Transcripts For CNBC Power Lunch 20240714

Markets. Stocks are hovering slightly, a mixed bag. Dow is slightly higher, up. 2 s p 500 is down. 2 , and had nasdaq down by. 6 its the defensive sectors leading the way today. Real estate, health care, consumer staples, which by the way, hit a fresh alltime high today. Tyler. Thank you very much, melissa. The big story were watching is what will the fed do and how will the markets react we have been talking about it for weeks, maybe months now. Were less than 48 hours away from one of the most anticipated fed meetings maybe ever. Steve liesman will be there to bring us the news, but hes here now to bring us some analysis. Steve. I think the context for what youre saying, tyler, is the fed is meeting under extraordinary circumstances with markets screaming for a rate cut, and unprecedented political pressure from the president of the United States in fact, with the fed on the verge of giving the president the rate cut hes campaigned for for months, the president tweeting out this morning that thats not enough. He said, quote, the fed has made all of the wrong moves a small rate cut is not enough but we will win anyway over time, the desires of the president and the outlook for the market, however, do align. Here is where the probabilities are. July, a 100 probability in the fed market of a rate cut that breaks down to 77 for a 25basis point cut 72 chance of another cut in september. 57 chance of yet a third cut come december. Here are the cases for and against. A sagging global economy, dragged down by a trade war, and domestic Manufacturing Sector on the edge of contraction are sufficient risks for a cut but rdq since the june meeting, we have seen an easing in hostilities, a new record high in stock prices and stronger than expected payrolls, retail sales and core cpi prices in june significantly, former fed chair janet yellen weighed in in favor of a cut, though she said its more likely a one off than a start of an easing cycle only one of those kwets mentioned the stock market, but im wondering because it was basically the stock market that led the fed to pivot at the end of last year is the stock market going to cause the fed to do, i mean, maybe a 50basis point cut in order to catch them by surprise . I think if youre trying to figure out where the fed wants to put the market, i think the fed is fine with the market where it is right now. Right . Financial conditions, which is how they look at stocks, are very easy. Right . Its the higher stock prices are, the easier it is for a company to raise money through ipo and to fuel growth in that way. I think the fed and the market might have some reckoning to do. They may have to go into a back room and have a discussion after this rate cut because im not sure that the Market Pricing is aligned with where the average fed official is right now. All right, steve, thank you very much. So as a 25basis point cut already priced into the market if so, where do we go from here . Jim and mike, great to have you with us. Mike, i will start off with you. What kind of backroom conversation do you think the markets and the fed need to have, if they do need to have that conversation . They clearly need to have a conversation especially a couple months out from now whats interesting is the president s tweets are not whats driving the fed, but certainly the president s actions are. We have seen Global Manufacturing deteriorate around the world. And that really is starting to affect Business Sentiments while it hasnt spilled over into the u. S. Consumer yet, the fed is clearly concerned thats why its almost a certainty that were going to see a 25basis point cut this week, and the prospect for future cuts at the end of this year thats where the question is much more significant. Because the fed policy is now shifting from data dependent to preventive Risk Management that means theres going to be a lot more subjective room for error between the market to misunderstanding where the fed is and how that might cause additional volatility in the market it sundz like you think the risk is to the down side if theres greater leeway for error because of that subjective great area that the fed will be in the risk is totally to the downside lets look back to september of last year. The markets essentially about three to 3. 5 above the highs we reached back in september. Most of that return came from january and june of this year. Which were big months for fed guidance without that fed guidance, the market seems not to be chugging along very well. So the question is, is a 25basis point cut going to be enough to continue to spur an equity market rally to the end of the year, and theres significant risk to the downside jim, will it be a 25basis point cut, enough to propel the market i think its priced in, tyler, but i think whats being underappreciated here is the fed is the last to ease. We have had a ton of easing by the real money supplies gone from 1 to over 3 we had fiscal juice thats expanded over the last year by almost 1 relative to gdp. We had a drop across the entire yield curve, 1 or greater most of the