Transcripts For CNBC The 20240703

Chip . At t business. music the walking tree is said to change its entire location in pursuit of sunlight where could reinvention take your business . Accenture. Let there be change. There we go. Welcome back. Im kelly evans, and ahead this hour on the exchange, on a day where oil is higher, bond yields are higher, the dollar is at a 10month high, stocks are now lower, were approaching a lot of critical levels on wall street. Despite these gathering storm clouds, our market guest is finding opportunity, and she makes her tv debut here with the names that are underappreciated and cheap right now. Thats in a moment. Stocks and bonds may be under pressure, but not enough to force washingtons hand to avoid a shutdown. We are nowhere near that pain point yet, so whats next . We talked to two washington veterans who have a solution. And something is happening in washington today that could be a game changer for cannabis industry. But can it light a fire under the beleaguered stocks and what are the broader banking implications . Lets start with the markets. A lot of critical levels to watch. Dom chu has the numbers. The dow down 170 points, one half of 1 declines. The s p at 4259, down 13 points. The trading range so far has gone up 19 to down 20. So theres a good amount of symmetry in the trading range. The nasdaq composite up one quarter of 1 . As for where we stand, if you look at the dow, the s p and the nasdaq composite, on a yearyea yeartodate basis, right now, you can see the dow industrials from the levels down about 6 in that range. Down about 8 for the s p, and down roughly 10 for the nasdaq composite from those summer highs. So keep an eye on those. And small caps and transportation stocks as well. Check out transports from those summer highs that we saw going down, you can see the transportation down 12 since the highs. Were seeing some more trend lines develop here with the medium term. And watch the energy stocks. Unexpectedly larger draw down, helping to push prices higher. U. S. Benchmark crude prices up 4 , 93. 77. Thats lifting the entire energy sector, including exporters and production names like occidental preto petr petroleum. So back over to you. Leading the way, and dom, thank you very much. Bond yields as well, the story today. We had a fiveyear option top of the hour. Lets bring in rick with the latest. Reporter its always difficult, kelly, to handicap an auction when on the fly, the market is selling off to new extremes, pushing yields higher. The one issue market was staircasing to yield heaven, right as the auction buttoned up. So the yield for this 49 billion fiveyear was 4. 659. But the one issued market was at 4. 671. Thats good. Lower yield, higher price, im selling if im the government. They call that stopping through, thats a positive. But when the market is selling off, were leaving in our wake some of those bids at lower levels. Soy gave it b as in boy, which is still a good grade. The only thing that was light here was the direct bidders. But as the yields continue to move higher, and in many ways they dont to be mostly led by long maturities, we are getting close to some levels, especially in the long end that will represent some resistance. So far, its just been a oneway move lately. Rick, thank you very much. Also this morning, hawkish comments from fed officials, this time from the minneapolis fed president , who said Interest Rates arent high enough to contain inflation, even as bank of americas ceo says he thinks the fed has won the nearterm battle on that front. Inflation the top concern in the latest survey from cnbc. The next biggest worry after inflation is declining consumer sentiment. My next guest says a lot of bad news is also priced in to a lot of stocks and is finding great opportunities. Here is samantha mclemore. Welcome. Great to see you. You worked with bill miller for 20 plus years. You have acquired the Miller Opportunity equity business this past may. Correct, yes. And tv debut. Tv debut. What a day with our technological gremlins and the gremlins plaguing the market. So this doesnt surprise you, the fact that we are a little bit of tough slugging out there, but you think its priced in to some stocks already. Absolutely. The main thing to know is how resilient the market has been in light of rates and oil and all of these headwinds that would have taken the market down much more last year, were only down 8 , thats a normal, natural correction. After a runup that surprised so many people, i was thinking about you earlier this year, one of the stocks you had your eye on was delta airlines. At one point, it was on a 16day win streak, and then comes higher jet fuel prices. But you think theres a lot of room to run there. Delta is extremely attractive. This is a premium brand. Airlines are not like they were 20 years ago. Theres been a lot of consolidation. Theres capacity constraints with pilots and with equipment. And delta has a 15 Free Cash Flow yield and earns mid teens return on capital. So this is not a company that should trade at five times earnings. You think it should be in the 70s to be fair value . Says think it can get over to 100 five years out. That will be an interesting five years between gdp, the deficit and yields. Let me ask you big picture for a second. A lot of the stock picking in the last 15, 20 years has been in a low rate environment. We are not in that anymore