Power lunch starts now welcome to power hundred mp. Its a record day on wall street the s p 500 notching new highs when tyler mentioned the dow and nasdaq are in striking distance. The nasdaq about 13 points away from that mark kelly. All right thank you very much. For more on whats sending stocks to new records today, lets go to bob at the New York Stock Exchange bob. Three things that are really mattering right now. Number one, trade talk optimism. Number two, the Federal Reserve cutting likely for the third time this year, this week and finally the Consumer Holding up well i think the Consumer Holding up is the key to all of this. I looked at the earnings calls for the 40 of kpacompanies that are reported so far, very clear. The consumer is holding up well and theres no concerns about a recession in 2020. Richard seeing the capital one ceo. I think the u. S. Economy and consumer is in pretty good shape. Me echoed many bank ceos that i heard saying the same thing. As for recession concerns, hes designed bank ceo. Holding up, no recession talk. Thats why were at new highs. Id say since the last time we hit new highs, the leadership is defensive sectors, consumer staples. We need to get other cyclical groups these are all lagging to lead and i think we need resolution of the trade war to really get that pattern back to you. Thank you very much. As we hit all time highs, is there anything that can stop this record breaking rally into the year end welcome to both of you you say you are positive on risk taking into year end 2020. Thats a long way if now stock market records which were talking abtoday are made to be broken youre a little more cautious you see zigging and zagging through year end your price target on the s p is a little lore than it is today yeah. We consider ourselves to be pretty neutral we said dont rule out another before end up. If you look at what we have seen its rally off when we have seen this in the past off the 2010, 2011, 2016 lows, we tended to get quite a few backs before the 10 the pull backs cause would be in. We dont like valuation thats the first thing that we have been pointing out too high . Too high. What we pointed out last week is were starting to bufferin up against getting pretty close to levels that we peaked out previously in the sickle we seen that already you have to assume is the good news and progress with trade war. We think a lot of that is vacant jim, what would you say laurie is missing. Sdm i dont think valuations tend to be a hurdle. A lot of the concern about pe ratios tend to be looking at them in absolute basis very low Interest Rate environment. The other thing i would say that might be missing from that analysis is how cautious investors really are theres not a lot of euphoria in the markets. You look at fund flows and talk to clients, theres still a fair amount of risk aversion. I think the struggle that some of the unicorns are having in going public is a good sign showing discipline in the Public Market it indicates were nowhere near yeuphoric type of environment one story about the level of bearishness now is quite high. I know its a concern to you and investor is trade. Will a faze one trade agreement whatever that means be sufficient to satisfy the market that the trade collision between u. S. And china has been ga mitigated or taken out of the play the benefit of phase one deal is the deferral of more tariff ons ttariffs on the way they actually bought nearly 29 billion annually in 2012 and 2013 the details dont look all that great but deferring greater tariffs coming on is something the market likes if youre worried about valuations, why do you like it we think its a little over valued but when we look at it with the s p we find its past peaks. Isnt valuation trips the market what else would. I think we have to consider the trade war itself i do think a lot of this has been baked in. We have a basket of stocks where we have evaluated the trade war. Those trade wars sensitives have out performed. We also said on the trade bar, if you look at the mine kni deal thats been discussed, what will happen that will restore business confidence. I havent heard a lot that says it will start doing better thank you very much more than a dozen wildfires continuing to rage in Southern California and Northern California today across the state hundreds of thousands of people have been evacuated from their homes and millions are without power as pg e and Southern California edison are using planned power outages. Both of those stocks are down today. Jane is live in california reporter its going give firefighters maybe 24 hours to try to get a jump on this fire here new fires breaking out today especially one on the west side of los angeles along the 405 some of the most famous people were forced to flee their homes. Here is the latest map up here where i am the kincade fire doubled in size overnight while its calm right now, they say more winds are coming. Were starting to get ready for another red flag event weve got a quiet 24 hour window right now. Reporter people are dealing not so much with the fire as the intentional power outages. You have 186,000 people evacu e evacuated but more than two Million People without power my daughter who lives in paci c pacifica says her power will probably be out until thursday back to you. Thank you mplgt co coming up, microsoft beats amazon in the clash of the clouds well have more on that story. A 14 Million Dollar offer for tiffany. Is this just theegni binng power lunch will be right back each day our planet awakens with signs of opportunity. But with opportunity comes risk. And to manage this risk, the world turns to cme group. We help farmers lock in future prices, banks manage Interest Rate changes and airlines hedge fuel costs. All so they can manage their risks and