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tv   Power Lunch  CNBC  September 6, 2019 2:00pm-3:00pm EDT

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you see on other apps. the workers on our platform are getting paid way more than average and what they see is what they get and our restaurants are paying, are willing to pay more because we're show iing them our workers are skilled who can help they can run better businesses and make their customers happier >> thanks so much. cofounder and ceo of pared that does it for the exchange. puerto ri "power lunch" begins now >> thank you very much and we'll see you back here at "power lunch" in a moment welcome, i'm tyler here's what's new at 2:00 on "power lunch." stocks finishing the week strong wiping out all of august's losses if you can believe it but is the move a real breakout or just a fake out plus, wework is is it working new details of why the company's dream of a mega ipo might be going up in smoke and later, one bike company stuck in tariff
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limbo. the ceo will be b here to explain why the trade war is is hurting his business so much "power lunch" starts right now >> wrapping up u on the high note check out facebook shares. they are under pressure as a number of state attorneys general get ready to open an antitrust investigation into the tech giant we'll have much more on this move later on. >> melissa, thanks jay powell speaking moments ago in switzerland this will be the last time we hear from him or any other fed official before the next decision the markets almost guaranteeing a quarter point cut. did powell give any hints? what do you think, steve >> we're going to let you and viewers be the judge he was in switzerland, asked directly, asked directly by a member of the audience whether he would be cutting rates in the months ahead you tell me what this tells us
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>> we're watching all of these developments the geo political risks, breck it, incoming data. and really looking at financial conditions and we'll be assessing those in future meetings and we've said that we're going to act as appropriate to sustain the expansion. >> so that act as appropriate has kind of been the code word for we're going to cut rates given the market thinks we are powell's comments came after the jobs report which he said showed a healthy jobs market and scored an upbeat view of the economy from the chairman. let's take a look. i've divided it up rising wages a really strong house for se several months headline payrolls. downward revisions of 20,000 and really under 100,000, a lot of
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the growth was from census workers. so modest private sector so powell was asked about the possibility of recession >> our main expectation is not that there will be a recession but there are risks and we're monitoring them carefully and we're conducting policy in a way that will address them but no, i wouldn't see a recession as the most likely outcome for the united states or the world economy. >> i suppose i'm not answering kelly's question i don't think he change d or wanted to change or said anything that would change market expectations for a 25 basis point cut. asked about the despairty, which was f a good question saying we shouldn't cut. we should cut 50 he said kind of murky what we should do and it's not clear and he kind of welcomed the difference of opinion on the fed board. so i think we're on track for this quarter
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we start ed the weak with weakness the decline in man fufacture, services were strong and payrolls were on balance pretty good to to okay. >> i came back from vacation kicked it off. >> that's why. i thought you were questioning why you came back. >> and i came back from vacation today. >> go away, come back when we have an answer to the question >> thanks. >> stocks erasing nearly all of august losses follow iing the august jobs report major averages looking to finish a second week in positive territory. so could higher highs be ahead this is not a cannabis segment tim courtney, chief investment officer is is here so is is fast money trader, steve grasso, director of institutional sales with stewart frankel. also ron insana. senior adviser to schroeder.
