Transcripts For CNBC Power Lunch 20240712

Deal to buy the company could come in next few days and theres a third bidder enter the fray walmart, wait, what. Thats right we have the details walmart entering that one. The sports world at a virtual stand still. The nba pauses playoffs to put a spotlight on Racial Injustice in america. The Houston Rockets owner will join us. Well talk about that and the hurricane as power lunch starts right now thanks stocks are giving up sol me of their early gains. Bob has the latest for us. Banks and health care are leading but most Everything Else is down. Sell off in the middle of the morning. That as an attempt to take some profits on tech stocks these sell offs dont last long. Look at the triple q here in is the nasdaq 100 at a new high its a rule here it goes up for four days and maybe down one day we have seen this for a couple of months now. Here you see the teams to sell it off it doesnt last very long. Theres been a lot of people arguing, look at the megacap tech names its time for a pause in this relentless work from home digital story. All the time these stocks going up apple was 510 earlier in the week thats not far considering it was only 470 just a couple of weeking ago. No siphon the big sell offs. Just modest, midday moves to the down side. Two big stories, that rapid test from abb tt has helped the travel and leisure in is a big help for the reopening story you see it from the airlines as for the powell speech theres a lot of people arguing with the fed arguing to keep rates lower for longer and tolerate higher inflation levels, many are arguing maybe the market is starting to fully price in the whole rates will stay longer you can see the bank stocks moving up today as we saw rates on the longer end of the curve move up a little bit inflation running hotter that might not be bad overall for yields on the longer end of the curve there. A lot of people trying to debate is the fed story now fully priced in. Well keep rates lower for longer i think that mr. A big debate as we end this month and go into the fall thank you, sir. Lets bring in steve for more analysis and reaction. The fed making a historic change to its monetary strategy. To become the first Major Central Bank to put in place they have this 2 inflation. Now its a 2 average inflation when the fed if it needs to, if inflation runs allow to allow it to give moderately above 2 to hit that target over time. Less than an hour ago on cnbc c with kelly evans, there is no formula to this. The new frame work says were likely to let inflation run moderately above what does nod rmoderate mean . Probably 2. 25. You heard the i flags target was symmetric. Doip i dont want to run persistently above or below for me that hasnt changed another major change the fed added to its statement it will be more concerned about unemployment being too high rather than too low. Really rejecting this long standing connection economists positive between low unemployment sparking inflation. The fed felt it was like a hamster on a wheel aiming for 2 inflation. Missing the target seeing expectations drift lower. Its trying to break the cycle saying ahead of time its aiming for an average inflation rate. The fed will let inflation run hot for a time kelly. Its interesting because theres a split between the idea that this is a huge change and inflation is coming and bubbles are coming and then the concept that the fed is not going to be able to do this and you know, you look at inflation, break even is lower today. Real rates are still very negative bond yields are extremely low. It doesnt feel like theyre kind of setting off alarms here. I dont think it should i think the question really is what is the fed do when it hits higher inflation whether or not the markets, bond markets, average consumers believe the fed will really let inflation drift higher for decades, central bankers have been trained, high inflation, raise rates this time they will have to keep their finger off the trigger if they will be believed by markets. It will take some time for them to believe it. Thank you, sir. Big day. Theres more tomorrow. With fed chair powell promising lower rates for longer, did he give i vesters the all clear to keep buying stocks remember the kids game, red light, green light did he say green light thank you for having me to some extent i believe they did today. It was measured. It was not a surprise. I think most importantly, there was no sense theyre going to pull some magic trigger when unemployment hits a level that is predetermined i think that was very positive for the market and when the fed is on our side, we believe thats a very positive tactic. You see this as a risk on kind of market, right . Or keeping risk on. We already are fully invested. We are still overweight, u. S. Equities to some degree and so this is reaffirmation of that type of positioning. Michael, as i listen to mr. Kaplin express the rad dical thought that inflation might run a quarter or half point above 2 i was prepared for them to say were letting it go to 4 . He didnt say that at all. He said 2. 