Can the consumer hold up the economy . Or will a Strong Economy give the fed cause to raise rates one more time . Kelly . That is the question. Lets get a check on markets, tyler. Because we changed direction once again. Perhaps because of that concern about another fed hike now. The dow is down 77. The s p 11 both quarter percent drops. The nasdaq down under more pressure down half a percent. Is it rates or the fact that the chips have been one of the weakest trades today. Share of nvidia falling after the u. S. Puts new trade restrictions on chips exported to china. Its specifically targets some of nvidias most cutting edge products. Those shares down 5 today. More on that in just a moment. And activists are getting more active. Engaged capital built a stake in the company up 13 . Down 33 for the year. Wyndham hotels says its rejecting a takeover offer from choice hotels. Wyndham saying the deal involved significant Business Risks a nond in the best interest of shareholders. Wyndham shares up 8 while choice is down 5 . Ohios jim jordan fails to get enough votes to become the next speaker of the house. Emily wilkins is live in washington covering it all for us second by second. Emily . Reporter round one is done. Jim jordan has 20 republicans who decided to vote for someone other than him. That is a far cry. Really jordan can only afford to lose four republicans if he wants to be able to win the gavel. He still has a good bit of work to do. Right now the house is in recess. They havent yet called for a potential second vote yet on speaker, but a lot of concern seems to be coming for more moderate republicans. These are republicans, many of them, who either flipped seats and helped the republicans get their current majority. A lot to need to appeal to independents and a lot worry theyll struggle to do that with jordan in the speakers chair. He helped form the Freedom Caucus and pushed back against certifying the to 20 election for biden. For those 20 members who voted against, this really reminds a lot of folks of what happened in january with mccarthy when he had to go 15 rounds. Thats absolutely something that republicans dont want to do right now. They want to be unified. They want to show theyre all working together. And so now its a question of whether jordan is able to get more support on a potential second or third ballot. And if not, if that means that either, a, another republican is going to step up and try and get 217, or b, republicans could start looking more seriously at getting powers to speaker pro tem Patrick Mchenry and allow him to be pass legislation, things like aid to israel, potential stopgap measure for funding the government, both of those things are expected to come up in the next month. And republicans really cannot go on too much longer without a speaker. If representative jordan fails to peel away enough he seems to be peeling one by one, a number of votes or has in recent days. People who said on friday they were in con troe vert bli opposed to his candidacy, flipped over to support him. If hes not able to do it what about Patrick Mchenry . Why doesnt he step up . He seems to be, at least, semiacceptable to most of the caucus . Reporter tyler, i think theres a sense that republicans they want to elect a speaker. They dont want to give powers to a temporary speaker. They want to actually put forward a candidate, be able to unite behind them. But youre absolutely right. There is discussion, i think growing discussion, about potentially giving Patrick Mchenry some longerterm powers just to be able to move some legislation. Ive heard about 60 days, 09 days about giving him these powers for a temporary amount of time. But i think at this point were a little off from that. I think the sentiment is that they want to see if jordan can get more members to flip. Weve already heard from a couple members who say, hey, the way i voted on the first ballot wont be the way i vote on the second ballot. You could see those numbers shift. I think just a lot of Unanswered Questions in d. C. Right now and well definitely keep you informed when we have that second vote for speaker. Sounds like sorting hat at hogwarts. Emily, thank you very much. Appreciate it. For more on the lets call it chaos in congress, and what happens next in the House Speaker race, if there is no resolution today or over the next couple days, lets bring in kim wallace, head of washington policy at 22v research and brian schwartz. Kim, let me start with you. I guess what stands out to me here is that this deliberative body is being ruled by what i would call the tyranny of the minority. It took place in january. And it is taking place again now. Am i right or wrong . Oh, tyler, i think youre right. I think the simple math proves it out both in january and just half hour ago. This has been a Building Condition in the house of representatives republican conference, not just this year but i would say over the last four or five years. Whats at stake in the eyes of many members is ideological control of the party via the house conference thats in the majority, not so much about fiscal policy or any other policy debates. How about that, brian . Thats a very interesting point that this is all about ideological control more than its about policy. That might be true, but its still very much controlling the policy that is not getting done in congress. Thats