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now that the titles have been made, we can get down to business ron, earlier this week, hugh johnson, who's been in a more dower camp said the one thing he would be waiting to see that might be the thing that would persuade him that the bull market was about to end was an outburst of enthusiasm all clear. is this that moment? >> no. i don't know anybody who's exuberant or has an all clear signal we're still trading broadly since january of 2018 until today. >> but the pessimism of august has vanished in nine days. >> you remember that retail participation and other market tops and i don't know where the market is with respect to that kind of behavior, but certainly this isn't like 2007 or like 2000 when it comes to internet stocks i would say i'm actually after
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steve's report more confused jay powell says no recession you have other fed members saying murky there's almost no reason to cut rates if you don't have recession in your forecast so that makes me more confused about where the fed is >> why do you need to have recession in your forecast isn't part of rate cutting to prevent recession in your forecast >> i understand going for the soft landing if he's definitive, makes me question why he's thinking about a rate cut >> for now, keep buying equities, so you see no storm clouds to speak of, other than perhaps faltering trade talks that talks that are on agenda and either don't happen or talks that happen and do not result in something the media characterizes as firm progress >> i think this last leg of the
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rally has been driven by short covering and that is is signalled by all the underperforming sectors that we've seen run we've seen retail, chemicals run. we've seen things that were out of favor for the last month, also look at the technicals. 29.82 is the last. we have not been above the 50-day moving average for the whole month of august. there might be a time, there will be a time i should say to sell this market you cannot sell the market ahead of the fed and you cannot sell the market ahead of the trade talks in october that's what's kept the shorts at bay for now. it's a bull run. >> tim, wrap it up what do you think? >> yeah, i'd say for the most part i agree the returns we've gotten so far in 2019, we probably have booked most of the gains we're going to book but really the returns we've gotten so far is really just undoing the decline.
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we saw in the fourth quarter of last year, which was forecasting a recession. there's still some to come especially if the trade talks resume more quickly maybe than what the market fears which is purri i pushing it off to next year. >> you're expecting a quarter point interest rate cut even though you don't think the economy warrants it? >> i don't think it's going to help much at this level cutting a quarter point. i think it's going to do min pal he help, but i would fear that if we do cut, it does send a message to the market that you know the that the fed is afraid of something
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the volatility has been extreme compared with what he had been having is likely to continue. what stands out to me is how headline vulnerable and driven investing is right now >> you saw what happened when they said the trade talks were back on. >> and is the enemy of america >> so is jay powell. i'm sure by the end of the ta, we'll see a sharpie over the numbers. but the headline volatility is fairly significant but tyler, you know how i feel b about volatility it's mr the norm nan exexception. it doesn't surprise me now we are seeing more 2 and 3% days than we've seen in a while and that's indicative of either break down or break out. the question is do we get the ingredients for a breakout >> final thought to you, steve is volatility that ron
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described, is that an opportunity for traders or something that and at the same time, something that investors should play past >> investors have to play past that you have to keep your eye on the ball t long time trading horizons, but traders should love the volatility we've rallied 5% off the august lows to where we're at right now. but it's pretty interesting if you look at the level on the s&p cash 29.79 is the last retracement from the high we had to the low we had in august bf we get back to new highs. everyone watching this program all investor, hold that level because new highs are coming sooner rather than later be a bir if we hold out. >> 29.82 thanks, steve. tim, have a great weekend, guys. >> thank you >> we have a news alert and meg is here with latest.
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>> this news is coming fast and furious. news just now that purdue is many talks with the department of justice to potentially settle criminal and civil probes into its actions around marketing opioids and it seems like from this report monitoring opioid prescriptions by doctors, monitoring the general use of these drugs, but also apparently, the government according to this report has considered charges under continuing criminal statute. this is the third sort of rung of the litigation going on we know purdue according to nbc news and others has offered 10 to $12 billion to settle with cities and states. didn't include the department of justice. it shows these companies have more to think about than the municipalities in the thousands of kays they're facing there. they have the doj. so what could happen here according to dow jones is that
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any money that they reach in a settlement with the dodge could die beaut loout what goes to the cities and states and already, the states are saying 10 to 12 billion or whatever you're offering isn't enough to settle these claims against you >> why they think it would dilute that amount of money. >> probably because the family which owns purdue and purdue say 10 to 12 billion is is all we've got and all we can offer you i'm hearing the 10 to 12 billion is the valuation the company is putting on the offer in interpreters of the value of drugs, the value of sale of the company. the doj is not going after the family money unlike the states and knew nis palties >> doesn't appear that way because of this report in 2007, the doj reached a deal,
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did get some executives from purdue to plead guilty, but we've heard that doj has beenup set that didn't do it. >> thank you >> coming up, we're going to talk about how wework is reportedly cutting the signs of its planned ipo in half. could scrap iping it be the nex step or has it gone the too far? we'll debate that. and we'll talk to a bicycle manufacturer who makes his bikes in china and is now facing huge tariffs. the real impact of the trade war on american business coming up on "power lunch." every new job. and attempt to parallel park. (electrical current buzzing) each new draft of every novel. (typing clicks) the finishing touch on every masterpiece. (newborn cries) it is humanity's official two-word war cry.