25, 2. 5. This seems like no big deal that doesnt sound like very much to me either. Just because the fed says they are willing to tolerate greater levels of inflation, doesnt mean it will get any with the Unemployment Rate north of 10 with 27 Million People still collecting jobless claims through early august, its going to be hard to see inflation any time soon. Combine that with some of the Structural Forces of higher debt levels, aging demographics and technology and i really see a real challenge to getting inflation at much higher levels than we see kind of in the last decade or so as we turn the corner and talk about where to put our money now, michael, has the fed just basically said to bond invei investo investors, forget about it the fed has created a very atr attractive environment for holders of financial assets. They protected the economy from recession. Keeping rates very low inflation continues to be below their target and every time volatility strike, they are willing to step in with ample liquidity and the smooth functioning of markets that signals a pretty clear green as it relates to investors. We Like Technology thats defensive growth. Consumer discretionary as the labor market continues to repair itself and we expect more fiscal policy to come through we think the consumer will do well well compare that with staples where youll still get Dividend Income and a defensive posturing as well as the consumer continues to recover what happens if the market gets too popular we were showing tesla rallying again today. We believe s p is run higher here its going to be difficult when you dont have a stimulus package on the horizon you have the elections looming we still dont have a Health Solution there are a lot of things that can present head winds to the s p 500 as we move ahead we are still, again, overweight equities we still Like Technology, health care we have a little expez yoosure n discretionary. We expect there could be head winds and we would be prepared to readjust as necessary all right, folks. Thank you very much. We appreciate your time. Kelly. Theres a big initial reaction in the bond market to powells speech but then the action reversed. Rick is tracking all of the fall out for us rick i guess it all depends on which part of the yield curve you focus on low r fer for longer may be truo t bills and two and three year notes. You look at an intraday of 5 at noon central, 1 00 eastern when the tremendous 7year action wrapped up, you see the drop you dont really see a drop. 30s was even less. You hardly noticed at all. The fact that investors couldnt get enough of yesterdays five year or todays 7 year and yields are up dramatically gives us a lot of info lets look at the yield curves right now its 57, 58 basis points the steepest since early june and all based on the long end. Lower for longer, you have to depict which part of the curve if inflation gets out of control, they will be hard pressed to control the long end. Look at the break evens. I heard you talking about it earlier. Here is the 10year breakeven. They are probably some of the hottest number wes have seen since january. It really goes to the point that the fed cannot control how the demand in a society, in a Global Economy with broken supply chains if a vaccine comes, how will all this liquidity in the system will propel markets even further than they are now. At the end o f the day, the policy changes probably arent add large as they portrayed. Its the timing that seems to be bugging people the most. Tyler, back to you thank you very much nba players in discussions to resume the playoffs after halting games last night over the Police Shooting of jacob blake in wisconsin the Houston Rockets owner will join us. Plus, hurricane laura sweeping across the gulf hitting louisiana right near one of tilmans casinos on lake charles. Well talk to him about that and more right after this eabrk. Nba players reportedly deciding just a short time ago to continue to basketball playoff season although the details are still being worked out this following growing player protest in response to the shooting a couple of nights ago of an unarmed black man. Social and racial unrest throughout the country after that Police Shooting Houston Rockets owner joins us now on the cnbc news line from houston. You have lots of storms to deal with lets start with the nba storm i understand that the owners had a Conference Call earlier today. What can you tell us about the latest in the talks to resume play in the nba . Well, let me say this this situation with the players is really not a storm. This was a pause that they took yesterday. It wasnt a boycott against the nba or the board of governors or owners this was them struggling remember, theyve been inside of this locked up area now since july 1st i dont care if you lock me in my house or one of my most beautiful resorts, if you told me i couldnt leave for a couple of months, its hard theres a lot of frustration because theyre having to watch whats happening in the world and