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tv   Power Lunch  CNBC  May 28, 2019 2:00pm-3:00pm EDT

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>> the drug industry is fighting it. >> meg tirrell, caitlin owens, thank you very much. that does it for "the exchange." thank you so much for joining me today. i'll join tyler for "power lunch" which begins right now. >> kelly, thank you very much. we'll see you in just a few seconds. welcome, everybody i'm tyler mathisen new at 2:00 this day, president trump is not ready, not ready to make a deal with china jamie dimon warns about the trade war and the u.s. tech impact on the markets. beyond meat soaring after striking a deal to ramp up production the stock is now up 240% since its ipo. it's the anti-uber new bullish call today, by the way. we'll talk with the analyst who made that call on beyond meat. and one daughter's a doctor, second is the ceo of youtube, and the third is the ceo of 23andme. the mother, heather, how to
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raise successful people. that's ahead on "power lunch" today. >> all right, let's get a check on the markets this hour the averages, giving up their gains. the dow was up more than 130 points at one point. its high of the day, right now, having the longest daily day by day losing streak in eight years. so there you see the dow down 14 nasdaq is higher, but the s&p is lower. kelly? >> tyler, thanks let's go to seema mody with more on the trading action this hour at the new york stock exchange >> reporter: a choppy day of trade. we were up triple digits in early trade and just around the european close, gains faded and right now, we're trading basically flat with the dow down and s&p 500 lower by 3 when you take a look at certain sectors, you see the lower yields didn't play a big role in helping utilities and real estate move higher today tech is higher by half a percent
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and if you dig deeper, a number of subsectors within tech are posting gains, specifically, the chip makers led by advanced micma micro devices and lisa suu about growth and data centers and gaming speaking of gaming, activision blizzard, the company is on the cusp of an earnings influx signing a number of new announcements but take a look at a longer term chart for the gaming stocks. interesting news there underperforming peers, electron arts and zinnga so far in 2019 tech leading the way back to you. >> cee maseema, thanks. the president doesn't seem to be in a rush to make a deal with china but jamie dimon says he should be kayla tausche with more on that. >> reporter: on friday, china's retaliatory tariffs take effect
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in response to a tariff hike that will start to hit importers in the coming days a chinese official tells state media, it could move to protect rare earth producers next. those stocks are soaring because these minerals are a tiny fraction of overall imports but a critical input for cars and phones that are made here in the u.s. on a state visit to japan, president trump referencing beijing several times saying the u.s. could relax its hard line on huawei but it's not ready to make a deal yet and also, china should have done an earlier version of the deal before these tariffs worsen again earlier today, j.p. morgan chase ceo jamie dimon saying the protracktive fight is having a real issue with business. >> trade is being a skirmish to far more buoyant than that other surprises, that could be a thing that changes confidence, changes people willing to invest you see businesses thinking about moving the supply lines and stuff like that and obviously, that can slow down
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business investment and cause uncertainty of all different types. >> reporter: you're already, tyler, hearing more earnings calls talking about making those exact changes. back to you. >> kayla, thank you very much. boy, getting ready to storm there behind kayla like a tornado coming. the dow having posted its longest weekly losing streak in eight years. down now for five straight weeks barring a strong rally over the final four trading days of may the three major averages have their first negative month of may since 2012 as well as the first negative month of 2019 more declines to come or should we look on the brighter side should we set up for a summer rally? cnbc contributor michael farr. farr, miller and washington ceo and oliver pursh with bruder man asset management is it brooder or bruder?