and its changing day by day. I dont know if that changes the way you work. Were always longterm and focused on where the best opportunities on an Intrinsic Value basis. I think weve had the worst period for Value Investing ever. Worse than the tech bubble. I think those negative real rates were an torment factor where that existed. And now the higher rates favor Bigger Companies generating cash flow, so i think it will help value continue to outperform. If you stuck with the business the last 15 years, this is maybe a welcome change. Theres a couple of names on the financial side people might be surp surprised. Right now, were talking about the deterioration of the consumer, thats kind of their bread and butter. Why does this stock jump out to you . You hear how attractive yields are. People can get 5 in cash. I know you like treasuries. One name you can get at over 10 dividend yield that we are confident with, and once we get through the fear, through a recession, and people are more confident in the recovery, we think that stock can double. So were seeing attractive opportunities like that. 10 yield, and youre not afraid thats a fools yield, where they wont be able to sustain it, and theyre heavily exposed . Thats often a risk you take when investing at yields that high. But even in a financial crisis type situation, we feel they can earn 4 a share. So they can cover that dividend yield in any environment. Again, we have seen controversy over the years. Citi group is another stock. Speaking of things that havent worked well in 15, 20 years. Why do you think this is a change for this company and stock price . I think citi is underappreciated, and very undervalued. This is a company that has been mismanaged. So people are rightfully skeptical. Again, you can get 5. 3 dividend yield, and jane frazier is making all the right moves to fix the business. Shes taking out bureaucracy and layers of the organizational structure. So the stock trades at 40, and has a tangible book value in the 80s, which we think will grow to 100. It should get the return of tangible capital up to 12 , which is not heroic. Its tough to bet on stocks where history has not favored by them. Jane frazier will be on cnbc friday morning. We look to more comments there. Before we go, quickly on expedia, is this just a travel play . Theres been a lot more plaguing the stock as well competitively speaking. Yeah, no. Its not a travel play. Travel is booming and people are prioritizing it after the pandemic. But this is a company that made major improvements to the business through the pandemic and graded their tech stock. We think youre going to see big margin improvement. They bought back 8 of the shares over the past year, so theyre returning a lot of capital, a 15 Free Cash Flow yield. We think very underappreciated. I have to let you go on that note. Anything you and bill ve hemently disagree on . No, we were talking stocks earlier this week and getting each other excited with all the opportunities in this market. Samantha, thank you so much making your debut here. On a day like this, no less. Thank you, kelly. All right, everybody. Dont look now, but three u. S. Based Cannabis Companies are actually higher on the year. Curaleaf is up, green thumb up 28 and verano up over 50 . The Senate Banking Committee Just wrapping up a vote on key legislation for the industry. Jane wells joins us now with that story. Jane . Reporter hey, kelly. Yeah, they approved this bill and this action by the Banking Committee is a huge step forward for an industry that is legal in one form or another in more than half the country. This bill is about Public Safety first and foremost. Reporter the act allows the estimated 33 billion state cannabis industry to have Bank Accounts at banks that are federally chart herbed. This remains a mostly cash business, which creates all kinds of safety challenges. Curaleaf sells over a billion in cannabis every year, and the owner hopes this law will allow the use of credit cards. Usually when credit cards are allowed, its a 25 boost to revenue. Reporter senator schumer will bring it to the floor for a full vote, but passage could be bigger than banking, leading to more investment. Right now, its essentially impossible for institutions to own stock in the largest u. S. Operators in cannabis. And passing legislation like this should lead to that possibility. Reporter now, the stocks have lit up in the last month after the Biden Administration asked the dea to reclassify marijuana as something less dangerous. If that happens, and the banking bill happens, maybe the irs will finally let these marijuana businesses have normal business deductions like payroll. They cant right now. That tax change for curaleaf alone would mean 170 million more cash flow. And for green thumb, 50 million. The industry seems to be almost evolving past cannabis, as we have had a couple of deals diversifying into craft beer and you name it. Is that because they gave up hope about this legislation or the Larger Economics are more challenging than expected . Reporter i think you want to diversify your revenue streams, especially when you are dealing with cash with a large portion of your business. Kelly, were talking its been 11 years since washington and colorado legalized recreational cannabis. 