all accurate. But theres a pivot to this where every minute ideology is policy. Every minute, every hour and everyday that this isnt solved, they dont pick a speaker, another minute and hour and day that israel, for instance, doesnt see any congressional aid passed and given down to them as they fight hamas. Every minute this passes we dont get things done with the budget to determine what cr will be be about spending bills or a spending bill. Its a problem. This lack of a decision of who will be the next speaker, whether its jim jordan or somebody else, has really kneecaped washington and congress in particular. Its a problem. And its a problem for policy in particular and in ideology at this point is true. Kim, i tend to be circumspect about these things and think does it reflect the divide of the country. In other words, we elected a split congress. This is more split than ever. Theres gridlock because people are split on what exactly needs to get done. It sounds like israel might be one of the few things that they can move forward on even with, for instance, mchenry in the leadership. Kelly, i think thats right. And back to brians point the request for supplemental war spending is going to come from the president. My suspicion is it comes after he returns from israel. That gives the house four, maybe five days to figure out the speakership question. After that, youre going to have a joining of geopolitics and u. S. Domestic politics in a way that becomes really the main story interestingly in a world full of macro risks. Just dwell on that, kim, for one more second. Does that extend beyond israel . Ukraine aid was one of the main sticking points amongst the gop . Yes, it does. Thats why i said war spending and not just spending for israel. There is still in the minds of a lot of members on both sides of the aisle in congress and house and senate that the next supplemental comes through will carry money for israel and money for ukraine. Working through that, for example, to split the vote for ukraine and israel, will take monumental legislative effort, the kinds of which we havent seen on display in the house this year. Brian, lets talk about the president s trip to israel. I can see why hes doing it. Are there risks . I mean, i think theres some risks in the context of maybe hes not directly in washington some of this chaos goes through. I think at the end of the day hes really been hammering home the need for the u. S. To be allied with israel. And i think thats really given him a boost and even some republican circles. And he has needed some form of a boost in the public polling. Hes been struggling to get in some public polls versus donald trump, the republican frontrunner right now. So, i think its the trip is a boost to biden especially as congress in the house is fighting over who will be the next speaker. Theres the president Going Forward functioning while congress is not. Thats correct. Through his administration. And meanwhile in the senate theyre waiting to figure out whats going to happen with the house on a variety of points and policy initiatives. While the president and the administration are running through the gauntlet, go to israel and put a face, good face on for the administration. You know, just want to point out that theres also implications for some of the biggest stocks in the market. Some of the big tech stocks in particular if its jordan or mchenry. In other words, not a Strong Majority leader in congress right now. Yeah, youre right. Gridlock sometimes can be helpful for the markets. Investors can say this could be good. Might not receive much regulation on companies and stocks. We reported yesterday that big tech may see reprieve from antitrust if jim jordan becomes speaker. You can see some wiggle room in the markets in terms of things getting done right now particularly through the house. Things are at a standstill at the moment. One other point i wanted to make, i was talking about the next round of voting for the speakership for jim jordan. You know, i dont think its going to get much easier for him. The person i spoke to has been in the room trying to cobble together votes that says this is going two the next round, an uphill battle. The exact words for him to come on to get enough votes to become speaker in the next round. He is for sure a polarizing person, not only in washington but in his own conference. Thats right. He cofounded the house Freedom Caucus which is the most conservative element of the republican party, especially within the house. They have not been known to play ball with much of the rest of their party. So, thats where hes been coming from from all these years now a tricky spot to be the guy that will unite the conference as the house speak. We have to leave it there. Kim wallace, thank you for being with us. Brian schwartz, great to see you. Another activist firm taking a stake in a company and pushing for changes. Julia boorstin has the details in this market flash. Hi, julia. Hi. Well, the market flash here is for Frontier Communications. That stock jumping on news that activist Investment Firm january that partners built a new position in this Telecom Company and calling for this provider to sell itself. The stock is up 2 , up as much as 6 earlier. The news was announced today by the manager partner scott osfeld at the active passive investor summit