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words that move us all forward. the same two words that capital group believes have the power to improve lives. and that, for over 85 years, have inspired us to help people achieve their financial goals. talk to your advisor or consultant for investment risks and information.
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new fears bubbling up for wework after they slashed the size of its planned ipo in half and alex sherman reporting the company is speaking to shareholders about skaping it all together and that may be its best option. >> so, first of all, it's important to note this deal is incredibly fluid at this point more so than most ipos i've covered in the last seven years. there really aren't set plans. there are tentative plans. there was a tentative plan to start the road show this week. obviously that hasn't happened there are also tentative plans to start it next week.
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i'm told not really before tuesday with the road show start but again, it could be next week it could be the week after it could be pushed out further into 2019 or 2020 at this stage or as alex alluded, they could still pull the deal all together, but in speaking with investors who are looking at this thing, people are very concerned about that $20 billion valuation. no one really wants to invest to 20 billion and they say they're a little concerned about that level. o even though it's been cut in half from the level that was invested at 47, people are still nervous. a popular trade is this idea of going long the stock bank bonds because that's a bet on the real estate asset they have which apparently, people are very bullish about. but then going short the actual eck quity as a way to protect themselves against some of the over, the risks involving
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conflicts of interest, management risks and some other things we're seeing. >> that's an interest trade, but a trade that can't be put on immediately. >> dan b, if i were a potential investor in we work, if i was look iing at this as buy, i thi even if i didn't know what was hop happening today, the latest headlines about scrapping, i would think this is an absolute mess and that this is a reflection on at least management yeah, management is going to be key on this. and the folks i talked to including those on the wework side of this, what they say is that when they've spoken to investors and leaving outside the price of where the shares will come out, in general, they understand and don't think it's a bad long-term bet as a company about the business model i wrote this this morning. if this goes forward and it starts next week or the week
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after, everything is on him. his performance will determine this so let me delve deeper if i might. there's nothing in the untidyness of the process that suggests that the company itself is unhealthy there may be questions about the competence of the management, but the company, its business model seems to sound -- >> i think it is it is a company that's losing an enormous amount of money like lyft and urer did when wework puts in a bunch of money into a facility, it then gets the make money off of that year after year. where as lyft and uber, they don't even own the cars. it's transient i don't think it's the confidence of it i think there's concerns about the governance and potential checks and balances because in this case, adam, a controversial
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person if you meet him or hear him speak, he has a lot of inid owe sin krass theties. he's a sincere guy he has such control and no one can take it away in wework's case, being so asset heavy, they are assets the company can bank on, borrow against, but at the same time, when things turn south in the economy and that's what a lot of people think at least a softening in the economy, i would think as a business, the thing you cut off the first is your shortest term obligation. >> right that's the fundamental concern with this company and this idea that it's never really seen a e recession in its history it's never been tested under those scenarios, so people are concern concerned not just about corporate governance, management, about the conflicts of interest and some of the b bigger headline risk, but on a fundamental basis, what does this look like if things turn
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slightly south for the economy and business model will they be in a position where they could get in trouble. some of the large asset managers, if that happens and they show up as having purchase ed this ipo because those positions are disclosed, then they have to appeal to their management committees and explain exactly why they're taking this risky valuation that a lot of people are turning their nose up at if it goes forward at 20 billion dl which of course that's still up in the air. >> it will be fas fating to see. thank you, dan, leslie >> and coming up on "power lunch," the federal government tightens the screws on facebook on several fronts today. what you should do with this stock while all these investigations play out. that is next on "power lunch." stay with us other's doctor. we can do the screening at her house. hi. this is the man that's going to check your eyes grandma.
