Announce the launch of its 5g. Power lunch starts right now tyler, thanks lets look at shares of apple. Remember, they were up 6 yesterday. They were down about 1 as the iphone event began last hour they are now down 3. 5 so you really took a turn lower in the last few minutes there. Josh lipton is standing by as the event continues. Josh the event did begin here. Four new models so far introduced so apple is saying the latest and greatest technology, billing it as the smallest, thinnest, lightest 5g phone in the world, thats at starts at 699 and then the next model will start at 799. Then there are those that want the most Cutting Edge Technology for them apple offers the iphon 12 probe and iphone probe max. Theyre powered by 814 bionic chip that should mean a real boost in performance. New camera system in these phones thats very important to consumers. New Wireless Charging system as well it not just iphones either they also did announce a smaller, less expensive version of their home pod, their smart speaker. That will cost 99 and start shipping in november there apple trying to compete more effectively with amazon and also google. Back to you. Lets get some more insight on what weve heard from apple so far tim higgins is the tech reporter with the wall street journal. Tim, good to have you with us. Thank you how dazzled are you or is it pretty much what you expected in. I think were getting to the most important part right now, the presentation, talking about what that 5g might mean to the customer tim cook started out talking about faster downloading and uploading speeds, better gaining, less Network Congestion here toward the end of the presentation, were hearing benefits of 5g, whether its an enterprise use or medical abilities to download medical scans quicker. Thats one of the questions that i have about this theres been a lot of talk about 5g its become a trade talk issue between the United States and china with respect to who is going to lead the way on 5g. But it does sound as if the greatest impact of 5g may be in the commercial setting as opposed to in the ordinary user like you and me. Right and thats really the challenge for the industry and for apple, right. This technologys been out there for a little while it been years and years of buildup. Right now it going to have its moment with tim cook on staenge the average customer will start to hear about it customers might have a disappointing experience up front. Those are some of the challenges for it but in some ways it might remind you of when 4g came out. It took a few years for developers to Start Playing with it to figure out what the cool next application was going to be whether it was going to be downloading pictures very quickly and the selfie generation emerged thats one thing we dont know what 5g is going to bring but investors are making a bet ift goi its going to be essentially laying the pipes for a whole new world. And those pipes are being supplied by the likes of at t and verizon. Well hear from verizon in a bit. Tmobile those pipes have not, so far as i know yet, really kept up with the technology built into these new phones like the samsung s20 and this new phone from apple. Yeah, right this is a big issue, too when 4g rolled out, it was widely out there and the issue was there wasnt enough phones to teak advantaake advantage of. This time the phone make verse bought into it and the bulk of 5g phones are being purchased in china where theyve been more aggressive in that regard. Its a thing that apple essentially has waited a little bit and now is getting into the party, kind of perhaps on the precipice of this becoming a real thing. Lets bottom line our viewers if we can. I want to buy this phone because. If youre an early adapter, youre going to want to get on the 5g network to be one of the cool kids. If youre an average, every day user, the reviewers and tech nerds are saying you might not be there yet is there anything else having to do with the home speakers, the ear pods, im not even sure if thats the word for them. The home pod is an attempt, the smaller home pod this year to try to catch up with amazon, a lower price point at 99 that hits at one of the issues thats been critical of the previous attempt by apple that was so expensive compared to what amazon was doing but still maybe playing a little bit of a catch up with amazon, just given the ubiquity of the offering it sounds like the higher model, the iphone 12 i dont know if its a pro is going to be a 999 price point, which is a little lower than the price point on some of these phones, correct . Thats thousand dollars price point has been out for years thats part of tim cooks point to get sales were not seeing the same levels as the market has matured. Apples been trying to squeeze more juice out of those lemons that was the first time that apple had moved into a bigger screen phone, which had been a real disadvantage for them visavis some of the other players. So that was the refresh supercycle and i guess theyre counting on this to be something of a similar magnitude absolutely. The big phone popular in the china market, really