way across it already and its been done not here but across the globe i feel much better that the fed is going to cut rates for the first time after six to nine months of already easing quite dramatically, and the lag time is already at work, so i think the economy might already be starting to pick up a little bit. Not only here but globally, and i think the feds probably going to be one and done but if they have to cut rates once or twice more, then it really wont matter because if they have to cut rates two more times before the end of the year after this one, well be in recession and probably a bear market i dont think thats going to happen i think the economy is going to turn, and with the backdrop of low rates and relatively okay valuations and positive liquidity growth and negative sentiment, i think theres still quite a bit of room in the upside isnt the fed in a way, jim, forced to be open at least to the idea of cutting more given what Central Banks around the world are doing and given what the u. S. Dollar is doing in response to nthat were seeing, for instance, the pound drag i shouldnt say drag, push the dollar higher the pound is being dragged lower on the threat of a Nodeal Brexit mike was mentioning the hurt in the Manufacturing Sector, particularly on manufacturers here in the u. S. Yeah, theres no doubt that theres weakness in manufacturing here and abroad, melissa. If conditions dont improve, theres going to be additional cuts but i kind of like the fact of what we have done in the last six to nine months and i think with the lag thats going to come through and even improve manufacturing overall. It will be important to the market what the fed says after this meeting more than the cut. I think the cut is in, but do they say theyre going open for probably another cut this year or at least are they going to say that theyre going to go data dependent now and they can just as easily raise rates as drop rates from here depending on the data . What will they say about quantitative easing . Are they going to stop the runoff sooner than they said or will they announce theyre going to consider increasing qe again . All those things are going to be important. But the end of the day, i dont thinkits going to be the fed thats going to determine it its going to be the economy is either going to improve and well have a higher market or its not going to do much and were going to have a fear of a recession. Mike, very quick finish there, with all of the stimulus that jim points to, why isnt the economy in the u. S. And globally better . Thats the Million Dollar question the idea is the fed being the only game in town is just not enough right now. Were going to need to see the real economy start to take off if you look globally, it isnt the only game in town. There are other Central Banks that are similarly stimiaulatis. The ecb and bank of japan are already at the bottom. The u. S. Fed has a lot more capacity, but its still very limited. The last easing cycle, we went from 500 basis points down to zero now, were at 225 going down to zero with already a record large Balance Sheet. Federal Central Banks are not going to have as much firepower as they did ten years ago. Thats why the market is concerned right now. Gentlemen, thank you. Mike and jim, we appreciate it now to one of the big losers today. It would be boeing that stock sinking deeper into a bear market for the stock as the ceo of ryan air warns his airlines could be hurt as the 737 max grounding drags on and he had some very strong words for boeing phil lebeau joins us now hi, phil and tyler, lets give you some context for the comments that came from Michael Oleary, the ceo of ryan air. During the Earnings Call this morning, he was talking about the company taking delivery of 737 maxes. They have scheduled some that were supposed to be delivered this year. Thats obviously not happening and then theres uncertainty surrounding those deliveries for 2020 and thats when he said this we were originally expecting 58 aircraft for the summer of 2020 thats now 30 at best. It may well move to 20 it could move to ten, and it could well move to zero if boeing dont get their [ bleep ] together pretty quickly with the regulators with regard to the regulators and the 737 max, this is boeings plan at this point. The september timeframe is when they have the recertification flight they submit the software for faa approval theyre expecting that to be shortly after that, that they get the approval from the faa and regulators, then the hope of boeing is this plane returns to service in the fourth quarter. But we should point out that Michael Oleary and other ceos are increasingly skeptical that that will happen and thats why as you take a look at shares of boeing, they are now down in that 340 range. Where is it now . 