today saying this is a depressed valuation and an attractive asset for wireless carriers and private equity owned assets in the sector as well as for infrastructure and private equity funds. That is the argument here. Just for context here, this is Frontier Communications is the Third LargestFiber Broadband provider in the u. S. Shares now up 3 . Back over to you. Wow. So much activity all of a sudden. Julia, thank you very much. Back to the geopolitical space, the u. S. Government tightens restrictions on what chips u. S. Companies can export to china. Its having a big name big impact on nvidia. Lets get to the nasdaq for more. Shares are still down 5 . Yeah, they are. But theyve come back from earlier lows. Lets talk about the commerce department. They want to cut back on chinas ability to access ai chips. The restrictions put in place last year werent cutting it today theyre expanding those controls to include even more advanced computing chips, close any loopholes through third party countries. Companies that want to export ai chips to china and other em embargoed regions they have to notify the u. S. Government before doing so. Additional chip equipment will be restricted could impact names like kla and applied materials. Kla down 2 . But the big news, a lot of people are focussing on today, nvidia. Nvidia a800 and h800 ak row anymores for chips are now restricted. The stock, as you can see on your screen right now, making somewhat of a comeback from earlier lows. The stock is still down almost 5 . And the reason that comeback is because of a statement they issued saying they dont expect a nearterm meaningful impact on their financial results. Piper sandler agrees. Saying the impact is insignificant and zmand has primarily come from the united states. But its important to keep in mind nvidia gets about to 20 of its data center from china. Ma sue hoe flagged potential for 6 drag on nvidias full year if we assume that at least 3. 5 billion in ai sales go to china. Equipment maker, they admitted the measures would hit, quote, our system sales in medium to longterm. Theres that time frame that is a concern for a lot of investors. Its not just nvidia, intel makes chinaonly chips and a d working with chinese hyperscalers. Both at risk. Werent named specifically by the senior officials on the call, but they are at risk. Thats why youre seeing their share price, for example, intel down 2 . Ai chip exposure to China Remains lower than nvidia. Positive for those names. All right for now. Christina, we appreciate it. Again, those putting pressure on the nasdaq today. Coming up, the cloud was a centerpiece of big tech over the last decade. Now ai could be ushering in a new era and an evolution into cloud 2. 0. Which companies will dominate . Plus the consumer getting more and more complex every time we hear sign os f a crack, theyre immediately sealed despite growing unrtnt rceaiy,etail sales coming up strong this morning. We have more when power lunch returns. This is american infrastructure. Megawatts of power, rails and open road, and essential services of every kind. All running on countless invisible networks, making it a prime target for cyberattacks. But the same aipowered security that protects all of google also defends the systems running americas infrastructure. For these services. For the 336 million of us living here. Welcome back to power lunch. Reports of another deal in the energy space. Take a look at reuters reporting that chesapeake has explored buying Southwestern Energy whose shares are up 6 now. If the two companies merged, they would take over eqt as the largest nat gas focussed Exploration Company in the u. S. Eqt coming off a nice year, its shares are up about 31 . Chesapeake down. 5 on the news. Hotter than expected retail sales data is pushing treasury higher, ten year back to the heist since the early october high. Joining us now to talk about the fallout of that, lets bring in ubs head of asset allegation americas and michael farr cnbc contributor. Welcome to both of you. Jason, Asset Allocation is usually kind of a hohum business, you know maybe its 6139 instead of 6040. But not these days. People are coming out with different ways they think investors should position for this highrate environment. Where is your head at . We definitely have to reassess Asset Allocation. You think about the markets this year, we oscillated a lot with range trading and equities and treasuries a and soft landing. Because things are moving so quickly, really taking a longterm strategy, you dont want to overreact any of this information. Still have that standard core allocation of equity fixed income and alternate Asset Classes is still the right way to go. You dont want to overreact to this information. When you hear people who say the 60 40 portfolio is dead, you have to be 25, 25, 25 and include kcommodities or real assets or make the case for getting into private credit now which is interesting or howard marx says go all in on high yield, including with the defaults that he foresees. Do you think all of that is an overreaction then . Well, if we take the 60 40, what works so well for many years is that bonds were fantastic asset class. High returns, low volatility and diversified with equities, a negative correlation. Environment where elevation shocks, that negative correlation may not persist. So really what you need is other Asset Classes that can help diversify some of the equity exposure. We like different Asset Classes because these are longterm allocations, also not something you want to be too tactical on, we like it now versus other times. Its about building the longterm allocation. As you think about that, the macro environment is requiring us to think, we have to add Different Things to the portfolio. What worked before wont work in the macro environment Going Forward. Michael, if i asked you a year, 16 months ago the following question, if Interest Rates on a 10year note were at 4. 