gave them some ammunition there. And the thinking is that 5g will then help them in a similar way, more focused on the innards of the phone, a better camera, like weve seen in the last few years. Tim, always great to see you. Youre always clear. Thank you. Thank you kelly and jpmorgan is weighing in on the dow today and despite beats for the bank stocks, jp and citi are down. Black rock hanging on to about a 4 gain. Its the only major name in the green. Lets bring in our guests. Its great to have you both here navid, ill begin with you there are some signs, i guess good signs with the economy and whats going on with the bank earnings, right . Thats right. I think what weve seen at least in the results thus far is credit costs are somewhat leveling off thats obviously a positive. As we look at the bank results, there is this bifurcation between trading businesses, Investment Banking businesses and loanrelated businesses, which i think the market is really weighting the performance of those alone businesses and really outspin the bank performance. As we look at banks, the key point here is credit still remains very, very strong and we arent seeing any kind of pick up in terms of potential losses there. There was some talk around the timing ofpotential realized losses the expectation is that could come toward the end of 2021. But in terms of the level itself, thats something that looks at least good initially. And stephen, i want to ask about whats going on with the major averages right now apple shares are selling off they were up 6 yesterday. What do you make of the reaction to the product event so far, its importance to the tech kind of investing world and also whether you think its time for investors to pivot and look for other ways to invest their money. I appreciate the question i as you love that quote from Bill Parcells that says you are what your record says you are. You have major indices a the at all time highs. That exciteme menment and optims better than its ever been in history. Theres this narrative that this next leg of growth in the market is likely going to be from this pivot from Growth Stocks to value stocks id argue that weve probably already seen that. Lets look at Big Industrial conglomerates i use as bellwethers. Caterpillar stock is almost at an alltime high, yet if you look at their earnings expectations for 2021 from the start of 2020 till today, those earnings expectations are 50 lower, yet the stock is up over 10 . Look at union pacific, the largest railroad in the country, just a great sort of canary in the coal mine for Economic Activity stock is at an alltime time yet earnings expectations for 2021 are actually lower i think investors need to be a little cautious on that move from growth to value and we continue to look for companies that can create their owe o own offense, and generate Earnings Growth no matter whats going on in the overall environment. Navid, similar question we just spoke about the big banks. What would you do with big tech right now . I think thats the question alluded to earlier youve seen a big pick up in the prices on tech and youve seen a commensurate move in earning potentials i do think technical is fairly valued as i look at the market, i think theres more attractive areas to play as i mentioned the Banking Sector, that looks much more attractive if you look at the way the market is looking at 12x to 27x on the s p, its being really priced in a perfect storm of problems with low interest rates, extremely high levels of capital and reserves and some of that will normalize as we work through the Current Crisis so i think the up side potential in the Banking Sector is largely underweighted if there is any kind of recovery as we continue through the volatile time, the trading and Investment Banking business should continue it lead in terms of earning potential and still provide value even in a volatile time period. All right i know Bank Investors have been frustrated a lot for a while well see if this is one of these turning points thank you. Tyler, back over to you. We have more on apples big event and verizons surprised nationwide 5g rollout with the veo of verizon himself, Hans Vestberg and the retail race. Well tell you wre pplheeoe are shopping muff more power lunch is coming up next 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. Amazon prime day is today s prime members will have two days to shop for deals. Walmart, target and best buy want to catch buyers for an unprecedented shopping season. Evan clark, its good to have you. A lot has been made of the fact that we might not have the normal kind of black friday dynamic already this year. Throw prime day on top of that and whats the whole season going to look like you think thats still the big question retail verse beers have been tr decades to have this kind of starting gun of the Holiday Season on black friday when the pandemic hit and it became clear this was not going to be anything like a normal Holiday Season that weve seen with crowded shopping malls and long lines to see santa, the industry started looking at how do we move the start date back