dealing with the pandemic and dealing with the families and these situations that keep arising. You know, i think they just needed a pause theyve been playing every other day. These are our partners were 50 50 partners if we do well, they do well. If the league doesnt do well, none of us do well they realize that. They really just wanted to pause for day and reflect and theyre really struggling. I understand one of the things, if somebody ever said to me, why are you successful and i would say ive always tried to put myself in other peoples shoes its one of the reasons i think i have many, many of my senior people have been with me 25 and 30 years im with these guys. I get, i understand it i support them were going to all work through this together. The nba will probably resume tomorrow i dont know for sure. I know the players are ready to play and were ready for them to play and the fans are ready for them to play well all get through this yeah, i take your point it may not be my words, a storm i respect that thought it feels like more than just a pause under stressful conditions this was an extraordinarily powerful statement by the entire player cohert of the National Basketball association and many of the coaches as well this was the ultimate use of the platform that they have in the furtherance of their views and their beliefs about racial justice. I dont know that you can see it any other way than that. It was the ultimate use of their platform which they are empowered to use you know what, theyre human beings and they have a right to do whatever they want to do. Were partners in this if they choose not to play, thats their right it hurts them financially and it hurts us financially and it hurts them all the other ways. It hurts us all the other ways thats just the way it is. I try to think of it as a pause. It started out that the Milwaukee Bucks were struggling with it. They didnt know the orlando, they admit was a mistake we were coming up next us in oklahoma it just kind of snowballed i love that they all stood together and they didnt leave milwaukee out there by themselves even though it begun with them. It went from that game to our game to the l. A. Portland game, the wnba, the Major League Baseball and this is the world we live in today we all have to Work Together and recognize what other people are dealing with and its a different world. Its a different generation. If youre not a flexibility person and you dont see other peoples views, youre not going to do well in this world today i respect them i stand by them. Theyre my partners. Were you surprised . Youre always surprised im surprised that i had a pandemic and the biggest hurricane to ever hit louisiana and one of the biggest ever to hit america go right through the Golden Nugget last night that i watched till 6 00 this morning you just pick yourself up by your boot straps and you move on you look forward to 2021 that is where the real storm was last night, for me youre talking about a huge property that contributes a lot of ebitda to my company. S you are hope fful that the na will resume play tomorrow . Im very hopeful. I know my team, the whole team just went to practice together im just assuming from scheduling because you missed yesterdays games and todays games. We were scheduled to play again tomorrow i havent heard it officially but i assume well be playing in oklahoma ci Oklahoma City tomorrow and im assuming well beat Oklahoma City tomorrow. That is good news and it was my characterization. Extraordinarily powerful statement of a group of people standing up and saying this has got to stop. I think on that, the message was ultimately clear lets turn to the Golden Nugget. The other day when you were here, you said that the Golden Nugget in lake charles was going to be a command center because it was right in the path of this hurricane. How did that property get through the storm . What are you hearing from people on the ground to the extent youre able to talk to them about that casino and others i saw video of nearby building whose roof was blowing into or onto the Golden Nugget i couldnt tell whether it was part of it or not. Thats one of my towers i have three towers there. We definitely have some issues well work through those issues again. Right now were we had over 900 rooms. We had Energy Companies and a lot of the oil refinery people no cash customers but essential people right now just like we lost all the Weather Information out of lake charles last night because of 130 miles an hour winds we lost them, the whole water system in lake charles was demolished were trying to get water right now. Were going to probably buy water to run a huge casino we had a lot of damage which is maizing. We built a Good Building there theres a lot of damage in the area its a very powerful storm you pick yourself up by your boot straps and move on and you do whatever you have to do to continue to be successful. You are no stranger having livered through the hurricane several years ago in the houston area that was such a cataclysmic water event as