340 if you look over the last five months since midmarch when this grounding took place, 337 is the low point. Interesting to see if it holds here in the 340 range or as questions continue to mount, if it will drop down below that well be watching 337. Phil, thank you. Coming up, if you thought the ryan air ceos comments on boeing were tough, wait until you hair what Bernie Sanders said about pharma executives first, beyond meat shares falling ahead of the companys results due out today. Can they deliver enough to meet expectations that have sent the lsi oup 800 since its ipo. Wel nkur teeth into that when power lunch returns lower carbs. Lower calories. Higher expectations. The light beer youve been waiting for has arrived. [student] my degree from snhu has helped me tremendously. lively music the flexible class schedules allow me to run my catering business and be a mom and parent. Breakthrough at snhu. Edu. Meatless mania heats up as beyond meat is set to report its results after the bell today the company has been red hot since its ipo. The shares up nearly 800 . Although they have been falling today. Will this successful ipo keep outperforming expectations or lose its sizzle . Joining us now is sarah lockear, publisher for nations restaurant news, and our own aditi roy. What are you learning . Hi, tyler the stock is down more than 6 going into earnings. The three things to watch today, first, top line growth the street is looking for revenues just under 53 million. Or more than 30 higher from last quarter second, Gross Margins to see how the company is reigning in costs as it continues to scale and finally, partnerships. Beyond has been on a roll with partnerships most recently nabbing Dunkin Donuts well look out for any other big names and the reaction to the numbers, tyler, will also be notable. Well keep a close watch on the stock price once the results come in. You bet lets turn to sarah. Is beyond meat and its competitors a fad or is it too soon to tell i think its a bit too soon to tell. What youre seeing is tremendous consumer interest in meat alternative products and its different than what it used to be, where people were very strict whether they were vegan or vegetarian. What youre seeing among consumers today is a really flexible approach to eating. And so some people are trying meatless mondays or being vegetarian or vegan or picking these Meat Alternatives during the week and indulging a bit on the weekends so i think the trend is definitely here to stay. How it all shakes out between beyond meat and some of its competitors is the big question. So what are you looking for in the numbers later today, if youre all that focused on the numbers . I realize youre not really an analyst, per se. Right no, definitely not lets make that clear, for sure. You know, i know the stock was falling a bit today, but we have seen such a surge in their revenues, their partnerships that were just mentioned, their signing on restaurants bit by bit. And i think youll see ideally a top line growth. I think whats going to be a challenge in the future is the competitors that are definitely flooding the market. And strong ones, right we have tyson coming in saying theyre going to establish their own brands we have nestle usa even hormel looking at pizza toppings there will be a challenge. Of course, theres impossible foods. I think beyond meat is rising fast and strong at least within the Restaurant Industry in the restaurant business, sarah, outside of quick serve, which is where a lot of the partnerships have been focused for beyond meat, when it comes to ordering from a supplier, is it easier to order from an existing supplier like a tyson, perhaps, or a nestle im trying to figure out what sort of edge or what kind of moat these incumbent players have over beyond meat . Thats a great question what we have seen so far this year isallies to restaurants of meat alternative products has already risen 268 so clearly, restaurants are looking for any angle they can and any supplier they can. I do think when youre talking about the large chains, whether thats casual dining or qsr, of course, there will be great supply chain either savings or synergies when youre dealing with your traditional producers and suppliers. At the same time, beyond meat, for example, has branded itself. Restaurants have welcomed that saying on your menu this is a beyond meat burger or the impossible meat burger, people are really responding to that. So restaurants are going to be very careful with who they partner with and why what do you let me ask a simple question. Have you tries these burgers what do you think of them . I have. I have actually beyond meat in my fridge right now. And i did try impossible foods at a restaurant. I think theyre tasty. Im not going to lie, i tend to load my hamburgers with cheese and ketchup and mayo and mustard, so once you have all those condiments, they tend to taste somewhat the same. The meat becomes incidental to the other stuff what do kids say, do you know . Well, i have two twin boys. And we have given them the beyond meat burgers. But you know, they are only 2, so they dont really say much. But i will say that was a little bit of a joke that some of the gen z customers, they want this. And i dont believe thats going to change. They want to know where their food is coming from. They want to feel a little bit healthier. In terms of what they choose, at least part of the time and right now, its