move forward. Its simply a matter of following the signs. They all lead here. Cme group how the world advances. When i see obstacles, i create opportunities. soft music when i see adversity, i find a way. When i hear never, i say now. [announcer] Southern New Hampshire university is education made to fit your goals with over 200 degree programs, flexible class schedules, and some of the lowest online tuition rates in the nation. cheering so when i face barriers, i can break through. [announcer] breakthrough at snhu. Edu. Hey. Hey. You must be stevens phone. Now you can take control of your home wifi and get a notification the instant someone new joins your network. Only with xfinity xfi. Download the xfi app today. The offer worth 120 per share. You can see thats below the stocks current price. Our next guest his worth a lot more lets bring in oliver chang. What do you think is fair price . Great to be here. We think a fair price is closer to 160 120 is low and modest. We think this company deserves 20 times if not 22. We look back at past deals harry winston, versace, these go for high multiples they really want to put a ring on tiffanys finger. Theres a lot of great sateasses tiffany is not in that category, per se they are trying to get there, obviously. Do they deserve the same kind of premium and they might think they are worth more but if they say no no this aftoffer, then wt they are such an iconic luxury brand they are Great Diamond supply. This would bring lvnh jewelry revenue from 9 to 17 . These are all competitive factors and hard luxury which is a category tiffany is in as we think about china and gifting, its a huge long term Growth Opportunity as well its interesting and you make a good case for the 160 to 180 valuation but the markets dont seem to believe that at all. The stock is trading up to 128 which is not more than the reported bid thats on the table. Why do you think the market doesnt see 160 to 180 at this point . I think its a bit of wait and see. Were out there because i believe luxury assets are very valuable this is once in a lifetime what were seeing is fragmentation as well as consolidation. Major luxury players evolve and really need to speak to new customers and their digital age as well. Theres many forces at play. A lot will be happening and the stock will be highly volatile over the next few weeks and months as well you mention this is a once in a lifetime opportunity its not really. Tiffanys has been hanging out for a while. Who might this be an attractive asset for if its the moment to pounce, so to speak. Its a big moment tiffany has a big watch opportunity. Also other players really like tiffanys bridal business. Its a little bit tougher for players to be authoritative. These arassets as we think about the map and the fundamentals around this, a lot of them will have the most revenue synergies. Mathematically the operating margins are lore you mentioned the possibility of other buyers strategic or financial, who might they be i think you look across the landscape in terms of who are the large luxury players the analysis is how much debt and how much these Business Models have. Its pretty modest they have the Financial Capacity to do it those are very good places to be real quickly, if this moves forward and even if it doesnt, is there someone this says hey, these are the next names that might be up for grabs or is this a unique situation in. I really think were living in the name of brands and having fragmentation and consolidation. Who has a great heritage and other brands in the marketplace. In the band bag space, these are all categories which good growth characteristics. Rethinking brands and the power of brands and how brands can extract pricing power, these are all what were pursuing. All right come back any time you want to name names thanks very much thank you up next, we will get you ready for todays big after the bell earnings. Google among them. Our traders will tackle that one next bitcoin up 14 in one week h bitadeen tumbling is the rebound for real . Well be right back. I dont know whats going on. Ive done all sorts of research, read earnings reports, 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. Its how we bring hope to our patients like viola. Her team treated her cancer and strengthened her spirit. So viola could focus on their future. Cancer Treatment Centers of america. Appointments available now. Welcome back to power lunch. Lets get a check on alphabet ahead of its earnings after the ball ripping higher to touch all time highs. Todd, Google Alphabet is unusual among the faang stocks because its at a high what does that tell you . Right i use that add to my portfolio i hold the stock weve just been bumping up against this 1300 region and the rest of the fangs have not i believe pit your attention to google we have been seeing google out perform the nasdaq stock they are climbing a 56 move overnight. I like the stock higher. Im taking it long in the earnings mark, the company does not really seem to massage the Quarterly Earnings report. Theres been some pretty big reactions. Positive and negative to numbers in past quarters what are you expecting today and how do you do the overall venals i expect good results we like the company. Its been one of the best performers over the last three to six months. I dont see it losing any of this momentum. Its the Fastest Growing company in the world the number one player in Digital Advertising and Companies Continue to move away from traditional advertising towards digital. The Cloud Business is growing at 33 year over year google maps has over a billion years that hasnt been monotized yet. I think youtube is an under appreciated asset. Nobody talks about youtube when it comes to streaming wars households are cutting the cords and getting rid of