Transcripts For CNBC Power Lunch 20240712

Join us. He talks about the dangers of big technical and the dire need for, yes, regulation power lunch starts right now hi, tyler. A whip saw market as washington continues to chase headlines from washington. Bob pisani has the latest on the moves. Do we have a stimulus pamann pacqui pacquiao package . No do we have an s p package . No the market believes the market will hold up well. We have new highs on target and costco and lbrands, believe it or not ande etsy has hit new highs recently fedex, some of the shippers, these are big Global Industrial companies that are continuing to hold up on hose thpes were goio eventually come out of this. I want to show you the industrials, xli here, that tells you the cyclical rally has some legs receipt now. This hasnt lasted often i dont want to go over my skis on this but u. S. Bank corp, highest levels, thats quite a move were seeing we go all the way back to the earlier part of the year to see levels higher th than that. So good news hopes for stimulus, six days after Morgan Stanley bought etrade, a deal. And eaton vance, other names, invesco doing well today these are Financial Services under a lot of pressure recently, losing assets under management the key point here is, number one, etfs lower fees generally for these companies. They need more assets under management thats why theyre buying companies. The important things here, these fees come regularly. Theyre recurring revenues and they have higher multiples you want to know every month youre getting a certain amount of money thats why wall street likes it so much and thats one of the reasons they like this deal. Guys, back to you. Bob, thank you. 840,000 new people filing for Unemployment Benefits last week. That number has been above 800,000 every week since the covid shut down in midmarch. Currently more than 25 million americans are collecting some kind of benefit. One reported Sticking Point is aid to states. Some republicans calling the proposal a handout to the blue ones is that true Steve Liesman is looking at that question for us. Kelly, thanks the 418 billion in the h. E. R. O. E. S. Act, theyre not a bailout but more funds go to states run by democratic governors. Heres the cnbc analysis, estimated 206 billion to states that voted for donald trump but states with democratic governors gets more, about 3 hundred per capita the blew states also engaged in unnecessarily long, severe lockdowns and also says states still have c. A. R. E. S. Money left over but cnbcs analysis found the allocation of money closely tracks unplouemployment california, new york and texas are the largest recipients and have the most unemployed every one of top ten states of funds received are the top ten in states unemployed the economists dragging on overall Growth Without any federal aid. There appears to be an economic need, folks, but there is no fortunately formula yet to overcome the politics of the red state blue state divide is the red state blue state divide here and the reason more of the money apart from partisan reasons that more of the money would go to states with democratic governors a function of the population of those states if you look at new york, illinois, california, those are big Population Centers that happen to be run by democrat governors. Thats part of it, tyler. In fact, if you look at the details that were sent to me by the House Appropriations committee, you find that population, poverty levels and unemployment levels are the three big things that were used. Theres two different state pots of money here, one is for local, one is for the overall state, and they are mostly determined by the unemployment rate, by the population and by the poverty rate those are the three things and, by the way, those are formulas used in other appropriations by the federal government theres a rich irony here in many cases the states that dont have as big populations do, dont they, steve, get an outsized portion of federal dollars . Thats true there is been several studies that have shown that blue states are ultimately donors into the federal budgets and red states are the recipients whats interesting here is everybody would get some depends upon how you want to divide it up it looks like because some get more than others, one side at least wants nobody to get anything all right, steve. On that cheery note, well talk to you soon. Thanks it has been a volatile day on wall street as speaker of the house nancy pelosi said there will be no stand alone Airline Relief bill without a more come hence comprehensive aid package. What happens if theres no stimulus until maybe after january . Christopher smart is chief Global Strategies and head of the barings investment institute. Mike, no stimulus until after the election, whats the big deal if it lags until january . Will the economy and the market react strongly negatively . What do you think . Look, i think the markets going to be much more interested in the size of the stimulus package than whether it comes by year end or in late january. Those are just a couple of months and theyre much more concerned about the overall size of the stimulus package. Weve been in an economic recovery over the last several months but its not as vshaped as we hoped. It seems clear were going to need