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>> broouderman. >> do you think it's a time to dip cautiously into the market or play more defense >> absolutely. and i'm 100% unanimous on that, tyler. look, there's always something out there that you can buy this market has pulled back maybe 4% off of the highs from april 23rd overall, we're still up over 20% since the lows that we made in the big pullback in december this isn't awful we made new highs in april we've pulled back 4% the world isn't coming to an end. we have a lot of issues, but in general, the economy is okay, interest rates are low, the fed's accommodative. when you try to hit them where they aren't and try to find opportunities in stocks that perhaps have not done as well or perhaps have pulled back a little bit, there's opportunity there. i think there's some buying there but you have to be cautious. >> i'll come back to you and ask you for names of stocks and
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warning, you cannot mention johnson & johnson. you cannot you are enjoined >> i will not mention johnson & johnson. >> should investors sit back and get ready for a prolonged trade battle with china? it may not belimited to trade but into other areas of conflict >> the short answer is yes, but i don't think that necessarily means that you have a horrible market scenario, right so the world ar is slowing, thea impact in other areas in the economy but consumer confidence as we saw this morning, continues to be strong stocks probably priced where they ought to be right now, they're not expensive but not cheap and there's a lot of question marks about what happens over the next six months to michael's point, you want to be opportunistic in this market. you want to look at areas that are growing because there are areas that are growing and you want to invest in category killers as we like to call them. >> would you apply that to the
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parent company of the new york stock exchange ice? >> absolutely. they're growing across multiple channels, doing a wonderful jobs they're one of the many portfolio names we like in this environment. our perspective says when the war is slowing down, you want to look at companies outperforming, gaining market share and improving margins. if on top of that, you can have a company like ice returning free cash flow in terms of dividends or share buybacks, those tend to outperform in a slowing environment and give you insulation. >> microsoft is another category >> he's done a great job turning around the culture within microsoft, but also, in turning around the business lines and enterprise software. they continue to grow like, their dominance. >> it's your turn not to mention johnson & johnson. as you put on your stock picking hat, where would you look? >> okay, i'd still look at things i think hold some pretty good potential
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i'm going say this time, i like facebook i've liked facebook for a long time if you want to figure out how not to deal with the media and public relations, take a good close look at facebook and do the absolute opposite of everything these people have done with any type of crisis it is growing still in the mid teens. they have a huge user base i know some of it is fake, but when you look to mr. wonderful earlier today on halftime report saying, i've got to advertise there. i get returns there. i make money there i'm still going to be there because that's paying me to do it i like that stock a lot. >> michael -- >> i also like accenture >> before you get into that, how long have you owned facebook >> a long time and bought it, let's see, i have added to the position in the past six months. when it really gets weak, i like to buy stuff when it's weak. when people start hating it.
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when they start loving it, i'll take profits and take it off the table. very patient ten years is my time >> accenture fits that too >> i think accenture, yes, it's gotten beaten up a great services group in the tech area and i think the valuation is reasonable. the growth rate is not going to be as high but the price you're paying right now isn't as high either, so that's another one where i think you can find some opportunity on a bad news story. i like to find these bad news stories where the fundamentals remain strong and it's great to see oliver here today. this is fun being with you, oliver. >> i agree with michael, just on the last note. we like companies that are dinged, not broken when you get a discount. there's a piece of bad news out there. >> would you put boeing in that category >> to be determined but probably, yes. >> oliver pur issue, thank you very much and michael, i will not mention johnson & johnson, farr >> it's not bad. >> you did it to me. a major developing story we
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watch in the auto world. shares of fiat chrysler are rallying on merger talks with the third biggest car maker in the world. philip lebeau in chicago phil >> in terms of sheer size, look at how big fiat chrysler would be along with renault. sei 8.7 million vehicles with vw and toyota in an email in the group, a like minded partner who sees the future as we do, what's it include lots of cost-cutting $5.6 billion over the next five years and combining vehicle platforms, streamlines engine families and here's one area where analysts question if this would work no job cuts at all, not in the u.s., nor in europe. another issue that people are going to be focusing on in wall street is whether or not this merger, as you look at shares of
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fiat chrysler or renault number one auto market in the world. what happens with that partnership from 1999? the nissan/renault, the chrysler merger offer to renault. a lot of moving pieces but as least we look at fiat chrysler shares, most investors and analysts say, we think this makes sense. >> question, phil, where does nissan fit in all of this, if at all? >> that's the great question wluk at t when you look at the merger offer, we say, we would love to be a part of that relationship that renault, nissan uae liceale makes sense, but strictly fiat chrysler and renault