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welcome back facebook facing a fresh wave of scrutiny the stock slide iing after the york state attorney general launched an veinvestigation into
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the social network what could all this mean for the company's shares let's bring in your trading nation team. craig johnson and gina sanchez the stocks backing off, but not that dramatically. it's a good deal off the highs, but has been making progress lately where does that leave it for you? >> when you look at the chart and they have these headlines and news, we're still friendly toward the shares from the perspective of when you look at the chart, we're still looking at higher highs and low rer lows and moving up toward the 50-day moving average at 191. from our perspective, any sort of move above the level sets the stock up to move to the 204, 205 range which is logical we would continue to be a buyer of facebook shares >> gina, anything in this new round of news, give you pause about the business model itself because all along the way, not
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too much has dissuaded advertisers from participate ng the facebook platform? >> no, it hapt, but facebook even despite this news is still trading at a premium in terms of pe relative to the industry. so i don't know that it's necessarily pulsing in the risk that some of these probes present to facebook and i think these probes don't go away if anything, i think that risk continues to grow and facebook has already published a white paper that shows it's going to be a real challenge for them to sort of to protect data privacy but also set by the eu to make the data interoperable with other social net woshs, which would basely kell them from a competitive per speck ty i think these probes don't go wii way and we continue to
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grapple with whether or not companies like this should even be run for profit or are they just simply a commodity. and utility that makes growth type of returns. >> serply that's not priced to the stock. we'll see how it goes from here. thank you very much. for more, head to our website or follow us on twitter melissa, back to you s. >> thank you ahead on "power lunch," tariff fallout. one ceo speaking against the trade war saying his company is front iing the bill for the president's tariffs. plus, the department of justice launching an antitrust investigation into four top automakers and place your bets new jersey could overtake the nevada as the sports betting capital of the u.s will this football season provide a bigger boost all this when "power lunch" returns.
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welcome back i'm sue herera here's your cnbc news update health officials say the number of possible cases of vaping related illness in the u.s. has now more than doubled to 450 including three deaths they are again urging people to stop vaping until they figure out why some are coming down with a serious breathing illness. the grand celebration cruise ship carrying food, water and other aid supplies to bahamas survivors the symphony of the sea cruise ship waiting to drop. a royal caribbean cruise ship tropped off meals, water and more than 180 generators 30 people have died as a result of dorian. mexico says it has reduced the flow of migrants arriving at its northern border by 63%
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the secretary says he believes enough to avert president trump's threat to impose tear i haves on mexican imports and a family affair not seep in 119 years the batter is kole listen moran of the pirates and the pitch er is his older brother, brian. he struck him out. the first time a player face d his brother in a pitch versus batter scenario in his big league debut you're up to date. that's the news update this year >> thank you let's take a check on the markets now and after the jobs report today, markets have been quiet, but we are in the green right now ending the week on a high note. the dow is up by almost 100 points s&p 500 is and the nasdaq is higher by six points the retall rally is on track for its best week since january.