to get more Holiday Shopping online they were looking there was an early buzz in the spring of how do we get people to start shopping in october and amazon stepped into the void. I think it really remains to be seen if this will be something that kind of solidifies in the future as the industry kind of pivots more damage tall aigital beyond but its one of those changes in the pandemic. You have target hosting deal days, you have retailers, kohls, jcpenney and bed, bath and beyond whats the game plan here . I think its a little bit of everything in some ways i think this shows amazon is a technological marvel its this tech power house, but also, remember, at its core, its a retailer, an online retailer and retailers love sales. And when amazon accounts for Something Like half of all online sales so when they have a big push, they really pull the market with them and so theres part of this, i think the rest of the industry doesnt want to secede anything else to amazon and if they see a good thing going, theyre not afraid to jump on. So that may be the case but amazon is kind of the big player and theyre able to basically create their own black friday on whatever day they pick out of the air. Do you think were still going to have the traditional pattern of that last fiveweek run up from christmas everything from the way fedex hires people and manages packages will be at stake whether we experience that traditional seasonal pattern or not. I think its going to be a bit of a muddle. I think the muscle memory of the American Consumer and Retail Sector is too strong plaq black friday is just something etched in the holiday. Theres usually a lot of Online Shopping period. I think there are constraints. Well probably have less of that extreme procrastination of ordering on december 22nd, but i city think well still get a black friday a bunch of things in the caymans might change. As we get closer to the holidays, the weekends become more important shopping times and that might level out some with more people clicking. But amazon is kind of jumping in early, everybodys jumping in early. Well see how that plays out its a big question mark still yeah. Evan, we appreciate it today thank you, sir great, thank you so managing editor of womens wear daily. Ty . Canopy growth announcing a new deal for its beverage line as hopes for legalization grow across the country the ceo will be here plus disney going all in on streaming. That is sending the stock climbing by far the best perform are today. The traders will tell us how much more room is is to run. More power lunch next. I have an idea for a trade. Oh yeah, you going to place it . Not until im sure. Why dont you call Td Ameritrade for a strategy gut check . Whats that . You run it by an expert, you talk about the risk and potential profit and loss. Couldve used that before i hired my interior decorator. Voila maybe a couple throw pillows would help. Get a strategy gut check from our trade desk. 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. With two new haunted houses, the screams are just getting started. Wear your favorite costumes and the fun never ends. Come get your halloween on, happening now at universal orlando resort. Welcome back to power lunch. Im seema mody disney is sending prices up by 3. 5 mark, do you think disney can beat netflix at its own game no. I dont like this at all i dont own it, i definitely would not be buying this thing at 130. Maybe id get interested under 110 i understand the need to pivot obviously the parks for them are running on fumes, but this completely kills the allure of disney plus for investors. The value prop was that disney wouldnt have to spend a ton of money on content obviously that would help margins and now it seems like theyre going to be headed in the opposite direction ive always thought of disney as a company that rolls out maybe five blockbusters a year, very highquality content now i think theyre going to have to dilute quality so they can increase quantity. So the margin potential is no longer there and i think for this to work theyre going to have to roll out like one mandalorian series every month i think the quality will be diluted. I think youre seeing a shortterm pop in the stock. Milan did well. Stock still down about 10 this year i have to put it straight forward. Mickey and mini mouse never go out of style weve reversed a longer term trend here in the stock. The recent price action has come back and rechecked that down trend resistance line. Were starting to rally off that level. From our perspective, we close above the 136 level will open the share for another leg higher i wouldnt rule out disney yet yes, theres a transformation going on that can get a little bit messy but if anything can do it, disney can do it, theyve got the content and i wouldnt rule out mickey and mini mouse here for more trading nation, head to our web site or follow us on twitter. Kelly, back to you thank you very much, seema. Up next, apple announcing its new 5g enabled iphone. The ceo of verizon jones us first. We have a lot of questions for mr. Vestberg right after this. Announcer and now