another round of fiscal stimulus to continue the market rally and continue the improvement to the underlying economy. This is going to be completely contingent on the november election if we have a democratic sweep or a blue wave, the markets anticipating thats going to be United Government and essentially will lead to a bigger stimulus package, potentially multitrillion and will probably occur in january if you have a clear victory by donald trump, youll probably have divided government and stimulus will be more targeted and limited. If the election is contested or dont have a clear winner, that will suck the oxygen out of the room for the next couple of months in congress to do anything thats going to cause a lot of volatility in markets. I want to sneak in one more question for you before i turn to kristopher. Weve heard v recoveries, k recovery, i call it the square root, down quickly, up and now flat, maybe moving slightly to the right. You talked about the size of these packages it sounds like the democrats want 2. 2 billion, the republicans are willing to go 1. 6 billion why dont you just meet me in the middle said mayor marin mor whatever that song was that would be the clear and rational thing to do beau si both sides are posturing a Sticking Point is not just the number, its also the state aid. Thats going to be a real Sticking Point, particularly some of the bigger states were hit harder in the crisis that will have to wait until after the election to get resolv resolved you dont get marin morris references on any network, do you . No, thats why we watch thats why you watch power lunch. Were looking next year it an economy that is a lot bumpier and a lot less robust than people seem to be saying youre looking for a long, slow painful recovery next year with job losses, bankruptcies, educational disruptions weighing on the recovery. Paint me the picture i would have said it with a slightly more cheerier tone of voice than you used but the concern is weve had this very sharp bounce back but clearly were losing steam as we go into next year, a lot of bankruptcies that have been delayed are going to start appearing. The job losses i think the job market will continue to repair but we wont get those gains back as youve seen from the numbers today, 840,000 new claims, were sort of plateauing at that level right now. The real risk does depend on the stimulus next year, as mike just said, more likely than not were going to get more money but its not going to be more than we need and sooner than we need its going to be a little bit less and a little bit later. I would just add one down side scenario to the one that he outleanou outlined, which is actually a Democratic Administration trying to spend more money and a Republicancontrolled Senate burnishing their fiscal hawk credentials and really leading to much more gridlock in terms of when that stimulus gets out the door our base case continues to be that that stimulus is coming, if not in december, it will come in january, but i think markets need to be aware of those risks. Yeah. The idea that anybody would don their fiscal responsibility clos clothing right now in light of whats happened over the past few years is preposterous. Thanks very much. We really appreciate it. Chris and mike labella Harley Davidson revving up as a top analyst adds the name to his best ideas list he joins us to make his se fcaor hog right after this quick break. Stay with us before we talk about taxsmart investing, whats new . Audreys expecting. Twins wed be closer to the twins. Change in plans. At fidelity, a change in plans is always part of the plan. You can go your own way go your own way your wireless. Your rules. Only Xfinity Mobile lets you choose shared data, unlimited or a mix of each. And switch anytime so you only pay for the data you need. Switch and save up to 400 a year on your wireless bill. With the carrier rated 1 in customer satisfaction. Call, click, or visit your local xfinity store today. Investors are going hog wild for shares of Harley Davidson today, up nearly 6 after web bush added them to their best idea list saying it may be gearing up for a turn around next year. Lets bring in the analyst behind this call, James Hardeman why do you think theyre well positioned for a big turn around here i think theyve done a lot to prepare themselves for the long term what weve seen in the post lockdown phase of this pandemic is heightened demand, really a surge in demand for outdoor products, really across the board. Interestingly enough, harley looking at their financials has yet to participate in that i think thats because theyve had a lot of work to do to clean up whats been a really rough last call it five years. They had way too much inventory in the channel, they had used Harley Davidson motor cycles which were really stealing the thunder from their new portfolio and theyve cleaned that up substantially over the course of the last four or five months, which i think really positions them well to begin to grow sales as we look to 2021 in addition to that, theyve done a lot to right size their cost base so i think theres a margin opportunity that lies ahead as well. So lets talk about how much up side you see here the shares are trading around 29 i think 36 is your price target. Why do you also think the fact that