much as anything. This sounds like it was water and wind do you have power at the Golden Nugget from independent generators or lights out we have use generators. That are running the property well the problem dont have water all of our systems are chilled water running. Even though we have that we dont have airconditioning today. We cant really run anything not freezers, coolers because of the fact that you dont have water. Were going to get water in there today. Like i said, were going to buy some of that oil water well be fine. Ive been used to hurricanes my whole life i grew up in galveston i was born the night that hurricane audrey was hitting texas and louisiana. Oh, my. Im used to hurricanes. Its just part of life were going to call you hurricane tilman i was going to text you and tell you we were thinking of you. The day got away from me the president just said that the nba has become like a politica organization and that is not a good thing for the country your reaction. I think the nfl is a Political Organization i think the rockets are a Political Organization they are part of the nba and players. Everybody is an individual and everybody has a right as an individual i think that is not a good statement. I dont know why he made that statement. Its disappointing because everybody right now is somewhat of a Political Organization. Thats why we all need to Work Together to pull everybody, to Work Together to solve all these issues im sorry he said that i somewhat disagree. Tilman, great to see you and continued good luck. We appreciate your time today. Kelly. Thanks. Appreciate it. Still ahead, with pause across sports leagues theres calls for the Kentucky Derby to scrap its race as protest continue in louisville outside of the venue the ceo of Churchill Downs joins us next. Bidding war for tiktok is heating up as walmart says its teaming up with microsoft to buy y . E social media app wh well explain. More power lunch right after this we miss you. Its totally not the same without you. Were finally back and cant wait until you are too. Universal orlando resort. Buy now and get two days free at the parks. Restrictions apply. Welcome back check out gold which has turned lower after fed chair dovish comments the safe haven asset taking a bit of a hit after the central bank revised Inflation Inflation could go above the target targeting kind of an average of 2 your trading nation team of new street advisers. Welcome to both of you i guess some of the reason for owning gold and gold had a run up its tail off a bit is as a safe haven the fed seems to have said risk sates, go ahead, we got your back what do you think about gold youre right on the nose with that i still think we have trade here you have money supply increasing you still have safe haven investors looking for another way to unlock value. Youll see some of them turn to gold do put that money to work i think thats what youll look for as the momentum trade at the very least here with the gold asset. You can see how it has risen over this year, nancy. Is this the time to add a little gold or sort of, if you got 5 , stick with it. Its a good thing to have. Is it a no no in your view what do you say . Thanks. Listen, i think that the reason people who own gold and liked gold prior to the feds comments today those reasons are still in place negative real Interest Rates ballooning of Government Debt and the only safe haven place that we have now are apple, microsoft and facebook thats not changed the attraction of gold remains we got it. This might be place to step in with a little bit of your free cash as we think about gold, quick thought here why the moi ninors as opposed th fiscal mettalmetal. Its not just what we do for our clients. Were longer term investors. Were looking for more liquid. Do you like the miners do you like the physical metal what would your choice be if you were adding to gold right here in. Im adding with gld im looking into securities, the etfs, iau. Thats where were adding for clients. I think its like mentioned, its a great play but we are adding thank you for your time today. Nancy, always great to see you and both of you. For more trading nation head to our website or follow us on twitter tradingnation still ahead, tiktok shake up the company c earthquake o resigning after three months on the job as a deal to buy the company is imminent. What growing protests in the sports world and the pandemic will mean nfor the event. One analyst says buy these names to ride the ecommerce wave. More power lunch after this. What happens when 2 Million People switch to Xfinity Mobile . Well, the good news gets shared. And it gets rated 1 for customer satisfaction. But dont just take our word for it. Take theirs. Its your wireless. Your rules. Only with Xfinity Mobile. Call, click or visit a store today. Welcome back here is your cnbc news update at this hour. Laura has claimed its second victim a 68yearold man was killed when a tree fell on his home in southern louisiana laura, which came ashore as a category 4 hurricane has been downgraded to a