the latest from trading nation. Cnbc. Com and a word from our sponsor. If youre an active trader, sitting on the sideline can be difficult. Its important to resist the temptation to overtrade. And wh you may want to reduce and when things al grelyet crazy, sometimes the best trade to make is no trade at all im joanna payne and schwab is the better place for traders hmms and ahhs heard incall. Mr. Wonderful here. Welcome back, everybody. Im sue herera heres your cnbc news update at this hour. President donald trump is going back to the Supreme Court to try and block access to his tax returns. This after a Lower Court Ordered him to give a new york prosecutor access to years of his tax filings. You can go to cnbc. Com for more on why the case is making a return to the Supreme Court. Yet another performing Arts Institution going dark because of the pandemic. The new York Philharmonic has cancelled its entire 2021 season, the first such cancellation in its 178year history. The netherlands is returning to a partial lockdown tomorrow to slow the spread of covid19. Bars and restaurants will be closed and public gatherings of more than four people will be banned here at home in west texas, a successful test launch for blue origins new rocket it is designed to bring american astronauts back to the moon. After hitting a peak attitude of 66 miles, the flight made a controlled landing ten minutes later. Very cool. Thats the new update, kel ill send it back to you. The video almost doesnt look real, sue. Im so used to those kind of grainy, nasa its amazing, though. The technology alone is so fascinating you know, theyve had a lot of success with blue origin so well see where it goes the space race is on in earnest. Yes, pandemic or not. Sue, thank you very. We appreciate it lets get a check on the market right now. Apples turn to session lows has dragged others with it the s p is just about 3,500 and the dow is down 214. Oil prices are rebounding from yesterdays slum. Wti crude settling up about 2 , brent closer to 1. 73 one thing supporting prices is positive customs data showing china took in more oil in september than august. That figure for september was 11. 8 Million Barrels per day thats a 5. 5 increase from august that bump in demand is also offsetting the returning supply were seeing in libya, norway and the gulf of mexico tyler, back to you thank you apple is wrapping up its product event. Just moments ago it did. Lets go to josh lipton for the last details josh so, tyler, apple ceo tim cook on stage today introducing apples first 5g iphones the ceo of verizon did take the stage with steve cook and said 5g just got real. He announced verizon is rolling out its nationwide 5g networks today, expected to reach 2 Million People and will offer double down peak speeds. The transition is challenging and some analysts will argue that right now the coverage is Still Limited and they say it could act as a real catalyst to bring this technology to more of the mainstream back to you all. Thank you very much, josh lipton with that announce ment, Verizon Wireless now expanding, as josh just said, its ultra Wideband Service across the u. S its available in 5 citi55 citi stadiums and airports. For more on the 5g expansion, were joined by verizon ceo hans v vestberg we appreciate your time today. Glad to be here the announcement is on the phones from apple but also youll have your ultra wide band service in 19 additional cities, 19 stadiums and six airports how much closer does that get you to the nationwide coverage in 5g that i know you covet and need i think this is a very important event. We have been working with our 5g strategy for four years and we have all the time sort of baked it on top of the best 4g network we have in the nation. Now we have the sort of ultra wideband, and that is now in more than 55 cities where it can get speeds up to 4 giga bits per second and more than 200 people can access that as well. I think we are having a longterm strategy that we have been working out for years together with our Partners Apple of course a very important partner for doing that all the infrastructure players this is really an important moment for us. 5g just got real in the u. S. Because the share size of iphones in the u. S. And users is so important for the consumers that this product is 5g enabled, especially ultra wide band enabled that we have been sort of betting on for a long, long time im not an engineer, mr. Vestberg, so i tread into this area of 5g versus 4g, high band 5g, which clearly seems to be the break through you guys are leading the way on versus the low band 5g which you just referenced and gives you effect e effectively nationwide coverage. Can you walk the viewer through the lower 5g and the higher 5g, which some have said isnt really 5g, it kind of just gets the 5g thing to light up on your phone. Its built on high level spectrum, which means that the coverage is a little bit shorter but the performance is enormous. Thats where can you get 4 giga bits per expected and you get an enormous capacity. You can have hundreds of thousands of phones in very small areas at the same time using the network. And then you have the low lateenslate en latency, which means can you have realtime gaming and access various cameras. We launched an nfl app where can you have seven cameras, wherever you are, home or in the stadium, can you access any of those features you cannot do that on 4g thats the high band spectrum. Then the low band spectrum is giving you a very solid experience but not even close to the ultra wide and verizon have the best in the base on that so forgive me for interrupting so the ultra high band will be available by the end of the year to what percentage of your total Customer Base versus that lower ban 5g that is good but not the Gold Standard . Can you give me some numbers there . 