27 years since california legalized medical cannabis. And theyre still not able to go to bank of america and have a savings account and get a loan. Interesting. Jane, thank you so much for bringing us up to date with the latest. Passage of the safe banking act, if it passes, will be key to my next guest. His business connects cannabis with Financial Institutions. The language of the bill, though, he says is far from perfect. Lets bring back kevin hart. Good to have you back. Welcome. Wonderful to be here, and on a very exciting day, kelly. Thank you. Why is this time different . Why is the whole industry have its hopes up . Well, you know, again, this is the first time its come out of this after seven, eight, nine times in the house. This has to go back to the house now. This is far from a done deal. But as you heard from the other gentleman, that happen to be clients of ours that are banking through us today, you know, the opportunity for cash flow, more products and services associated from main stream Financial Institutions. Its a watershed moment. Theres still work to be done, but this is a big event. Im going to the largest event for the cannabis industry, and the buzz here in and around that is very real, very exciting. So im curious, because you benefit in a way byoffering the Niche Services that you do. I mean, would this legislation, which makes it easier to have traditional banking relationships, undermine your business . No, no at all. Its a catalyst for more Financial Institutions to get in. They have the challenge of knowing what is god anod and ba money. It doesnt mean that they can identify who the write cannabis businesses are, the sources of those products, and where the money comes from. So there will be more rules and regulations associated with this. This was put forth in conversations we had last week with representative jim cole. We can bet there will be more rules and regulations. As you talk about the scheduling and the activities associated with that, you will see International Commerce come into play, which was referenced here, and the diversification. And so that challenge of making sure that the flow of money tied to the flow of cannabis is going to be critical. But has the ship sailed . I mentioned earlier, weve seen a number of companies rename themselves, diversify their business lines. Is there just a sense that cannabis is not panning out in terms of its business potential the way they might have thought three, five, seven years ago . Not at all. You look at the growth rate that these businesses have had, and you look at the industry and the projected growth rates. Theyre still double digits. Its bigger than alcohol in a lot of states. You know, i dont think thats going to be a challenge at all. The diversification is around the opportunity because of their mainline businesses. You know, beverages, how cannabis is consumed now, it has changed and it is about so much of what those early day, even in terms of what products are available. So diversification is critical of any business, and the opportunities just continue to grow. Kevin, thanks for joining us on an important day for the industry. We appreciate your time. Thank you very much. Kevin hart. Now to Tyler Mathisen for a cnbc news update. Kelly, thank you very much. The Senate Banking committee voted to advance the cannabis banking bill. It passed with a vote of 149, the first time legislation related to marijuana was advanced and passed a senate panel. Three republicans voted for the bill, and senator warnock was the only democrat to vote against it. Charles schumer will bring the legislation to the full senate for consideration. The Czech Republic approved a plan to buy two f35 fighter jets from the u. S. The 6. 5 billion deal will bring the aircrafts, Pilot Training and upgrading of the air force base, as well. The move sends a message to allies that they can rely on the country. The first of the jets is expected to be delivered in 2031. Apples former design chief working with open ai on building an ai hardware device. The Information Reports the ceo is discussing what a device for the ai age would look like. No word on what the device will be or what purpose it will serve. Two key questions to answer, i guess. Altman previously partnered to design a retina scanning orb for a crypto project. Retina scanning orb. What could he be up to . Fun to ponder. Tyler, thanks. Tyler mathisen. Coming up, bond yields are higher once again today, as the u. S. Government hurdles towards a shutdown with. The proposed bills in the house and senate failing to meaningfully address spending, could yields move to 7 as jamie dimon suggested yesterday . Well discuss that, next. 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Its not just possible. Its happening. sfx stone wheel crafting the biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently. It still does. What can you do with spy . Welcome back to the exchange. Dow is down 271 points. This on the back of bond yields that just wont quit. They keep moving higher. The tenyear yield has pushed above 4. 60. There it is. 4. 63 . The 30year, approaching almost 4. 75. And both sides of the isle are digging in with a looming Government Shutdown. Emily has the latest. Reporter its less than four days before the u. S. Government could face a shutdown. And we are seeing some major divisions between house and senate republicans. Now, of course, the senate came out with their bipartisan yesterday. They started moving forward on that. That would fund the government until november 17th, and it would also include 4. 