theyve appeared to lose share could counterintuitively be a good thing . Thats a great point. I think a lot of investors have looked at Harley Davidson and the broader motorcycle industry as one that is really not benefitting from this sort of outdoor play that weve seen in so many other sectors. But when you look at the numbers, all of their competitors, right, all of the other Motorcycle Companies have seen a meaningful surge in sales. And in normal times you would look at market share losses such as those and say thats a really bad thing. In these times it clear that harley is starving the channel theyre trying to reintroduce this notion of scarcity into their Product Offering and, you know, based on the deal thats we talked to, thats been the reason given, but the fact that weve seen a surge in overall industry sales, weve also seen a surge in used Harley Davidson motorcycle sales all of those things serve as precursors to a broader based recovery in new motorcycle sales next year. What is the consumer appetite for Harley Davidson . Weve talked a lot about how their demographic is aging out and a younger demographics may be interested in driving different bikes, maybe something of the electric variety. Will they be able to ride that thats been the biggest bear case for a decade plus i dont think thats going anywhere i do think they have a sizable and Loyal Customer base. Even though that base is shrinking, i would argue weve shrunk beyond what the ultimate demand would suggest so if we look back to last year, it seemed like we were getting close to that inflexion point. We have sort of a kitchen sink year here in 2020 we can grow from here. Thanks for your time today. Tyler still ahead, ibm leading the dow as it goes all in on its Cloud Business is it really a game ching echan the stock . And the house Regulatory Panel recommends a crackdown on big tech, well talk to a former google, tiff, executive, Tristan Harris about the dangers of letting big tech getting more intrusive in our lives as business moves forward, were all changing the way things get done. Like how we redefine collaboration. How we come up with new ways to serve our customers. And deliver our products. But no matter how things change, one thing never will. You can rely on the people and the network of at t. To help keep your business connected. We did it c crowd cheering [narrator] wherever you start, snhu is where you can finish. crowd clapping crowd cheering here we go. [narrator] and its it. [group] yay [narrator] you did it, high five Southern New Hampshire university. [man] that gets a hug. laughing look at that masters degree, i did it i did this for my children. I am very proud of myself. [narrator] finish your degree at snhu. Edu. Welcome back to power lunch. Ibm shares soaring after announcing a spin off its infrastructure business and zero in on the cloud. The stock is trading at a valuation far below its peers, 11 times forward pricetoearnings ratio. Can investors snag a bargain here lets bring in the trading nation team, mark newton and John Petrides of Tocqueville Asset Management john, your thoughts, breaking up a 109yearold company, good or bad idea i think youre see in reactions is not only better expectations from ibm but investors hoping this is the new ceos moment for microsoft. Remember when nardella took over steve baumer, the stock had a revision and hasnt looked back. Here you see a commitment to the cloud, going into faster top line growth, which has been plaguing the company for what feels like an eternity now for our enhanced income strategy, were buying ibm where youre getting a 5 yield. Technical has been such a massive performer here to date its hard to find value. Investors have been waiting on the sideline for ibm in my opinion because theyve been waiting for the showme story, post the acquisition and this in my opinion is a good sign the stock is moving in the right direction. Its been an underperformer over the past two to three years now. I agree its human nature to try to buy low and sell heigigh. The stock peaked in march of 2013 and has been on a pretty severe downward slope. Its encouraging to see the stock up 5 . That could jump start the momentum in the short run but technically speaking, its going to take some time to really turn this around. I see up side maximum right near 145, longer term charts, we need to get above 150 to see if the stock will trend higher and not just bounce. Using the five most dominant cycles over the last five years show ibm starts to learn lower into january from here if youre technically attuned, one might want to use strength as a chance to sell into the initial bounce and try to buy dips in the months to come after the election i dont think its a time to chase the stock here interesting context mark and john, thank you for more trading nation, follow us on twitter traitidingnation ahead, its the growing social dilemma a lot of people think google is just a search box and facebook is a place to see my friends photos. Theyre competing for your attention. Facebook, snapshot, twitter, instagram, youtube, Companies Like this, their Business Model is to keep people engaged on the screen after the break, well speak to Tristan Harris about the power and reach of big tech in peoples lives and what to do about it stay with us