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home key poe, target and costco. oil market closing for the day and to find out been going on there, let's check in with dom. >> we were lower for oil prices earlier in the day due to the jobs report, but prices started climbing during the mid-morning. currently, west texas intermediate price, $56.47 rigtd now, $61.43. we did hit session highs after 1:00 p.m. getting a bid on the heels of xhepts from jay powell saying the fed will take the necessary steps to keep the economic expansion going the rate fell by four in the lowest level also the third week in a row of low rigs back to you. >> thanks very much. now as trade talks get kicked down the road, many companies are find iing themselves in a state of limbo with no way of knowing whether more tr i haves are on the way or if a deal is
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just around the corner that's the case for guardian bike biochemistries. the ceo explaining tariffs on bikes made in china have risen to 36%, but they have no choice to pay up and wait to see what happens next with us now is brian riley, cofounder and ceo of guard yawn bicycles brian, welcome and basically, all bikes are made in china, so this has really hit you hard >> thanks for having me on that's correct there's 40 vendors that come together and make the components to make the bikes, so moving to another country just really isn't ant option for us and most people in the bike industry because it takes a coordinated move of the whole supply chain to move to a different base which is going to take years and obviously millions of dollars of investments. >> right and your point is even if you said okay, that's what
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needs to happen, it's not clear whether that needs to happen or if there's a larger deal, in the meantime, tariffs on bikes have gone from correct me if i'm wrong, to 11% up to soon to be 41% and how much of that is being passed on to the consumer? >> it will be 41% as of the new 5% inas of october 1st we've been in a whip saw of these tariff changes going on, so we've passed on some of the cost to the customer absorbed some ourselves, but yes, the biggest problem is because of the uncertainty, i find myself checking the news every day just to know what my landings are going to be next quarter and the biggest problem with that is because there's so much uncertainty, a lot of the manufacturing players in the industry that the factories that make these r parts and the bike itself, they're hesitate iing to make any investments anywhere else to build production in another place because they don't
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know if these tariffs are going to go away this year so it makes it so the past to moving is "hardball"er to do >> how has that spilled over to your other spending? hiring workers or people to staff stores >> sure. we're a very fast growing start up company in the bike business so we're growing about 300% a year in any fast growing business, the biggest challenge is planning and the biggest input to that is your inventory and product costs. so because we've had such uncertainty with our product costs, we've had to be more conservative with our hiring plaps, the amount of money we're putting into innovation and marketing and growth and just had to take a much more conservative approach. to make sure we have enough cash to absorb these increases that may or may not happen. >> not looking to sucker you
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into a debate, but when you hear people say the chinese are paying these tariffs, what's your reaction and number two, do you have any reaction that some of the money that is being collected in tariffs from industries like yours is then being transferred to help other industries like soybean farm in? >> yeah, sure. i can tell you from the front lines of this that that it's companies like ours that pay the bill u.s. customs actually takes the money directly out of our account automatically every time we have an import. so we're the runs pay iones paying the tariffs i think the belief is these tariffs are going to a major move out of china and inflict some pain on china because industries are moving out of china. if you're making a t-shirt or shoe, something that doesn't have a complex supporting supply chain under it, it's easier to
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move, but in cases like ours where you have a concentrated supply chain, there are lot of different parts that come together to make the final product. the uncertainty just creates a situation where that path of investment needed. >> does it bother you that farmers are getting help and you're not >>. >> i'm glad they're getting help i wish everything was you know an even plane, but we're living a world right now u that it's not just quite even. but we're trying to compete as best we can and do the best we can with what we have. >> do you see any possibility under which this could be a threat to your business? >> for us, i think we'll make it through. we've had to slow down spending. slow down investment, but i'm sure you know as somebody that knows what it's like to run a small business there are plenty of small businesses that are going to have as much pricing power and be left out of business through living through
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the whip saw of these tariffs. >> all right thanks for joining us. >> good luck the ceo and founder of guardian bikes. to the bond market now rick santelli has been tracking the action at the cme. hello. >> it's been an unusual week most people on this trading floor feel as though rates really have moved high er the last several sessions. of course not including today. look at the chart that enl compasses their lows we're about ten basis points off our worst levels and we're up a couple of bases points on the week all though unchanged on the day, but the reality is is in the big picture, it looks like we just had a bit it of a reversal off big drops in august it certainly doesn't seem as though there's any selling pressure on going same is true for 3a and tens it's been an issue wans ch
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here's a chart going back to the credit crisis. you can see how elevated those spreads are. the fascinating part is the simply has been going off. you figure 150 and 121 over. the long end paper and investment grade, it was around four and a quarter these companies keep on coming and with 17 trillion rates, the demand is huge back to you. zpl thanks very much have a great weekend come up, several automakers may be caught in the middle of a fight between the trump administration and the state of california we'll explain that one and our tasting menu bearish on beyond meat it wouldn't be a good day unless we had a beyond meat story and tax and cookies and running out of hard seltzer. a tasty edition of "power lunch" returns.
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the department of justice now investigating a deal between four automakers and the state of california on emissions.