really meeting that demand. I mean, dell taco, 2 million beyond meat tacos, 2 million since april. So its really working in some cases. Well, yeah. Get back to us when your 2yearolds are talking about the beyond meat. I will. Youre a busy woman with two 2yearold boys. Its fun. Its a blast sarah, thank you. Adede, thank you, as well. Beyond meat not the only ipo under pressure lets get to dom chu for a market flash on lyft reason youre seeing a chart, in the last hour, we saw a dip toward the lows of the session for lyft that was because of headlines out that lyft was going to lose its chief operating officer, john mcneill cnbc has confirmed via a source that he will be leaving the company. There is yet no formal announcement from lyft, and when we reached out to them, they had no comment there is this idea that one announcement might be coming down the line. The reason why its important is because mcneill himself came in march of last year well keep an eye on that, and tyler, melissa, just to put it in context, you mentioned beyond meat and the weakness today. I would point out the renaissance ipo etf, a smaller etf with about 50 million or 60 million in assets, still, though, attracts many of the high profile recent ipos beyond meat is part of the portfolio and so is lyft, and those shares are lower on the day. They had been outperformers overall, but certainly an etf that well watch in the future back over to you thank you very much coming up, apple on deck for earnings after the bell. That comes tomorrow, and one top analyst says this could be your best chance, your best chance to buy the stock. We have the details. Plus Morgan Stanley betting on the rise of the machines, and its paying off. We will tell you how its robotic strategy is beating thmaete rks. Well explain on power lunch. E million. Theres everything from happy to extremely happy. Theres also angry. Im really angry clive actually, really angry. Thank you. But what if your business could understand what your customers are feeling. And then do something about it. Turn problems into opportunities. Thanks drone. Customers into fanatics change the whole experience. Alright who wants to go again . I do i do i have a really good feeling about this. Welcome back to power lunch. Im mike santoli at the New York Stock Exchange apple rallying into tomorrows Earnings Report after ubs said this was the strongest seasonal stretch for the stock, so is this truly a good time to buy this time around harry and dina are your trading nation team today. So ari, put the stock in context for us obviously, a very dramatic reversal off that low in early january after the company warned about poor iphone sales. But the stock has stopped a good deal short of last years highs. So how does that set up for you . It sets up positively, how we see it you know, no view into the Earnings Report, but generally speaking, we do think this is a good time to buy the stock heres why as we look back at these very, what was wild trading swings in apple, those swings have narrowed, and i think were now in a position where the stock is showing signs of breaking to the upside that its reversing the down trend that it had been in since october. And i think this is marking a resumption of what is still a longterm uptrend in the stock so we are expecting new highs, looking ahead. You also have top down tail winds from a relatively and broadly strong tech sector so for us, were bullish on the market were bullish on tech. Tough not to be bullish on apple. Yeah. As it is one of the three biggest stocks out there and still about 10 up to those old highs. Gina, this ubs, without getting into the details, makes the case that expectations are relatively low for the Company Going into the Earnings Report. People have gotten this idea that iphone sales are going to be sluggish. So does that mean there could be an upside surprise how would you view the stock right now . Im not sure that expectations are that low. The expected consensus number is 209, but the whisper number is 218, so i think theres some builtup expectation remember that as of march, apple had shrunk its revenue 5 on a year over year basis, and its profits were down 10 in a year over year basis. At this point, they were already starting to see they were getting hit by the china trade problems, and you know, if you look at iphone sales, those are continuing to slow the wild card in the apple numbers really has to be the expansion of services. Services is apple tv plus and their credit card. So the question is, can those start to make up for slowing iphone sales and the problems theyre having in china . Or does the china situation start to, you know, relent and you start to see some catchup there. Thats the upside for apple. But i think theres actually quite a bit of optimism being priced in already. All right well, well have to see. Definitely kind of an eye of the beholder situation when it comes to whether services can carry the day. Thank you for more for more trading nation, head to our website or follow us on twitter. Melissa, back over to you. Mike, thank you ahead on power lunch, rise of the