55 cities today and well have more than 60 cities by year end. Those are the most populated cities of the country. And of course thats where all the majority of the traffic is, where all the congestion is, which were now going to make congestion strfree maybe its not all the coverage but its where all the traffic is we talked about it today at the keynote, everything how nfl can access the information or if its the multigaming that you can do thats going to be very soon hans, its kelly here again, thank you so much for joining us today i know its a very big day for you just to be clear, is the apple 5g iphone only going to be available with verizon or on verizon . No, apparently not. But we have a Good Partnership with them. Of course we are very thrilled that they also believe in the ultra wide band and thats why this is sufficient an important event for us and for them. This is where youll see a transformative experience on 5g. We always at verizon have always wanted to have superior performance. This is a moment where we going to have their same performance in their phones as in our network. So to be clear, i can get the new apple phone, its 5g enabled, i can use it anywhere with any provider that has 5g technology i know youre making the case for why yours is superior. How would you describe the availability for 5g im asking to you ten viewer out here, for an at t or tmobile, is it verizon and where is everybody else im just thinking about this in terps terms of how many of these phones apple can sell. I think that my competition need to speak for himself. We think we have absolutely the best network and were build it uniquely and different than others and thats what our customers is expecting thats what the apple users hopefully is expecting as well two quick questions if i might. One is slightly parochial. When do you have expect to have the met row market ro market 5g have Huffington Post on the selling block . The first one, i think in new york, were doubling the capacity in new york during the year so the metro will be mainly covered this year. Thats an important piece for us on our media business, remember, i would prefer not to comment on it but my team is doing a great job in the content area. Thank you very much we appreciate your time as always kelly. We have a news alert on eli lilly. Take a look at the whole market which has been tilting lower as meg terrell brings us another trial. In is a government trial of ely lillys antibody for the disease. That trial has paused enrollment it was reported first by dr. Jeremy faust on twitter, who attributed it to an abundance of caution due to potential safety concerns the statement weve received from lilly says we are aware out of an abundance of caution the safety board has recommended a pause in enrollment. They are evaluating in hospitalized patients. It is sponsored by the National Institute of allergy and infectious diseases. We dont have any detail about what led to this cause lilly says its supportive of that decision about the independent data safety monitoring goard to cautiously preserve the safety of those participating in the study a lot of folks involved in Clinical Trials say this happens in Clinical Trials they pause if Something Like weird and figure out if its a pause with the drug or the trial and then they keep going weve been hearing with these. Astrazeneca is on hold right now. Were just paying a lot more attention to all of these programs in the middle of this pandemic guys so to recap, we have two vaccine trials paused, astrazenecas and Johnson Johnsons just last night. This one was for a treatment we had the news last week that eli lilly was fast tracking its Covid Treatment this is this that same treatment or a different one be and how many different treatments are they working on it is the treatment that elie lili has filed for an emergency order for use in is a trial that was paused in hospitalized patients with covid19 but it is the same antibody. Now, you are right that Johnson Johnsons Clinical Trial and vaccine was paused last night as they investigate an unexplained illness and astrazenecas trial has been and clinical hold, a stronger, more regulatory situation. As they continue to investigate that safety event. That trial has restarted in other countries, not yet in the United States. And so were going to try to get more information about this eli lilly trial. Ive