announcer and now, the latest from trading nation. Cnbc. Com and a word from our sponsor. Dont overdue it on the small caps theyre also more vulnerable to pullbacks. Im joanna payne and schwab is the better place for traders heart monitors that let your doctor watch over you, just like you watch over your best friend. Another lifechanging technology from abbott, so you dont wait for life. You live it. Welcome back, everybody. Im sue herera a federal Appeals Court has blocked a decision to extend the deadline for counting absentee ballots in the Battle Ground state of wisconsin, a win for the republicans who brought the appeal democrats are expected to take the case to the supreme court. Residents around lake charles, louisiana are preparing for their second hurricane in less than two months. Windows are getting boarded up as People Get Ready to leave because of evacuation orders the Tennessee Titans Training Facility remains closed after another positive coronavirus test overnight the closure is putting this sundays game against the Buffalo Bills in doubt and take a look at this in hong kong, some moments of peace and relaxation at the citys ocean park. Yoga classes are being held in front of a massive aquarium filled with sharks and manta rays and others. Its to keep the business afloat i see what you did there. Lets check in on the markets right now. Dow is briefly almost negative after nancy pelosi said no skinny deal on the airline, she wants a comprehensive one. The s p is up 2 3 of a percent and the small caps lead being t leading with the way with a 1 game. Oil is up, too lets go to dominic chu. You have crude oil prices 41. 16, 3 gain there world benchmark brent crude 3 gains there, 43. 33, also seeing some strength in Natural Gas Prices on the futures front and the Energy Sector up 3 , the best performing sector in the s p. One of the big reasons why those Rising Oil Prices helping out the energy cause we saw negative prices over the past year. This area has become an area of resistance or slowing momentum possibly for u. S. Benchmark oil prices well see if theres any stalling out of prices there why are Prices Higher . Among the reasons theres a dow jones report saying saudi arabia could be looking to cut back on plant production increases maybe theyre going to cut production thats helping to put a bid to oil prices norway has strikers out there in their oil fields that could crimp supplies. And you just heard stu mention h hurricane delta. The stocks the most heavily impacted, every stom ck in the sector is positive, occidental higher at one point earlier this week, at th tyler overtook exxon wow, when you look at exxon there at 35 and whereabouts and where its been in recent year, amazi amazing. Once again Congress Takes aim at silicoicon valley. Whats wrong with big tiech . One expert says its no one issue thats the problem, its the whole system many call this surveillance capitalism, tracking everywhere every one goes by Large Technology Companies Whose Business Model is to make sure advertisers are as successful a possible it seems crazy the fundamental way this is designed isnt going in a good direction, the entire thing. It sounds crazy to say we need to change all that but thats what we need to do here to talk more about this is Tristan Harris and one of the prominent presences in the documentary the social dilemma, which i watched just the other need good to have you with us and thats for having me. Theres a lot of deep stuff in that documentary. Well try to get to some of the sort of existential threats that you see technology posing, but i want to begin with a blunter kind of question in your view, is facebook, is google, are they moral companies . Do they have a moral compass at their core or not . I think when you meet a lot of the people at these companies, you find very well intentioned people who are trying to do the best that they can. When you hear the executives, whether its muark zuckerberg O Sheryl Sandberg say things that dont make sense to whats going on, its sort of like listening to who to a hostage to a hostage video nothing makes sense until you see the gun held at their head offscreen and then it makes sense. As you crank the machine, it starts shredding reality for each of us thats the fundamental operation of the business. Its not a few bad apples, not a few bad facebook groups, its about the entire structure thats about creating echo chambers and incentivizing that, which fundamentally take down the life support systems of society and democracy. I dont think its a specific set of bad people. I thisnk theres negligent involved because we know this to be so clear. The question is what are we going to do about it they cant change unless there earthquakes external pressure. The film is creating a global consciousness awakening for the the tech industrys toxic Business Model i want to poke a little harder here, though. If you say that the executives in these companies have become a prisoner of their own Business Models, the incentives there, does that mean that they have lost their moral compass i want to go back to that question of the moral center in the two companies that dominate the advertising space online yeah. You know, i appreciate going deeper into this question. I think zuckerbergs number one goal, its said he