Tropical Storm sustained winds are still at 65 miles an hour. More than 600,000 people are without power in louisiana, alone. In nearby lake charles, search and rescue efforts for storm have been suspended due to a Chemical Plant fire. The accident has triggered a shelter at home order in that area because of deadly c lly cl gas fires produced by the crowds kirin has developed japans first beer without carbohydrates. It took five years to develop that eliminated carbs but maintained the beers flavor i dont know whats the point of that thats the news update ty, back to you. You know, i was reading my notes and you made me stop and listen to that im glad. On the no carb beer thats the idea. Thats how you do it i guess so. Does it taste good well see. Well do a taste test. Well do a taste test lets look at where the market stands. The dow holding on the a 250point gain at this hour. Thats about 1 . The nasdaq lagging today but its another set of records there. The russell higher by about twothirds of a percent. Kelly. The tiktok saga is heating up ceo kevin mayor resigning after three months on the job ahead of a deal to keep the chie nanese p running. Walmart is now partnering with microsoft on a bid for the platforms organization. A deal could be announced as soon as next week. Its likely to be many the 20 to 30 billion range. For more on the twists and turns for tiktok, lets bring in the man who first broke the news alex, welcome. I had to read the story, the headline a few times to make sure were talking about walmart, right explain why they are interested. This is probably no crazier than about half a dozen other twist and turns with this story. Tiktok a very Popular Video sharing application whose Parent Company doesnt really want to sell it to begin with but the Trump Administration is forcing the sale we have known that microsoft and oracle were interested today, we broke the news that walmart was interested although originally walmart was working with other smaller minority investors such as softbank they switched their position and will partner with microsoft. They do not have the Cloud Computing infrastructure thats so essential to this deal. The whole point, the whole reason the Trump Administration is forcing the sale is they feel that the Parent Company of ticket had too close of a relationship to the Chinese Government and our data, u. S. , american data may not be safe. They want to force the sale to a u. S. Company we dont know what share would be owned by walmart and microsoft. You see a bit of walmarts vision to get closer to amazon trying to get into broadly, speaking social networking and online ecommerce. Waum shalmart shares are up d you see why the Company Thinks its a viable strategy i wonder if their track repocord would suggest this would be a success. What does it mean for the future of tiktok if walmart becomes their owner . One of those three have been big successes. I would say tiktok would be a better bet and has more established dominance. Ticket put out its user data, it has more than 100 million u. S. Monthly active users it has almost 700 million global users. Globally the app has been down loaded more than 2 billion times. This app has gained promise innocen prem innocen prominence and as huge runway of growth as you said at the top, the ceo of tiktok who has only been on the job for a few months announced that hes not going to go with the app. His vision was to run this as a Global Company a lot of the value in tiktok is that its global that part will be cut. We already know that if tiktok goes through with the sell to sell at u. S. Operations. It will be sort of not cut in half, exactly but u. S. Will be separate from international. That does tamp down the growth of either side of that new formed company i can understand. Alex, real quickly the timing here in your report sg important you think we could get a deal even as next week, even in the next 48 hours and mayiers resignation indicates that may be the case. Thats shocking to me. Is microsoft now the frontrunner youd have to imagine that microsoft i would say theres only two viable buyers which is oracle or microsoft. Microsoft has been the frontrunner the entire time they were the First Company that entered. This was back in july. Id say its probably the frontrunner and the fact that kevin mayer resigned is an indication a sale the imminent he was going to announce the resignation with the announcement of sale the news leaked to the Financial Times and once it leaked, he decided to get out ahead of it and announce it to the company wow maybe theres momentum here. Thanks very much great stuff. We appreciate it go to cnbc. Com for more on this tiktok bidding war ty all right. Were going to go to phil with some breaking news on united phil like so many airlines, united now out lining how many pilots it will be furloughing if theres not a new cares act put in place that will allow them and other airlines to pay employees through the end of march. Without an extension, united say ing it i wouldnt be surprised if thats somewhere