86, pressing 5, would you ever have believed that stocks would be where they are at 4,400 or thereabouts . Oh, no, tyler. No way. And we would have yet one more example of far being wrong over the past 20 some odd years on cnbc. Ive gotten some things right. You know, i think its an important question because your expectations, right, go to kellys previous conversation about Asset Allocation. Your expectations where you think things are going to go cant matter. Cant matter. It has to be really what your discipline tells you. And there are two guidelines for Asset Allocation. You can have one for a not for profit for instance and then you have fred and ethel in their 60s and we have to think about them for the longterm. So, the 60 40, you dont change that Asset Allocation just because one asset class does well or not. You build that because its what fred and ethel need or its what the Institution Needs and its sticking with those disciplines over time because you can be so profoundly wrong about things like this that will protect you over the long term. Lets get to the meat of the matter here and that, michael, would be the kinds of stocks, feel free to name names, feel free to name sectors, that you think in the current environment have an edge. Okay. Im going to qualify one more time, tyler. Shortterm edge or longterm edge . If youre looking for a shortterm edge you go with the big 7 and just buy them and pray the momentum continues. If youre looking as a more disciplined investor, longterm invest, then i think you look at the things that have gotten beaten up, really gotten killed that are down 20 and 30 . And i think you what are these, real estate, utilities what . Well, i wouldnt go i dont think you have to go there. I think, for instance, you can look at disney, you can look at medtronic. Any number of Different Industries whether its health care. All of the consumer stocks have gotten killed. But i think that there are still value there. Youre not going to see the pop, i dont think, by the end of the fourth quarter. But, a few years from now to buy stocks with those kind of Balance Sheets, 30 and 40 off of their highs, i think youre happy there. Jason, a parting comment. Do you think this move in rates is behind us now . I think were at a chop around in rates at these kind of levels until theres some conviction in the marketplace that growth is actually slowing. Retail sales like we did today, that wont give confidence in that view. But also the fed will signal were probably done. This may start to materialize at the november 1st. October data looks like its slowing down that will provide some sort of reason for rates to go lower. We need to see signs of the economy slowing down for investors to want to step in and buy at these levels not fearful that rates will go much higher than they already are. Absolutely. Jason, thanks so much. Jason dreho and michael farr well see you in a bit. Further ahead, details around the largest government bitcoin seizure totaling more than 3 billion. Ora. Culprit, a 32yearold from gegi cnbc investigates when we return. Than help you reach your goals. Wow. We can make this work. It can help you reach them with confidence. No wonder more than 9 out of 10 of our clients are likely to recommend us. Ameriprise financial. Advice worth talking about. Hi, my name is damion clark. And if you have both medicare and medicaid, i have some really encouraging news that youll definitely want to hear. Depending on the plans available in your area, you may be eligible to get extra benefits with a humana Medicare Advantage dualeligible special needs plan. All of these plans include a Healthy Options allowance. A monthly allowance to help pay for eligible groceries, utilities, rent, and overthecounter items like vitamins, pain relievers, firstaid supplies and more. The Healthy Options allowance is loaded onto a prepaid card each month. And whatever you dont spend, carries over from each month. 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If youre eligible, they can even help enroll you over the phone in a humana Medicare Advantage dualeligible special needs plan. So, call now. Humana. A more human way to healthcare. Bond yields jumping after that stronger than expected retail sales mark. Lets go to Rick Santelli in chicago for more. Hey, rick. Hi, tyler. Indeed. It wasnt only the september reads that were much warmer than expected, positive revisions all along the data points for august as well. And if you look at the charts with a 2year and 10year on top of each other, you can clearly see once the 2year saw those warm data points for the consumer, it was basically a 45 degree line up. Why . Well, potentially, as kelly has been talking about, maybe many are looking for the fed to be more active. That isnt personally my call. I think the market is most active all by itself. Now, this is definitely something to Pay Attention to from a global standpoint. So, lets look at debt and global rates all moving up together. U. S. , debt to gdp roughly 120 . Uk about 100 . This chart going back to august. Look at both of those rate. Now, lets pair 10s up with boons. The euro zone about 90 debt to gdp. Now lets pair it off against jgb 224 debt to gdp. Many pointing out, japan in many ways is going to end up ultimately allowing the market to breathe on Interest Rates. When that happens and everything is fungible globally, that could be a real catalyst for even higher rates. So we want to Pay Attention here. By the way, two years are now on pace for a new fresh high yield close going back to 06. So are 10s back to 07. 