reached out to the nit. Until then, a lot of folks remind us, this is drug development, they cause and figure it out and keep going in all is okay we just have to wait for more information here are comments from eli lilly saying the Clinical Trial was paused for a safety concern. Independent data, safety monitoring board recommended a pause in the enrollment of the active three trial thats a recap of what youve told us. Two vaccine trials, one treatment trial pause but, again, the levels of selfairy one versus the other, its very hard to tell at this point elie lilly shares are down 3 . Thank you very, very session lows in the whole market of a that headline cross more on the market moves for you. Stay tuned for the power lunch with the dow down 212. Were excited to do business with you but before we sign i gotta ask. Sure, anything. We searched you online and maybe you can explain this . I cant believe that garbage is still coming in. That is so false frustrated with your Online Search results . Call reputation defender today to join tens of thousands whove improved their online reputation. Get your free reputation report card at reputationdefender. Com or call 18778668555. This was the theater i came to quite often. The support weve had over the last few months has been amazing. Its not just a work environment. Everyone here is family. If you are ready to open your heart and your home, check us out. We thought for sure that we were done. And this town said not today. And ti cantwhat . Ve it. Today. That our new house is haunted by casper the friendly ghost . Hey jill hey kurt movies . Ill get snacks no, i cant believe how easy it was to save hundreds of dollars on our Car Insurance with geico. I got snacks ohhh, i got popcorn, i got caramel corn, i got kettle corn. Am i chewing too loud . Believe it geico could save you fifteen percent or more on Car Insurance. If you can call it normal, this is the new normal lets check in with our own mr. Bond Rick Santelli tracking the action at the cme. Rick hi, tyler a half a dozen seeps ms to be te number 72 basis points,er that down a half a dozen basis points for the day. So they trade at a yield of 151. Big reversals for the longdated treasuries, but we all know the story. The trials are on hold with regard to covid and just in general. We see that the stimulus seems to be stalled. Whether the hopes were too high or not, it makes a market difference lets look at a mid march of ten years. You can see in march we had a 119 high of course we ended up with a 90 high in june and 79 basis high in october it looks like its running out of gas dollar index is up a half a cent you see on the intra day chart open the chart up to mid september and weve bounced off. You see that flat bottom those were the lowest close weve had in four weeks. And the same reason that rates are moving lowers, basically covid on hold with the trials is not setting well with the markets, nationally or globally. Kelly, back to you thank you very much, Rick Santelli still ahead, the cruise stocks are getting crushed today. Well tell you whats driving the move right after this. At cdw we get youre always looking to modernize. Yeah. Im just not sure Office Drones were the way to do it. [ laughing ] drone voice lol. Our market share looks good, but. Drone voice where are the bagels . Well, cdw can help you modernize your company the right way, with a scalable infrastructure from hpe, making you more efficient and secure. Great. Oh. [ drones buzz angrily ] lets find a different room. For transformation that works, you need Hewlett Packard enterprise and it orchestration by cdw. People who get it. Were committed to making college more accessibley, by making it more affordable, thats why were keeping our tuition the same through the year 2021. I knew snhu was the place for me when i saw how affordable it was. I ran to my husband with my computer and i said, look, we can do this. [narrator] take advantage of some of the lowest online tuition rates in the nation. Find your degree at snhu. Edu. Its time now for todays power movers we begin with royal caribbean. Aiming to raise 1 billion through the safely stock and debt and issuing bleak guidance. They are saying 2021 bookings picked up but shares are down 1. 5 affecting the whole industry amc movie theaters getting crushed saying it could run out of cash by the end of this year. They are down 9 , under 4 Williams Sonoma has now quadrupled from its march low. Resuming bybacks and raising dividend by 10 . Up next, folks, the ceo of Canopy Growth will join to us des ten his companylast al stay with us at morgan stanley, a global collective of thought leaders offers investors a broader view. We see companies protecting the bottom line by putting people first. We see a bright future, still hungry for the ingenuity of those ready for the next challenge. Today, we are translating decades of experience into strategies for the road ahead. We are morgan stanley. 