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do we want to be a part of a four-way alliance or go at it alone and cut loose from renault and how easily can that be done? >> would a merger of fiat chrysler and renault, maybe equals but equally weak auto manufacturers to create a bigger but still not dominant player? >> well, it's dominating certain areas. look, they have some assets that are pretty valuable here number one in terms of, if you look at the fastest growing brand in suvs, with jeep and a brand that can grow worldwide at a tremendous rate in the future, that's an appealing asset. ram trucks is also very strong and they do well in europe renault does well in europe. what do you do with china, asia? that's a big chunk of the world where their presence is not that strong. >> phil, thanks. philip lebeau. let's take a closer look at the person at the center of this potential deal it's john elcan, our wealth
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editor robert frank with more. robert >> tyler, he's only 43 years old. he's born in new york. sign of one of the most famous auto dynasties and wants to move away from the car business took over at the age of 28 at fiat after the death of his grandfather, deani the first job was a headlight plant in england but after he became the chair, his plan has been to diversify away from cars and become more like his hero and friend, warren buffett he used buffet's banker to buy the partnerre for $7 billion he just sold off the group's auto parts business for $7 billion and he has started a $100 million fund for tech start-ups. their holding company is the biggest shareholder of the economist magazine and they own the juventus football club there. also, the biggest shareholder, of course, of ferrari, spun off
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from fca, a third of the voting rights elkann would likely be chairman of the fca renault dropping to 14% and then more easily sell that down over time. elkann likes to quote the grandfather who says, we must always look to the future. unafraid of the new and delete the word "impossible" from our vocabulary. >> he is so impressive ferrari, by the way, ipo at 52 145. we have no time but i have to ask you, why is he not in ride sharing? is he just, does he not think that has a future. >> they're in talks with a lot of other companies to partner on ride sharing autonomous and electric >> we'll see where that leads. robert, thanks very very much. the beyond meat craze showing no signs of slowing down stock up 250% from a month ago why he thinks it can go higher. investors seem to be losing
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their taste for apple. down 12% in a month on concerns about the impact of a trade war. we have those stories and more coming up on "power lunch. through the at&t network, edge-to-edge intelligence gives you the power to see every corner of your growing business. from finding out what's selling best... to managing your fleet... to collaborating remotely with your teams. giving you a nice big edge over your competition. that's the power of edge-to-edge intelligence. tthis is where i trades. and manage my portfolio. since i added futures, i have access to the oil markets. and gold markets. ok. i'm plugged into equities. trade confirmed. and i have global access 24/7.
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look at that shares of beyond meat up nearly 10% now. 9.5% on news it's expanding production to europe that puts the shares over $87
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and comes as several wall street firms begin coverage on the alternative meat producer, alt meat we call it around here. the price target on the stock. they call it a true disruptor up since early and one of the worst market months in some time joining us now, the analyst behind that call j.p. morgan's ken goldman. good to see you. >> good to see you. >> you're the most bullish on the street $8 above where we're trading now. not bullish enough >> we'll see i was not expecting a day like this, although happy to take it. >> how do you value this company? >> i think the most important thing to look at is the long-term potential and the most important thing in the long-term potential is how big is this sector, alt meat, whatever you want to call it, plant-based meat going to be beyond that, get whatever percentage of it but when you look at the numbers and how big
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plant-based dairy has become, it's clear that plant-based meat could be enormous. >> which i understand, but the only thing people say sometimes about the argument is look at uber, look at lyft you can make a whole tam, total adjustment of market, case >> the difference is the points we highlighted for investors, without calling out any other sectors or industries, this is a legitimate manufacturing business where the margins have gone from extremely negative to only modestly negative we expect dodd to be positive within a year or two or a legitimate cash business in terms of returning cash eventually to shareholders that's a lot different in terms of how to run as a business. and some of the others you just mentioned. >> let me ask how you get or what the assumptions are behind your projection that this market could grow 100 times to $100 billion worth of revenue and the
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company's revenue from $88 million to $5 billion? how do you get there >> you have to start with a big number and work your way down. the big number we start with, there's $1.4 trillion in total retail value of meat sales globally i won't bore you with the details but a wholesale number, assume a percent of that that is addressable by plant-based meat, not everything will be, we believe, and then down to a number beyond meat gets to, 2% or 10% huge difference, obviously, in our model. we kind of split the difference and say they get 5% of that. the key to me is the $100 billion number and assuming "beyond" gets a small percentage of that. >> the impossible burger, this is just anecdotally. sold out at diners over time, is it more and more important to consumers, not just, hey, look at this cool new product to try but which one