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phil has the details >> tyler, this has to do with tn agreement reached in late july with four automakers in california and what the department of justice is looking at is why did they reach this agreement. it revolves around fuel economy. the trump administration is in the midst of reviewing those standards. while california, which has a legal right to set its own, reached and agreement with ford, honda and vw essentially saying we have a standard we're going to agree to for future vehicles. the trump mrs wants one national standard it's not one california. we have its own. this all reviola involves around the miles per gallon and fuel efficiency standards this dotted line, these are the standards that were set in place by the obama administration in 2011 and it was supposed to go up to 54.5 miles per gallon. if you look at shares of ford, honda, bmw, volkswagen, all the companies that agree, they all
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have said we received notice from the department of justice we will be cooperating with this investigation and what you're seeing here, guys is a fight, basely between the trump administration and the state of california and it all comes down to who should set fuel economy standards. the automakers who agreed with california, they went that route in large part because they believe they're ultimately california will prevail and if you're going to build vehicles to the most stringent standards, go there then the rest of the county tru the administration administration disagrees >> i just wonder if they would be able to sort of illustrate the anticompetitive behavior, phil m maybe saying it restricts consumer choice, raises prices >> well, yes, and larry kudlow was on today and he said look, you're going to have more expensive vehicles and there's truth to that. the vehicles are more expensive as you push up the technology to make them more fuel efficient and you're going to have safer vehicles i have yet to find somebody how a more fuel efficient vehicle is
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an unsafe vehicle. if they've got data, i'd love to see it i've called around and asked, they say it makes no sense you want to talk about xhib, that's fine. safety, makes no sense >> that was a splashy one. thanks very much and a market flash. what's happening, dom? >> deal chatter. the shares were up by as much as 10% today. they're up by about 5 to 6% right now. this is on the heelses of dow jones headlines saying a couple of private equity firms may will looking to acquire semantic for around 26 to $27 a share that would preserve semantic's economisting deexisting deal to sell its business to broad this is according to sources, but that's the reason why the shares pusheded toward session highs. back to you. by the way, we reached out for a comment. no comment to b cnbc as of yet >> back to you i wonder if it's a tell on the
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landscape. thanks not much scoring in last night's nfl season kickoff as the packers beat the bears 10-3, but did the game score in the ratings? plus, new jersey passing nevada is the sport's betting leader. are things about to get better stay with "power lunch."
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welcome back the ratings for last night's kickoff ran and they're pretty good julia has those numbers and booe numbers. >> preliminary ratings show a 14% increase from last year and a 7% increase from last year's bears/packers sunday night opener ratings were up much more and the markets for online gambling just this year became legal. pittsburgh ratings were up 23% and ratings in providence were up 36% in both states fans can place bets from their mobile phones in addition to being able to bet in a casino this nfl season 13 states have legalized sports gambling, that's up from five states a year ago now mobile sports gambling is legal in six states.
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last year mobile gambling was available in two states with a third state making that an option toward the end of the season tyler, back to you. >> julia, thank you very much. new jersey now poised to overtake nevada as the mecca of sports betting in the united states as more and more people are wageringon leagues like th nfl, the nba sports betting continuing to expand, as julia just detailed what will it mean for the legal gambling industry in the u.s.? joining us now to discuss is chad millman, head of media at the action network, a sports betting information and analytics news platform. chad, welcome. new jersey has actually, according to these numbers, overtaken nevada as a sports book, correct? >> that is correct they're doing a great job and it's largely because of what you just discussed it's because they have unfetterred mobile betting and fans have taken to that. >> what percent of the total amount wagered, which was more
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than $300 million in the month of may, what percent comes through mobile devices, either phones, ipads or computers >> yeah, they're seeing as much as 70% to 80% coming through mobile it's not surprising. look, it's so much easier if you're going to be betting, you're watching a game, you want to do it five or ten minutes before the game. that's what we see at action network. that's when we get a lot of activity on our site and in our app. people wanting to make decisions before the game starts and that's when they decide to make a bet. >> it's the old question like a they a thermos, how does it know whether the liquid hot or cold how does new jersey know whether you're present in new jersey when you place that mobile bet you must be in the state of new jersey how would they know that i'm not in phoenix dialing in on my phone or in l.a. if my laptop's domicile is actually new jersey?