has the book the master switch at his bedside table. Thats about the regulation of the telecommunication industry if you read that book, you can interpret his number one objective is to avoid getting regulated by the government. That might explain why hes more friendly to advertising policies that dont go against the president or Current Department of justice are they moral by prioritizing the success of your own business and company over whats good for democracy and seeing that it is falling apart in front of your eyes, id say theres some immorality there. Let me stick with kind of the theme here and i remember very vividly the famous eagles lyric from hotel california, we are all just prisoners of our own device have we all been captured by this technology so that the seven hours a day that we spend checking our phones, that we have become prisoner to it and you say here it is destroying our sense making at a time we need sense making the most yeah. I want to be really careful here because when we say that were prisoners of a situation, that creates a kind of a victim dynamic. Its hard for us to take responsibility or feel like its only when this big system is going to change. I want to be really thoughtful about that because i want people to feel empowered when they see the film, that its about defining clarity of power between youand your brain and the supercomputers behind the screen calculating the perfect thing to light up your nervous system and give you the dopamine rewards. I think whats enlightening is there isnt this neutral product waiting to be used, its a system based on manipulation how does tiktok steel videos from instagram they sort of inject each video with social growth hormone if you post a video to tiktok, it inflates the number of likes andviews that you get so a child who wants attention, all desiring attention and validation from other people, they post that same video on tiktok instead of instagram, theyll get even more sense of people paying attention to me. Thats that race to the bottom of the brain stem theyre all trapped within fundamentally i think this especially affects youths and minors and is concern to all parents, especially in a time when theyre putting their kids in front of the screen time during coronavirus the cool thing about this film is its showing people its a universal, human phenomenon. We are all trapped in a meat suit mind. When i was a magician as a kid, we learned every single mind has the same vulnerabilities the problem is we have a Technology Environment thats all built on exploiting those vulnerabiliti vulnerabilities, like a back door into a Computer System, except Computer System is our brain. Kelly its kelly here i was going to ask you about the big tech report this week. After seeing some of the conclusions from that, after watching your film, i still think a lot of these solutions are not legislative, they have a lot to do with making people aware of how were being manipulated and just kind of being smarter about that i think a lot of us have been on that journey about kind of hacking the hacks so to speak. Do you see any obvious legislative solutions here because i just im not sure that i do. Yeah, kelly, its a great question i think this is a very complex and nuanced topic when i zoom out and i want to say if you look at the growth rate of the harm, mental health, addiction, conspiracy theories, personalization, break down of truth, compared to the growth rate of changes were seeing at the tech companies, taking down some accounts, taking down some networks of russian bots or the growth rate of legislation, when two these lienes converge, thats the fundamental problem. The problem of humanity is we have paleolithic brains as much as well need in the future the regulation for government to change the incentive so it not based on an infinite race to extract in a values blind way, so long as a whale is worth more dead than alive and a tree not protected in a National Park is worth more than lumber, now were the whale in our own minds if we want to profit from our own selfdestruction, we can do that but the point here is how do we set some guardrails about how we protect especially children and especially our Public Square and our minds from kpras democracy. We can retrieve standards from the past like saturday morning cartoons and standard doctrines. The only thing that scales to the increasing number of harms that are accelerating is a cultural awakening just like we had with big tobacco. Tobacco didnt go away because we said this was bad for you the shift happened when we showed the truth campaign, that the people who built it actually knew it was addictive, they hid that from the public and then it finally came out one of the benefits of our human psychology is no one wants to feel manipulated thats why this film has been so powerful at starting conversations in families and in democracy. It certainly started one in min mine, tristan. It sounds like you feel that the solutions to the problems youre identifying have nothing or very little to do with antitrust you can address that as you please but i come back to that idea that the companies through their seductions, through their manipulations of us have in fact captured us. You said i believe to the senate it takes these technologies, take control