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they actually prefer and whether beyond meat is the winner there? >> i don't think there has to be one winner i think if we look at many categories, there can be more than one winner. over time, i expect there will be and what's really nice about this category so far is that, unlike plant-based beverages, think about soy milk, almond milk great category anyway, where everyone is trying to sort of come up with something very similar to each other, in plant-based meat, there's a lot of different ways to skin a cat. i hate to use an animal reference there. no cat in the beyond meat burger, let me make that clear, but they do a phenomenal job of using their particular product portfolio to build a burger and beyond meat does their own particular methodology and they both come to a different product. the fact that you have two different ones that are phenomenal, i think, speaks well to the brand equity potential. >> why is it called meat if it's plant-based? >> marketing
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to sell more products. >> call it meat. >> exactly >> ken, thanks shares up more than 10% today. ken. beyond meat to facebook. it has been making big changes to address concerns but what impact is it having on users julia boorstin has that answer for us hi, julia. >> reporter: tyler, the impact of those changes is negative facebook now has an engagement problem with the average time spent by adult americans on facebook declining by 3 minutes last year. that's according to e-marketer that projects engagement on facebook will flatline at 38 minutes and decline next year. snapchat engagement, according to e-marketer is plateauing at 26 minutes a day while instagram is bucking the trend, expected to get users to spend an additional minute every year between 2017 and 2021. why is facebook on the decline e-marketer atriblts it to continued loss of younger adult
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users and to mark zuckerberg's move to time well spent on down ranking clickbait post and videos we have to see how facebook's move to prioritize private messaging over the news feed will further impact engagement on the platform and we really have yet to see how all of these changes will impact advertising. i mean, not only does less time spent on facebook translate to fewer opportunities to show users ads, but when it comes to that private messaging business that facebook is really going to be betting on for its future, they still really haven't worked out a true advertising model around that just yet back to you. >> thank you very much shares of apple sliding on concerns about the trade war are those concerns overdone? "trading nation" will explore that next and first chinese goods hit with the hyigher tariffs coming to u.s. ports now. live at the port of long beach jane >> reporter: tyler, that is the ship with the first goods but i am the next wave
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everything i'm wearing, except my ring, was made in china but not even my fitbit has been tariffed, yet. so why are americans pay hundreds of dollars more this year because of tariffs? we'll explain when "power lunch" comes back
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welcome back to "power lunch. i'm michael santoli at the new york stock exchange. bad news for apple with citi the latest firm to warn of its vulnerability to the trade war stock now down 11% this month. sharply off its october record high ari wald and mark teper, your "trading nation" team today. ari, been kind of a wide range in the last year or so for apple. is there a sign here it's going to make a stand? >> no, it looks like the range continues, mike. no, for apple, i think the key positive here is more of the view of the overall sector for us, the backdrop suggests that technology should continue to outperform and i think apple has a bid for that i think there's a floor out there. but trading action has been mixed for the stock and we're thinking about it more as a range. here are the levels to watch for. the first gap. there was a gap in the stock price at 173
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i think that's the key support level, but on the upside, there was the may gap and from a couple of weeks ago to the downside at 193, i think that's resistan resistance as long as you're below there, this mixed trading action can continue >> mark, the stock actually is hanging in there today with this extra bearish call so i don't know if there's a message in that, but what do you think is priced in >> so from our perspective, the market's already discounted the china head winds there was a report that came out today that basically laid out the doom's day scenario. if iphones are banned in china, the 25% hit to next year's earnings, that's not priced in but also seems unlikely. i mean, if that happens, we're in a full blown trade war with china, headed for a recession and the rest of your portfolio is in big trouble. so we do like apple at under $180 as a long-term investment their deal with qualcomm and shares they'll have the 5g phone
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next year and we like their transition to more of the high margin recurring revenue services business. i would say at this price, we like it. >> all right bet against doomsday for more "trading nation," head to our web site or follow us on twitter at @tradingnation. kelly, back to you. >> next on "power lunch," the port of long beach where the new shipment of newly tariffed chinese goods arrives in the u.s. the woman who raised two successful ceos and wrote a book an how to do it. author joining us live. oklahoma prosecutors with the landmark opioid case with johnson & johnson. the latest headlines when "power lunch" returns >> and now, the latest from and a word from our sponsor. >> in determining your entry points with rising stocks, look to buy pullbacks at support levels such as uptrend lines, priolor ws, fbi nah creplacemens
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my degree from snhu has helped me tremendously. the flexible class schedules allowed me to go to work full time, run my catering business and be a mom and parent.