tv. All right a lot of talk about some of the parts values for alphabet. Thank you very much. For more trading nation head to our website or follow us on twitter. Back over to you ahead, taylor swift. Were talking about taylor swift. Are the haters going to hate her for this plus clash of the clouds microsoft snagging pentagon cloud contract right from under amazons nose. All this when power lunch returns. Woman my reputation was trashed online. I felt completely helpless. My entire career and business were in jeopardy. I called reputation defender. Vo take control of your online reputation. Get your free reputation report card at reputationdefender. Com. Find out your online reputation today and let the experts help you repair it. Woman they were able to restore my good name. Vo visit reputationdefender. Com or call 18778668555. Wheeveryone is different. Ta, which is why Xfinity Mobile is a different kind of Wireless Network that lets you design your own data. Choose unlimited, shared data, or mix lines of each and switch any line, anytime. Giving you more choice and control compared to other top wireless carriers. Save up to 400 a year when you switch. Plus, get 50 off when you buy any new lg phone. Xfinity mobile. Click, call or visit a store today. Welcome back here is your cnbc news update at this hour. German chancellor praise iing mi draghi he takes the raeins on friday i have every confidence you will be a superb leader. My goal has always been to comply with the mandate shrine by the treaty. former House Speaker paul ryan has launched a new Nonprofit Organization that will be focussed on fighting poverty and increasing economic opportunities. He announced the launch of the American Idea Foundation this morning. You are up to date thats the news update this hour back to you. Thank you lets get a check on the markets and where we stand the leading components there time now for power movers. The company beat on earnings and revenue and reported a jump in users. Roku higher today. Sanderson farms on way for gains. Shares of fit bit soaring. This is a 5 stock even with todays gain its all time high 51 set back in 2015. Ouch. The oil market is closing up for the day. Lets gone to dom. Oil prices are in a shorter term up trend. Its been derailed west texas off by 1. 5 55. 80 the last trade there. The prices hit their peak not long after the opening bell. Some more bullish activity around stocks helping the cause. Energy sector a huge focus today. Jedi Defense Department over amazon, thats a small amount of money for these companies. It could signal a big shift. Thats what microsoft ceo told me when i asked about the fight for this big cloud contract over the summer turns out uncle sam agrees the u. S. Department of defense awarding the Cloud Computing contract to microsoft. It could be worth as much as 10 billion over a decade. Microsoft jumping to a new all time high. No surprise amazon is happy. Aws is the clear leader in crowd computing and a detail assessment it leads to a different conclusion both of these companies generate a ton of money with their Cloud Businesses aws 9billion in revenue last quarter alone. Microsoft an estimated 4 billion last quarter this was a hotly contested composition tell ming james mattis to screw amazon out of the contract and the fight might not be over. Amazon is considering a challenge to this award. Back to you. Thank you with the jedi deal all wrapd up, what does this mean for microsoft and tres of the cloud players. The case can be made its not a huge mover in terms of winning future contracts, what do you think this could mean for the company . Thanks for having me. I think the main point is this is a validation of microsoft broader Cloud Strategy while this is a big deal, i think what it really shows people is micro soft can compete for deals. I think all sort of bring us to this day where you have been winning the bigger deal. They are gaining market share from amazon on a sort of face. In general as an investor what you want to take away is this is a great validation of what they have been saying and trying to execute against the broader cloud strike they might have to compete on price. It may not be as vibrant or may never be as vibrant as it once was. We have seen the growth slowing but still amazon has a lot of head space beyond mic microsoft. The one part about the jedi is the idea of a network affect that means theres a winner take off dynamic. You look at aws. Amazon still the clear leader in that oerve t it was as much as it might be from traditional business or commercial customer. There is a possibility that amazon could contest this decision, that the dod has made. That President Trump had a hand in tipping the decision towards microsoft. The department of justice and have started to look into this more as well as the eu i think for the aws id say less from a political bias. What does this do to the competition between the two in the cloud . Does it legitimize microsoft in way its needed to be . Im not sure it legitimizes them i think to the earlier speakers comments this is a growing pie i dont think its deal they might have been in position to lever a couple of years ago. If you think about the opportunity, theres going to be more than one winner and microsoft and aws are in good position i think for micro soft coming at the market where you are a very small portion of the overall market youre dwet ggetting to about half the size making sure people think about you as the big deals come to market i think it helps to prove again its sort of a validation of the broader strategy its funny you say that youre saying microsoft is about half the size of amazon in this business at some point, we talked about the kind of antitrust or monopoly concerns having too much of the pie here what happens if microsoft