30 years 498 or higher. Theyre a little shy. Tyler, kelly, back to you. Thank you, rick. We appreciate it. Rick santelli. Now over to Contessa Brewer for a cnbc news update. A senior hamas official told nbc news the group is willing to release all hostages in one hour if israel stops its bombing of gaza. The group is said to be holding as many as 200 civilians and just the past couple hours gaza officials said between 200 and 300 people were killed in strikes at a hospital. And u. N. Officials said six were killed at a school serving as a shelter and gaza refugee camp. New mexico prosecutors may recharge Actor Alec Baldwin with Involuntary Manslaughter in connection to the deadly 2021 shooting on the set of the film rust. Two sources familiar with the matter tell nbc news the case will go before a grand jury in mid november. Authorities say the films cinematographer died when his prop gunfired a live round of ammunition. Casino workers walked off the job today in detroit. Some 3,700 people including dealers, valets and food and beverage staff are represented by five different unions including the uaw. Theyre asking for better pay and benefits after they accepted a modest 3 pay increase in the last contract in 2020 to help the casinos stay afloat during the covid19 pandemic. And of course, the casinos in las vegas facing a threatened strike of their own. Its been authorized, kelly, but has not yet been called. Wow. Contessa, thank you very much. Contessa brewer. Still to come on power lunch, with the emergence of the cloud, amazon dominated the early space. Now ai is ushering in something new. Cloud 2. 0. Has amazon already fallen behind . And if so, whos the leader . Well discuss that next. Ever since she was a little ki, all maria wanted to do was bak. Im maria alvarez, owner of marias cakes. And im axel, proud to be her state farm agent. Her baking superpowers have brought sweetness to our community. I make delicious cakes to make special occasions even better. Maria doesnt just bake; she also creates opportunities. Small businesses like marias, open doors for communities to thrive. Support your community. Support small business. The power goes out and we still have wifi to do our homework. And thats a good thing . Great in my book who are you . No power . No problem. Introducing stormready wifi. Now you can stay reliably connected through Power Outages with unlimited cellular data and up to 4 hours of battery backup to keep you online. Only from xfinity. Home of the xfinity 10g network. Cmon, were right there. Cmon baby. Its the only we need. Go, go, go, go ah touchdown baby touchdown are your neighbors watching the same game . Yeah, my 5g Home Internet delays the game a bit. But you get used to it. Try these. Theyre noise cancelling earmuffs. I stole them from an airport. Its always something with you, man. Great solid greek salad . Exactly dont delay the game with verizon or tmobile 5g Home Internet. Catch it on the xfinity 10g network. Welcome back to power lunch. For the past 15 years amazons aws has been the undisputed leader in the cloud space, now making up for a third of the total market. Its clients include big names like netflix and disney that use the service to store their content. But with the rise of generative ai, Companies Need the cloud to do even more, to create the text, the images, the videos. Its become famous for requiring massive computing powers and in this race for the socalled cloud 2. 0, amazon still have the upper hand . Joining us now to discuss hakeem, cofounder and ceo of builder. Ai and Daniel Newman is ceo and principal at the full trom group. Daniel, let me begin with you. Is amazon faltering in cloud 2. 0 . And is someone catching up with them . Tyler, i think theres a couple different ways of looking at this. When the llm craze took place, micro soft got out to a head start and google had an initial launch and it faltered a little bit and everyone deem nad microsoft would be the ultimate winner and google was in big trouble. Matter of just a few months later we saw google get its groove back in the llm game. I think we have some of that here with the nvidia aws race. Nvidia has a big advantage on the developer side. But aws has a massive advantage in terms of data under management, number of enterprises depending on its workloads, already building on it. I dont necessarily seeing them fall off. I think weir seeing signs of competition make the next wave of innovation more interesting. He mentioned cuda. I need you to explain what cuda is for those who dont know and what advantage it confers on