5 billion for ukraine. But its an absolute nonstarter in the house, because it doesnt include anything on Border Security. The House Speaker Kevin Mccarthy told republicans this morning that he would not be bringing the senate bill to the floor in its current form. And this is something that House Republicans are really trying to push right now. If you look at whats going on with the border, you are seeing a surge of migrants crossing at the southern border. You are seeing democrats in new york raise a lot of concerns about the migrant crisis in new york city. So republicans really see this as an opportune moment to push biden on the border. And Kevin Mccarthy talked a little bit this morning with reporters about that strategy, calling on joe biden to about. The president can take action, the president could do something to help us keep government open, at the same time secure or boarders. I think thats what he is hearing from a lot of democrats from across the nation. Reporter but what he doesnt have the supportof is his republican counterpart in the senate, mitch mcconnell. Mitch mcconnell took to the senate floor this morning to basically rebuke the houses plan, saying if they really wanted to help border agents, they needed to make sure that the government remains open. The vote against a standard shortterm funding measure is a vote against paying over 1 billion in salary for Border Patrol and i. C. E. Agents, working to track down fentanyl and patrol our open boarders. Reporter we are starting to hear some discussions in the senate about making some tweaks to their bill that would still remain bipartisan but include something on Border Security that democrats could get behind. But we have a very long way to go, a very short time and folks in d. C. Right now are bracing for a Government Shutdown to begin sunday at midnight. Emily, thank you very much. As that Government Shutdown looms, what are the main sticking points for both parties and what might the path forward look like . Lets ask andy blocker. Andy, im struck by the fact that her report included a lot about Border Security, but not much about, you know, spending changes or the deficit or anything like that. Yes. Normally this is about spending only, and there is a spending difference with the two sides, one is at 1. 9 trillion, the other side 1. 47 trillion. There are issues like things on the board e but its personal to preside Kevin Mccarthy and its going to be hard to get a deal. You heard people refer to this as the seinfeld showdown. In some ways its about a showdown about everything. All the different issues are in the mix here, and that makes it hard to focus the mind as we go. Exactly. A lot of these are legitimate issues. We should be discussing size of the government, funding ukraine, funding on the border. But at the end of the day, this is an internal, political thing amongst the House Republicans. They need to bring this to a head. I dont know how long this shutdown is. It seems like at least a day or two at the minimum. But however long it is, theyre going to have to confront this assault on speaker mccarthys leadership, or we will be here again. Its notable, you know, that even the House Freedom caucus titled its report Something Like, you know, security, then funding. This suspect about reining in spending the way it was ten years ago. So when we look at the contours for a path forward, are we even talking about spending levels, what should we be watching for progress as this starts to get you believedway . I think the most likely scenario on this is one of two things. One, there is enough pain from an actual Government Shutdown. A lot of the essential functions will continue. But last shutdown, what really motivated people is when air Traffic Controllers started calling in sick, affecting travel. Thats one angle. The other agele is for the House Republican congress to say enough is enough, lets vote on this cr so we can have a rational conversation. And if the rabblerousers in our group want to do a motion to vacate this chair, go ahead. Until that happens, im not sure we get there. Based on what the senate has put out there, which had 77 votes or Something Like that to it, what would that accomplish . If literally just that version of that passed . It would give them time. It would give the Senate Version is 45 days. It gives them time to pass more of the individual bills for spending. Get them through, so youre not talking about a whole of Government Shutdown that you are looking at today. And then remember now, in january, no matter where were at, if we dont have a deal, we get a fullyears cr with a 1 cut, which is a lot less than what some are proposing in the house right now. What are the odds that is the deal, the Senate Version that moves forward here in some way, shape, or form . At some point, theyre going to have to do a cr, just a matter of when. I dont know how long this shutdown is going to be, but as im talking to people in congress, i heard more things about them say thing might be longer than any one weve ever had. The last one doesnt count. But how long was 2013 again . I think around 16 days. All right. Settle in. Andy, thank you so much. Well check back in soon. Markets are increasingly anxious about the fiscal situation in washington. Bond yields are expected to grind higher, noting the most important longterm dynamic is widening