robots, how Morgan Stanley is banking on ai to beat the markets. Plus, mylan and pfizer, which stocks are next to make a deal and you know the super bowl, world series, what about the fortnite world cup filling a stadium, attracting millions of viewers and earning one 16yearold a 3 million prize. All this when power lunch returns. And now the latest from tradingnation. Cnbc. Com and a word from our sponsor. Some people refer to the vix as the markets fear gauge but i like to refer to the vix as a gauge of uncertainty. Because while an elevated vix may imply that the market is headed for big moves, those moves could either be to the downside or to the upside. Im randy frerk, aedicnd schwab is the better place for traders. gentle music my degree from snhu has helped me tremendously. The flexible class schedules allow me to go to work fulltime, run my catering business and be a mom and parent. When i reached this accomplishment, it was like, its here, its happening, its now. We, at Southern New Hampshire university, are the ones who succeed. We are the ones who break through. Im sue herera heres your cnbc news update at this hour. The Gilroy Police chief says a 13yearold girl, a 6yearold boy, and a man in his 20s were the victims of the shooting at the gilroy, california, garlic festival sunday. The shooter, who was killed by police, used a legally purchased ak47 type rifle defense secretary mark esper welcoming his egyptian counterpart to the pentagon. The two men listened to the playing of both National Anthems and a gun salute british Prime Minister Boris Johnson was booed by scottish pro proindependence demonstrators as he arrived with Scottish First minister in edinboro scotland should hold a vote on independence from the uk if it is taken out of the eu against its will and russian Opposition Leader alexi novonnie was discharged from the hospital even though hes doctors say he was possibly poisoned he was rushed to the hospital on sunday with what was called a suspected allergy attack inside a detention facility youre up to date. Back to you. Thank you, sue herera lets take a check of the markets. A fairly quiet three indices ahead of what will be the busiest week for earnings the season this week, and also the fed decision this week Dow Jones Industrial average higher by a tenth of a per isnt. Were seeing big moves within technology the fang stocks are on the move. Software is particularly weak. And we are watching shares of apple trade higher ahead of its earnings tomorrow night. Tyler. Thank you very much bob pisani has been our reporter at the nyse for a long time not going to tell you exactly how many years you have to guess. Its been a few. In that time, wall street trading has changed a lot as more and more trading goes electronic bob joins us with more on the rise of the machines on wall street hi, bob. So youre saying im older than dirt, right thats the point here. Where are you in this pecking order, by the way, my friend im way up there. Were about the same, i think. When i became the stocks correspondent in 1997 and came down here on the nyc floor 22 years ago, there were 5,000 men and women down here. Theres a few of them. More than 80 of the volume in all nyse listed stocks traded right here on the floor. Today, theres about 500 men and women down here. Thats a 90 reduction in personnel, and the nyse floor trades only about 20 of the volume of nyse stocks. A 75 reduction in volume. 90 reduction in personnel 75 reduction in volume. Thats what electronic trading has done the ss. E. C. Allowed alternative trading venues to develop outside of the nyse and the nasdaq in the 1980s and then advances in hardware and Software Enabled traders to place orders electronically that could break up large orders into small pieces and execute them rapidly. That occurred from the mid1990s to the early 2000s it also coincided with stock spreads of one 8th of a dollar 12. 5 cents for almost 200 years until 1997 then it went to 6. 25 cents and then to pennies in 2000. A lot of changes in a very short period of time melissa, back to you thank you major wall street firm Morgan Stanley banking on the rise of the robots using Machine Learning to study its own research, including price target changes and sentiment on individual stocks. It then made a bet based on that data and was able to beat the market with us to explain is Morgan Stanley researchers global head of data, lou pirenc. Great to have you with us. You unleash the machines to actually sort of deeply understand entences, so not just trigger words that we think of in algorithms what were the general findings that you came across sure, we did two things first, we built a model. We spent 18 month working with our analysts and Technology Department to build a modtool come up with sentiment scores. Were very positive report or negative report. Coming up with the score for whether its positive or negative is easy enough. We can find it out by reading the research ourselves the conviction behind it is a lot harder so a lot of nuance in the report thats right. You need the feedback from the analysts to make sure the machine is getting