nvidia. And whether nvidia, which to my thinking is mostly a chip company, can make the pivot or has made the pivot into the kind ofstorage neighborhood that the cloud requires. I should point outthat amazon was a retailer that made the pivot into storage. And microsoft was a Software Company that made the pivot into the cloud. So you know, i think obviously starting with the initial question, c uda is an architecture device. Different way of building gpu. And gpu is what a lot of the Generative Technology is running on these days. You obviously have different sort of structures. Nvidia has cuda cool toole kits around for a while so developers can build upon it. Taking a step back, when you think about the world of ai and whats happening on the generative side and ai more broadly, you have to look at it as an iceberg. What were seeing on the ai is up thor end of the iceberg. Whats underneath is more than gpu compute. You have the connectivity between machines. You have data storage. You have normal sort of density of compute capabilities. And the 2. 0 world, whilest the additional features around gpu and do generative ai is important, whats also really important is to recognize that these hyperscalers have sort of really strong, Critical Mass of distributive compute globally, all the storage, all the connectivity that allows them to do more than just a generative piece. And theyll always go hand in hand. Its interesting because as tyler was saying, the companies that came to the rise of the cloud kind of did so backwards or by accident or then hurrying to catch up. A lot of people think startups i ask you because you have sort of one of them, but they cant really try to own cloud 2. 0 even if they see the opportunity because the incumbents are simply too big, too aquiztive, to innovative, if you will and can too easily maintain their leadership instead of creding t new players. Amazon came into cloud or aws because of amazon. Com volume of usage of compute. Effectively amazon. Com consumption in itself fortified the need for large scale infrastructure and same thing with microsoft and same thing with google. Then to allow excess capacity what started off as excess capacity to be sold made sense. New folks coming in to build that volume of demand, and then the distributive infrastructure you need for cloud to be really prevalent globally, its not a short order. And you know, its a really expensive exercise. And, i know nvidia has its own sort of cloud environment, specifically designed for the upper end enterprise. I think its hard to make that comparison is it ahead or behind of aws because ultimately nvidia is a chip manufacturer. It doesnt have Critical Massive Cloud Infrastructure. Its opening Cloud Infrastructure for specialized use cases. Thats a very different route to how the others got into the space. Its interesting. You kind of went at the question i asked there earlier about nvidia as a chip manufacturer thats moving into something else. So daniel, if i have 100,000 to invest here in cloud 2. 0, how would you sliver it up as among the companies we have been talking about or others . Yeah. So if i was an investor, i would be looking at where the market is going. I think nvidia got a little ahead of itself. I wrote an oped over three years ago that said nvidia would be the next trillion dollars market company. Our intelligence is saying f 0 of the 2027 revenue opportunity for ai is going to be in the cloud. The companies that havent benefitted as much but are still big and exciting names that people can get behind, investors, both large investors and personal investors, names like microsoft and google look very strong. I also like the application layer because businesses running oracle, sap, salesforce, they have to implement generative capabilities into these apps at a low cost. This will drive productivity and efficiency into the business. So, i feel like the chip maker got the early credit especially nvidia. And the only other thing i would say is that i dont rule out amd and intel. Theyre making the big investments. Theyre going to come in late, but theyre going to be able to take advantage of the margin compression. Theyll be able to take advantage of a certain part of the market that maybe didnt get the attention from nvidia and theyre building some really Interesting Technology that ive been able to see that i think is going to be exciting to the market in the near future. Very interesting conversation. Thank you very much. Thank you as well. Really helpful and i think you helped viewers there understand this new field better than perhaps they did before. Thanks again, guys. Thank you so much. And coming up, well get a preview of the new cnbc documentary, crypto 911 exposing a bitcoin billionaire with a never before seen look into a 3 billion bitcoin heist. Power lunch will be right back. 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. Back. Welcome back. For nearly a decade it was one of the biggest mysteries in crypto. 