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ren i'm sue herera here's your cnbc news update at
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this hour. at least two people were killed when a tourist bus crashed in eastern russia at least 19 others were injured when the bus came off the road cranes were used to retrieve the vehicle. the bus was carrying 43 chinese nationals. european commission president jean claude juncker saying the brexit deal will not be reopened. he arrived for a european union summit that there will be no renegotiation. severe weather continuing across the central united states a possible tornado causing widespread damage in indiana funnel clouds reported in the area no injuries though were reported luckily. the annual charity auction with warren buffett with an all-time high price with at least two bidders above the previous top winning bid of $3.4 million back in 2012 the auction which began late sunday ends on friday. all of the proceeds go to the
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san francisco-based glide anti-poverty group we'll keep you posted on the price tag. that's the news update this hour kelly, back to you. >> sue, thank you. about 90 minutes until the closing bell we're around session lows at this hour. a quick look the dow was up more than 130 points earlier it's now down 50 s&p and dow down two tenths. we'll watch it closely, ty thank you very much. the chinese goods hit with increased tariffs are now making it to the u.s. to those ports of the west coast and elsewhere for the first time jane wells is live at the port of long beach. hi, jane. >> reporter: hi, tyler you're looking at that first ship on it are nearly 5800 containers from china but only 700 containers or 12% are being tariffed, like furniture and tv monitors today, i'm dressed head to toe in everything from china but none of it, even my fitbit, is
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subject to tariffs yet fed economists say the average american household pays more than $800 this year because of tariffs. not just tariffs but the costs of redoing the supply chain, like going to vietnam. >> for the month of april, china imports have increased here in the united states roughly around t 2.5% to 2.9% the increase in vietnam in the double digit. >> reporter: even so, vietnam is a tiny player compared to china. two images, guys, those are all the ships on the pacific right now. the green ones are cargo ships and as you can see, there's a lot of traffic from all over asia, look at the second one a close-up we look at shanghai. there's nothing, nowhere, nobody compares to the traffic company coming out of shanghai tariffs or no tariffs, trade
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march is on. >> that is very cool it's like flight aware but for ships. thanks very much jane wells at the port of long beach. those are arriving at the president over the weekend saying he's not ready to make a new deal a new note saying the higher tariffs will likely hurt u.s. growth where do we go from here joining us, stefan, managing partner at bridge park advisers and former u.s. undersecretary of national trade. the president said we're not there yet on a deal but continues to leave open the prospect of one in general how much longer can this go before it doesn't really matter whether there is a deal or not because the tariffs and all that or hitting home already? >> you know, look, kelly i think that's a big question. i think everybody expectedtous g -- expect us to get a deal and
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fwh now the president is saying we're not ready for a deal i think wisdom would suggest this is going to play out for some period of time and we don't know where it's going to end and as a result, a lot of fits and starts >> it went from a couple of months ago to of course, there was going to be a deal, everything is fine and now people are drawing cold war comparisons and 30 years war comparisons and iraq war comparisons and what lens would you use to think about the environment we're in today >> look, i think this was never going to be easy the president and the administration was never going to have the panacea to the full ponopoly of issues with china but i think we have a way here it won't be as grand as the administration will suggest but a generational struggle between the west, led by the united states, and china, because we have fundamentally different systems and these issues are so
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complex. and this negotiation, i think, is going to be ongoing. >> so no quick resolution. this drags out for some time just get used to the tariffs and expect them to escalate, even. >> we may pull back the tariffs. i mean, kind of who knows, depending what they can get, but even if we do make progress on intellectual property, on market access, we're not going to solve the issue of this state control of the large portion of the chinese economy and the fact that they are a non-market economy and how we should be effectively interacting with them in that context that is just not something that can be negotiated away >> on the one hand, stefan, the president said over the weekend, they would like to make a deal we're not ready to make a deal and then in another breath, says, sometime in the future, china and the united states will absolutely have a great trade deal and we look forward to that because i don't believe that china can continue to pay these really, hundreds of billions of
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dollars in tariffs i don't believe they can do that would you clarify something for me again is it china who's paying these tariffs and if so, in what way are they paying them as opposed to u.s. importers bringing in those chinese goods? >> tyler, so much of that just doesn't make economic sense, as your previous reporter said. the cost to american consumers this year alone on average $831 per family so the united states and china both are suffering because of these tariffs. tariffs are taxes. the fact is that the president said it would be an easy war to win. it hasn't turned out that way. just last week, obviously, we put forward a $16 billion aid assistance bill to u.s. farmers. soybeans hit their decade low. as evidencing, this is not going to be either short or easy and both sides are paying and will pay. >> all right stefan, thanks very much
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joining us this afternoon. appreciate it. >> to the bond market we go where rick santelli, as usual, tracks the action at the cme hi, rick. >> reporter: hi, tyler well, we had two auctions today. the two year was stellar auction. i gave it an "a" and a 5 year note auction with a "c" plus and for the most part, the most solid read was direct bitters at 18.4%, best since february of 2018 but everything else average or actually a little bit light if you look up at the board, intraday five year, you could see the way we've drifted and if you open up the chart, the lowest since around thanksgiving of 2017. two years february of 2018 and 10s are september of 2017 and the third year is 2017 just to give you an idea of the curve. finally, tens minus 2s 14 basis points.