that right. So after 18 months, we feel that we have built a model, the scores were positive, and we have used that to come up with a trading strategy behind those scores did the machines read the reports and then talk to the analysts what i mean thats a good question. How did it work so you feed the reports into the machine, and initially the machine will come up with a score. But then the important thing of conviction conviction. How much do you really need this we think its positive or absolutely certain this analyst is really, really convinced. But whats important, initially, when you teach the machine really how to read these reports, is to validate or reject what the computer thinks, so what the machine thinks thats where the human being comes in thats where the analyst comes in its the machines collaborating with the analysts. Its because they have to learn, and eventually the machines will understand the analyst language better and can do it on their own what was the outperformance compared to the s p 500. If you look at the top your tile of reports, the highest scores, compared to the most negative, theres about a 700, 800 basis point spread in performance on an annualized basis. So the trading strategy, if you buy the top stocks and go short the bottom stocks on a systematic basis, you get a sharp raceio of 1. 2. What that means is you outperform the market. Theres a real signal behind that what was the goal, to prove that Morgan Stanley research is accurate, or is this to come up with a model that you can then somehow sell to clients in some way . The objective was initially can we machine read our own research but then its really to come up with strategies where we can help our investors to make money. To drive alpha lou, thank you. Fascinating stuff. Do the machines and analysts go out for a beer after this, hang out maybe the next stage. To the bond market and rick santelli, who is a man, not a machine. Rick santelli. You know, tyler, its fascinating. Look at a twoday chart of tens. We have dipped just a little bit. We had pretty good data the last couple sessions of last week if you look at a oneweek chart, its pretty much sideways. Krrg this, we have had eight sessions in tenyear note yields where they have closed between a 2. 02 and a 2. 08 yield. Today would be the ninth and were smack dab right in the middle of the. As far as the dollar index goes, a different story. Look at the intra. Notice, we traded a good deal above 98 98. 15 is the high of the day well, if you open the chart up to april of this year, youll see that april 25th, we the high at 98. 25ish that would represent a high going all the way back to may of 2017 which means were about ready to make new highs for 26 months of the dollar index, another fifth of a cent or so from current levels back to you. All right, rick, thank you. Shares of mylan moving sharply higher today that company has made a deal with pfizer. What the deal means for the drug industry and those two in a bit. And Bernie Sanders with some strong words for the big drug companies, the fallout from what nc said is ahead on power luh. Your brain is an amazing thing. But as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall. Thankfully, the breakthrough in prevagen helps your brain and actually improves memory. The secret is an ingredient originally discovered. In jellyfish. In clinical trials, prevagen has been shown to improve shortterm memory. Prevagen. Healthier brain. Better life. Welcome back to power lunch. A big drug deal, shares of myelin are up more than 10 as the Company Agrees to merge with a unit of pfizer that sells off patent drugs meg. Thats right. These are some of the worlds best known medicines, viagra, lipitor, xanax, what they have in common, they lost patent protection theyre a unit of pfizer that the Company Announced today it plans to spin off the business and merge it with generic drug giant mylan. That brings all of the drugs under the same roof as the epipen it will be a brandnew drug company with a new name, domiciled in the United States and it will be fairly large, up to 20 billion in revenue next year for mylan, the culmination of a year long Strategic Review that the company undertook amid pressure on its stock. For pfizer, it marks a further move to patented medicines which are often pricier. As we head into this weeks democratic debates, the pressure on drug prices is continuing the latest, Bernie Sanders appeared to compare pharmaceutical executives who hike up drug prices to murderers. Echoing comments from President Trump who once said the pharmaceutical industry gets away with murder, guys peppery words there. Stick around as we talk a little more about the mylan deal, which has been described as a goldilocks situation according to mizulo analyst irina kofler, but she issues a warning for the rest of the generic drug space more deals like this are unlikely she joins us now, has a neutral rating on mylan shares and a 25 price target irina, welcome im glad to have you here. Thank you for having me i can see where this makes sense for mylan and may help its stock price. I can see where it