50,000 bitcoins stolen from a site on the dark web which would one day be worth more than 3 billion. The case went unsolved until the man behind the crime made a critical error. Now a new cnbc documentary provides a look into one of the biggest heists in history. Eamon javers has the story. Immy, how do you feel after this . Do you feel like the judge was fair today . Why did you steal the money, jimmy . Reporter a spectacular crime. This is going to be a huge case and theres a lot more money that we dont know about. Reporter in a small town. Shocked. I was shocked. I was so surprised. Reporter a 28yearold secret bitcoin billionaire. His private jets, wild parties and dark secret. Just surreal feeling and jimmy there were no limits. Reporter this is the story of one of the biggest crypto heists of all time. Hes living this Party Monster lifestyle, and with no visible means of support. Right. Reporter with clues dating back to the earliest days of bitcoin itself. In a story that reveals a dark truth about the hackers and coders who created crypto currency in the first place. Huge amount of bitcoin is leaking out of the system and you have no idea where its going. Its a huge question. Reporter and the man who could have gotten away with it, except for one phone call that led to an abrupt end to a nearly decade long manhunt. Clark county 911. What is your name sir w. Its jimmy zhong, zhong. Thats just a sneak peek in this documentary irs criminal investigation the agency that investigated the case takes us behind the scenes and shows us how they cracked the mystery here. We also get a detailed look into their interactions with zhong and a look into his bizarre life. You can check it all out on cnbc. Com or look at the qr code in the right hand corner of your screen, you can scan that and get the link directly to the documentary now, kelly. Very good tease. Now i i want to know what happened on that phone call. Me, too. Were going to find a way i have to watch. You have to watch it. What drew you to the story in the first place sfl. Classic tale of unpeeling the onion. The more we dove into it, the more we found all these intriguing little bits and pieces about how this story came together. It starts with that 911 call. This is in athens, georgia. A college town, not known for bigtime crime and yet sitting right there in that bungalow off campus was a guy who had stolen 3 billion in crypto currency. A fascinating story how he thought it would change his life and in the end, it really didnt change his life the way he expected necessarily. Our producer on this spent months and months on it and really did fine work in uncovering the exclusive body cam video and other details that really had never been seen before. Can you tell us where he is now . He is in prison now. He was sentenced to a year and a day. Not to give away too many spoilers, but jimmy zhong started making that 911 call because somebody had stolen from him. But in the documentary, we reveal that those were stolen assets themselves. He was sitting on allegedly 3 billion worth of stolen crypto currency at the time he called the police to report a theft of much less than that. Police got there, the big question is where did you get all this bitcoin from in the first place and that started to unravel the whole history. Can you tell us how much the bitcoin was worth when he first stole it or do we have to watch to find out . You have to watch to find out. 50,000 bitcoins when he stole it back in 2012. So it was worth almost nothing compared to the 3 billion it ultimately ended up being worth. Theres some real interesting comments online already on the Youtube Video that a lot of people here watching this and coming away very sympathetic to jimmy himself, the thief in this case. And very critical of the irs and then some other people who say, you know the ir zx is just doing their job here. They have to go after cases like these. Going to be fascinating. Well watch. Thank you very much. You bet. Thank you. Coming up, dollars, discounts, drugs. Well get the trade on Goldman Sachs, dollar tree and johnson johnson. Theres a fresh three stock lunch on the other side of this break. All right, everyone. Time for todays three stock lunch. Here with our trades, cnbc senior contributor michael farr, chief strategist at hightower advisers. Up first, to johnson johnson, topping Quarterly Earnings and revenue estimates, the company hiking its outlook as med tech pharmaceutical sales surge. The first results since the separation from its consumer held spinoff called kenvue. The stock down almost 2 today and has dropped about 12 this year. Were throwing you some red meat here, michael. Whats your take on j j . Im very unfamiliar with this company, tyler. Ive only talked to you about it 20 years, we go back. First, i cant wait to see this crypto 9 11. 3 billion and he got one year and one day . One year and one day for 3 billion. We need to talk about that later. Johnson johnson, okay, this was not an awful quarter. The numbers were okay. The Talc Liability is still hanging as a cloud above this stock. The pharma had outperformance. The oncology and immunology had outperformance. Oncology, sadless, is a very robust area for any company in the pharma business. The devices were down a little bit, but i think, you know, at 15 times earnings and was down 13 year to date, 3 dividend, and growing earnings at 9 over the next five years, thats probably going to be higher than the s p growing those earnings, and youre able to buy it at a discount on a p e multiple to the s p 500. I like it. As you know, a aaa Balance Sheet ive owned for years and years. I would add at these levels. Its a buy. Michael, theyre going to kill me, kenvue, a quick line. Do you want to own it, happy