in the range of between 8 and 11 what youre looking at here is like other airlines, united said we will have to be Smaller Airline come october 1st we will not need as many pilots. As a result, these are the furloughs that they are looking at up to 2,850 pilots. Were working on the story thanks very much for that news on united basketball players, nba players, agreeing to resume the playoffs thats the latest we know possibly as early as tomorrow. Up next, well talk to the ceo of Churchill Downs who has o another big event coming up. The Kentucky Derby facing pressure to cancel that. Come on in, were open. All we do is hand you the bag. Simple. Done. We adapt and we change. You know, you just figure it out. Weve just been finding a way to keep on pushing. Welcome back as the sports world comes to a halt over Racial Injustice, espn is reporting the nashtional hoce league wont play and theres pressure to cancel the Kentucky Derby. The plan is to run the race without fans which reverses to a decision to have spectators at 14 capacity its good to have you here thanks. Let me start with the local pastor who is organizing this coalition to boycott the derby the idea of boycotting why so many people are hurting, showing the callous nature of this city and society that we live in. Will the derby go on absolutely. With all due respect to the pastor, i think thats not the majority of our community. The community in general overwhelmingly supports having the derby. That doesnt mean were not sensitive and part of the dialogue on the social and racial equality issues in our community and in our society our company has been around for 145 years. This is our 146th Kentucky Derby. The feedback has been overwhelming to us for the community that this should go on this is important part of healing. This is an important part of our traditions and culture in our community. The indy 500 was planning to have spectators and cancelled that why did you decide to scrap the idea of having people there in person it was really hard decision we made it at the last possible minute after a period where we saw some encouraging signs with covid19 and jefferson county, over the last couple of weeks we saw a real surge we have been designated a red zone by the white house and were seeing come discouraging signs and we needed to make a decision it was personally and professionally a disappointing decision to have to make it was the right thing to do our priority is keeping our community safe, our fan, our team members and we got to the point with the numbers being what they were that was the only responsible decision understood. Youre just dealing with a fast changing situation lets talk about what it means for the business, for the workers, your company. I understand you brought back around 80 to 85 of those that had been furloughed. What does the future of these jobs look like into next year . D. We have our Horse Racing Division our Casino Division and our online business. Our casino business has really performed surprisingly well the whole covid pandemic as states have opened up and machines come back online they perform very, very well. Im very optimistic about the casino business right now were at about 85 were still generally across the country either capacity limits in terms of the number of machines turned on or people limits how many people you can have in the facility so as we move hopefully over the next number of months toward ordinary, traditional restrictions, lack of restrictions, the casino side looks really strong and the online side looks sleight absolu absolutely great how many of your workers at churchill have been tested for covid and has the Kentucky Derby ever been postpaoned and if so, why ill take the second part first. The derby is traditionally the first saturday in may. So this is the second time since world war ii that its been moved from the first saturday in may. In the waning days of world war ii because of a series of restrictions on travel in the country, it was delayed a short period of time in 1945 so this is a big deal. There is no institutional memory in our company of this happening. Very few people remember 1945 and when the derby was last moved so its a very unusual event and one we took seriously. Didnt take it lightly when we made the decision. With respect to testing, weve done a lot of testing. This week alone weve tested about 2,000 people thats not only our employees. Thats all the people we expect to be at the racetrack the people that take care of horses the state stewards, et cetera. We had a Positivity Rate of about 2. 