does too well i dont see that happening. I think the enterprise in general is a competitive space most businesses arent going to soul source Enterprise Software in a big way this has been a fragmented market i dont forsee that being a big issue. Do you think microsoft won this deal because amazon is tied up in some of these political concerns whether it be regulatory or a tip of donald trump or the latest capital one hack questioning the safety of its cloud . I couldnt speak to the political ramifications but micro soft scale blt has been given a valid number thanks a lot. To the bond market now where rick is tracking the action. The it was positive. How do you make minus 33 basis points look like a high yield. You start with the end of august so youre exactly right. Most likely will be since the end of september all of the month of october. You look at 10, same scenario. This will be the highest close since the 13th of september. Ten year over the last nine trading days its been sideways except for today a bit of a break out part of that is kelly is the ongoing rising yield in europe yeah, yeah those stories are next on e stg nuth robinhood believes now is the time to do money. Without the Commission Fees and account minimums. So, you can start investing today, wherever you are even hanging with your dog. Ooh, like her. Shes probably investing right now. Taking charge of her money, making it happen. Shes not going to be happy about that pillow. Its time to do money, so what are you waiting for. Download now and get your first stock on us. Robinhood. And now for their service to the community, we present limu emu doug with this key to the city. [ applause ] its an honor to tell you that Liberty Mutual customizes your Car Insurance so you only pay for what you need. And now we need to get back to work. [ applause and band playing ] only pay for what you need. Liberty. Liberty. Liberty. Liberty. Bit coin is booming. That is thanks to xi jingping. There are reports the peoples bang bank of china has been working on its own Digital Currency bit coin had been going through a rough patch for the past couple of months i dont know if it were to help or not. Get the power of a billion plus consumers. Yeah. How about shares of Virgin Galatic that are skyrocketing today. They are positive. I think they use skyrocketing because of rocket. They are elevating, lifting off. It aims to be profitable by 2021 its a whooping 250 if you want to be a passenger, they say early things could end of then stanley they said it was a quick three and a half month. 250,000 per shot its relatively small. If you look at maybe its two Million People, i dont know no way. Partnering with baba taylor swift will headline the singles day next month in shanghai alibaba announced the 200,000 brands will take part this year and more than 500 Million People are expected to shop they had jumped in the news today. Somebody politically active, it was a bit of the same nba phenomenon right i think shell handle it pretty well. I was a big fan. Next, well talk to the ceo of poshmark. Stay with does your broker offer more than just free trades . Fidelity has zero commissions for online u. S. Equity trades and etfs, plus zero minimums to open a brokerage account. With value like this, there are zero reasons to invest anywhere else. Fidelity. There are zero reasons to invest anywhere else. That could allow hackers devices into your home. Ys and like all doors, theyre safer when locked. Thats why you need xfinity xfi. With the xfi gateway, devices connected to your homes wifi are protected. Which helps keep people outside from accessing your passwords, credit cards and cameras. And people inside from accidentally visiting sites that arent secure. And if someone trys well let you know. Xfi advanced security. If its connected, its protected. Call, click, or visit a store today. Welcome back Department Store trade has had a tough year macys all seeing dunl digit di clines one section of the market is growing. According to thred up, this threw 21 times faster than retailers over the past years. 56 million women bought second hand items grow to 51 billion by 2023, fueled by resale players like poshmark, which has paid out over 2 billion to its community of online sellers. Joining us is founder and ceo of poshmark, Manish Chandra dru do you think the popularity of reselling and buying previously owned goods, is that a function of where the economy is at all right now. Or is this just the trend of the time i think theres three different forces driving the rise of resale one is the rise of and third is really peoples ability to sort of express themselves in unique way that resalers platform provides. Give us an idea of who your typical seller is and who your typical buyer is when it comes to age, as well as gender. Sure. We have over 50 million users, 7 million sellers, over 7 million buyers on the platform we started focused on the womens demographic. So 80 of our users are women. 