine build it for you is it ever going to go back to
those days of course not, but not everybody is going to go to college. we need good jocks, and that's kind of why we're here to find them and figure out how they are made. >> great stuff, brian. watch marcus limonies, "the profit" at 10:00 p.m it's going to be great. >> the dow was higher but now down lower and they will be covering that on "closing bell." >> starts right now. >> right now >> yes, we will. welcome to "closing bell." i'm sara eisen in for kelly evans here hat the new york stock exchange. >> and i'm bill griefette. we have breaking news. >> this is a good match. >> this is a good match. breaking news already this afternoon. a new report says that north korea is now able to make missile-ready nuclear weapons. we have all the details and the potential geopolitical impact. i don't know if that has -- is partly what caused the market to turn south, but it's not by much we won't make too much of it, but we're in negative territory. >> the headlines d