deficits. My next two guests writing in a joint oped in the Washington Post today that we need a new Bipartisan Commission to fix the situation. Joining me now, the authors behind the piece, former north dakota senator kent conrad and your colleague will join us shortly. Senator, thanks for your time. Welcome. Good to be with you. I find this very, very curious. I look at the markets today, just keeps spiraling higher, and people are concerned about what is happening with deficits that are going to be 5 to 7 over the next decade. And yet everything we just heard in these reports out of washington about the fight, its about the border. Its almost not about spending at all. Im just very struck by that. Yeah. You know, theres a bit of a fantasy world aspect to all of this, isnt there . Such a detachment from reality. What is amazing is the republicans are stuck on just a small part of federal spending. And its not the part thats causing us the problems. The longterm deficit and debt are from our entitlement programs, medicare and Social Security. Were not talking about that at all. Theres a 6 trillion budget, theyre only focusing on 1 trillion of the 6 trillion. Theyre not dealing with the big problem that we confront, which is the fact that major entitlements, medicare and Social Security, are heading to insolvency by 2034. Right. I thought i was speaking to im surprised to hear you shining such a light on this issue. Well, you shouldnt be surprised. I was deeply involved in these issues in the last effort to take this on. I chaired a commission on Retirement Security and securing Social Security for the bipartisan policy center. We spent two years, 19 members totally bipartisan. We ended with a unanimous agreement on how to fix Social Security, how to get the country back on track. Did any of that happen, though . Whatever came of simpson bowls . So parts of it were adopted, but much of it was not, because, again, if youre an elected leader, going back to your home district and saying youve got to reduce spending and raise revenue is not a popular message. Right. The truthful message, but its not popular. Senator portman, i appreciate you joining us here, as well. Maybe you can speak candidly, we need changes to Social Security, medicare, probably medicaid. Defense, nondefense discretion. Its going to be very, very difficult. And its hard to see raising revenues enough to close the gap. I can understand why bond yields are moving higher and markets are nervous. By the way, he was never nervous talking about this stuff when he was in office. Look, its unsustainable, the current trajectory is unsustainable. No one can argue that. What we need is to have a new process to get it out of the political process to a certain extent, to get it into the hands of some experts and people who are willing to do what it makes to find Common Ground to move this forward. Thats why we like the idea of a commission. A Bipartisan Commission thats been successful in the past. Even Simpson Bowles was noted. Many of the proposals were picked up and some of the things we moved to make progress at that time when it seemed like an insurmountable debt and deficit. Its worse now. It is worse now. As we have been talking about this, this week, one observer said this is not enough of a crisis to force washingtons hand. The s p is up 10 , and the tenyear is not even at 5 yet. So what happen it is the tenyear yield is 7 . What happens in the stock market declines . Its scary to contemplate. Yeah. Even at 5 , its a problem if you have those kind of yields, youre talking about an 8 mortgage. People are will find that to be very difficult to be able to buy a new house or to find a buyer for their house. So i think were already there. Its something that the American People are nervous about. They see it in the Interest Rates and in inflation, both of which relate to this fiscal crisis we are in. I think when you look at the traj trajectory, over the next five, ten years, it is truly going into unchartered territory, where the debt becomes more than 100 of our gdp. And not just that, senator conrad, we think about the impact on mortgage rates, 8 . But look at a 5 treasury or higher, that means the budget deficit will push upwards of 8 , 10 . Half of the deficit being projected is just the cost of interest. Without that, we would be around 3 , which is still high by historical standards. But i dont think people understand how much of what is happening on wall street today is going to exacerbate this problem for literally years to come. Its undeniable. The longer we wait, the more draconian the solutions have to be. Thats a mathematical certainly. I used to say to my colleagues, waiting is not a good option. And certainly not a good option in 2023, when, again, the trustees of medicare and Social Security tell us they will be insolvent by 2034. That means everyone who receives Social Security is going to take a 24 cut thats what the law provides. So it is so important that we wake up, smell the roses, and deal with this issue. And senator portman, i dont think thats going to be politically feasible. If the only choice is to raise revenue, how do we do that . Even through the expiration of the trump tax cuts, the deaf nate would still be 5. 