may well make sense for the remaining company pfizer, because theyre going to get to sell more pricier drugs that are still on patent but what eludes me is the idea of why anybody would want to buy stock in this new combined company where typically the revenues on these drugs decline over time. Explain it well, were modeling them declining over time as well for now in our initial crack at the model. However, this company is going to be throwing off a lot of cash theres going to be cost synergys that are staggered over a fouryear period, and theres going to be some top line synergys potentially mylan has about 3 billion in pipeline assets it intends to launch over the next several years. Its not clear that all of those things will play out as planned, but it does give the company plenty of breathing room, you know, to drive some additional top line growth as well as operational leverage, and then, you know, the Balance Sheet is so strong that instead of repurchasing their shares down the line, they could always go out and buy pipeline assets or accretive drugs. Does this new company have a little more political cover than some of the other Pharma Companies because they specialize in generics as opposed to pricier drugs ironically, Generic Companies have been under as much fire as the branded companies. They have also been under fire for high pricing of certain products, and theres been overhangs from litigation on two fronts one is the opioid litigation and one is price collusion litigation so i think they have been very badly dented in the past year. Irina, why do you think other generic drug Company Stocks are up today on this, like teva. It doesnt soind like you expect there to be further deals but the market is reading at least some optimism to what is going to happen with those companies ill be the first to admit, i was one of the the skeptics about mylan, that mylan could get a solution for its situation. But clearly, they found just the right party to merge with, who had, you know, a lot of cash flow and also was willing to do the deal other companies that we follow with good cash flows generally are investing them in their own pipelines and dont want to be married to a Generics Company which is why, you know, i have been somewhat skeptical about this but you know, there is optimism, and there certainly is creative deal making in this sector, so anything can happen. But you dont expect copycat deals. This may be such a perfect fit and match that its a one off. There are certainly other companies sitting on Legacy Assets that generate a lot of ebitda, that if they wer unlocked or somehow spun off, its possible that Something Like this could happen for example, allergan has a portfolio of Legacy Assets boush health has a similar portfolio. In the example of bausch, they use it to deleverage themselves. Ilitits not clear other compan would want to let go of their assets the way pfizer did. We appreciate it. Coming up on the tasting upnu, slacking off at work, peak make, and delivery drivers taking a bite. Power lunch will be right back looked at chart patterns. Ive even built my own historic trading model. And youre still not sure if you want to make the trade . Exactly. Sounds like a case of analysis paralysis. Is there a cure . Td ameritrades trade desk. They can help gut check your strategies and answer all your toughest questions. Sounds perfect. See, your stress level was here and i got you down to here, ive done my job. Call for a strategy gut check with td ameritrade. Thousands of people gathering, and millions watching online as a 16yearold who goes by the name bugha won the fortnite world cup and buga won the fortnite world cup despite a sharp weekend for the lion king, on the battle for your eyeballs, josh lipton and julia bo julia borstein this is a lot of time that people are spending on this. To detriment potentially of doing other things. Its a totally fair point, melissa. Actually, theres different metrics you can use to try to gauge the popularity of fo fortnite some people use views, and what they study is how many hours are people spending on twitch, for example, watching other people play fortnite. Whats interesting in june, actually, according to the latest data, that was actually down pretty hard from the july peak of last year which was almost 150 million hours some analysts will push back on that and say views or money spent in games waxes and wanes depending on seasonality and what hot games are competing for your eyeballs at the moment. They will argue fortnite is a power house. Somebody who watched this weekend, you had to be impressed by the crowds, 59,000 tickets were sold and 10 million views on you tube on the final day, and i think for epic games, the Company Behind fortnite, it was a big, positive event theyre hoping draws more attention to the game and more engagement. Either of you take this question i wonder whether attendance at venues and watching remotely spikes when its the championship round, when its the big round, but if its like a summer baseball game when chicagos playing kansas city, does anybody watch does anybody show up for