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 you may be able to get more benefits without paying more through a Medicare Advantage plan. Call now to request this free guide. Learn about plans that could give you more benefits from humana. A company with nearly 60 years of experience in the healthcare industry. Humana offers a wide range of all in one Medicare Advantage plans that include medical and Prescription Drug coverage. Plus valuable extras that may include the Silver Sneakers Fitness Program and mail order prescription coverage. With humana youll have lots of doctors and specialist to choose from and peace of mind, knowing youre covered for doctors visits and hospital stays. 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Humana, a more human way to healthcare. Shares of Canopy Growth are down by but higher over 25 over the past week following extents were the Vice President ial candidate Kamala Harris at last weeks debate. When you take that chart out a couple of years, the stock has lost nearly two thirds of its value. The companys ceo about to join us first lets check in with aditi roy for details of a deal the company is making. It is an interesting proposition. Thats right, Canopy Growth has been making inroads in the u. S and now biosteel, a u. S. Sports Nutrition Company in which it has a majority stake inked a partnership with two major u. S. Beverage distributors. The deal comes as the Canadian Cannabis Retail Market has been sluggish because of the pandemic the catch . As you mentioned the drinks that biosteel will roll out wont be infused with thc what is it it sets up the structure for the Canadian Cannabis company to distribute adult use bev rans. Adult use sales doubled from 2015 to 8 million last month. Stick around for more on this beverage deal and the hope for legalization in the u. S. Lets bring in david klein. Good to see you. The stock is down 50 from mid 2018 how does that help us meaning this deal get us back to those levels i think whats happening around the cannabis stocks is there was a lot of hype around the stocks early on about what they could produce what you are seeing out of canopy now, however, is we are actually able to deliver on some of the promises. And this biosteel example is just one way we are trying to do that, build that infrastructure where we can bring really good high performing brands to the market like biosteel we can add cbd into those brands as federal regulatory guidelines shift. Of course the real win here is to be able to use this channel to bring thc drinks to the market as soon as federally permissible. Tell me about how big a market you foresee this morning. Because i think thats the question for everybody, just how much demand is there going to be for these products i think there are two ways to look at it if you look at our business in canada, we have had drinks in the market for about six months. During that six month period of time we have about a 70 share of the canadian market. And we have shipped about 2 million drinks compare that to the entire u. S. Market in 2019, which shipped 4 million drinks across the entire country for the entirety of the year i think what we are seeing in canada is we have outstanding products, and we are using those products to begin to recruit new consumers into the space who arent going to enter the space by taking up vaping or smoking but they might enter it through a drink. And these drinks perform better than hart settlers we know what a phenomenon that has been in the u. S. In the past few years. These have zero calories they can taste better than hard seltser. They have an onset time of seven to ten minutes an if of one drink is about equivalent to one glass of beer and there is no hangover. David, aditi roy here, it seems like you need to have the u. S. Legal and regulatory landscape in your favor in order get the most out of this deal. Canopy growth has spend about 150,000 lobbying u. S. Lawmakers this year alone. What do you hope to accomplish with those funds we want to see u. S. Per missability happen as you know, as soon as we get u. S. Per missability our arrangement with acreage kicks in where canopy will own 70 of ache ram, a u. S. Multistep operator thats step one and we want to bring our brands and our intellectuality into the u. S. Market backed by your balance sheet. Thats step one. Over time making sure the environment is permissive enough to allow cannabis to look more like the alcohol industry will be a win all around from the consumers, from the government, from an excise tax revenue standpoint and clearly from canopys perspective. All right the shares are downer inially 4 today. We will leave it there david klein and aditi roy thank you as well. Tyler we have got a lot to watch, eli lily and apple reporting this yank. Apple among the stocks pulling down the nasdaq today. That does it for closing bell, wont it, kelly. That will do it for power lunch. Tyler, see you tomorrow. Thanks for watching, everybody closing bell starts right now. Kelly and tyler, thank you. And welcome to closing bell, everyone, im sara eisen here with wilfred frost thedown down 200 points as we head into the final hour of trade. Lets look at what is driving the act right now. 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