6 of those people so somewhere around 50 people have tested positive so far. Those people having been notified they tested positive will have to quarantine and get well many are asymptomatic. Get well before they can enter our facility so generally those people are independent contractors. Not our employees. Im not aware that any of our employees at Churchill Downs racetrack have tested positive recently but if they have, we quarantine them and make sure they get the medical care they need and wait until they get better. Bill carstanjen is the head of Churchill Downs you can catch the Kentucky Derby on nbc that is next saturday, september the 5th. Coming up how voters in key swing states feel about which candidate is best to reopen schools safely. That and more when we come back. Many kids across the country are already back to school and as the calendar nears september, many more will be returning in the next two weeks. Whom do voters in key swing states trust to get their schools open safely . Elon mui is looking at that. Democratic nominee joe biden leads President Trump in our swing state polling. People feel they can trust him more on Kitchen Table issues related to reopening americas schools. 52 of likely voters across six key battleground states believe that biden and the democrats would do a better job ensuring that schools reopen safely 48 believe that President Trump and the republicans are handling it better. Those numbers do mirror the deep partisan divide within the country. Interesting to see, though, that independents are almost evenly split on this issue as well. But perhaps the more important question is, what would it actually take to get kids back into the classroom according to our polling, 47 of likely voters say that fulltime instruction wont be safe until theres a vaccine. And more than half of likely voters, 54 , say that schools at least need Rapid Testing now the white house is planning to announce tonight that its buying 150 million rapid tests from abbott labs some of those tests are designated for schools well keep the polling going to see if the Political Landscape starts to shift. If and when schools receive those resources and get kids back in the classroom. Back over to you all righty ylon mui reporting from d. C with people stuck at home and Online Shopping is getting a boost. This has been helping payment stocks as well like paypal and square and visa and mastercard they are all higher for the year now. Today mizuho initiated coverage on these names with buy ratings. The analyst behind the call, dan dallof, joins us i read some of the numbers out of, i think it was mastercard and visa, some of the transaction volumes were down because people werent shopping quite as much, but thats probably a shortterm phenomenon, correct . Exactly and what youre seeing is youre seeing a massive share shift from physical and cash into ecommerce the survey within our work showed that beyond covid, people are expecting to spend on ecommerce and card use to be going up in the next two to three years. So its not going to be just a onetrick pony for covid our survey is showing that things those trends are going to move up its going to help all these companies. Its funny. I was shopping the other day at a major store around here and found myself thinking, are we ever going to use cash in this country again . And you really do use your cards or debit cards or whatever, for any transaction in my case above 50 or 100. But at any rate, which are the stocks you like the most in this group . Are they the traditional ones, the mastercards, the visa, or are they some of the new breed the squares, the paypals absolutely. So our top picks today are paypal and square. We named paypal the perpetual gainer their growth is not just because of ecommerce. Theyre structurally gaining share. The paypal we did a survey that shows their recent qr initiative so people are going to check out with qr codes, spearheading that in the u. S our Service Shows this could add up to 15 of upside to their total addressable mark fet they can get people to check out using qr codes and for square, we see them as a massive share gainer but theyll be able to gain from the disruption that covid is doing in the s v space plus they have the cash average position which has been a huge success. Paypal and square are top picks because of that. Tell me a little bit more, quickly, about this use of the qr code that seems like it will speed checkout absolutely. So if you think about china, thats like the most prevailing way of checking out. China, theres no credit cards really in the u. S. , paypal is partnering with cvs to allow qr code checkout in stores. The survey showed that 60 of people that use venmo venmo is owned by paypal, would like to check out using qr code even if a fraction of those end up using that, thats a significant upside to paypals future revenue dan, thank you very much. Dan dolov, we appreciate your time thats it for us. Tyler, its been a pleasure. Well see you tomorrow on power lunch. Closing bell starts right now. Thank you, kelly and tyler. Welcome to closing bell. Im sara eisen in with jon fortt today. The s p 500 briefly dipped into the red earlier. Nasdaq still lower by 50 points. Lets look at whats driving the action in this final hour. The Federal Reserve announcing a policy shift signaling more willingness to keep rates lower for longer and inflation running high financials, real estate sector moving higher. A new rapid and inexpensive covid test from abbott boosting sentiment helping some of the