those things well, im sure josh can weigh in here on the actual attendance numbers for fortnite events and e sport events, but i think tyler youre speaking to a key point. People do want to leave their house and go experience a live event with other people, and not just stay at home and stream netflix all day when they think its worth it, and thats why were seeing attendance at concerts maintained as a big thing, the summer concert season and festival, and people will go see a movie, when they think like its part of the water cooler conversation. Bigger movies, people wait until they think its worth it to go to the theaters. Yet Movie Box Office is down, say my notes thats right. The big ones are out but yeartodate box offices is down about 6 1 2 versus the same period last year we are seeing mega hits. We had disney reach the biggest ever annual box office for any studio, it set a new record for that, and its not even august yet. We are seeing disney have mass i success with these big budget franchise movies we havent seen as many of the middle market movies, and lower budget movies have big success as they did a decade ago. Josh and julia, thank you. Time for our tasting menu, here are a few other stories were watching shares of slack is down more than 4 . The messaging platform experiencing some major outages and technical issues for a few hours until finally resolving this problem despite todays decline, shares are up, a lot of people in this newsroom use slack, and so not having it is a real disadvantage for some time. Kylie jenners makeup line, i know youre simpresinterested this it has seen sales decline 14 this career. The issue could be from a lack of repeat customers. There you go public makeup and beauty stocks are soaring this year with elf beauty leading the way up nearly 100 there is that curiosity factor, right, you want to try the kylie lip kit, and you know, thats it. All right next, this is the story that we were chatting about ferociously. My wife is never going to order delivery again. Next time you order delivery, you might want to think about this story, according to a new study, more than 1 in 4 delivery drivers have actually taken a bite out of a food order, an unsanctioned taste test to say the least. The survey was conducted on 497 drivers on apps such as uber eats this is a reason to have tamper evident labels on delivery items to make sure that a drivers grubby paws havent gone into your dinner. Eating a few fries along the way. Fries a nugget, a piece of pepperoni off the top of a pizza. Little crispy chicken. Appetizer for the driver. A wing. Disgusting. One of the benefits and draw backs to bitcoin is its perceived privacy but the irs ows the irs always knows that story is next so, every day, we put our latest technology and unrivaled network to work. The United States Postal Service makes more ecommerce deliveries to homes than anyone else in the country. 2019 has been a great year for bitcoin, up about 150 , but people who have sold it at a profit, well they still have to pay the tax man. Robert frank here to tell us what the irs is doing to collect, how does it know. Its been a good year for bitcoin but not a great weekend, fell 5 saturday after the irs announced it is sending letters to as many as 10,000 bitcoin owners over the next month warning them of potential tax liabilities. The letters which the irs calls educational say the agency has information that you have or have had one or more accounts containing visu contain Virtual Currency, and failure to pay could result in civil or criminal activity, it wont say how it received the names of bitcoin holders last year, the Currency Exchange notified 13,000 customers it was releasing information to the irs after it was ordered to do so by a court. The irs last year launched what it calls a Virtual Currency Compliance Campaign to deal with nonpayment of taxes and the agency is saying that Virtual Currency is an ongoing focus for irs criminal investigation the irs published rules about crypto saying it is a property, not a currency, some asking for information on transactions going back to 2013 even if you are trying to play by the rules, you didnt know what the rules are back in 2013. This is going to be confusing to a lot of those who anonymity aside wanted to pay but didnt know what the policy was. For some, this will be a real shock. They may have captured that run and not know they owed taxes on that. Thats right. They may have captured and the run and a lot of attraction so bitcoin is the anonymity, no one knows, and the irs has now presumably you had to have 20,000 or more in crypto to be targeted so its not everybody, but yes, the fact that theyre now disclosed, the irs knows theyre watching. Thanks, robert. And thank you for watching closing bell right now. Puts them into the bottom of the dow, they announced their merger with mylan, more on that deal and what it means for the fa pharma space lets look at what is driving the action in the final hour, the Federal Reserve Rate Decision just two days away. Its the busiest week for earnings with apple gearing up for results tomorrow more tha