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>> well, look, as there is a burgeoning industry in sports betting, there is also a burgeoning industry in geofencing and geo targeting and location services that can make sure they can enact -- they know where you are at all times so the geofencing has become something that has gone hand in hand with where mobile betting is becoming legal. >> can you get around the geofencing by using a virtual private network, a vpn >> tyler, i have not been able to figure it out i'm not trying to figure it out. honestly, i have no idea how people would go about doing it. >> what are the biggest bets that are being taken i assume it's nfl, number one. probably college football number two. maybe nba three? >> it's definitely nfl that is far and away the biggest. you're seeing the activity and the enthusiasm just in these past 24 hours for the game last night.
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definitely college football number two nba is three if you look at sort of the entirety of sports. but you've also got to think about college basketball, the way a lot of places, and certainly nevada does this they rank it by full sport, not just by college football, nfl. so if you're looking at basketball, you have to include college basketball in that mix as well. >> how many states will have legalized gambling in five years, say, and will there be some holdouts that will never allow it, whether they happen to be smaller states or states in the bible belt where there's resistance to it >> yeah, i think that's where you're going to see -- i think over the long term, say the next five years, i would not be surprised if we reach past 40 states i think over the next two years you'll get past 25 and have more than 50% of the states in the country will have some kind of sports betting it's hard to say all 50 will get there because now that it is legal state by state, every state will have their opinion on
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what they want to do. >> how much money do the states make off of this sports betting. how much does new jersey make, do you have any idea what the percent is, what their cut is >> the whole percentage is usually about 6% so in nevada last year, they had about $5 billion in sports betting. i think the hold was something in the $400 million range, a little bit less. nevada is usually -- has been in that same range. if you can get to that level in a hold percentage, you're doing pretty well. >> what about in venue sports betting. let's say i'm at madison square garden and i'm unlucky enough to be watching the knicks and i want to bet on how many points r.j. barrett is going to make. am i going to be able to do that >> i think you will eventually one, it's latency. in a stewadium, it's harder to e a solid and consistent connection until that latency gets figured out, that's number one
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number two is the data transmission what are the venues going to be using to get their data and how fast is it going to be and can you make a bet fast enough so you're not overtaken by the next play. >> chad, thanks. tiad millman, we appreciate it, acon sports network. check, please is next. ♪ you should be mad they gave this guy a promotion. you should be mad at forced camaraderie. and you should be mad at tech that makes things worse. but you're not mad, because you have e*trade, who's tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. don't get mad. get e*trade's simplified technical analysis.
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welcome back bad news for hard seltzer fans white claw has confirmed a nationwide shortage of its popular flavored hard seltzer drinks the company didn't specify when their stock will return to normal but they are working to replenish it as quickly as possible. >> have you tasted it? i shouldn't ask. i'm asking the wrong ladies that i have not tasted it, but i see an awful lot of people, especially younger people, drinking it. i think it's locale. >> low cal keto friendly. >> so i should switch from gin and tonic to gin and soda. >> or gin and white claw. d.a. davidson initiating coverage of the stock. they're bearish. the firm is cautious as it forecasts fewer frequent buyers
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of plant-based meat in the long term it's total addressable market is like plant-based milk and could be smaller wildfire goi we're going to have the analyst on tonight on "fast. and jay powell over in switzerland. >> thanks for watching "power lunch. >> nice to be back with you all, everybody. "closing bell" starts right now. welcome to "the closing bell." we have a post fed speech and post jobs number rally on our hands. just 2% or 3% from all-time highs with just 59 minutes left in trade. welcome, i'm sara eisen. let's look at what's driving the action higher right now. the federal reserve, as chair jay powell says trade policy is weighing on investment decisions but doesn't see a recession coming. jobs come in light but wages and participation rise and the unemployment rate stays at 3.7%. and china

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