20 are men. Theyre very much spread across the country, very much like the population of the country. Literally, if you go to north dakota, is half to three quarters of the population will have that. Millennials are a dominant part, as they are part of our population what are the most popular selling brands on your website currently, i would say for womens fashion, it would be lululemon, liouis vuitton and ghannouchi for mens fashion, ligucci, and sometimes Robert Graham as well very popular on the platform manish, one thing i find interesting about your site, you can be very responsive to fashion trends and the nba, for example, even though only 20 of the site is men, it can really move merchandise. If Russell Westbrook wears white denim or lebron wears a hoodie and blazer, all of a sudden, you see activity there tell us about that and how quickly you can respond to social media, for example, fashion trends going viral we are a social marketplace and with 7 million sellers, they have inventory of all kinds. At any point in time, we have over 100 million listings on the platform we have 150 brands that have been created on the platform so that allows the platform to be very, very responsive to recent trends. Whether its kylie jenner or lebron or travis scott, you sort of see that manifesting on the platform very quickly. But whats more interesting is that the platform, the sellers are curating items so we have over 30 million items being curated a day. And that provides for a lot of discovery for consumers. Let me ask you, go back to the numbers. You said 7 million sellers how many buyers . Over 7 billion shoppers and 50 million users on the platform so there are buyers, sellers, and users, who are users who arent buying . Im not getting i dont know how the numbers add up its really an interesting point is that a lot of sellers and shoppers are really using poshmark also for just fashion discovery. Theyre actually going there and looking at different fashion items, different fashion products, and shopping were allowing every user to really engage and discover new things our average active user spends somewhere between 23 and 27 minutes on the platform. What if i get an item that i like, that ive seen on your site, it arrives and either the fit is not good or it is tnt t color i thought it was in the photograph and i want to send it back what happens yeah, so we have a very simple process for item not described. If the item arrives and its not exactly as described, you can file a dispute and as soon as the dispute is approved, you get a return shipping label and that allows you to ship the item back to the seller and you get a full refund of your money thats our buyer and seller protection system. But that would be if theres a dispute. What if the item arrives and i said i wanted a size 4 and it was a size 4 and the seller complies with all of that, but i still dont like how it fits or looks on me, how do you handle that so, quite simply, if you dont like the item, youre free to resell it on the platform. Today, for nondisputed items, the platform does not support returns. Going forward, you can actually sell it on poshmark and make item off that item, as well. I see manish, ive got to ask what your plans are in the future in terms of an ipo. Youve got to be watching how the real real has done its trading right now below its ipo price, but up 17 in the past month well, we continue to grow our marketplace. And really, the focus for us has been growth. This year, we launched canada. We launched home decor weve expanded, as you announced, weve delivered over 2 billion to our sellers. And as weapon continue to grow, i think at the right time, the company made a transition from private to public, but as of right now, i cant comment on that manish, well leave it there. Thank you so much for joining us we do appreciate it. Manish chandra thank you for having me the ceo of poshmark all right, folks, check, please is next. I recently spoke to a group of students about being a scientist at 3m. I wanted them to know that innovation is not just about that one aha moment. Science is a process. It takes time, dedication. Its a journey. Were constantly asking ourselves, how can we do things better and better . what we make has to work. We strive to protect you. At 3m, were in pursuit of solutions that make peoples lives better. [spokesman] if youve tried colleg group cheering shed, snhu lets you transfer up to 90 credits toward you bachelors degree. [woman] it doesnt matter how old you are, you can do it, you can finish. [spokesman] finish your degree at snhu. Edu check, please. Welcome back, its check, plooe please, and the president tweeted about his new iphone, to tim, the button on the iphone was far better than the swipe. I like how he uses to tim, the ceo of apple, but doesnt use tim cooks handle, so tim may not see it, necessarily. When you open up the iphone using up the button. I still have one of the older ones, i was a little confused by it i still have the button. But on the newer ones, theres no button and you have to swipe to get sometimes older is better we just got a new refrigerator and it has an oldstyle ice machine, not with the ice trays, but its just ice. It doesnt display through the door and you just shovel it out and its the way to go you like it i prefer it older is sometimes just better i think that people try to well, speaking of which, tyler is about to have a whole Bright Future on poshmark. Youre going to be seeing all poshmark, the mathisen collection maybe there would be a premium, because youve worn them of handsome, lightly worn suits. Maybe this one will make an appearance maybe this one theres a slight hole in the righthand vest pocket here. Can i show you there it is, ladies and gentlemen that just adds to the uniqueness and character you will know that it is mine if you receive it. I cant wait to see your site and how well youll do yes, ill be curating my closets. A whole another career for you. Thank you for watching power lunch closing bell and wilfred would never fit in my of my suits, starts right now. Knock quite, tyler but anyway, welcome to the closing bell, everyone im wilfred frost. Im at the tiffany post. That stock is soaring today. Up some 308 amid buyout interest from lvmh record alltime closing high in sight for the s p 500 with 59 minutes left to trade. And im court aney reagan in for sara eisen lets look at whats driving the market action. The deescalation of china tension as both sides remain optimistic the timetable for signing a deal and corporate earnings overall really continue to be relatively low expectations, if were honest and some company