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as we continue to drop the curve flattening, listen, dropping rates, not happy about and flattening, a two-for on the fed. tyler, kelly, back to you. >> all right, mr. santelli how do you raise successful children a woman who seems to have hit three for three will share her secrets with her esther is the 23andme ceo and youtube ceo and mother of a medical professor. she'll join us next.
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this is one of the biggest challenges for parents, giving their kids the right tools to become successful people three daughters, one a doctor and other two, among top tech entrepreneurs and ceos formula is spelled out in the word "trick. trust, respect, independence, collaboration, and kindness. here on set with us, esther w j
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woejc woejcieki. why did you write this book? >> primarily to help other parents and other teachers teach in a way that was more effective. and i thought that this is the easiest way to do it because i've seen a lot of people who've been struggling. and it's really a big struggle today. in fact, it's such a big struggle, we had that unfortunate college scandal. what i'm trying to do is help people understand that if they would step back a little and relax, that everybody will be better off their kids will be much better off and they will be more relaxed. >> two questions i turn to kelly because i know she's got a million too. one of the things you say that's really important is to not be afraid to let your children fail how did you let your daughters fail and what did they learn from it? >> they failed in, like, for
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example, when you're playing a sport, of course, you fail sometimes, you aren't as good as you wish you would be. if you take a course and you don't do so well, it's okay. maybe you want to do it again or take the exercise again, or do whatever it is, but it's okay not to like everything >> when you see your children struggle, in course work, in school, should you help them or let them fail? >> no, they need to come to you and ask for help if they come to you and ask for help, my general response to all kids in class when they ask for help is like, well, did you try to do it yourself? there's some videos online that will maybe help you. there is maybe to talk to your friend let's see whether you can't figure it out without my intervention >> one of the things is trust here trust and you say that at different points, you let your grandchildren go shop for themselves in a big target
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store. let them just go, at age 3 and 4. >> no, no, wait a minute they were 8. >> 8 let them go unattended many people would be shocked at that. >> let me just tell you. they had to buy school supplies. they're more of an expert than i am they've been to target with me a lot. they know how to shop at target, right? at least with me, they knew how to shop. why not let them go and do the shopping which is what i did. i just dropped them off and said, call me when you're done and they did >> radical >> a lot of parents would be afraid of that >> target is not a dangerous place. as far as i can tell looked pretty safe to me. >> that's what you're saying in trust, it's the parents who are afraid and that creates kids who are afraid it's interesting people should just read the forward of this book to understand what it was like growing up in your household and i just discovered forever 21 and this place is amazing and in the
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limo because you got a great deal your creativity and approach to life so unconventional but what i find interesting to the corporate world, the application, how this is now translates to companies like the gap or people reaching out to say, help us out >> what they're looking for is how to treat their employees and how to get more productivity and more passion and it's actually, people work really well when they feel like they're trusted and respected. that's when everybody wants. these companies were actually looking for ways that they could treat their employees better and just think about it from anybody's perspective. the better you feel about your company and the people that you work for, the harder you work. there's so many companies out there. >> it's not just about, hey, we have the best perks at this workplace. it's about kind of getting people involved and you even say, this goes back to the classroom and one of the failures of 20th century
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education is the idea of memorization and lecture and you like technology and the new ways to collaborate >> i love technology i'm not saying we shouldn't memorize sometimes we can do memorization, like, how about not 7 hours a day, 12 years in a row can we cut that out? how about 20% of the time, kids can do a project they care about, 20% time project. i call it a moon shot. >> sounds like something at google 20% of the time to work. >> what about vices, phones and so forth what were your house rules what do you suggest and then carry it into the corporate thing because i notice a lot of people, i tend not to do this, they take their device to the meeting, their laptop to the meeting and probably not doing research for that meeting. they're probably doing other things. >> they're shopping. >> they might be