of what we believe while discriminating against our civility, our shared truth and our calm in that seems buried the thought that our democracy is at stake here in this 100 . While theres many different harms to sort through, the existential one, the one thats irrecoverable is if we dont have a shared faith and a shared set of facts or can trust that when someone brings us information people often say we just need access to perfect information sources. But information rides on the highway of trust the platforms have been degrading our trust in many different sources. Theres some good reasons for that but those have been exacerbated by social media. If we dont have a shared capacity to come to Common Ground, then we cant solve any of our problems. Doesnt matter which side of the political spectrum youre on one thing im hopeful about is the film has been creating a new Common Ground about the break double play of our Common Ground, a new shared diagnosis of why we cant talk to each other. One person said it was a better use of time to spend the 90 minutes instead of watching the first president ial debate, to spend those same 90 minutes watching the film because it allowed them to come to Common Ground with a Family Member they didnt agree with anymore. It explains why were not operating on the same information. You open up facebook on two phones, swap feeds and scroll through someones feed for about ten minutes. Before you would say how can they be so stupid and not see what im seeing. And the answer is theyre not seeing the same information. Theyre not seeing what youre seeing. Theyre seeing something selected for them by an algorithm that is feeding them whatever it is, whether it be a Conspiracy Theory or propaganda from the left or right or whatever fascinating conversation well have you back follow up more the film is called the social dilemma. Tristan harris, thank you. Thanks for having me. Really appreciate it coming up, disney is in a battle over disneyland will california let the park reopen thats cominupg on power lunch. A lot more is still ahead. Hmms and ahhs heard incall. Its a thirteenhour flight, tfifteen minutes until we board. Oh yeah, we gotta take off. You downloaded the Td Ameritrade mobile app so you can quickly check the markets . Yeah, actually im taking one last look at my dashboard before we board. Excellent. And you have thinkorswim mobile so i can finish analyzing the risk on this position. You two are all set. Have a great flight. Thanks. Well see ya. Ah, theyre getting so smart. Choose the app that fits your investing style. To the bond market now where Rick Santelli is tracking the action at the cme. Hi, rick hi, kelly an intra day of 30year bonds gives you a lot of information you see that wild trade at 1 eastern . The auction 23 billion bought up of 30year bonds dplus is the grade i gave it. You would think when the auction goes really bad rates wouldnt have slipped a bit and they have lets open the chart up to a twoweek chart you can see we are on the high side of the yield range. Thats what was on the psyche of what investors were nervous about when they didnt show up for the longest maturity look at the distance between a 30year and 10year on yield its almost double for this year ended last year around 45. Its now at 80 we want to watch that. Thats a good sign rates may go higher and lets look at volatility heres the move index for one month. Really spiked up when you look at year to day, it puts a much more governor relationship on it it spiked but still relatively low but it does show us that investors, well,er th theyre pg more options making volatility go up because rates have gone up thank you very much coming up, disney wants to reopen disneyland and says the closure is costing thousands of jobs california says still not safe the ttbale the latest in this battle is next you cant predict the future. But a resilient business can be ready for it. A Digital Foundation from vmware helps you redefine whats possible. Now. From the hospital shifting to remote patient care in just 48 hours. To the university moving hundreds of apps quickly to the cloud. Or the City Government Going Digital to keep Critical Services running. You are creating the future on the fly. And we are helping you do it. Vmware. Realize whats possible. The battle over sam darnold continuing to today as disney push to reopen the park. In the state of california, pushes back. Julia boor steen joins us now with the latest. Julia . In an escalating battle, disney is criticizing the state of californias refusal to allow sam darnold to reopen in anaheim. The previous officer of disney issuing a statement saying we absolutely reject the suggestion that reopening the sam darnold resort is incompatible with a healthfirst approach. The fact is since march we have taken a rebust science basted approach to reopening parks around the globe this follows californias governor saying the parks wont open until the covid cases improve in california. Yesterday los angeles county, adjacent to anaheim, where sam darnold is reported its highest number of cases in the last six weeks. Bob iger last week resigned. Also last week, disney allowanced it is laying out 28,000 employees saying the impact of covid has been exacerbated in the state of california dd disneylan. It is an