to own it, youre not worried about its underperformance real quickly . I think the spinoff was probably wise. I sold mine off. Ill take a look once i get a better sense of their financials for the longer term. All right. Appreciate that. To Goldman Sachs then. They reported this morning, topping estimates on stronger than expected bond trading. The stock is trading somewhat under pressure, down 2 today. Is that just the market . Is this better than expected, all Things Considered . What would you do here . They beat a lowered estimate at Goldman Sachs, and im happy theyre getting out of that consumer business. Goldman has not had has not had a great year. Theyre down on the year about 10 , but you compare it to citigroup or bank of america down 26 . Not awful, right . Not awful. Right now Goldman Sachs is one times book value. One times book value. One of the things ive always said tongueincheek but not really, sometimes the customerses make money at Goldman Sachs and sometimes they lose money but Goldman Sachs always makes money. I like this company for the long term. And when things are volatile, and they havent been volatile when things are volatile, they make even more money. A tough time for banks, a raising Interest Rate environment, all of them under pressure. This one will be one of my buys. I would buy it here, not aggressively but im comfortable add to go it here. Dollar tree, shares up more than 4 . The Company Getting an upgrade from the aforementioned Goldman Sachs to buy from neutral. What do you think of dollar tree . This is where i wish i could do a good joan rivers imitation of the, oh, oh, yeah you know. She was so good at that. No is the answer to dollar tree. Goldman likes it. They have four times debt to ebitda at dollar tree, and even though theyve outperformed down 20 on the year Dollar General is down 52 for the year. Weve seen consumers spending and retail sales today were strong. At some point the consumer is running out of wallet. Weve seen the credit card bills start to mount. This is low end consumer stuff. I dont like the debt. Sales were up 9 and yet earnings are down 40 , so theyre not able to pass the cost structure along, and with four times ebitda debt as those Interest Rates go up, that will really eat into margins and hurt those earnings Going Forward. Im on the sidelines when it comes to dollar tree, absolutely. Sell it. Thats a yuck from michael farr. The joan rivers yuck. Good to see you. Nice to see you. Its closing time after the break. Power e trades easytouse tools, like dynamic charting and riskreward analysis help make trading feel effortless. And its customizable scans with social sentiment help you find and unlock opportunities in the market. E trade from Morgan Stanley. With powerful, easytouse tools, power e trade makes complex trading easier. React to fastmoving markets with dynamic charting and a futures ladder that lets you place, flatten, or reverse orders so you wont miss an opportunity. E trade from Morgan Stanley hi, im jason. Ive lost 228 pounds on golo. Changing your habits is the only way that gets you to lose the weight. And golo is the plan thats going to help you do that. Just take the first step, go to golo. Com. This is american infrastructure, a prime target for cyberattacks. But the same aipowered security that protects all of google also defends these services for everyone who lives here. Businesses need 5g solutions today. Thats why they choose tmobile for business. Mlb partners with tmobile to not only enhance the fan experience, but to advance how the game is played. Aaa relies on tmobiles network to stay connected nationwide, so they can help get their members back on the road. And were helping pano ai innovate, to stop the spread of wildfires. Nows the time to see what americas largest 5g network can do for your business. Welcome back. 90 seconds left. Lets get through as many stories as we can, and well start with the lending tree survey finding 51 of American Adults think theyre better off financially than their parents were at their age. The number is 57 for genz. Theyre feeling better . Were really teeing up the next story. This next story must apply to the other half of genz. According to red fin, 30 of home buyers under age 30 received money from their family top with the down payment giving rise to the term nepohome buyers. Nepotism, i guess, is the root there. Its unavoidable. This widens incoming wealth and equality. Its great to draw on the resource it is you have them. And one of the top cellists in the world, yoyo mas concert ticket fetching more than 2,200, similar in price to swifts eras tour show in argentina, nine times the price sold by the concert organizer. The yo yo ma film should i see it . I will say we always get our taylor swift news in here. I love the fact this is yoyo ma coming in hot. I wonder who hell be dating. Theyre both on the market. Thanks for watching power lunch. Closing bell starts right now. Welcome to closing bell. Im Michael Santoli in for scott wapner. This make or break hour begins with more evidence of a hot economy, scorching Bond Investors sending triesry yields to new highs and boosting cyclical stocks at the expense of stocks. A fourweek high before again backing off around midday. The small cap russell 2000 is popping for a second day in a row. To our talk of the tape. Can good news of the economy