5 . You need to do three things. One, you need to grow the economy. To the extent you have this huge fiscal overhang, its difficult to have the economy meet its potential. Second, you look at the revenue side. Thats tough for us on the republican side, but we have to figure out how to grow the economy and get revenues up. And finally, we have to take a serious look at all spending. You mentioned the fact with regard to domestic discretionary spending, we have challenges. But thats relatively flat based on the current projections. The real issue is with regard to mandatory spending. Its 2 3 of the budget. It used to just be a 1 3. And thats where we have to focus. As difficult as it is politically, we have no choice. These programs are not sustainable in their current form. Cant just talk about the fact that Social Security faces such a shortfall, that there will be a 4 cut in benefits in 2034 or sooner. So i think theres an urgency to move. I nominate conrad portman for the new commission. You both know this better than anybody. I cant any of nip better to tackle these challenges. Thank you for joining me today. Thanks for having us. Still to come, the ftc chair lina khan saying that amazon is responsible for driving up prices across the internet. Amazon shares are down more than 3 this week, and down 15 from their recent highs. Well dig into the potential micaon nt ren herafitis,exhe ot exchange. From another company. I was just frustrated. I almost gave up. With miracleear its all about service. Theyre personable. Theyre friendly. Im very happy with them. We provide you with a free lifetime of aftercare. Meaning free checkups, cleanings, and adjustments. I see someone new. Someone happy. Its really made a difference. Hear the world better during our limited time sounds of autumn event. Call 1800miracle to test drive our hearing aids risk free. upbeat music [narrator] what if there was a hearing aid that could keep up with you . notification dings this is jabra enhance select. Its a smart hearing solution that makes hearing aids more convenient and less expensive. It connects with your phone so you can stream calls and music. With jabra enhance selects premium package, better hearing doesnt have to start in a doctors office. It starts with a free online hearing test you could take almost anywhere, so you can get your hearing aids custom programed for you and delivered in days. From there, you can fine tune your settings with your remote Audiology Team seven days a week, so your hearing aids work when it matters most. notification dings in fact, more than 95 of enhance select premium customers report hearing better with their friends, family, and colleagues. With jabra enhance select, you can get the same advanced Hearing Aid Technology and professional care you expect from a clinic at a fraction of the cost. Try at risk free for 100 days. Visit jabraenhance. Com. Welcome back. The hammer drops for amazon. The ftc alleging theyre abusing their monopoly power. Amazon is also facing renewed competition. Shopify announcing its investing in a wholesale platform to expand its ecosystem for consumers. Experimented with. What did you think sp it was pretty good. It was high touch. Its like ecommerce on steroids. Things are popping up every second, theres deals. Its a lot. But any ways, back to amazon. Really, this shopify deal says Something Interesting about regulators and big tech. Yesterday, the ftc took aim at amazon for an illegal monopoly. Here is how lina khan put it this morning. What amazon tactics have been about, once it achieved that scale, its been focused on tactics that deprive rivals of the ability to gain that Critical Mass of customers. Now, the ecommerce landscape today is very different than it was in 2017 when she wrote that paper at yale law school, talking about antitrust and amazon. And the main criticism of regulators has been that theyre fighting yesterdays battles. Shopify announced its detail with fair, and heres what fairs ceo told me about that socalled amazon threat. Our retailers dont really have much need for amazon, and most of our brands arent on amazon. Do you see amazon as competition then . I really dont. I see it as complementary in the lives of consumers. For us, the much more interesting partner are the folks that serve s bs, like shopify. So while the ftc is targeting ecommerce in the latest lawsuit, amazon is moving into other businesses away from that core that is strengthening the primes fly wheel. Here is a snapshot. None of them are in ecommerce, they are in streaming, hx, logistics and jegenerative ai. So you could argue that lina khan is looking in the wrong places if it wants to make the Playing Field more level. Indeed. That would be the line of discussion. Diedra, thank you very much. Still to come, earnings, nearterm options in micron imply a 6 move. And the street thinks the uaw move could be a positive for used car retailers like carmax. Thats coming up next. We planned well for retirement, but i wish we had more cash. You think those two have any idea . That they can sell their Life Insurance policy for cash . So theyre basically sitting on a goldmine . I dont think they have a clue. Thats crazy well, not everyone knows coventrys helped thousands of people sell their policies for cash. Even term policies. I cant believe theyre just sitting up there sitting on all this cash. If you own a Life Insurance policy of 100,000 or more, you can sell all or part of it to coventry. Even a term policy. For cash, or a combination of cash and coverage, with no future premiums. Someone needs to tell