interesting comparison with california and florida. Coming up, the adviser top 100 list is out. The list is lacking in diversity. How and they atrack more black and female talent . Thats coming up right here on power lunch. Some things are good to know. Like where to find the cheapest gas in town and which supermarket gives you the most bang for your buck. Something else thats good to know . If you have medicare and medicaid, you may be able to get more Healthcare Benefits through a humana Medicare Advantage plan. Call the number on your screen now and speak to a licensed humana sales agent to see if you qualify. Learn about plans that could give you more Healthcare Benefits than you have today. Depending on the plan you choose, you could have your doctor, hospital and Prescription Drug coverage in one convenient plan from humana, a company with nearly 60 years of experience in the healthcare industry. Youll have lots of doctors and specialists to choose from. 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A licensed humana sales agent will walk you through your options, answer any questions you have and, if youre eligible, help you enroll over the phone. Call today and well also send this free guide. Humana, a more human way to healthcare. Annual Financial Adviser 100 list this week it found a lack of diversity according to the certified plnl planners board only 378 of the industrys 87,000 advisers holding the cfp designation are black or latino. Less than 20 of advisers are women. Joining us, the cokoemt of 2050 wealth partners. Also, evelyn zoelan, president and founder of inspired financial. It is great to have you guys here to talk about this today. Lidsetta, ill begin with you. In a time when you think a lot of efforts are being mind to find and attract and promote minorities, why do you think its such a there is still such a lack of representation there . One major concern is session Planning Office lot of these firms that have been around for two or three decades. What they are looking for are people who are like them to hand off the business to them looking like them is literally looking like them, white males if you look at that full list of 100 top firms thats what you are going to see thats what we know to be tree in our industry. If there was more effort being placed in the pools, the pipeline, developing minorities, and women up the ladder, then maybe we would see Something Different when the businesses hand off to the next generation. Evelyn, can you give some examples of what that might look like you know, what those efforts could be that would bear more fruit. Absolutely. I think that one of the most foundational, but any good Financial Planning firm should have are clearly documented career paths you know, there is a little bit of guesswork as to what will be my path if i enter this career and i think that a basic step that most Financial Advising and Financial Planning firms could do is to finally document that career path so everybody, every Financial Planner on their team is clear and feels empowered to take control of their own success and know what that journey is going to look like. And that can be applied across planners of all diverse back grounds. Lizetta, what would you say is the biggest hurdle . Is it a lack of interest among young people to get into this field . Or they dont think of it as one to aspire to or is it more that they run into hiring hurdles down the way . All of the above. And so what i would like to kind of segment out, one is Financial Planning as a discipline, to be honest, its rare it is pretty new when i say pretty new, it has been around about three decades. When you think about insurance or even investment stock picking, even accounting these are professions that have been anchored for at least a century or more, pretty much probably more than a sentry. Awareness is key the second part, what evelyn said so clearly is about having a career path. With accounting and the Legal Profession there is a clear path of doing the undergraduate work, moving to the certifications for bar exam, et cetera. And we are doing better with that within the testimony planning industry as well. And then, three, its consistency with compensation and disclosure with that as well, too, we have some people who are career changers we want to make sure that they are skill set translates to, you know, a good financial compensation for that they bring to the table even if they dont have the pure technical skills, if you will. Yeah. Very well put. Ladies, we have to leave it there for today. We are out of show but we are thrilled to have you on and talk about, bring more awareness to it. Lizetta, and evelyn lizetta, by the way tlb will be part of the cnbc fa summit on october 20th join her and josh brown and many many more. Cnbc. Com fa summit to learn more ty thanks, everybody for watching power lunch. Closing bell right now welcome to the closing bell, everyone. Im wilfred frost along with sara eisen lets look at what is driving the action today the focus on stimulus. House Speaker Nancy Pelosi saying today there will be no stand alone airline aid without a comprehensive relief bill. Jobless claims, 840,000. Staying above 800,000 every week since mid march. Ibm is the best performer on the dow after announcing it would spin off its