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>> or doing other things they're answering emails. >> the biggest discussion points in most households. >> i don't believe in giving kids under 2 any device ever under 2. and a lot of parents, i see people and the kid has a phone. why don't you want to do that? because you're training them, whenever they're bored they reach for a phone. so you're worried about like why does your 16-year-old always want to be on the phone? because maybe you trained them to do that when they were very small. so stop training them -- >> parents can be the biggest offenders of that. >> well, they confiscate the phones, like sorry, you can't have the phone, not now. but then they take their own phone out. >> exactly >> so kids do what they see you do they don't do what you say >> final question, as you started to get feedback about this what has been the biggest misconception? one of the things i've seen is people say well, it's easy for parents, privileged parents to say when they have -- they can
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luxuriate on their kids. what is a misconception that's developing about all of this >> a misconception, one of them is that it's too easy, it's too simple you know, you didn't think about it long enough i've been thinking about this for 35 years and i'm telling you, it works. and i accidentally -- well, not accidentally on purpose i was looking for something to help people remember remember it easily that's how i take up with the trick acronym because that is the way i thought they can remember just think about whatever you're doing. just think about trick and like is it -- is there trust there? is there respect there are you giving your child some independence are you collaborating? are you being a dictator and how about kindness we need kindness all over the world. we need kindness in the schools and our homes and our businesses, everywhere and that's why i think when you're kind to the people and kind to your employees the productivity goes up and people feel happy about being in that job. >> the book is "how to raise successful people. you can take a picture of it there you go
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how to raise successful people ester, thank you very much >> thank you i'm so happy to be here. i love cnbc. >> well, we love having you here thank you very much. continued good fortune to you. >> thank you still to come, the first case attempting to blame a drug company for its role in the id crisis. it's going to trial, and we will have that story for you right after this -driverless cars... -all ground personnel...
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first of its kind but definitely not the last meg tirrell joins us now >> hey, guys johnson & johnson is the sole remaining defendant in this oklahoma opioids trial after both teva and purdue pharma settled, teva just this weekend. the lawsuit claims that drug companies helped fuel the state's opioid epidemic, which has claimed thousands of lives and it's not just the first of the slew of opioids cases expected to play out over the next couple of years it's also a very public trial. with cameras allowed in the courtroom. >> the evidence will be very clear that johnson & johnson knew this truth before they ever started marketing their drugs in the state of oklahoma. if you oversupply people will die. >> and johnson & johnson disputes the claims, saying it's "actions in the marketing and promotion of these important prescription pain medications were important and responsible." and teva said its settlement "does not establish any wrong doing and it has not contributed to the abuse of opioids in oklahoma in any way.
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some see parallels to tobacco litigation two decades ago and said settlement fines and other penalties could add up quickly to billions of dollars >> look at teva, below ten bucks now. this stock -- >> it's not just this. teva's dealing with a whole slew of issues. other potential litigation over generic drug collusion lots of problems >> meg tirrell our stock draft challenge ends today. and if you picked oz pearlman you've got a chance to win a trip to cnbc headquarters. thanks to bitcoin, he's running away with the contest one month in and though our challenge ends today, our contest, there is still plenty of time in the stock draft season, which doesn't end until january 31st you can go to to keep up with all the action. but oz is up 20% nobody else is in the green. >> he's the mentalist, after all. >> he is the mentalist he saw it coming, right? >> we're still talking about --
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organically there's a lot of good stuff in here the other thing we were saying with her before she left is most people are either worried about going too tech or not tech enough she has a better balance here. >> she said let your kids help design whatever rules you apply to their devices sometimes they will come up with stricter rules >> thanks for watching "power lunch," everyone >> "closing bell." i want to put rules on them. no rules here. welcome to "closing bell." i'm sara eisen >> and i'm wilfred frost a have good afternoon to you 59 minutes left in the trading day. we're going to tell you everything you need to know as an investor before the market closes as we hover near the session lows >> here's what's driving the action today in that stock market president trump said he's not ready to make a deal with china. 10-year yield is dropping. we're seeing new lows there. and consumer confidence is surging. >> tom lee and morten's jeremy siegel will tell you where they think the market is headin


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