them, that theyre sitting on a goldmine, and you have no idea hey, guys youre sitting on a goldmine come on, guys do you hear that . I dont hear anything anymore. Find out if youre sitting on a goldmine. Call Coventry Direct today at the number on your screen, or visit coventrydirect. Com. aidyl hi, im aidyl, and i lost 90 pounds on golo. I struggled with weight loss and weight gain my entire life. With all the yoyo dieting i did in the past, i would lose 20, 30, 50 pounds just to gain them over and over again. In one year, ive lost five sizes, and im on my way to lose another three. With golo, i can do it. announcer change your life at golo. Com. Thats golo. Com. Welcome back the exchange. Shares down more than 2 as Mark Zuckerberg is detailing features of the new headset, the metaquest 3, its 500, going on sale in october. Should it be a surprise . They preannounced this ahead of apples headset, but now were getting the final details. On sale october 10th. Kelly, ill send things back over to you. And stock hitting session lows as well. Meanwhile, earnings season is slowly ramping up. Were going to look at big names, especially micron and carmax. Jeff kilberg, welcome. Hi, kelly. Micron is such a bellwether, up over 30 in part because of a. I. Hype, but were first sees the back of chinas back on micron sales to key industries. What do you do with the stock here . I want to be a buyer here this has happened with supply, but in the recent months, we have seen a rebound in memory chips. Catch some of that performance year to date. Its interesting, though you when you talk about micron, trying to bring back the supply and demand, do you think they have an to really go through this. I think in youre a buyer here, its going to make sense. I know were coming off the Artificial Intelligence euphoria, but at the end of the day, this is a semiconductor name. We will see memory chips come back. Everything we utilize, they want mo and more memory. I want to be a buy other, despite the fact its been a rough rear. Lets move on. Carmax, theres an angle here to the uaw strike. Yeah, shifting gears. Thank you, no one does that any more. Wedbush is saying tight supplies could drive adcar prices back up, so what do you do with this one into earns . I want to be a buyer here. 73 lines up well. Or you can well puts, but at the end of the day, you see a parabolic move. To beat a dead horse, we all no what happened in 2022, so that stunned consumers. Carmax was down over 50 , yes its gone down more. But i think you own this a bit lower, i think it makes sense here, especiallying this something that, you neat should have significant support. I think you look at 70, putting a lot of price volume in there, and i feel comfortable owning that name. Today has gotten really interesting, for lack of a better word. Its not that were seeing fear and panic, but you have oil at 93, tenyear is at 4. 62 last check. The 20year is almost 5 , and stocks are not reacting well to all of this. No, its not. Weve come from a surprisingly good year to date. September weve seen rebalancing, portfolios potential take profits. Small caps i dont know if thats sustainable, yes, people want to see how high these yields will go, but i think you see the interest rate, of course, the i think theres an opportunity to sift through and pick some great stocks that will have sensitivity, but im in the camp well see Interest Rates hit 4 before 5 . I know thats a lonely view. Sent mishas gone so far to the other side. What do you think the bigger pain point is right now . At the end of the day, i think people are trying to understand, with all the cash on the sideline. It found its home when you see yields pop up to 5 . This is a counterdrew tiff view, but people are a lot of Growth Stocks are finding value. Specifically i go back to small caps, some of these names have been impacted, also the Interest Ratesensitive names. Jeff, thanks for your time. We appreciate it. Jeff kilberg. That does it for the exchange. Signed up for my newsletter, scan the qr code. Nest on power lunch, the powerhouseoatr rd ip continues. Everything is bigger in texas. I think you can guess its in tex. Ill join tyler on the other side of this break. Ah, these bills are crazy. She has no idea shes sitting on a goldmine. Well she doesnt know that if she owns a Life Insurance policy of 100,000 or more she can sell all or part of it to coventry for cash. Even a term policy. Even a term policy . Even a term policy find out if youre sitting on a goldmine. Call Coventry Direct today at the number on your screen, or visit coventrydirect. Com. In the u. S. We see millions of Cyber Threats each year. That rate is increasing as more and more businesses move to the cloud. So, the question is. Cyber attack as cyber criminals expand their toolkit, we must expand as well. We need to rethink. Next level moments, need the next level network. [speaker continues in the background] the network with 24 7 builtin security. Chip . At t business. music the walking tree is said to change its entire location in pursuit of sunlight where could reinvention take your business . Accenture. Let there be change. Hi, everybody. Welcome to power lunch. Alongside kelly evans, im Tyler Mathisen. Byron ellison, we will talk to about the status of the disney bid and why he thinking traditional Media Outlets still have value. Whats the real state of the travel industry . How about the postpandemic